BENGALURU: Beauty retailer Nykaa on Monday posted a 50% increase in its consolidated net profit at Rs 7.8 crore for the second quarter ending September 30, compared to Rs 5.2 crore profit in the same quarter a year-ago. The company’s consolidated revenue from operations increased 22% to Rs 1,507 crore in the second quarter of the current financial year compared to Rs 1,231 crore in the year-ago period.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin stood at 5.4% in the second quarter of FY24 compared to 5.0% in Q2 FY23, an expansion of 38 bps on the back of both direct and indirect cost efficiencies.
While gross margin as a percentage to revenue from operations is lower by 221 bps YoY, when compared sequentially, to Q1FY24, the gross margin profile is stable, the company said.The festive season is a big driver for consumption in the beauty category and a shift of about 20 days in the festive calendar has resulted in some growth being impacted for the quarter, Nykaa said.
Its consolidated revenue from operations in the fashion business stood at Rs 130.5 crore, a growth of 28% on a YoY basis. New businesses at Nykaa, which includes Superstore by Nykaa, witnessed NSV( net sales value) of Rs 98.6 crore for the quarter, growing at 105% on a YoY basis. Superstore business has scaled up to serving about 1.3 lakh transacting retailers across 770 cities as on September 30, 2023.
“Our fashion business continues to scale with improving profitability. Contribution margin as a % to NSV for Nykaa Fashion was at 4.7% in Q2 FY24 compared to 2.3% in Q2 FY23, supported by improvement in our pre delivery leakages and marketing expenses,” the company said. Nykaa Fashion experienced promising growth on the back of the long-term investments that the company made in building the platform capabilities.