Nykaa Reports 1.47 Crore Shares in Block Deals, Shares Decline

On July 10, approximately 1.47 crore shares of FSN E-Commerce Ventures, the parent company of Nykaa, were traded in two block deals.

Following the block deal, Nykaa's share price initially rose by 4%. However, the stock later relinquished its intraday gains. By 11:30 am IST, the shares were trading at ₹174.49 on the NSE, down by 0.75% from the previous close.

In its quarterly business update, Nykaa announced an expected revenue growth of around 22-23% year-on-year for the first quarter of FY25 for the company and its subsidiaries. The consolidated GMV (Gross Merchandise Value) growth is projected to be in the mid-twenties on a YoY basis. GMV refers to the total value of merchandise sold over a given period through a customer-to-customer (C2C) exchange site.

Starting this quarter, Nykaa will introduce vertical-wise segmental reporting. The Beauty segment will include the online beauty platform Nykaa, beauty-owned brands, physical stores, its eB2B distribution business 'Superstore by Nykaa,' and the Nykaa Man BPC business.

Year-to-date, Nykaa's stock has gained 1.5%, underperforming the benchmark Nifty 50, which has increased by nearly 11.5% during the same period.

In May this year, Nykaa reported a net profit of ₹9.07 crore for Q4FY24, representing a 297.8% year-on-year increase. Revenue from operations was ₹1,667.98 crore, up 28.1% YoY. During the quarter, its consolidated GMV grew 32% YoY to ₹3,217.20 crore, with all business segments continuing to perform strongly.

In the previous session, Nykaa shares closed 3.2% higher at ₹176.93 on the NSE. So far this year, the stock has gained 2.93%, still underperforming the Nifty 50, which has risen nearly 12% over the same period.

Nykaa E-Retail Private Limited offers a variety of beauty and wellness products online, including cosmetics and skincare items such as scrubs, serums, masks, lotions, lipsticks, nail polish, foundation, shampoo, hair oil, hair color, and fragrances, serving customers across India.

The Beauty segment comprises online beauty platform Nykaa, beauty owned brands, and physical stores, additionally including eB2B distribution business 'Superstore by Nykaa', and the Nykaa Man BPC business. The fashion segment consists of the Nykaa Fashion platform, and fashion-owned brands, additionally including LBB (Little Black Book) - the content platform and the Nykaa Man lifestyle business.