Consolidated net profit of FSN E-Commerce Ventures (Nykaa) increased 33% to Rs 4.55 crore in the first quarter of FY23 from net profit of Rs 3.42 crore in the first quarter of exercise 22.
Operating revenue jumped 41% year-on-year (YoY) to Rs 1,148.42 crore in the first quarter of FY23. Pre-tax profit rose to Rs 8.34 crore in the first quarter of FY23, compared to Rs 3.15 crore in the first quarter of FY22.
Gross profit jumped 54% year-on-year to Rs 509.9 crore in the first quarter of FY23 with a margin of 44.4%, up 380 bps year-on-year. EBITDA increased by 71% to Rs 46.1 crore in the first quarter of FY23 with a margin of 4% (vs. 3.3% in the first quarter of FY22), driven by the improvement in gross margin and efficiency of fulfillment expenses.
During the quarter, the company’s cost of goods sold jumped 32% year-on-year to Rs 638.5 crore. Operating expenses rose 52% year-on-year to Rs 463.8 crore. Execution expenses were reported at Rs 105 crore (up 12%), marketing and advertising expenses were reported at Rs 137.6 crore (up 52%) and employee benefits expenses were at Rs 114.7 crore (up 58%).
Consolidated GMV (gross merchandise value) increased by 47% year-on-year to reach Rs 2,155.8 crore in the first quarter of FY23.
Beauty and Personal Care (BPC) GMV rose 39% YoY to Rs 1,488.8 crore in the first quarter of FY23. Fashion GMV jumped 59% YoY to Rs 582 crore rupees in Q1 FY23. Fashion GMV contributed 27% to consolidated GMV in Q1 FY23.
The annual number of customers with unique transactions in the BPC vertical increased 33% year-on-year to 8.6 million, and in the fashion vertical, it jumped 99% year-on-year to 2 million in the first quarter of FY23.
Order volume in the BPC vertical increased 40% year-on-year to 8.1 million, and in the fashion vertical, it increased 58% year-on-year to 1.1 million during for the quarter ended June 30, 2022.
Falguni Nayar, Executive Chairman, MD and CEO, said: Our business continues to grow across all verticals, despite an unfavorable and challenging macroeconomic environment, demonstrating the strength of our business fundamentals and unique customer-focused experiences. The beauty vertical, online and offline, is experiencing growth momentum while driving efficiencies across the value chain. Due to the significant discipline we have ensured in our retail store operations during the times affected by COVID, we are now seeing the positive effect of scale on our unit economy, particularly with the return of behavior offline shopping. Consumer demand for beauty, personal care and wellness is also showing early signs of recovery and we are preparing for a promising festive season this year.
We continue to invest in building a unique customer proposition in fashion, with developments in platform experience and assortment depth. We also strengthened our portfolio of targeted own brands, thanks to the launch of Twig & Twine, Gloot, Azai and the acquisition of Kica. Fashion’s sequential growth in the third and fourth quarters of last year is the result of these building blocks, as well as the industry’s recovery as factors such as mobility and travel improve. .
We remain focused on investing in the growth engines of the future, in particular Superstore by Nykaa, Nykaa Man and international operations. In each of them, our efforts are aimed at building the business model in a sustainable way. We are seeing promising revenue growth from these companies, which gives us confidence in our ambitions.
Meanwhile, the company’s board of directors has approved the acquisition of 100% of the fully diluted share capital of luminar Media (known as “Little Black Book”). The acquisition will allow the company to strengthen its content delivery, drive brand discovery and make the shopping experience more engaging for customers.
Nykaa is a leading lifestyle-focused consumer technology platform. Since its launch, it has expanded its product categories by introducing online platforms Nykaa Fashion, Nykaa Man and Superstore. Offering a complete omnichannel e-commerce experience, Nykaa offers over 4,000 brands and over 3.1 million product SKUs through its website and mobile apps.
Shares of FSN E-Commerce Ventures rose 0.88% to Rs 1,425 on BSE.
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