Nykaa registers over 33% growth in Q1 PAT, revenue climbs nearly 41%

In March 2022 quarter, the company had posted a net profit of ₹8.56 crore and ₹973.32 crore respectively.

During the quarter, gross profit increased 54% yoy to ₹509.9 crore. While gross margin as a percentage of revenue increased to 44.4% in Q1FY23 versus 40.6% in Q1FY22.

Further, GMV increased 47% yoy to ₹2,155.8 crore in the first quarter of FY23.

Meanwhile, EBITDA climbed 71% yoy to ₹46.1 crore in Q1FY23. EBITDA margin as a percentage of Revenue from Operations improved to 4.0% in Q1 FY2023 versus 3.3% in Q1 FY2022, led by improvement in gross margin and efficiency in fulfilment expense.

Falguni Nayar, Executive Chairperson, MD, and CEO of Nykaa said, “Our business continues to grow across the verticals, despite an adverse and challenging macroeconomic environment, demonstrating the strength of our business fundamentals and unique customer-first experiences. The beauty vertical, online and offline, is witnessing growth momentum while building efficiencies across the value chain. As a result of the significant discipline that we ensured in our retail store business during the COVID-affected periods, we are now witnessing the positive effect of scale on our unit economics, especially with the return of offline shopping behavior. The consumer demand for beauty, personal care and wellness is also showing early signs of recovery and we are gearing up for a promising festive season this year.”

“We continue to invest in building a unique customer proposition in fashion, with developments in platform experience and assortment depth. We also strengthened our purpose-led owned brands portfolio, through the launch of Twig & Twine, Gloot, Azai, and the acquisition of Kica. The sequential growth of Fashion over Q3 and Q4 of last year comes as a result of these building blocks along with the industry witnessing revival as factors such as mobility and travel improve,” Nayar added.

In Q1 FY23, Nykaa expanded warehouse storage space by 2.3 lacs sq. ft. by opening 7 new warehouses There were 30 fulfillment centers across 14 cities with a total capacity of 10.5 Lacs sq. ft.

This quarter, the company accelerated its offline expansion with 8 physical stores across cities like Pune, Coimbatore, Delhi, Ranchi, Ahmedabad, and Kolkata. Its total physical stores’ count was 113 stores across 52 cities as of June 30, 2022

The Chairperson said that Nykaa remains focused on investing in growth engines of the future, particularly Superstore by Nykaa, Nykaa Man, and international operations. In each of these, Nykaa’s efforts are towards building the business model in a sustainable manner. She said, “We are witnessing promising revenue growth in these ventures, giving us confidence in our ambitions.”

On BSE, Nykaa shares closed at ₹1,412.60 apiece down by ₹28.65 or 1.99%. The company’s market cap is around ₹66,994.56 crore.

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