FSN E-Commerce Ventures Ltd, Nykaa’s parent company, has reported steep declines in profits in all three quarters since it went public, owing to its efforts to double down on marketing the brand as it emerges from the pandemic.
Reuters
May 27, 2022 / 06:30 PM IST
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Indian beauty products retailer Nykaa reported a 49 percent fall in quarterly net profit on Friday, hit by soaring expenses amid dull demand for its personal care and fashion products.
FSN E-Commerce Ventures Ltd, Nykaa’s parent company, has reported steep declines in profits in all three quarters since it went public, owing to its efforts to double down on marketing the brand as it emerges from the pandemic.
The cosmetics-to-fashion platform, headed by Falguni Nayar, has said its marketing expenses in 2020 came in exceptionally low as it did not spend as much on advertising due to the pandemic.
For the fourth-quarter ending March 31, however, total costs jumped to Rs 979 crore from Rs 725 crore a year earlier.
Consolidated net profit fell to Rs 8.56 crore ($1.10 million), from Rs 16.88 crore a year ago, the company said in a regulatory filing.
Revenue from operations rose to Rs 973 crore from Rs 741 crore.
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