Earnings Review
FSN E-Commerce Jul-Sept net profit surges 72% YoY
This story was originally published at 20:00 IST on 12 November 2024
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--FSN E-Comm Jul-Sept consol net profit INR 100.4 mln
--Analysts saw FSN E-Comm Jul-Sept consol net profit INR 313.75 mln
--FSN E-Comm Jul-Sept consol net profit INR 100.4 mln vs INR 58.5 mln yr ago
--FSN E-Comm Jul-Sept consol revenue INR 18.75 bln vs INR 15.07 bln year ago
--FSN E-Comm Apr-Sept consol net profit INR 196.8 mln vs INR 91.5 mln yr ago
--FSN E-Comm Apr-Sept consol revenue INR 36.21 bln vs INR 29.29 bln year ago
--FSN E-Comm Jul-Sept consol beauty ops sales INR 17.03 bln vs INR 13.70 bln
--FSN E-Comm Jul-Sept consol fashion ops sales INR 1.66 bln vs INR 1.37 bln
--FSN E-Comm Jul-Sept gross merchandise value INR 36.53 bln, up 24% on year
--FSN E-Comm Jul-Sept consol EBITDA INR 1.04 bln vs INR 806 mln year ago
By Apratim Sarkar
MUMBAI – FSN E-Commerce Ventures Ltd.'s consolidated net profit for the September quarter surged 71.6% on year due to higher revenue and operating income, but missed the Street's expectations. The company, which sells products under the Nykaa brand, reported a consolidated net profit of INR 100.4 million for the quarter, up from INR 58.5 million a year ago but far from analysts' estimate of INR 313.75 million. The company's year-on-year net profit growth was the lowest in four quarters.
The company's consolidated revenue rose to INR 18.75 billion in the September quarter, up 24.4% from INR 15.07 billion in the corresponding quarter a year ago. Analysts had estimated the consolidated revenue at INR 19.14 billion. The company's other income for the quarter was INR 54.5 million, down 36.4% from INR 85.7 million in the year-ago quarter.
In Apr-Sept, the company's consolidated net profit more than doubled to INR 196.8 million from INR 91.5 million in the year-ago period. In the first six months of the current financial year, the consolidated revenue was INR 36.21 billion, up 23.6% on year to INR 29.29 million.
The company's total expenditure for the quarter was INR 18.59 billion, up 23.8% from INR 15.02 billion in the year-ago quarter. The company's purchase of traded goods nearly doubled to INR 10.9 billion from INR 5.5 billion in the year-ago quarter. Cost of materials fell 90.6% on year to INR 14.5 million. Finance costs were INR 242.3 million, up 13.7% from INR 213.1 million in the year-ago quarter. Depreciation and amortisation cost for the quarter was INR 636.2 million, up 16.5% from a year ago.
In the September quarter, the company spent INR 1.61 billion on employee benefits, up 18.5% from INR 1.36 billion in the year-ago quarter. Other expenses increased to INR 5.56 billion, up 28.5% from INR 4.33 billion a year ago. The tax outgo for the quarter nearly doubled to INR 78.2 million from INR 39.7 million a year ago.
The Mumbai-based company reported consolidated earnings before interest, taxes, depreciation, and amortisation of INR 1.04 billion, up 29% on year. Analysts had expected the company to report EBITDA of INR 1.2 billion for the quarter. The EBITDA margin rose 18 basis points to 5.5% during the quarter.
The company's revenue from beauty segment surged 24% on year to INR 17.03 billion during the quarter. The gross merchandise value of the beauty segment, or total value of the beauty products sold, rose 29% on year to INR 27.83 billion. Revenue from the fashion segment jumped up 22% on year to INR 1.66 billion, and its gross merchandise value rose 10% to INR 8.63 billion. The company's gross merchandise value for the September quarter was INR 36.53 billion, up 24% on year.
The company's beauty stores across 72 cities have risen to 210 till date with a 37% on-year increase in gross merchandise value. The company added two new flagship stores in the September quarter. It launched more than 260 brands in the quarter. The company said in its investor presentation that growth of the fragrance segment surpassed the overall beauty segment.
FSN E-Commerce announced its quarterly results after market hours. On Tuesday, shares of the company closed at INR 177.81 on the National Stock Exchange, down 2.8% from the previous day. End
Edited by Tanima Banerjee
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