Better client acquisition efforts and greater platform conversions helped FSN E-Commerce Ventures, which runs the beauty and personal care (BPC) brand Nykaa, record a net profit of Rs 9 crore for the quarter ending March 31, 2024, up more than 4X from Rs 2 crore in the same time the previous year.
The business run by Falguni Nayar recorded sales of Rs 1,668 crore for the same time last year, a 28% increase from Rs 1,302 crore. In Q3FY24, the firm reported sales of Rs 1,789 crore and profit of Rs 17 crore sequentially.
In an April report, the business stated that its BPC segment was expanding much faster than the industry average. Analysts said that the firm was seeing more competition from companies like Walmart-owned Myntra and Tira from Reliance Retail.
According to a Bank of America (BofA) report dated May 21, "...Myntra recently started selling BPC products in a meaningful way and the same is visible in survey results, where 19% of users indicated preference from buying on Myntra," adding that new entrants are cutting into Nykaa's market.
Due to the decline in customers using sites like Flipkart and Amazon, recent arrivals like Myntra have also seen a growth in their market share in BPC. Rather than sticking with Nykaa, they would want to explore more recent businesses that, at least for the time being, provide greater discounts.
Although Nykaa is still the most popular platform, 37% of respondents said they enjoy Reliance Industry Limited's Tira and had begun to purchase more on it. According to the BofA report, 31% more people said they had visited Tira and occasionally shopped there based on deals or pricing.
During the full fiscal year of 2024, net profit increased by ninety percent to Rs 40 crore, while income from operations increased by twenty-four percent (YoY) to Rs 6,386 crore.
Shares of FSN E-commerce closed the day on May 22 on the BSE at Rs 179.35, up 1.2 percent from the previous close.
