India's Nykaa posts Q2 profit jump on firm demand for beauty products

Fsn E-Commerce Ventures

12/11/2024 13:28

Nov 12 (Reuters) - Indian retailer Nykaa reported a 72%
rise in its second-quarter profit on Tuesday as its mainstay
beauty products segment continued to drive growth ahead of the
festive season.
    The company, listed as FSN E-Commerce Ventures  FSNE.NS ,
said its consolidated net profit rose to 100.4 million rupees 
($1.19 million) for the quarter ended Sept. 30 from 58.9 million
rupees a year ago.
    India's $28 billion beauty and personal care (BPC) market,
which is expected to reach around $45 billion by 2030, is
growing rapidly, mainly fuelled by demand from the growing
middle class. 
    Nykaa's BPC segment, which also includes luxury brands such
as Estee Lauder and Bobbi Brown and contributes 90% to the total
revenue, reported a 24% jump in revenue.
        The beauty products segment reported robust performance
ahead of the festive season, Nykaa said in a quarterly update
last month.
   Its overall gross merchandise value (GMV) - the monetary
value of all its orders, rose 29% to 36.53 billion rupees.
    GMV from Nykaa's Fashion segment, which sells clothing,
footwear and handbags, contracted to 10% from 27% a year ago.
    India's apparel and cloth retailers reported subdued demand
in the second quarter as consumers made fewer purchases amid
high inflation.
    Rival Shoppers Stop  SHOP.NS  reported a loss for the second
straight quarter, while Tata Group-owned Trent posted its
slowest revenue growth in 14 quarters.
    Nykaa's total revenue rose 24% to 18.75 billion rupees
during the quarter, while total expenses also rose 24% as it
spent more on advertisement and marketing.
    Nykaa's earnings before interest, tax, depreciation and
amortization margin stayed largely flat at 5.5% compared to 5.4%
a year ago.
 

($1 = 84.3670 Indian rupees)

 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by
Eileen Soreng)
 ((AshnaTeresa.Britto@thomsonreuters.com;))