New Delhi: Indian beauty products retailer Nykaa on Friday reported a 49 per cent decline in consolidated net profit at Rs 8.56 crore in the fourth quarter ended 31 March, 2022. The company had posted a net profit of Rs 16.8 crore in the year-ago period. Shares of Nykaa on Friday closed 0.50 per cent lower at Rs 1,358 apiece on BSE.
The company said in a regulatory filing, “Nykaa has experienced overall strong performance in FY2022 amidst various macro-economic challenges such as rising inflation, reduction in discretionary spends by consumers, and uncertainty around Covid-19.” The PAT also declined from ₹27.93 crore in the preceding quarter. On the other hand, consolidated revenue from operations stood at ₹973.32 crore in Q4FY22 rising by 31.4% from ₹740.52 crore in Q4 of last year. However, revenue declined compared to ₹1,098.36 crore in Q3FY22.The earnings were impacted due to a steep surge in expenses amidst dull demand for its personal care and fashion products. Consolidated total expenses in Q4FY22 increased over 35% to ₹978.64 crore against ₹724.50 crore in the same period of the previous fiscal.
Falguni Nayar, Executive Chairperson, MD, and CEO, said, “The year has witnessed a challenging macroeconomic environment, pronounced for discretionary categories like beauty, personal care and fashion. Despite market slowdown, our unique growth story continues, showing the resilience of our business model and long term sustainability by balancing strong revenue growth, responsible unit economics and profitability. We acquired over 6 million new customers across beauty and fashion, and witnessed superior customer retention, with improved metrics across the funnel – from visits to conversions.”
Falguni Nayar added, “We have expanded our addressable market through new growth engines – speciality retail stores, Nykaa Man, and SuperStore. These businesses, along with our consumer brands portfolio have witnessed increasing momentum through the year. Our consumer brands have recently seen expansion into wellness, activewear and personal care through purpose driven brand acquisitions. We deeply value our shareholders’ faith in us and hold their capital in highest regard. Our investments are always made in getting the building blocks right – such as tech platform, customer experience, assortment – and growing our new and early stage businesses in a sustainable manner with a long term focus.”