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Nykaa Q2 net profit falls 95% even as revenue surges 47% – Mint

Online beauty retailer Nykaa today reported consolidated net profit of 1.2 crore for the quarter ending September, 2021, down 95% from 27 crore reported in the same quarter last year.

The company’s operating profit came in at 28 crore during the quarter, with an EBITDA margin of 3.3%.

Its revenue from operations increased to 885 crore with a growth of 47% on year-on-year basis and 8% on sequential basis. Marketing support revenue grew by 68% year-on-year.

The company’s consolidated Gross Merchandise Value (GMV) during the reporting period grew by 63% year-on-year and 10% quarter-on-quarter to 1,622 crore.

Beauty and personal care GMV registered a growth of 38% year-on-year to reach 1,185 crore and fashion GMV rose 215% year-on-year to 437 crore.

“We have maintained growth momentum in our beauty business, accelerated our fashion business and focused on building the brand Nykaa with strong marketing campaigns both digitally and mass media. Increased marketing spends has led to acceleration of customer acquisition, also evident in the unique visitor and transacting customer metrics,” said Falguni Nayar, MD and CEO of Nykaa.

Monthly average unique visitors during the quarter increased to 21 million with year-on-year growth of 62% in beauty and personal care vertical and to 16 million with YoY growth of 328% in fashion vertical.

“The company continues to invest in expansion of retail stores and fulfilment capacity ahead of the festive season. In terms of new initiatives, we are pleased to announce the acquisition of the skincare brand, Dot & Key which marks a significant step towards our owned brands strategy,” Falguni Nayar further said.

Shares of Nykaa, made a stellar stock markets debut recently on Wednesday, 10 November. The stock was listed at 2,018, a 79.37% premium over its issue price of 1,125 apiece.

The market capitalisation zoomed past 1 lakh crore on the day of listing and the firm entered the top 50 most valuable companies club.

The 5,350 crore initial public offering (IPO) of Nykaa was subscribed 82 times during its share sale that ended on 1 November.

On Friday, ahead of the results, Nykaa shares were up 5.26% to close at 2,329.95 apiece on NSE.

Nykaa said, during the quarter it has acquired 51% stake in Dot & Key Wellness and also launched a ‘Superstore’.

SuperStore is an e-B2B platform bringing beauty and personal care access and expertise to underserved channels and markets using technology.

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