Thread by @Abhishe27960014

💄"From Glam to Glum: Nykaa's Profits Fall by 71%"

[THREAD🧵] to explain Q3 Results & Nykaa's Business👇

1) Nykaa is involved in three different business segments, which are:

a) Fashion
b) Beauty and Personal Care (BPC)
c) Other

#Nykaa #earnings

2) The revenue from operations in Q3 is 1,462 crore, reflecting a YoY growth of 33%.

3) There was a 37% growth in the total value of sales, as measured by GMV.

4) There has been a 71% year-on-year decline in the profit after tax, which now stands at 8.5 Cr in Q3.

o Gross profit margin reduced by 293bps

o EBIDTA grew by only 13% but EBIDTA margin fall from 6.3% to 5.3%

o Depreciation increased by 102% YoY on account of incremental capex in retail stores, warehouses, etc.

o Amortization & Interest on leases increased by 102% YoY due to leases impact

o Interest on borrowings increased 115% YoY

5) Fashion Business

Nykaa's fashion business provides customers with a variety of apparel, accessories, and lifestyle products.

The total value of sales (GMV) in this segment is 724 crore in Q3, reflecting a 50% year-on-year growth, while the average order value is INR 2,526.

6) BPC Business

A broad selection of beauty & personal care products from numerous brands, including makeup, skincare, hair care, personal care, fragrances, etc.

The total value of sales (GMV) in this segment is 1901 crore in Q3, reflecting a 26% YoY growth.

7) Others

The "Others" category encompasses Nykaa's newer ventures, such as NykaaMan, the eB2B platform known as "SuperStore by Nykaa," as well as international operations, LBB, and Nudge

The total value of sales (GMV) in this segment is 170 crore, reflecting a 254% YoY growth.