Nykaa shares in the green after Q1 net profit jumps over 150% YoY

The consolidated net profit came in at ₹13.64 crore during the April-June period of this year, as compared to ₹5.42 crore in the year-ago period, as per a regulatory filing made by Nykaa post the market hours on Tuesday, August 13. The shares had settled in the red ahead of the disclosure of Q1 results.

As trading commenced on Wednesday, the scrip opened at ₹192 apiece on the National Stock Exchange (NSE), which marked a climb of 2.5% as against the last closing price.

Minutes into the trade, the stock peaked to a high of ₹197.45 on the NSE, up 5.4% as compared to the previous session's close.

However, Nykaa pared most of the gains within a few minutes, as it traded at ₹188.38 apiece at 9:28 am, up only 0.6%.

As per the June quarter results declared by the company, its revenue from operations increased about 23% YoY to ₹1,746.11 crore from ₹1,421.82 crore.

The growth was led by the beauty segment of Nykaa which reported about 23% increase in revenue to ₹1,593.51 crore in June 2024 quarter from ₹1,298.36 crore a year ago.

The fashion segment revenue grew about 21% to ₹148.6 crore from ₹122.45 crore a year ago.

Stake raised in Dot & Key

FSN E-Commerce Ventures said it has raised its stake by 39% to 90% in Dot & Key Wellness in a ₹265.3-crore cash deal. It earlier owned 51% in the company.

The Nykaa-operator will be acquiring 5,29,286 equity shares of Dot & Key from the company's promoters and existing shareholders.

"On completion of the said transaction, the company's (FSN E-Commerce) stake in Dot & Key will increase from the current 51% to 90% of the paid-up capital of Dot & Key and hence, Dot & Key will continue to remain a subsidiary of the company," FSN E-Commerce said in a regulatory filing.

Dot & Key was incorporated on March 16, 2020. It is engaged in the business of buying, exporting, selling, distributing and otherwise deal in all kinds and varieties of pharmaceuticals, medicines including Ayurveda, Unani, Allopathy or Homeopathy, health care, cosmetics, beauty, and skin care products.