NEW DELHI: After Zomato and Paytm, Nykaa, the other big listed e-commerce firm, had a disappointing March quarter. While Paytm and Zomato reported a significant surge in quarterly losses in Q4FY22, Nykaa’s profit dwindled by more than half in the same quarter.
FSN E-commerce, which operates Nykaa, on Friday reported a 58% year-on-year (YoY) decline in consolidated profit after tax (PAT) to Rs 7.6 crore, owing to a sharp surge in expenses. The company, however, reported that its revenue from operations grew 31% YoY to Rs 973.3 crore in Q4FY22.
“The year has witnessed a challenging macroeconomic environment, pronounced for discretionary categories like beauty, personal care and fashion,” Falguni Nayar, executive chairperson, managing director and CEO, said in a statement.
Nykaa witnessed a 35% increase in its total expenses in the fourth quarter of FY22 to Rs 978.64 crore as its marketing and advertisement expenses increased 66% to Rs 116.5 crore. For the full financial year 2022, Nykaa reported a 33% decline in its net profit at Rs 41.3 profit as its operating expenses grew 87% to Rs 1,480.7 crore.
However, revenue from operations grew 55% to Rs 3,773.9 crore while operating expenses rose 87% to Rs 1,480.7 crore. Nykaa’s share prices in the calendar year 2022 have corrected by 35% and currently, it is trading at Rs 1,358 apiece, over 42% of its listing price.