Nykaa posts 95% drop in Sept quarter net profit

Nykaa posts 95% drop in Sept quarter net profit

Shares of FSN E-Commerce Ventures slumped close to 8% Monday as the company, which operates beauty company Nykaa, reported a net profit of Rs 1.2 crore in the July-September period, 95% lower from Rs 27 crore a year ago.
The scrip touched a low of Rs 2,185.05 versus the previous close of Rs 2,358.90 on the BSE.
The company made a stellar debut on stock exchanges on November 10, with several investors enjoying the largest payout in decades. The company was listed at a premium of 78% on the BSE, hitting a market capitalisation of Rs 1 lakh crore.

For the quarter under review, FSN’s operating profit was at Rs 28 crore.
Earnings before interest tax depreciation and amortization (EBITDA) saw a margin of 3.3% in the said quarter while revenue from operations climbed 47% on an on-year basis and 8% on a sequential basis.
A major expense for the company in the July-September quarter was marketing and advertising, registering a growth of 286% YoY to Rs 121 crore.
On the positive side, gross profit margin improved 345 basis points in the quarter under review, clocking at 39.3%.
The online retailer witnessed an on-year increase of 62% in the beauty and personal care vertical and 328% in the fashion vertical in the July-September period.

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