FSN E-Commerce (Nykaa) reported 71% drop in consolidated net profit to Rs 8.49 crore in Q3 FY23 from Rs 29.02 crore in Q3 FY22.
Revenue from operations increased by 33% YoY to Rs 1,462.83 crore during the quarter.
"During the quarter, we continued to demonstrate strong GMV growth, efficiency in fulfilment and marketing expense, the company said in a statement.
Nykaa reported a 37% YoY growth in its gross merchandise value (GMV) to Rs 2,796.5 crore in Q3 FY23.
The company's Beauty and Personal Care (BPC) segment recorded 26% YoY rise in GMV to Rs 1,901.4 crore in Q3 FY23. Monthly average unique visitors grew 22% YoY to 24.2 million, while annual unique transacting customers grew 27% to 9.6 million. Orders grew 26% YoY to 9.5 million in the quarter, while order conversion improved to 3.8% in Q3 FY23.
The GMV of the e-commerce platform's Fashion vertical grew 50% YoY to Rs 724.4 crore in Q3 FY23. Fashion GMV contributed 25.9% to consolidated GMV this quarter. Monthly average unique visitors grew 18% YoY to 19.4 million, while annual unique transacting customers grew 50% YoY to 2.4 million.
Other GMV which includes new business initiatives grew 254% YoY to Rs 170.7crore, contributed 6.1% to Consolidated GMV this quarter EBITDA grew 13% YoY to Rs 78.2 crore and EBITDA margins was at 5.3%.
Profit before tax in Q3 FY23 stood at Rs 12.67 crore, down by 66% from Rs 36.98 crore in Q3 FY22.
Nykaa has increased its own physical store count to 141 stores, including three new owned fashion stores, with a total area of 1.4 Lacs sq. ft. across 56 cities, as on 31 December2022. The company has 40 fulfilment centres with a total area of 1.3 million sq. ft, as on 31 December 2022.
Falguni Nayar, Executive Chairperson, MD, and CEO, said: The business has delivered consistent strong GMV and revenue growth at 37% YoY and 33% YoY respectively. The performance has been especially good given the backdrop of eight fewer festive days in Q3 FY23, compared to Q3 FY22. Our EBITDA delivery has been strong, with scale efficiencies in fulfilment and marketing expense. There's been a structural improvement in fulfilment expense as we move to regional warehouses. Our marketing efforts are focussed on order-conversion ratio, rather than chasing visits alone, which is reflective of the highest ever conversions of 3.8% in BPC, and 1.2% for Fashion in Q3FY23. Our employee benefit expense has been kept in check post 1H FY23, as we have secured the talent we needed, and look towards enhanced productivity. Our accelerated investments in new beauty store roll-out this year has seen us add 14 stores in Q3 FY23, taking the total store count to 135 stores and making us the largest beauty specialist retailer in India.
Founded in 2012, Nykaa is a lifestyle-focused consumer technologies platforms. Nykaa offers over 4,500 brands and over 4.6 million product SKUs through its website and mobile applications.
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