Shares of FSN E-Commerce Ventures, the parent company of online beauty retailer Nykaa, hit an all-time low of 1,536 rupees, down almost 7% from BSE in intraday trading of Monday. It fell below its previous low of Rs 1,571.30 hit on January 27, 2022. In comparison, the S&P BSE Sensex was down 1.8% at 57,138 points at 10:53 a.m.
The fashionable cosmetics retailer’s stock has fallen 19% in the past week after the company announced a weak set of numbers for the October-December quarter (Q3FY22).
With last week’s decline, Nykaa’s share price fell by 40% from its all-time high of Rs 2,574 reached on November 26, 2021. The company had issued shares at a price of Rs 1,125 per share during its initial public offering (IPO). The stock had made its market debut on November 10, 2021.
Nykaa on Feb. 9, 2022 announced a 59% year-on-year (YoY) drop in its third-quarter net profit to Rs 29 crore, hit by higher spending and subdued demand for health products. personal care and fashion. Earnings before interest tax, depreciation and amortization (EBITDA) margin contracted 697 basis points to 6.3%, from 13.2% in Q3FY21. On a sequential basis, the EBITDA margin improved by 302 basis points, compared to 3.3% in Q2FY22.
Revenue from the company’s operations increased by 36% year-on-year to Rs 1,098 crore. He said growth in the beauty business accelerated in a relatively normalized Covid environment, with a strong recovery in the cosmetics category. Nykaa’s Gross Merchandise Value (GMV) increased 49% YoY, driven by 32% and 137% YoY growth in the Beauty and Personal Care (BPC) and Fashion segments , respectively.
“Marketing and advertising expenses were 14.0% of operating revenue in Q3FY22 compared to 7.5% in Q3FY21 due to the continued focus on building brand awareness and increasing brand awareness. ‘acquisition of new customers,’ the company said.