Nykaa reports profit jump boosted by strong demand for fashion products

0
33

The parent company of Indian cosmetics-to-fashion retailer Nykaa on Friday reported a 33.2 percent increase in first-quarter net profit, boosted by strong demand for its fashion products. The TGP-backed company, which dominates the domestic online beauty and personal care space with nearly 30 percent market share, is in a wave of acquisitions and has recently ventured into the menswear and athleisure category with a new brand.

Nykaa made a strong market debut in November 2021, achieving the country’s first female-led unicorn with a valuation of nearly $14 billion (approximately Rs. 1,11,200 crore).

See also  Pixel 7, Pixel 7 Pro launch date tipped for October 6

The company said its gross trade value (GMV) increased by 47 percent to Rs. 2,156 crore in the quarter. GMV of the fashion industry was up 59 percent, while that of the beauty and personal care business was up 39 percent.

“Consumer demand for beauty, personal care and wellness is also showing early signs of recovery and we are gearing up for a promising festive season this year,” said Nykaa CEO and General Manager Falguni Nayar.

The consolidated net profit for Nykaa parent company FSN E-Commerce Ventures Ltd was Rs. 4.55 crore for the quarter ended June 30, compared to Rs. 3.42 crore a year earlier.

See also  Meta partners with DressX to launch more items in Avatar Store

Sales increased by 40.6 percent to Rs. $1,148 million.

Last November, Nykaa rose to nearly Rs. Valuation of 1 lakh crore after blockbuster IPO debut. The debut price was a premium of 79.4 percent over the initial public offering price (IPO) of Rs. 1,125, giving the company a valuation of Rs. 95,437 crores.

The company’s offering last year attracted bids worth $32.55 billion (approximately Rs. 2,42,119 crore) because it was nearly 82 times oversubscribed, indicating strong investor demand for a startup that, unlike many others, is already profitable.

See also  Singapore's 60-year-old model Ong Bee Yan launches a timeless fashion capsule with a local label

Operating in two broad segments, namely Beauty & Personal Care and Apparel & Accessories, Nykaa was founded in 2012 and quickly became a popular name among Indian consumers.

The company, whose investors include private equity firm TPG, Fidelity and Indian celebrities Alia Bhatt and Katrina Kaif, is conducting its online business through mobile applications and websites, along with 80 brick-and-mortar stores across the country, as of August 31.

© Thomson Reuters 2022


.

LEAVE A REPLY

Please enter your comment!
Please enter your name here