SUMMARY
- The beauty and fashion e-commerce platform Nykaa’s earnings from operations have risen by 22.8% YoY to Rs 1,746 crore from Rs 1,421.8 crore in Q1 FY24 and increased 4.7% QoQ from Rs 1,668 crore in Q4 FY24.
- Its net profit has surged 152% YoY to Rs 13.6 crore in the quarter under review from Rs 5.4 crore in Q1 FY24, also growing 51% QoQ from Rs 9.07 crore in the preceding quarter.
- The total expenses in the quarter under review grew 22% YoY to Rs 1,731.4 crore from Rs 1,418.8 crore in Q1 FY24.
The beauty and fashion e-commerce platform Nykaa has successfully boosted its top line in Q1 FY25 as its earnings from operations have risen by 22.8% YoY to Rs 1,746 crore from Rs 1,421.8 crore in Q1 FY24, and increased 4.7% QoQ from Rs 1,668 crore in Q4 FY24.
According to its unaudited consolidated financial statements sourced from the National Stock Exchange, its net profit has surged 152% YoY to Rs 13.6 crore in the quarter under review from Rs 5.4 crore in Q1 FY24, also growing 51% QoQ from Rs 9.07 crore in the preceding quarter.
In Q1 FY25, Nykaa handled 12.4 million beauty orders and 1.7 million fashion orders. The average order value for beauty was Rs 1,924, while for fashion, it was Rs 4,237.
The total expenses in the quarter under review grew 22% YoY to Rs 1,731.4 crore from Rs 1,418.8 crore in Q1 FY24. The cost of purchased traded goods increased 77% YoY to Rs 1,171.8 crore accounting for 67% of the total while employee benefit cost was Rs 155.9 crore in Q1 FY25, showing 12.5% YoY growth from Rs 138.58 crore in Q1 FY24. The cost of marketing and promotions accounted for Rs 194.9 crore, up from Rs 156.7 crore in Q1 FY24 while the fulfilment cost increased 22.8% YoY to Rs 166.7 crore.
In the company’s first-quarter earnings discussion, Nykaa’s top executive and leader, Falguni Nayar, attributed the company’s financial growth to recent restructuring efforts and other strategic actions.
Nykaa’s gross merchandise value (GMV) increased by 25% YoY, reaching Rs 3,320.9 crore in Q1 FY25, with its beauty and personal care segment experiencing more significant growth than Nykaa’s fashion division.
The GMV of beauty and personal care segment saw a 28% YoY growth, reaching Rs 2,542.9 crore in the quarter under review, while Nykaa’s fashion segment saw a 15% YoY increase, reaching Rs 774.1 crore.
Additionally, Nykaa’s network of stores surpassed 200 locations in July 2024.
The Falguni Nayar-led company has strengthened its position in its subsidiary Dot & Key by increasing its ownership to 90% with a cash infusion of Rs 265.3 crore to acquire 39% additional stake. Notably, it has also expanded its involvement in Earth Rhythm for Rs 44.5 crore.
Nayar commented on the Dot & Key acquisition, mentioning that the brand has grown 9X over the last three years and its growth pace remains consistent.
She added, “This has been a fantastic investment by Nykaa and (that’s why we have) decided to go ahead and acquire an additional 39% stake… What we like about Dot & Key is it has a differentiated assortment. It also has clutter-breaking packaging, unique and patented. And finally, they also tend to focus on core categories like sunscreen and moisturisers, which constitute a very large part of the skincare category. So, this gives a presence to Nykaa in some very important categories.”
