Mumbai: Falguni Nayar, founder and CEO of Nykaa, told ET on Monday that the company will continue to focus on growth and profitability while investing heavily in marketing and acquiring customers. “We will continue to invest in the future and maintain a strong balance between growth and profitability,” Nayar said on Monday.
The comments come against the backdrop of the newly listed company registering a 96% drop in profitability for the second quarter ending September 30, 2021 to Rs 1.2 crore over the same period last year. The company’s quarterly results were filed with the stock exchanges on Sunday evening.
FSN E-Commerce, the parent company of Nykaa, saw its share price drop about 8% in early trade on Monday but recovered to Rs 2,296.00 a share on BSE in the afternoon.
“We will push the pedal on acquiring more customers,” she added. “Last year, the marketing costs were unusually low and there was revenge buying seen in the market post the first wave of the pandemic,” Nayar said the festive season has seen phenomenal growth and the December quarter of FY22 should reflect that. “This year, July, August and September were muted but we expect the festive buying to continue well into next year till February-March when the wedding season kicks in,” Nayar added.
While announcing its June-September quarter results, the Mumbai-based etailer said in a filing with the stock exchanges that its gross merchandise value (GMV) for the quarter ending September 30, 2021 saw 63% year-on-year growth and 10% quarter-on-quarter growth. For the quarter ending September 30, 2021, its consolidated revenues from operations grew 47% to Rs 885.30 crore as against Rs 603.8 crore for the same period last year. Its sequential or quarter-on-quarter growth stood at 8% as against Rs 817 crore for the quarter ending June 30, 2021.
“Our half-yearly numbers show that we registered a profit of Rs 4.7 crore for the current financial year over a loss of Rs 25.1 crore in the same period last year, which to us is a key change,” Nayar said. “We will push the pedal on acquiring more customers,” Nayar said.
However, its earnings before interest, tax, depreciation and amortisation or Ebitda stood at Rs 28.8 crore for the quarter ending September 30, 2021, a 48% drop from Rs 55 crore in the same period last year. Its profit after tax for the second quarter of FY22 fell to Rs 1.2 crore from Rs 27 crore in Q2FY21.
In an interview last week, after the company’s bumper listing, Nayar told ET that the company will continue to focus on growth across beauty and fashion businesses. “It’s a multi-year journey and we believe that over the next five years we will continue to grow both our beauty and fashion businesses multi-fold. Similarly, the house of brands will also continue to grow, as we become more like a consumer company which has a number of brands within its fold. We are also setting up our e-B2B (business-to-business) vertical — the Super Store where we will sell beauty to retailers,” Nayar had said.
The fashion business grew at a faster clip, registering 295% growth for the quarter ending September 30, 2021 at Rs 11.5 crore as against Rs 2.9 crore in the same period last year. Fashion was, however, smaller than the beauty business, which brought in the lion’s share of revenues, with Rs 22 crore coming in during Q2FY22 as against Rs 17.1 crore in Q2FY21, or 29% growth year on year. On a sequential basis, the growth stood at 3% for beauty and 16% for fashion as against the June quarter, the filings showed.
The company’s gross merchandise value stood at Rs 1622.9 crore for the quarter ended September 30, 2021 as against Rs 997.1 crore in the same period last year, a 63% jump. On a sequential basis, the growth was 10%.
Nykaa hit the Indian stock exchanges on November 10 in what was a bumper debut for the Mumbai-based firm. Its market cap went past Rs 1 lakh crore after the stock started trading at a nearly 80% premium over its issue price of Rs 1,125.
The comments come against the backdrop of the newly listed company registering a 96% drop in profitability for the second quarter ending September 30, 2021 to Rs 1.2 crore over the same period last year. The company’s quarterly results were filed with the stock exchanges on Sunday evening.
Nykaa, however, saw its revenues rise 47% to Rs 885 crore in the same period. Its marketing and advertising expenses shot up from Rs 31.5 crore in Q2FY21 to Rs 121.4 crore for Q2FY22. To be sure, last year was a pandemic year in which sales of all companies, especially those in the direct-to-consumer (D2C) sector, had taken a major hit.
FSN E-Commerce, the parent company of Nykaa, saw its share price drop about 8% in early trade on Monday but recovered to Rs 2,296.00 a share on BSE in the afternoon.
“We will push the pedal on acquiring more customers,” she added. “Last year, the marketing costs were unusually low and there was revenge buying seen in the market post the first wave of the pandemic,” Nayar said the festive season has seen phenomenal growth and the December quarter of FY22 should reflect that. “This year, July, August and September were muted but we expect the festive buying to continue well into next year till February-March when the wedding season kicks in,” Nayar added.
While announcing its June-September quarter results, the Mumbai-based etailer said in a filing with the stock exchanges that its gross merchandise value (GMV) for the quarter ending September 30, 2021 saw 63% year-on-year growth and 10% quarter-on-quarter growth. For the quarter ending September 30, 2021, its consolidated revenues from operations grew 47% to Rs 885.30 crore as against Rs 603.8 crore for the same period last year. Its sequential or quarter-on-quarter growth stood at 8% as against Rs 817 crore for the quarter ending June 30, 2021.
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“Our half-yearly numbers show that we registered a profit of Rs 4.7 crore for the current financial year over a loss of Rs 25.1 crore in the same period last year, which to us is a key change,” Nayar said. “We will push the pedal on acquiring more customers,” Nayar said.
However, its earnings before interest, tax, depreciation and amortisation or Ebitda stood at Rs 28.8 crore for the quarter ending September 30, 2021, a 48% drop from Rs 55 crore in the same period last year. Its profit after tax for the second quarter of FY22 fell to Rs 1.2 crore from Rs 27 crore in Q2FY21.
In an interview last week, after the company’s bumper listing, Nayar told ET that the company will continue to focus on growth across beauty and fashion businesses. “It’s a multi-year journey and we believe that over the next five years we will continue to grow both our beauty and fashion businesses multi-fold. Similarly, the house of brands will also continue to grow, as we become more like a consumer company which has a number of brands within its fold. We are also setting up our e-B2B (business-to-business) vertical — the Super Store where we will sell beauty to retailers,” Nayar had said.
The fashion business grew at a faster clip, registering 295% growth for the quarter ending September 30, 2021 at Rs 11.5 crore as against Rs 2.9 crore in the same period last year. Fashion was, however, smaller than the beauty business, which brought in the lion’s share of revenues, with Rs 22 crore coming in during Q2FY22 as against Rs 17.1 crore in Q2FY21, or 29% growth year on year. On a sequential basis, the growth stood at 3% for beauty and 16% for fashion as against the June quarter, the filings showed.
The company’s gross merchandise value stood at Rs 1622.9 crore for the quarter ended September 30, 2021 as against Rs 997.1 crore in the same period last year, a 63% jump. On a sequential basis, the growth was 10%.
Nykaa hit the Indian stock exchanges on November 10 in what was a bumper debut for the Mumbai-based firm. Its market cap went past Rs 1 lakh crore after the stock started trading at a nearly 80% premium over its issue price of Rs 1,125.
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