FSN E-Commerce Ventures (NYKAA) Q1 24/25 earnings summary

Executive summary

• GMV reached INR 3,321 crore (Rs 33,209 mn), up 25% YoY; revenue from operations grew 23% to INR 1,746 crore (Rs 17,461 mn) in Q1FY25.

• Gross profit was INR 756 crore (Rs 7,560 mn), EBITDA at INR 99.6 crore (Rs 961 mn, 5.5% margin), and adjusted EBITDA at INR 109 crore (Rs 1,090 mn, 6.2% margin), up 44% YoY.

• PBT was INR 22 crore (Rs 221 mn, 127% YoY growth), PAT at INR 13.6 crore (Rs 136 mn, 150% YoY growth).

• Cumulative customer base reached 35 million, up 33% YoY; 6,700+ brands on platform, with 1,500 added in the last year.

• Physical store network expanded to 200 stores across 72 cities, doubling area in two years.

Financial highlights

• Beauty GMV grew 28% YoY to Rs 25,429 mn; net revenue up 23% YoY to Rs 15,935 mn.

• Fashion GMV grew 15% YoY to Rs 7,741 mn; net revenue up 21% YoY to Rs 1,486 mn.

• EBITDA margin improved by 30 bps; adjusted EBITDA margin up 90 bps YoY to 6.2%.

• Gross margin at 43.3% in Q1FY25; fashion gross margin up 1,356 bps YoY to 49.4%.

• Fixed assets turnover improved to 10.3x; ROCE at 8.3% in Q1FY25.

Outlook and guidance

• Expectation of 70-80% same/next-day delivery in top metros by September 2024.

• Focus on capital efficiency, innovation, and expansion of own brands and stores.

• Anticipation of demand revival and moderation in discounting in H2 FY25.