Nykaa Reports Strong Revenue Growth and Profit Increase in FY24

Nykaa, the leading online platform for fashion and beauty products in India, has announced impressive financial results for the fiscal year ending March 2024 (FY24). The company achieved a 24.1% year-over-year increase in revenue from operations, reaching Rs 6,386 crore compared to Rs 5,144 crore in FY23. This growth signifies a significant expansion in Nykaa’s reach and market share.

Profit Soars Alongside Revenue

Equally noteworthy is the substantial increase in Nykaa’s profit after tax (PAT). The company witnessed a remarkable 90.5% jump in PAT, reaching Rs 40 crore in FY24 compared to Rs 21 crore in the previous fiscal year. This substantial rise in profitability highlights Nykaa’s efficient business model and effective cost management strategies.

Revenue Breakdown and Growth Trajectory

Nykaa’s core business, encompassing the sale of beauty, personal care, fashion, and other related products and services through its various online platforms, remains the sole source of revenue. The company also boasts 14 subsidiaries and one associate, Earth Rhythm, further contributing to its diverse product offerings. Additionally, Nykaa generated Rs 30 crore in interest and gains from financial assets, bringing its total income for FY24 to Rs 6,416 crore.

Focus on Product Acquisition and Employee Retention

While revenue figures paint a rosy picture, Nykaa’s cost of procurement also experienced a corresponding rise. Procurement costs accounted for 57.4% of the company’s overall expenditure in FY24, reflecting its commitment to acquiring a wider variety of products to cater to its growing customer base. This cost element grew by 27.3% to Rs 3,647 crore in FY24, keeping pace with the overall revenue expansion.

Furthermore, in a move likely intended to boost employee morale and retention, Nykaa announced a fresh round of employee stock option (ESOP) grants under a newly implemented ESOP scheme just prior to the release of its quarterly and FY24 financial results. Estimates suggest that the value of these newly issued ESOP options stands at approximately Rs 7 crore.

Market Performance and Future Outlook

As of May 22nd, 2024, at 5:08 PM IST, Nykaa’s stock was trading at Rs 179.2 per share, with a market capitalization of a staggering Rs 51,171 crore. This robust market performance reflects investor confidence in Nykaa’s continued growth potential. With its focus on revenue expansion, profitability, product acquisition, and employee satisfaction, Nykaa appears well-positioned to maintain its leadership role in the Indian fashion and beauty e-commerce market.