New Delhi: India’s FSN E-Commerce Ventures Ltd, parent of cosmetics-to-fashion retailer Nykaa, on Wednesday reported a nearly 50% jump in fourth-quarter profit before tax, helped by a sales campaign that helped customers beat inflation. Persuaded to buy despite pressure from
Nykaa’s consolidated net profit before tax, attributable to equity shareholders, rose to Rs 86.29 million ($1.06 million) from Rs 58.16 million a year ago. However, the company’s profit after tax fell 71.8% as it reported a tax profit of Rs 17.6 million in the March quarter of FY2022. ,Also read: Facebook owner Meta begins final round of layoffs,
Its earnings before interest, tax, depreciation and amortization (EBITA) margin rose to 5.4% from 4% a year ago, with the average order value rising 5% to Rs 1,803. ,Read also: ChatGPT helps find apartments in Berlin: Here’s how,
The lipstick effect – where customers are willing to buy less expensive items during an economic downturn – was on full display this quarter, with Nykaa’s ‘Pink Love’ sales campaign playing a key role in driving sales.
Orders grew 22% in the quarter with merchandise value (GMV) – the monetary value of orders on its platform – rising 36% to Rs 24.45 billion.
GMV from beauty and personal care (BPC) business, which accounts for around 67% of total GMV, grew by 29%.
Nykaa shares closed down 2.7% ahead of the results. The stock fell 19.3% in the January-March quarter compared with a 1% rise in the benchmark Nifty 50.