Tag: Nykaa

Nykaa shares rise as much as 5% after company expects ‘high twenties’ revenue growth

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Beauty and Personal Care E-commerce company Nykaa, whose shares are listed on the exchanges as FSN E-Commerce Ventures Ltd., expects revenue growth to be in the “high twenties” during the January-March quarter on a year-on-year basis, it said in its quarterly business update.

For the quarter under review, Nykaa reported growth in the “early thirties” in its Gross Merchandise Value. GMV is the value of goods sold through e-commerce platforms and is calculated prior to deduction of any fees, expenses or taxes.

The company also expects its Net Sales Value to grow in excess of 25% on a year-on-year basis, similar to its revenue growth. Net sales value refers to the gross sale of a business minus its returns, allowances, and discounts.

Nykaa wrote in its business update that strong customer demand resulted in healthy volume growth led by strong offtake from key categories like makeup and skin.

For the Beauty and Personal Care segment, Nykaa’s GMV is likely to grow around 30% year-on-year, with Net Sales Value growth in the “mid-twenties.” This NSV growth, according to the company, is ahead of industry growth.

Industry growth for the Fashion segment remains muted, as per Nykaa, but Nykaa Fashion’s GMV is likely to grow in the “high twenties” with NSV growth in the “mid-twenties.”

GMV for the “others” vertical is expected to be in the “mid-sixties” with NSV growth of around 80% year-on-year. The “others” vertical comprises mainly of Superstore by Nykaa, which is an eB2B platform.

For the December quarter, Nykaa’s net profit had doubled on a year-on-year basis, with a 22% increase in revenue compared to last year. Its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) margin also expanded to 5.5% from 5.3% last December.

Shares of Nykaa are currently trading 3.5% higher at ₹174.25.

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Nykaa founder Falguni Nayar says D2C brands hold advantage of being adaptive to changing trends

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Nykaa’s executive chairperson, founder and CEO, Falguni Nayar, highlighted the road ahead for entrepreneurship in the Indian economy at the Startup Mahakumbh on Monday, March 18. 

Nayar said that India—the world’s fifth-largest economy—is witnessing an unprecedented surge in entrepreneurial activity. She highlighted that India is the third-largest ecosystem for startups globally, with more than 1 lakh startups that are finding creative solutions to real-time problems.

Nayar said, “The Indian economy is a canvas of boundless opportunities, and the startup world is its vibrant palette, painting the landscape with bold strokes of creativity and ingenuity. We are witnessing an unprecedented surge in entrepreneurial activity, fueled by a generation of dreamers and doers who dare to challenge the status quo.”

With evolving consumer patterns, behaviours and preferences, D2C brands hold the advantage of being quick-to-market and adaptive to changing trends, Nayar mentioned.

“Of the new D2C brands over the last few years, 44% have emerged in fashion and beauty. Having seen dozens of these brands grow on our platform over the last decade, Nykaa takes immense pride in being a multi-brand platform that creates a conducive environment for brands to grow,” Nayar highlighted.

In India, the beauty and personal care (BPC) per capita expenditure is expected to reach $50 by 2030 from $15 currently, attributing it to the S curve of the expected increase in per capita income from $2,500 today to $5,500 by 2030, Nayar mentioned.

Moreover, if India’s GDP per capita climbs to $5,500 by 2030, then the per capita fashion spend is expected to grow to $160 per capita from nearly $54 now, she predicted.

“Nykaa Fashion’s current per capita spend is $130 vs the average fashion per capita spend of $54. We are slowly seeing consumer behaviour shift toward this expectation. After electronics, fashion is the second largest category purchased online,” she added.

She suggested that by 2027, fashion, groceries, and general merchandise will comprise two-thirds of the e-commerce market.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Dubai’s first Nykaa Nysaa store opens doors in partnership with Apparel Group

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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On Friday, March 1, the Indian beauty retailer Nykaa launched its first-ever beauty retail store, Nysaa, in Dubai through a strategic collaboration with the prominent retail conglomerate of the Gulf Cooperation Council (GCC), Apparel Group.

Situated at City Centre Mirdif, Dubai, the Nysaa Beauty Store spans a 2,436 sq ft, offering a diverse selection of over 150 international brands and more than 10,000 products, it said in a release.

