Nykaa - Quarterly Results December 2021

Nykaa

Corporate Action
by 5paisa Research Team Last Updated: 2022-08-08T18:46:27+05:30

The fashion portal, FSN E-Commerce and owner of the Nykaa brand, had made a big splash in the public issue late last year. However, the stock has taken a fair bit of beating from higher levels. The Dec-21 quarter saw widening of the losses in the quarter but at the same time it also witnessed better traction on the top line. For most of the online portals, what really matters in the medium term is how the top ling grows.


Here is a Financial Summary of Nykaa
 

Rs in Crore

Dec-21

Dec-20

YOY

Sep-21

QOQ

Total Income (Rs cr)

₹ 1,098.36

₹ 807.97

35.94%

₹ 885.26

24.07%

Operating Profit (Rs cr)

₹ 43.86

₹ 88.57

-50.48%

₹ 7.52

483.24%

Net Profit (Rs cr)

₹ 27.93

₹ 68.97

-59.50%

₹ 1.22

2189.34%

Diluted EPS (Rs)

₹ 0.60

₹ 1.50

 

₹ 0.03

 

Operating Margins

3.99%

10.96%

 

0.85%

 

Net Margins

2.54%

8.54%

 

0.14%

 

 

Let us first look at how the top line panned out for Nykaa in the quarter. For the Dec-21 quarter, FSN E-Commerce (Nykaa) reported 35.9% growth in sales revenues at Rs.1,098.36 crore on a YoY consolidated basis. During the third quarter, the consolidated GMV (gross merchandize value) grew 26% sequentially and 49% YoY at Rs.2,044 crore for Nykaa. On a sequential basis, the revenues were up by 24.07%.

The beauty and personal care vertical of Nykaa saw the gross merchandise value or GMV grow by 32% YoY to Rs.1,533 crore. GMV of the Fashion vertical grew by 137% on a YoY basis at Rs.510 crore. The Fashion vertical now accounts for about 25% of the overall GMV in the Dec-21 quarter. The critical metrics of unique transacting customers (UTC) for the quarter was up 44% at 79 lakh while the order volumes grew to 7.6 million during the quarter.

Let us now turn to the operating performance of Nykaa. For the Dec-21 quarter, operating profits were sharply lower on a YoY basis by -50.5% at Rs.43.86 crore. During the same quarter, gross profit of Nykaa grew by an impressive 51% YoY at Rs.509 crore even as the gross margins came in at a healthy 46% on sales revenues. This is nearly 3.6% better compared to the previous year on higher share of high value products in the portfolio.

EBITDA came in at Rs.69 crore for the quarter while EBITDA margins improved by nearly 300 bps from 3.3% last year to 6.3% in the current Dec-21 quarter. However, on account of the sharp fall in operating profits, the operating margins tapered from 10.96% in the Dec-20 quarter to 3.99% in the Dec-21 quarter. This was largely on account of an increase in marketing costs and fulfilment costs that Nykaa had to incur during the quarter.

For the Dec-21 quarter, the net profits were lower by -59.5% at Rs.27.93 crore on a consolidated YoY basis. This fall in profits was largely on the back of higher marketing costs and a spike in fulfilment expenses in the quarter. However, it is hoped that this would be more like an investment and would be sales accretive in the medium to long run.

PAT margins for the quarter tapered from 8.54% in the Dec-20 quarter to just about 2.54% in the Dec-21 quarter. However, the good news is that the PAT margins were sharply higher on a sequential basis compared to the Sep-21 quarter.


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