Nykaa, on 6 November, announced its quarterly earnings for the July-September quarter for the current fiscal year. 

The fashion and beauty company reported a 50% year-on-year (YoY) increase in its net profit at Rs 7.8 crore for the quarter under review against Rs 5.2 crore reported in the year-ago quarter. 

The surge in net profit was led largely by its fashion business, which witnessed a significant increase in demand during the quarter. 

The revenue from operations saw a 22% YoY increase to Rs 1,507 crore for the quarter against Rs 1,230.8 crore reported in the same quarter during the previous fiscal year. 

The company’s EBITDA (earnings before interest, tax, depreciation, and amortisation) margin rose to 5.4% during the quarter from 5% reported in Q2FY23.  

Nykaa Fashion CEO Adwaita Nayar stated that the division outperformed itself in the previous quarter due to the division’s correction of leaks, which improved financials.

Lower return to origin (RTO) was the unit’s goal, according to Nayar, and it was achieved through this effort. She added, “We blacklisted customers who showed bad behaviour and also blocked pin codes that showed bad behaviour.”

In order to boost profitability, the Fashion division also began charging cart-level convenience fees, as was previously reported, which helped the business, according to Nayar.

Nykaa spent a total of Rs 1,502 crore in Q2FY24, which is 22% more than Rs 1,229 crore the company spent in the same quarter in the previous year.