In Q2 FY24, Nykaa, a beauty and personal care company, saw a remarkable 50% year-over-year increase in its net profit, reaching Rs 7.8 crore. Simultaneously, the operating revenue also exhibited strong growth, rising by 22% to Rs 1,507 crore, compared to the previous year’s figure of Rs 1,230 crore.
The company attributed this positive performance in its fashion segment to the loyalty of repeat customers and strategic long-term investments. However, Nykaa’s surge in revenue was accompanied by an increase in total expenses, which rose to Rs 1,502 crore from Rs 1,228 crore in the same period last year. This rise in expenses was primarily due to a substantial 344% increase in expenditure related to changes in inventories of finished goods and stock-in-trade.
Despite a delay in the festive season, which typically falls in September, Nykaa managed to sustain its growth in revenue from operations. Additionally, the company reported an expansion in its EBITDA margin, which grew to 5.4% in the second quarter of FY24, compared to 5% in Q2 FY23.
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Nykaa’s impressive financial performance in Q2 FY24 is attributed to its consistent customer base and strategic investments, even in the face of rising expenses, which reflects the company’s resilience and adaptability in a dynamic market.
