India's Nykaa tanks on Q1 profit fall, weak analyst view

Fsn E-Commerce Ventures

14/08/2023 09:16

** Shares of Nykaa parent FSN E-Commerce Ventures  FSNE.NS 
fall as much as 11%, biggest intraday pct loss since March 7,
2022
    ** FSNE on Friday said June-qtr profit attributable to
shareholders fell 27.4%, despite rev from ops rising 23.8%
    ** ICICI Securities cuts earnings estimates by 9% and 8% for
FY24 and FY25 respectively; analysts say chasing growth can
dilute gross margin amid higher competition in fashion business
    ** HDFC Securities cuts EBITDA estimates for FY25-26 by
4%-7% on FSNE's struggle in fashion business and lower
contribution of ad income to revenue
    ** Trading volume at ~17 mln shares, 3.3x the 30-day avg
    ** Stock down ~13% so far this year

 (Reporting by Biplob Kumar Das in Bengaluru)
 ((Biplobkumar.das@thomsonreuters.com))