Leading cosmetics and fashion stock engaged in beauty, personal care, and fashion products, soared nearly 6 percent to Rs.197.35 per share following an increase in net profits of 740 percent year-on-year.
Price Movement
The share price of FSN E-Commerce Ventures Ltd (Nykaa) rose 5.76 percent to Rs.197.35 per share on Tuesday’s trading session from its previous close of Rs.186.6 apiece.
Financial Performance
The surge in Nykaa’s stock price was driven by its robust financial results, which were marked by notable increases in net profits and operational revenue.
For the quarter ending June 2024, FSN E-Commerce Ventures Ltd, Nykaa’s parent company, reported standalone revenue from operations of Rs.102.83 crore, marking a substantial 61.5 percent increase from Rs.63.68 crore in the same period last year. Sequentially, revenue saw a modest 0.4 percent rise from Rs.102.41 crore in Q4 FY24.
The company’s Profit After Tax (PAT) witnessed an extraordinary 740 percent year-over-year surge, reaching Rs.42.23 crore in Q1 FY25, up from Rs.5 crore in June 2023. However, this was a 53 percent decline from the Rs.86.45 crore PAT recorded in Q4 FY24.
Also Read
On a consolidated basis, the company posted revenue from operations of Rs.1,746 crore in Q1 FY25, representing a 22.8 percent year-on-year increase and a 4.6 percent sequential growth. Consolidated PAT rose to Rs.13.64 crore, up 151.6 percent year-over-year and 50.38 percent quarterly.
Nykaa’s strong financial performance is further underscored by key metrics: the company’s debt-to-equity ratio stands at 0.77, and its current ratio is 1.22, indicating sound liquidity. In terms of return ratios, the Return on Capital Employed (ROCE) is 6.84 percent, and the Return on Equity (ROE) is 2.44 percent.
Renowned Clientele
Nykaa’s house of brands includes prominent names in the beauty and fashion industry such as Dot & Key, Kay Beauty, Wanderlust, Nykd, RSVP, Nyveda, and Twenty Dresses.
Additionally, Nykaa has partnered with all the market-leading companies in the sector like Loreal, Maybelline, Lakme, Lotus, Olay, Nivea, Biotique, and many more to sell their products at their store and collaborate.
Geographic Presence
Nykaa operates over 174 physical stores across 72 cities in India. Its international strategy primarily involves online sales through the Nykaa Global Store, allowing customers in India to purchase international beauty brands
Moreover, Nykaa has recently expanded its presence in the Gulf Cooperation Council (GCC) region through a joint venture called Nysaa, which aims to open 70 beauty stores over the next five years in the GCC, starting with its first store in Dubai.
Business Segments
The company has a diverse portfolio of beauty, personal care, and fashion products, including owned brand products manufactured by it. Nykaa earns 91.26 percent of its revenue from beauty products, 8.55 percent from Fashion products, and 0.2 percent from other segments.
About Company
Nykaa is one of the largest specialty beauty and personal care platforms in India in terms of the value of products sold and one of the fastest-growing fashion platforms in India based on growth in GMV. The company has a diverse portfolio of beauty, personal care, and fashion products, including owned brand products manufactured by it.
Written by – Siddesh S Raskar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
