27 May 2022, Mumbai:
The fourth quarter net profit of multi-brand, omni-channel beauty and fashion retailer Nykaa decreased by 49 per cent Y-o-Y as demand rose only slightly and expenses increased.
For the fourth quarter which ended on March 31, Nykaa’s net profit stood at Rs 8.56 crore. This e-commerce company has reported a profit of Rs 16.88 crore for the same quarter a year before.
Despite the drop in profit, Nykaa’s revenue from operations increased from Rs 741 crore in the fourth quarter of the 2021 financial year to Rs 973 crore in the fourth quarter of the 2022 fiscal. During the quarter, Nykaa launched new labels, including private label ethnic wear brand Likha on Nykaa Fashion.
The business also opened its 100th store in Bengaluru as well as a number of other brick-and-mortar outlets.
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Nykaa’s parent company FSN E-Commerce Ventures has seen declining profits in the three financial quarters following its initial public offering. The business has citied high marketing costs as a major reason for this, especially as its marketing costs were lower than usual in the 2020 calendar year due to the pandemic.
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