Aug 4 (Reuters) - India's FSN E-Commerce Ventures, which operates beauty and fashion retailer Nykaa, reported a more than three-fold rise in quarterly profit on Tuesday, boosted by growth in its beauty business and a sharp acceleration in fashion sales.
The company's consolidated net profit rose to 800.1 million rupees ($8.39 million) in the quarter ended June 30, from 233.2 million rupees a year earlier.
The results come as investors assess whether Nykaa can sustain growth while improving profitability. After several quarters of investments, analysts now expect the company's fashion business to contribute more meaningfully.
Nykaa said growth in its beauty business was driven by its e-commerce platform, retail stores and owned brands, while the fashion segment benefited from customer additions, a broader brand portfolio and its partnership with Nike.
The company's revenue from operations rose more than 29% year-on-year to 27.82 billion rupees, while gross merchandise value, or the total value of goods sold on its platforms, climbed 34% to 55.9 billion rupees.
Net sales value for the company's beauty products rose 29%, EBITDA margin for the segment expanded to 10.3% from 9.0% a year earlier, while fashion net sales value surged 54% and turned EBITDA-positive.
Analysts at Jefferies said continued strength across both beauty and fashion should support profitability, while those at CLSA said strong customer acquisition and improving conversion of gross merchandise value to net sales value had driven sharp acceleration in the fashion business.
Nykaa sells beauty and personal care products from brands including Huda Beauty, MAC, L'Oreal, Maybelline and The Ordinary, alongside its own brands such as Nykaa Cosmetics and Dot & Key. Through Nykaa Fashion, it retails apparel, footwear and accessories.
The company also announced it has acquired a 51% stake in premium skincare brand Aminu Wellness for 320 million rupees.
($1 = 95.3775 Indian rupees)
Reporting by Surbhi Misra in Bengaluru; Editing by Ronojoy Mazumdar
Source: Reuters