SUMMARY
Nykaa shares opened at INR 170.05 apiece on Wednesday, almost 6% higher as compared to INR 160.5 at previous close
However, the stock gave up the gains later and it was trading at INR 160.2 apiece at 12:29 PM on BSE
The Falguni Nyaar-led companies consolidated net profit more than doubled to INR 17.4 Cr in the December quarter
Beauty and fashion ecommerce major Nykaa’s shares surged 6% during the trading session on Wednesday (February 7) after the company reported that its consolidated net profit more than doubled in the third quarter of FY24.
Nykaa shares opened at INR 170.05 apiece on Wednesday, almost 6% higher as compared to INR 160.5 at a previous close. However, the stock gave up the gains later and it was trading at INR 160.2 apiece at 12:29 PM on BSE.
The Falguni Nyaar-led companies consolidated net profit more than doubled to INR 17.4 Cr in the December quarter (Q3) of the financial year 2023-24 (FY24) from INR 8.5 Cr in the year-ago quarter, helped by a steady improvement in its fashion business in the festival season.
Operating revenue grew 22% to INR 1,788.8 Cr in the reported quarter from INR 1,462.8 Cr posted in Q3 FY23.
The startup’s top line also improved 18.7% sequentially from INR 1,507 Cr.
The company said its consolidated GMV in the beauty and personal care (BPC) segment witnessed a growth of 25% YoY to INR 2,369.7 Cr in the reported quarter, which was led by a sharp increase in the demand for premium BPC brands.
Nykaa’s fashion vertical posted a 40% YoY increase in GMV to INR 1,012.5 Cr in Q3 FY24. The segment contributed an operating revenue of INR 152.6 Cr during the quarter, an increase of 20% from INR 127.5 Cr in the same period last year.
Nykaa is investing an additional INR 150 Cr into Nykaa Fashion Ltd, a wholly owned subsidiary which operates the company’s fashion vertical, via rights issue for repayment of loans given by the parent to the subsidiary.
It also announced the demerger of its B2B platform ‘Superstore by Nykaa’ from a wholly owned subsidiary FSN Distribution Limited to another such subsidiary Nykaa E-Retail Ltd.
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