Nykaa Q3 FY24 net profit rises 105% to Rs 17.4 Cr led by strong festive season demand

Beauty retailer Nykaa recorded its highest-ever quarterly profit in the third quarter of financial year 2024, driven by strong festive season demand during the quarter.

FSN E-commerce Ventures—the parent company of Nykaa—reported a quarterly profit of Rs 17.4 crore in Q3 FY24, up by a whopping 105% from Rs 8.4 crore in the same period last year. The Falguni Nayar firm’s revenue from operations rose 22% to Rs 1,788.7 crore year-over-year (YoY).

Meanwhile, total expenses surged to Rs 1,769.8 crore, up 21% from Rs 1,455.7 crore in the year-ago period.

Nykaa's Pink Friday Sale, held in November last year, saw a record number of unique visitors, the company said, with gross merchandise value (GMV) witnessing a 67% YoY growth. The firm’s overall GMV grew 29% to Rs 3,619 crore YoY.

Beauty and personal care—Nykaa’s biggest revenue generator—recorded a 25% YoY rise in GMV to Rs 2,369.7 crore in the October-December quarter. Meanwhile, Nykaa Fashion’s GMV rose 40% to Rs 1,012.5 crore in the quarter.

At market close on Tuesday, Nykaa shares were trading at Rs 160.55 apiece on the Bombay Stock Exchange.

In a stock exchange filing, Nykaa said the company's Board approved an investment of Rs 150 crore into Nykaa Fashion—its second-largest business by revenue—through a rights issue, aimed at repaying loans given by Nykaa to the fashion vertical.

The Board further approved the acquisition of Nykaa Fashion’s athleisure and lingerie business in a slump sale "to streamline and consolidate owned brand business in a single entity in a phased manner, similar to beauty owned brands business already within FSN E-commerce Ventures Ltd," Nykaa said in a statement.

The Board also approved the demerger of Nykaa’s e-B2B business, Superstore by Nykaa, from FSN Distribution Limited to Nykaa E-Retail Ltd to consolidate its online beauty business in a single entity. 

The proposed demerger will drive synergies in two businesses with common physical and technology infrastructure, common brand partners and involved in the retail/distribution of common products, it noted.

“The key objective of these initiatives is towards bringing in operational synergies by streamlining business operations and placing them with the entity that carries the relevant expertise and consolidation of owned brands business in the Company which is aimed to be completed over a period of time,” Nykaa added.

(This story was updated with additional details.)