Notable brands such as Kylie Cosmetics, Kay Beauty, Stila, and Ralph Lauren adorn the shelves, providing consumers with a curated and world-class shopping experience, it added.

The store is equipped with skilled beauty advisors offering personalised assistance to ensure a tailored shopping experience for each customer. Additionally, the Nysaa Booth within the store offers a vibrant space for content creation, inviting shoppers to express their creativity and showcase their unique beauty styles.

The official inauguration ceremony was graced by key figures, including Falguni Nayar, Executive Chairperson, Founder & CEO of Nykaa; Sima Ganwani Ved, Founder & Chairwoman of Apparel Group; Selina Ved, Founder NESSA & Director Nysaa; and Rozita Rashid Norouzi, CEO Nysaa.

The expansion plan outlines the establishment of 100 Nysaa stores within the GCC region over the next five years.

Falguni Nayar expressed her excitement, stating, “Nysaa’s first store in Dubai marks a significant milestone in our international foray. Our partnership with Apparel Group is a powerful collaboration of Nykaa’s beauty leadership in India and their retail expertise in the GCC region.”

Selina Ved, Founder NESSA & Director Nysaa, emphasised the significance of the collaboration, saying, “The opening of our very first Nysaa store in Dubai is a significant milestone, showcasing the powerful synergy between Apparel Group’s leadership in retail and Nykaa’s pioneering beauty innovations.”

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Nykaa shares can see up to 50% upside — Should you buy? Here’s what analysts suggest

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Nykaa’s parent FSN E-Commerce Ventures can rally up to 50%, brokerages have indicated after the online beauty products seller on February 6 reported its quarterly results. Its consolidated profit nearly doubled year-on-year to ₹16.18 crore for the December 2023 quarter while revenue from operations rose 22.28% to ₹1,788.79 crore.

Following the third quarter results, Nykaa shares traded in the green on February 7 and several analysts expect the stock to rally up to 50%.

According to the company statement, Nykaa’s EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin expanded to 5.5% for the quarter, marking an annual growth of 26% in EBITDA at ₹98.7 crore, driven by direct and indirect cost efficiencies.

However, global brokerage Jefferies says that Q3 EBITDA missed forecasts as weak demand weighed across line items. It noted the firm’s ad income was lower as beauty and personal care (BPC) brands prioritised discounts over marketing spending.

Also Read: Nykaa Q3 Results | Net profit zooms 98% on strong gross merchandise value

According to Jefferies, discounts rose on the firm’s label which impacted gross margin. BPC contribution margin compressed to a seven-quarter low, it added.

The brokerage, which has a buy call with a target price of ₹210, also pointed out that Nykaa’s fashion segment surprised positively on growth and profitability. The operating leverage should drive up EBITDA margin, it added.

HSBC too has a buy call on the beauty product seller’s stock with a target price of ₹240, implying an over 49% upside from the previous closing price of February 6.

It highlighted that Q3 saw revenue growth of 22% led by BPC gross merchandise value (GMV) growth of 25% and fashion at 40%. The BPC GMV growth and fashion segment was strong amid a weak demand environment. EBITDA Margin, however, was a tad lower than expected due to lower ad income, ESOPs and Middle East store expenses, it said.

The brokerage believes the company with its scale is formidable in BPC and fashion is on a superior track now.

Morgan Stanley, meanwhile, has given Nykaa an overweight rating with a target price of ₹190. Though the brokerage believes Q3 earnings data was a slight miss, it sees stable growth trends across businesses. It noted that improving profitability in fashion and eB2B segments are positives

The brokerage also highlighted that incremental negative EBITDA margin impact is on the back of ESOP expenses and that it sees international expansion as a negative.

Nykaa shares traded flat at ₹160.80 on BSE at 11:12 am.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nykaa Q3 Results | Net profit zooms 98% on strong gross merchandise value

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Beauty and fashion firm FSN E-Commerce Ventures, which operates the Nykaa brand, on Tuesday (February 6) reported a 97.6% year-on-year (YoY) jump in net profit at ₹16.2 crore for the third quarter that ended December 31, 2023, on strong gross merchandise value.

