Nykaa's Q4 profit falls 71% YoY to Rs 2.4 Cr hurt by rising expenses
Nykaa's Q4 expenses shot up to Rs 1,302 crore, a 33% jump from Rs 978 crore in the same quarter last year.
Beauty retailer Nykaa's profit in the fourth quarter fell 71% to Rs 2.4 crore, down from Rs 8.5 crore in the year-ago period. Its revenue rose 33% to Rs 1,301 crore in the same period.
The Mumbai-based company's revenue for fiscal year 2023 grew 36% to Rs 5,143 crore, while profit more than halved to Rs 19.2 crore from Rs 41 crore last year.
Expenses in Q4 shot up to Rs 1,302 crore, a 33% jump from Rs 978 crore in the same quarter last year. In FY23, reported a 36% increase in expenses to Rs 5,135 crore compared to last year.
The Falguni Nayar-led company spent Rs 18.2 crore as of March 2023 for setting up retail stores under Nykaa's beauty and fashion brands, while Rs 32.4 crore was used for expanding warehouses, the company said in a regulatory filing.
The purchase of traded goods was the highest expense for the retailer last quarter at Rs 601 crore, followed by other expenses and employee benefit expenses.
Last year, Nykaa acquired three companies—a 18.5% stake in Earth Rhythm for Rs 41.6 crore in May, a 60% stake in Nudge Wellness for Rs 3.6 crore in June, and 100% stake in lluminar Media for Rs 29 crore in September.
Nykaa's shares on Wednesday closed 2.6% lower at Rs 125 apiece.
(This is a developing story and will be updated with more information.)
