Nykaa , the beauty and fashion e-tailer operated by FSN E-Commerce Ventures Ltd, has reported a robust financial performance for the second quarter, with significant growth in both revenue and profitability.

Strong Financial Performance

Nykaa's consolidated net profit for Q2 surged to ₹34.00 crore, marking a substantial 243% year-over-year increase from ₹10.00 crore in the same period last year. On a sequential basis, the net profit grew by 48% from ₹23.00 crore in the previous quarter.

The company's revenue from operations reached ₹2,346.00 crore, representing a 25% year-over-year growth from ₹1,875.00 crore. Sequentially, revenue increased by 9% from ₹2,155.00 crore in the previous quarter.

Gross Profit and Margin Improvement

Nykaa's gross profits stood at ₹1,054.00 crore, accounting for 50% of net revenues and showing a 28% year-over-year increase. The company noted that the gross margin for the quarter was the highest in the last 12 quarters, indicating improved operational efficiency.

Segment Performance

The Beauty segment continued its strong performance with a Gross Merchandise Value (GMV) of ₹3,551.00 crore, growing 28% year-over-year. The Fashion segment showed renewed growth momentum, with its GMV reaching ₹1,180.00 crore, up 37% compared to the same quarter last year.

Operational Highlights

• The company's cumulative customer base grew to approximately 49 million, reflecting a 32% year-over-year increase.
• Nykaa expanded its physical presence to 265 beauty stores across 90 cities, adding 19 new stores in Q2.
• The company's House of Nykaa portfolio, which includes owned beauty and fashion brands, recorded a 54% year-over-year GMV growth.

Management Commentary

Falguni Nayar, Executive Chairperson, Founder, and CEO of Nykaa, commented on the results: "Our performance this quarter reflects accelerated growth momentum across Nykaa, with each of our businesses contributing meaningfully to this trajectory. The Beauty business continues to deliver consistently, achieving over 25% GMV growth for several consecutive quarters."

Future Outlook

With its strong performance in both beauty and fashion segments, along with expanding offline presence and growing customer base, Nykaa appears well-positioned in the Indian beauty and fashion e-commerce market.

Investors and analysts will likely keep a close watch on Nykaa's ability to maintain its growth trajectory and profitability in the coming quarters, especially in light of the evolving e-commerce landscape in India.

Nykaa (FSN E-Commerce Ventures Ltd) is expected to deliver robust financial results for the July-September quarter, according to analyst projections. The beauty and fashion e-tailer's growth trajectory is anticipated to be driven by festive demand and a strong performance in its core beauty segment.

Projected Financial Performance

Analysts estimate that Nykaa will see a year-on-year revenue growth of 25-27% for the second quarter of the fiscal year. Here's a breakdown of the key projections:

Segment-wise Performance

Beauty and Personal Care (BPC)

The BPC segment, which is Nykaa's core business, is expected to be the primary growth driver. Nuvama projects a 32% year-on-year increase in GMV for this segment, while Kotak Equities estimates a 26% growth.

Fashion Segment

The fashion vertical is also anticipated to contribute significantly to Nykaa's growth. Nuvama forecasts a 25% year-on-year growth for this segment, although Kotak Equities provides a more conservative estimate of 14% growth.

Factors Contributing to Growth

Several factors are believed to be contributing to Nykaa's projected strong performance:

1. Festive demand
2. Hybrid marketplace model
3. Strategic brand partnerships
4. Improved inventory control
5. Operating leverage
6. Reduced losses in the fashion segment

Bottom Line

The projected financial results suggest a positive outlook for Nykaa, with significant improvements expected across various financial metrics. The substantial year-on-year jump in net profit, as projected by Kotak Equities, particularly stands out as an indicator of the company's improving profitability.

As Nykaa continues to leverage its strong position in the beauty and personal care market while expanding its fashion segment, investors and market watchers will be keen to see if these projections materialize when the company releases its official Q2 results.