In the corresponding quarter last year, FSN E-Commerce Ventures had posted a net profit of ₹8.2 crore, the company said in a regulatory filing. The company’s revenue from operations increased 22.3% to ₹1,788.8 crore against ₹1,462.9 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA rose 26.4% to ₹98.7 crore in the third quarter of this fiscal over ₹78.1 crore in the corresponding period in the previous fiscal. The EBITDA margin stood at 5.5% in the reporting quarter against 5.3% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

The company recorded strong growth in consolidated gross merchandise value (GMV) at 29% year on year (YoY) to ₹3,619.4 crore in Q3 of FY24. The gross margin grew 20% YoY to ₹760.7 crore in the quarter and the gross margin stood at 42.5%.

Adjusted for ESOP and new business expenses (multi-brand retail operations in GCC, Nysaa) and EBITDA margin was 6.1% for Q3 of FY24. The profit before tax grew 109% YoY to ₹26.5 crore in Q3 of FY24. The profit before tax margin was 1% in Q3 of FY24 against 0.6% in Q3 of FY23.

The consolidated beauty & personal care (BPC) GMV witnessed an industry-leading growth of 25% YoY. Net sales value (NSV) growth stood at 20% YoY primarily due to higher discounting by brands in the mass and masstige segments.

The company’s physical retail footprint continues to expand, with 39 new stores launched over the last four quarters, totalling 174 stores as of December 31, 2023. The retail business now contributes to over 9% of the overall BPC GMV while also continuing to improve profitability. This is reflected in EBITDA improvement of 35% YoY.

Its retail stores are critical to the omnichannel strategy of premium brands. Over 85 premium brands are present across our store network and contribute over 2/3rd to our offline GMV, the company said.

The Nykaa-owned brands in beauty experienced a strong GMV and NSV growth of 40% YoY and 36% YoY, respectively with three brands witnessing significant scale. Dot & Key – our new age D2C skincare brand is now at a ₹500-crore GMV run rate, scaling 8x since its acquisition, it said.

Nykaa Cosmetics continues to receive much customer love and has achieved a ₹400-crore GMV run rate. Kay Beauty, India’s largest celebrity beauty brand, has witnessed rapid growth and acceptance, achieving over ₹200-crore GMV run rate, within four years of its launch.

The results came after the close of the market hours. Shares of FSN E-Commerce Ventures Ltd ended at ₹160.50, down by ₹0.90, or 0.56%, on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nykaa Block Deal | Stock drops over 2% as 2.7 crore shares change hands

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Nykaa shares dropped 2.5% on Friday after nearly 2.7 crore shares of the company changed hands in deals worth ₹516 crore.

Shares of FSN E-Commerce Ventures Ltd, the parent company of Nykaa, opened lower and fell to a low of ₹188.80 per share on BSE, showing a loss of 2.54% over the previous close, in morning deals. Trading volume surged by more than 41 times to 2.75 crore shares against the two-week average volume of 6.6 lakh shares.

Market data showed that around 2.7 crore shares of the company representing 0.9% of equity capital were traded in block deals.

The total value of block deals was around ₹516 crore while the average price of the block deals as well as buyers and sellers of the shares were not known immediately.

Nykaa shares had hit a 52-week high of ₹195.40 apiece on January 10 after rallying around 23% in the past three months.

Sources told CNBC-TV18, on January 11, that Lexdale International was likely to sell 2.62 crore shares of Nykaa through block deals on Friday. Morgan Stanley and JP Morgan were the brokers and the lock-in period was 45 days for the deals.

Nykaa’s profit rose by 50% in the July-September quarter of FY24 to ₹7.8 crore from ₹5.2 crore in the year-ago period. Consolidated revenue from operations jumped 22.4% to ₹1,507 crore in Q2FY24 compared to ₹1,230.82 crore in Q2 of FY23.

The company also expanded its offline stores during the quarter, adding 13 stores to take the count to 165 as of September 30, 2023.

Nykaa shares were trading 1.45% lower at ₹190.90 apiece on BSE at 10.03 AM.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nykaa Block Deal: Lexdale International may sell 2.62 crore shares

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Lexdale International is likely to divest 2.62 crore shares in the online retailer of beauty brands, Nykaa, through block deals, sources privy to the developments told CNBC-Awaaz.

