HomeEarnings NewsNykaa Q2: Festive season sees healthy growth; marketing spend to increase, says Falguni Nayar

Nykaa Q2: Festive season sees healthy growth; marketing spend to increase, says Falguni Nayar

Nykaa is on the radar post its Q2 results which saw sharp year-on-year revenue growth with momentum sustaining quarter-on-quarter. CNBC-TV18’s Mangalam Maloo spoke to Falguni Nayar, Executive Chairperson, MD & CEO of FSN E-commerce Ventures and discussed earnings fine print.

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By CNBC-TV18 November 15, 2021, 1:39:43 PM IST (Published)

Nykaa Q2: Festive season sees healthy growth; marketing spend to increase, says Falguni Nayar
FSN E-Commerce Ventures Ltd, which operates e-commerce beauty company Nykaa, on Sunday said its net profit stood at Rs 1.2 crore for the quarter ended in September 2021. The company, which was listed on the BSE on November 10, had logged a net profit of Rs 27 crore in the July-September 2020 quarter, FSN said in a regulatory filing.


Read Here: Nykaa net profit falls to Rs 1.2 cr in Q2

In an interview with CNBC-TV18, Falguni Nayar, Executive Chairperson, MD & CEO, FSN E-Commerce Ventures explained the quarter gone by for the company.

“Overall, the festive season demand has been pretty strong and we have seen that there is a revival of demand emanating from both, little bit of COVID easing, as well as big focus on festive season followed by the wedding season, which is likely to continue all the way till February. So we are quite optimistic about what this means for the business,” she said.

The company, as it had announced in its DRHP too, has plans of going aggressive now.

On advertising and marketing spends Nayar said, “The percentage marketing spend that we had for the year ending financial year 21 was on the lower side because half of the year was affected due to COVID. So last year was characterised by the first half being very low marketing costs, and the second half being more on normal marketing costs. As a result, this year the full-year marketing costs will definitely look higher than the previous year,” said Nayar.

The cost of customer acquisition has started to normalise now, according to the company.

ALSO READ: As Nykaa shares make blockbuster debut, analysts upbeat on stock, see targets up to Rs 2,600

"I think the year ended March 21, benefited from the extremely low cost of customer acquisition because not too many players were active during that year. So I think going forward, I do believe that long term potential that companies like ours are good and we will continue to build our business towards its optimum level of size and scale.” she said.

Nykaa has acquired a majority stake in Dot & Key recently.

"49 percent remains with the current owners and promoters which is Suyash Saraf and Anisha Saraf. We have acquired 51 percent stake through a combination of primary and secondary I think the primary was about Rs 50 crore investment into the company to grow the company and the secondary stake acquisition I think we paid close to Rs 46 crore to acquire the secondary stake and together our stake came out at 51 percent,” Nayar explained acquisition math.

For full management commentary, watch the video.

Also Read: A look at Nykaa's incredible journey and meteoric rise
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