Indian beauty firm Nykaa’s profit rises on strong fashion demand

People walk past a store of Nykaa, an Indian retailer of beauty products, at a shopping mall in New Delhi, India, July 11, 2022. REUTERS/Anushree Fadnavis/File Photo

BENGALURU, Aug 5 (Reuters) – Indian fashion cosmetics retailer Nykaa’s parent company reported a 33.2% jump in first-quarter net profit on Friday, driven by strong demand for its fashion products.

The TGP-backed company, which dominates the domestic online beauty and personal care space with nearly 30% of the market, has been on an acquisition spree and recently entered the men’s underwear and sportswear category with a brand of cloud.

Nykaa in November 2021 made a strong market debut, bringing the country’s first female-led unicorn a valuation of nearly $14 billion.

The company said its gross merchandise value (GMV) rose 47% to 21.56 billion rupees in the quarter. GMV from its fashion business increased by 59%, while that from its beauty and personal care business increased by 39%.

“Consumer demand for beauty, personal care and wellness is also showing early signs of recovery and we are gearing up for a promising festive season this year,” said Nykaa CEO and Managing Director Falguni Nayar.

Consolidated net profit for Nykaa-parent FSN E-Commerce Ventures Ltd ( FSNE.NS ) stood at 45.5 million rupees ($574,582.01) for the quarter ended June 30, compared with 34.2 million rupees a year earlier.

Revenue rose 40.6% to 11.48 billion rupees.

($1 = 79.1880 Indian Rupees)

Reporting by Anuran Sadhu in Bengaluru; Editing by Shinjini Ganguly

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