Nykaa hits all-time low; slips 19% in a single week on weak Q3 outcomes

Shares of FSN E-Commerce Ventures, the father or mother firm of magnificence e-tailer Nykaa, hit an all-time low of Rs 1,536, down almost 7 per cent on the BSE in Monday’s intra-day commerce. It has fallen beneath its earlier low of Rs 1,571.30 touched on January 27, 2022. As compared, the S&P BSE Sensex was down 1.8 per cent at 57,138 factors at 10:53 am.

The inventory of the cosmetics-to-fashion retailer has slipped 19 per cent prior to now one week after the corporate reported a weak set of numbers for the October-December quarter (Q3FY22).

With the previous one week’s decline, the inventory value of Nykaa has slumped 40 per cent from its document excessive of Rs 2,574 touched on November 26, 2021. The corporate had issued shares at a value of Rs 1,125 per share in its preliminary public supply (IPO). The inventory had made a market debut on November 10, 2021.

Nykaa on February 9, 2022 reported a 59 per cent year-on-year (YoY) decline in its Q3 internet revenue at Rs 29 crore, hit by a bounce in bills and subdued demand for private care and trend merchandise. Earnings earlier than curiosity tax and depreciation and amortization (EBITDA) margin contracted 697 bps at 6.3 per cent from 13.2 per cent in Q3FY21. On a sequential foundation, EBITDA margin improved 302 bps from 3.3 per cent in Q2FY22.

Income from operations of the corporate grew 36 per cent YoY at Rs 1,098 crore. It stated development in magnificence enterprise accelerated in a comparatively normalized Covid setting, with a robust revival within the cosmetics class. Nykaa’s gross merchandise worth (GMV) grew 49 per cent YoY pushed by 32 per cent and 137 per cent YoY development in magnificence and private care (BPC) and Vogue segments, respectively.

“Advertising and marketing and Commercial Expense was 14.0 per cent of income from operations in Q3FY22 as in opposition to 7.5 per cent in Q3FY21 as a result of continued give attention to constructing model consciousness and better acquisition of recent prospects,” the corporate stated.

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