The total value of this block deal stands at ₹490 crore, sources in the know told CNBC-Awaaz. The lock-in period for this deal is set at 45 days and brokerage firms Morgan Stanley and JP Morgan are the brokers to deals, the sources said.

Nykaa reported a 50% increase in consolidated net profit to ₹7.8 crore in the second quarter ended September 2023. The company posted a net profit of ₹5.2 crore in the same period a year ago. The consolidated revenue from operations of Nykaa grew 22.4% to ₹1,507 crore during the reported quarter from ₹1,230.82 crore a year ago.

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Revenue from operations climbed 22% to ₹1,507 crore for the quarter under review, from ₹1,230.82 crore a year ago. Nykaa noted that the revenue rose in the quarter despite the delay in the festive season as compared to the previous year. The consolidated beauty and personal care gross merchandise value rose 23% year-on-year, with a net sales value growth of 19% year-on-year.

Nykaa noted that the physical retail business continued to expand post-COVID on the back of 13 new stores launched in the quarter, taking the total number of stores to 165 as of September 30, 2023.

The retail business now constitutes 8% of the overall beauty and personal care gross merchandise value. Nykaa’s brands in beauty experienced net sales value growth of close to 21% year-on-year.

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The fashion business’ consolidated revenue came at ₹130.5 crore, up 28% on a year-on-year basis. “This was on the back of strong growth of 32% YoY in NSV in Q2 FY2024, led by an increase in annual unique transacting customer (AUTC) which grew at 30% YoY to 2.8 million as of September 30, 2023.”

Shares of FSN e-Commerce Ventures Ltd ended at ₹193.70, up by ₹3.30, or 1.73% on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nykaa shares cross adjusted IPO price, near ₹200 mark after nearly 15 months

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of FSN E-Commerce Ventures Ltd., parent company of beauty and personal care brand Nykaa are up for the fourth day in a row on Tuesday. The stock has gained nearly 15% over the last four trading sessions.

The stock made an intraday high of ₹191.25 in today’s session, which is higher than Nykaa’s adjusted IPO price of ₹187.25. The price is adjusted to factor in the 5:1 bonus issue that the company had announced in November 2022.

Nykaa had made its stock market debut back in 2021 at an IPO price of ₹1,125.

₹200 A Key Level

₹200 has been a key level for Nykaa as it has not closed above those levels since November 2022. Over the last 15 months, the stock has been stuck in a range of ₹114 on the lower end and ₹196 on the upper end. Today’s surge takes it closer to the upper end of the range.

Today’s high of ₹191 also took the stock above the 23.6% retracement level which was ₹189.2. The retracement lines were plotted from the November 2022 peak to the April 2023 bottom.

Shares of Nykaa are also surging on strong volumes. Nearly 2.6 crore shares of the stock have already been traded so far, compared to its 20-day average of 30 lakh shares at this time of the day.

Strong Business Update

Nykaa’s Beauty and Personal Care (BPC) vertical grew in the mid-twenties with net sales value rising 20% from last year, as per its December quarter business update.

The company also said that its December quarter revenue may grow in the mid-twenties year-on-year and net sales value will also grow in the mid-twenties.

What Does The Street Reckon?

Brokerage firm HSBC maintained its “buy” recommendation on the stock and also raised its price target to ₹250 from ₹240 earlier.

HSBC wrote in its note that Nykaa is well positioned to capture the long-term value in the BPC segment with its scale and leadership.

“The stock was in constant formation of lower highs and lower lows since getting listed on Indian bourses. The stock has recently formed higher highs and higher lows, thereby confirming trend reversal and looks poised for a move towards 300 level which is the 61.8% fibonacci retracement of the entire fall since listing,” said Gaurav Bissa of InCred Equities.

“A close above ₹190 will result in a small swing high breakout which can push the stock towards ₹205 in the immediate term. The volumes continue to remain high suggesting towards increased interest by the market participants,” he added.

Shares of Nykaa are off the day’s high but are trading 5% higher at ₹185.65.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow