Nykaa, the leading online beauty and fashion platform, has reported impressive results for the third quarter of FY24, showing strong growth in revenue and profitability.
Revenue from operations grows by 18.7% QoQ and 22.3% YoY
Nykaa’s revenue from operations increased by 18.7% to Rs 1,788.8 crore in Q3 FY24, compared to Rs 1,507 crore in Q2 FY24. The company also registered a 22.3% year-on-year growth in revenue, as it had posted Rs 1,462.8 crore in Q3 FY23.
The company attributed its revenue growth to the strong performance of its beauty and personal care (BPC) and fashion segments, which saw a 25% and 40% increase in gross merchandise value (GMV) respectively, on a year-on-year basis.
Nykaa’s overall revenue, which includes other income, stood at Rs 1,796.4 crore in Q3 FY24, inching closer to the Rs 1,800 crore mark. For the nine months period of FY24 (April-December 2023), the company’s revenue from operations amounted to Rs 4,717.6 crore.
Profitability improves as EBITDA margin expands to 5.5%
Nykaa also improved its profitability in Q3 FY24, as its net profit nearly doubled to Rs 17.45 crore, from Rs 8.48 crore in Q3 FY23. The company’s profit in Q2 FY24 was Rs 7.8 crore, indicating a sequential growth of 123.7%.
The company’s earnings before interest, tax, depreciation and amortization (EBITDA) rose by 26% year-on-year to Rs 98.8 crore in Q3 FY24, resulting in an EBITDA margin of 5.5%, compared to 4.4% in Q3 FY23.
Nykaa said that its profitability improvement was driven by direct and indirect cost efficiencies, as it reduced its fulfilment cost and employee expense as a percentage of revenue. The company’s fulfilment cost, which includes shipping, warehousing and packaging expenses, was 9.6% of revenue in Q3 FY24, down from 10.7% in Q3 FY23. Similarly, the company’s employee expense, which includes salaries, benefits and stock-based compensation, was 8.3% of revenue in Q3 FY24, down from 8.7% in Q3 FY23.
Nykaa continues to expand its customer base and product portfolio
Nykaa said that it continued to expand its customer base and product portfolio in Q3 FY24, as it added 1.8 million new customers and launched over 40 new brands on its platform. The company claimed that it had over 50 million monthly active users and over 16 million transacting customers as of December 31, 2023.
The company also said that it increased its offline presence by opening 12 new Nykaa stores and 4 new Nykaa Fashion stores in Q3 FY24, taking its total store count to 82 and 14 respectively. The company said that its offline channel contributed 11% of its BPC GMV and 19% of its fashion GMV in Q3 FY24.
Nykaa’s founder and CEO, Falguni Nayar, expressed her satisfaction with the company’s performance in Q3 FY24, and said that the company was well-positioned to capture the growing opportunities in the online beauty and fashion market in India.
“We are delighted to report another quarter of strong growth and profitability, as we continue to deliver on our mission of providing the best products and services to our customers. We are confident that our focus on customer-centricity, innovation and operational excellence will enable us to sustain our leadership position in the online beauty and fashion space in India,” she said.
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