Nykaa Profit Falls 96%, Stock Price Down
Indian beauty start-up Nykaa, saw profits drop 96% due to increased marketing costs in the quarter before its IPO. Shares fell on Monday.
FSN ECommerce Ventures Ltd., the entity that runs Indian beauty start-up Nykaa, saw profits drop 96% due to increased marketing costs in the quarter before its IPO. Shares fell on Monday.
Net profit fell to Rs 1.2 crore ($ 161,000) in the quarter ending September from Rs 27 crore the year before, according to a statement last Sunday, as a 92% increase in expenses covered a 47% increase in income. Shares fell 5.2% to Rs 2,236.5 at 10:07 am in Mumbai after falling 7.3% early in trading.
This is the first earnings filing since shares in the Mumbai-based company went public last week and doubled in value. The IPO made Falguni Nayar, who owns around half of the company, worth nearly $ 7 billion and the richest self-produced billionaire in India.
Nykaa is a component of a brand new generation of Indian startups that provides quite 2,500 brands of everything from makeup and makeup remover to velvety war paint Indian war paint and also the body tattoo art referred to as mehendi. Its revenue enlarged 47% to Rs 890 large integer within the quarter finished Sept thirty from the year before.