FSN E-Commerce Ventures (NYKAA) Q4 20/21 earnings summary

Executive summary

• FY21 consolidated revenue from operations rose 38.1% YoY to Rs.244,089.49 lakh; PAT turned positive at Rs.6,164.77 lakh from a Rs.2,299.91 lakh loss. EBITDA was Rs.16,841.49 lakh, with a 6.90% margin.

• GMV increased 50.7% to Rs.404,598 lakh despite pandemic restrictions, supported by online demand, broader assortment and cost management.

• The business spanned beauty, personal care and fashion, with ~2 million SKUs across 3,826 brands and 73 stores in 38 Indian cities at FY21 close.

Financial highlights

• Consolidated total income was Rs.245,265.41 lakh, up 37.94% YoY; revenue from operations was Rs.244,089.49 lakh, up 38.10%.

• Consolidated PBT was Rs.6,612.41 lakh versus a loss of Rs.1,453.33 lakh in FY20; PAT was Rs.6,164.77 lakh versus a loss of Rs.2,299.91 lakh.

• Product revenue reached Rs.218,090.58 lakh, up 37.70%; services revenue was Rs.25,029.88 lakh, up 37.90%, including marketing support and marketplace services.

• Operating cash flow was Rs.14,984.86 lakh versus Rs.1,479.17 lakh in FY20; investing cash outflow was Rs.12,974.34 lakh and financing cash outflow Rs.3,772.23 lakh.

Outlook and guidance

• Management expected continued growth in consumers, purchasing activity and engagement to support total income growth in absolute terms in the foreseeable future.

• Marketing costs were expected to rise as investment in consumer acquisition and engagement continued; FY21 marketing spend was 6.94% of operating revenue versus 11.44% in FY20.

• Liquidity was expected to cover requirements for the next 12 months, considering operating cash generation and proposed fundraising.