Nykaa's Q4FY23 net profit drops 72% YoY to Rs 2.3 crore
Mumbai: FSN E-Commerce Ventures, the company that operates beauty and personal care startup Nykaa, reported a decline in profits of more than 70 percent year-on-year in the fourth quarter of the financial year 2022-23, according to regulatory filings on Wednesday.
The profit dropped to Rs 2.3 crore, mainly due to increased prices of raw materials. In comparison, during the same quarter the previous year, the company had reported a profit of Rs 7.6 crore.
During the fourth quarter of the financial year 2022-23, FSN E-Commerce Ventures witnessed a significant increase in revenue from operations.
The company's revenue rose by approximately 34 percent to Rs 1,301.7 crore, compared to Rs 973.3 crore in the same quarter of the previous year.
However, the company's profitability was affected by certain factors.
Besides facing price pressures, Nykaa's bottomline was also impacted by a tax expense of Rs 4.4 crore.
In contrast, during the corresponding quarter of the previous year, the company had a tax benefit of Rs 1.8 crore.
The profitability of the company in the quarter was further affected by increased expenses, particularly in relation to employee-related costs and other components, said reports.
These higher expenses contributed to a decline in profit during the quarter, adding to the challenges faced by the company's financial performance.