Indian beauty firm Nykaa’s profit jumps on strong fashion demand

Indian beauty firm Nykaa's profit jumps on strong fashion demand

BENGALURU : Indian cosmetics-to-fashion retailer Nykaa’s parent company reported a 33.2 per cent rise in first-quarter net profit on Friday, 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 per cent market share, has been on an acquisition spree and recently ventured into men’s innerwear and athleisure category with a new brand.

Nykaa in November 2021 made a strong market debut, fetching the country’s first women-led unicorn a valuation of nearly $14 billion.

The company said its gross merchandise value (GMV) jumped 47 per cent to 21.56 billion rupees in the quarter. GMV from its fashion business jumped 59 per cent, while that from the beauty and personal care business rose 39 per cent.

“The 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 Managing Director Falguni Nayar.

Consolidated net profit for Nykaa-parent FSN E-Commerce Ventures Ltd stood at 45.5 million rupees ($574,582.01) for the quarter ended June 30, compared with 34.2 million rupees a year earlier.

Revenue rose 40.6 per cent to 11.48 billion rupees.

($1 = 79.1880 Indian rupees)

Leave a Reply

Your email address will not be published.