Nykaa reports PAT growth of 42% on a consolidated basis, to acquire Little Black Book

FSN E-Commerce Ventures Private Limited, the parent entity of beauty retailer Nykaa, reported consolidated net profit after tax of Rs 5 crore for the quarter ending June 30 for FY 2023—a 42% growth from Rs 3.52 crore recorded in the year-ago period. On a sequential basis, the company’s net profit after tax slipped by 34% from Q4 FY2022.

The company reported revenue from operations of Rs 1,148.4 crore—up 40.58% from Q1 FY2022 at Rs 816.69 crore. Sequentially, revenue from operations grew by 17.8%, a quarter-on-quarter basis for Q1 FY 2023. 

The company also announced the acquisition of Iluminar Media Private Limited, which owns and operates online ecommerce discovery and digital content platform, LBB(Little Black Book). Nykaa did not disclose the valuation at which it was buying out Little Black Book, which registered revenues of Rs 19.6 crore for FY 2022. 

“The transaction will enable the company to strengthen its content delivery, drive discovery for brands and make shopping experience more engaging for customers,” said Nykaa in the filings made with the markets. 

On a consolidated level, Nykaa’s GMV (Gross Merchandise Value) grew 47% year-on-year to Rs 2, 155.8 crore. The GMV for Nykaa’s beauty business grew by 39% year-on-year to Rs 1,488.8 crore for Q1 FY 2023. The GMV for NYkaa’s fashion business grew 59% year-on-year to Rs 582 crore for the quarter. On a consolidated basis, the contribution of fashion GMV stood at 27% for Q1, 2023.

“The beauty vertical, online and offline, is witnessing growth momentum while building efficiencies across the value chain. As a result of the significant discipline that we ensured in our retail store business during the COVID-29 affected periods, we are now witnessing the positive effect of scale on our unit economics, especially with the return of offline shopping behaviour,” said Falguni Nayar, Executive Chairperson, MD and CEO of Nykaa in a media release. 

She added, “We remain focused on investing in growth engines of the future, particularly Superstore by Nykaa, Nykaa Man and international operations. In each of these, our efforts are towards building the business model in a sustainable manner.”

Nykaa expanded its portfolio of brands, including home decor brand Twig & Twine, men’s innerwear and athleisure brand Gloot, accessories brand Azai, and athleisure for women, Kica. The company said that the total store count for brick and mortar retail stood at 113 stores across 52 cities as of June 30, 2022.