Billionaire Falguni Nayar’s company posts rise in net profit despite stiff competition from Mukesh Ambani, Tata firms

Self-made billionaire Falguni Nayar’s beauty and fashion firm FSN E-Commerce Ventures, operating under Nykaa brand, has posted an 8 percent increase in consolidated net profit at Rs 5.4 crore for first quarter of 2023-24. In the June quarter a year ago, Nykaa had posted a profit of Rs 5 crore.

Nykaa’s sustained profit comes amid mounting competition in the sector where it had established itself as the top player. The sector is seeing rapid expansion by legacy diversified conglomerates like Mukesh Ambani's Reliance Ajio and Ratan Tata-led Tata Cliq. Reliance further expanded recently with the Tira beauty brand.

While Nykaa saw net profit rise, the profit attributable to equity shareholders dropped by around 26 percent to Rs 3.3 crore, compared to Rs 4.5 crore in April-June 2022. Its consolidated revenue from operations grew around 24 percent to Rs 1,421.8 crore from Rs 1,148.4 crore in the corresponding period last year.

"Our beauty vertical continues to shape into an ecosystem of its own - with steady and balanced growth across our online platforms, physical footprint as well as our consumer brands. Fashion's consumer brands also experienced steady growth with our own labels now spanning across categories - westernwear, indianwear, lingerie, menswear, accessories and much more," Nykaa Executive Chairperson, MD, and CEO Falguni Nayar said in a statement.

(Inputs from PTI)