Cosmetics and fashion marketplace Nykaa has posted a 120% rise in quarterly profit after tax, helped by strong performance of its beauty and international segment. FSN E-Commerce Venture, the parent company of Nykaa, clocked a profit after tax of Rs 14.24 crore during the first quarter, compared Rs 6.
45 crore in 2023, according to regulatory filings made with the BSE. The Falguni Nayar-led company posted a 23% growth in operating revenue to Rs 1,746 crore from Rs 1,422 crore reported in the comparable period a year ago. This is in line with the company’s expectation of 22%-23% revenue growth in the April-June quarter as mentioned in a filing with the exchange.
Shares of the company fell 3.39% to Rs 188 apiece on NSE. Operating revenue for its beauty and personal care segment rose 22% YoY to Rs 1,593.
51 crore while revenue from its international beauty arm more than tripled to Rs 4 crore. In a separate filing, Nykaa also informed about the acquisition of an additional 39% stake in Dot & Key Wellness Private Limited from existing shareholders for a consideration of up to Rs 265.3 crore.
It also announced additional investment in Earth Rhythm Private Limited for a consideration of up to Rs 44.5 crore. Nykaa will purchase 5.
29 lakh shares and post investment, it will hold a 90% equity interest in Dot & Key. Dot & Key, which manufactures and sells skincare products and sunscreens clocked a revenue of Rs 198.3 crore in FY23-24.
The beauty e-tailer said it was acquiring a majority stake in Earth Rhythm Private Limited through a combination of primary and secondary transactions for a consideration of up to Rs 44.5 crore. Earth Rhythm, which sells non-toxic and sustainable beauty products, will be incorporated as a unit under Nykaa.
Earth Rhythm posted a revenue of Rs 30.7 crore in FY23-24. Nykaa expects to close both the acquisitions by the end of September 2024.
Edited by Jyoti Narayan.
