FSN E-Commerce Ventures (NYKAA) Q4 21/22 earnings summary

Executive summary

• FY2022 consolidated GMV rose 71% to ₹69,332 million and revenue grew 55% to ₹37,739.35 million, while growth investments pressured margins and net profit.

• Profit after tax was ₹412.88 million, down from ₹616.48 million; the year included the November 2021 IPO and expansion across fashion, owned brands, stores and fulfilment.

Financial highlights

• Revenue from operations increased 55% YoY to ₹37,739.35 million; product sales rose 48% to ₹32,186.09 million and service revenue rose 113% to ₹5,333 million.

• Gross profit reached ₹16,439 million, up 73% YoY; gross margin improved 471 bps to 43.6%, supported by advertising revenue, owned-brand mix and higher-margin products.

• EBITDA was ₹1,632.58 million, up 4%; EBITDA margin declined 209 bps to 4.3% amid customer acquisition, store, fulfilment and new-vertical investments.

• Profit before tax fell 28% to ₹473.06 million and PAT fell 33% to ₹412.88 million; basic EPS declined to ₹0.88 from ₹1.38.

• Operating cash flow was negative ₹3,539.57 million, primarily reflecting higher inventory and other working-capital outflows.

Outlook and guidance

• FY2023 priorities include building assortment and discovery, growing owned brands, and improving digitally powered consumer experiences across beauty, personal care and fashion.

• Near-term inflation is expected to weigh on discretionary spending; medium- and long-term demand prospects remain positive as incomes, online discovery and category adoption increase.

• Management cited 2025 Indian market opportunities of ₹1,981 billion in beauty and personal care and ₹8,702 billion in fashion; online penetration was projected at 20–25% and 22–27%, respectively.