Nykaa Q2 Results: Profit Falls 5%, Misses Estimates

Nykaa parent firm FSN E-Commerce Ventures Ltd.'s consolidated net profit declined 5% in the second quarter of the current financial year, missing estimates.

The online beauty and fashion retailer posted a profit of Rs 12.97 crore in the quarter ended September in comparison with Rs 13.6 crore in the year-ago period, according to an exchange filing on Tuesday. Analysts tracked by Bloomberg had estimated a profit of Rs 25 crore.

• Revenue up 7.4% to Rs 1,874.7 crore versus Rs 1,746.1 crore (Bloomberg estimate: Rs 1,887 crore).

• Ebitda up 8% to Rs 103.7 crore versus Rs 96.1 crore. (Estimate: Rs 115 crore).

• Margin at 5.5% versus 5.5% (Estimate: 6.1%).

• Net profit down 5% to Rs 12.97 crore versus Rs 13.6 crore (Estimate: Rs 25 crore).

The revenue from the beauty segment grew 24% to Rs 1,702.9 crore, while the fashion-segment revenue rose 22% to Rs 166.1 crore. The gross merchandise value for the beauty segment grew 29% and it rose 10% for the fashion segment.

Nykaa now operates India's largest beauty retail network of 210 physical stores spanning 72 cities. There was a 25% growth in retail space, including two new flagship stores launched in Mumbai and Delhi. With a GMV of Rs 3,500 per square feet per month, Nykaa enjoys industry-leading retail store productivity.

The company's beauty vertical continues to bring exciting new global brands to the country, launching over 170 new brands in the second quarter.

Shares of Nykaa closed 2.75% lower at Rs 177.81 apiece on the NSE, compared to a 1.07% decline in the benchmark Nifty 50. The stock has risen 2.22% on a year-to-date basis and 18.62% in the past 12 months.

Thirteen out of the 24 analysts tracking the company have a 'buy' rating on the stock, six recommend 'hold' and five suggest 'sell', according to the Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 15.1%.