Shares of FSN E-Commerce Ventures soared as much as 5.76 per cent at Rs 197.35 per share on the BSE in Wednesday’s intraday trade. The stock price jumped after the company on Tuesday reported a strong financial performance in its April-June quarter of financial year 2024-25 (Q1FY25).
FSN E-Commerce Ventures, the operator of beauty and personal care brand Nykaa, reported a net profit of Rs 13.6 crore for the quarter ending June 30, 2024, representing a 152 per cent increase from Rs 5.4 crore in the same period last year. The company’s operating revenue for the quarter was Rs 1,746 crore, up 23 per cent from Rs 1,422 crore in the corresponding quarter of the previous year.
Sequentially, FSN E-Commerce Ventures recorded revenue of Rs 1,668 crore and a profit of Rs 9 crore in Q4 FY24. This performance aligns with the company’s previous business update, which projected a revenue growth of around 22-23 per cent year-on-year for Q1 FY25.
The company noted that growth in its physical retail business was slower due to factors such as elections and heat waves in North India.
Additionally, FSN E-Commerce Ventures is increasing its stake in Dot & Key, a cosmetics brand under its portfolio.
Currently holding 51 per cent of Dot & Key, the company plans to acquire an additional 39 per cent from the company’s promoters, raising its total stake to 90 per cent by September 30, 2024.
The acquisition will cost Rs 265.3 crore. Dot & Key generated Rs 198 crore in revenue for FY24.
At 09:48 AM; the stock price of the company pared all its gains and was trading 0.40 per cent lower at Rs 185.85 per share on the BSE. By comparison the BSE Sensex surged by 0.14 per cent at 79,067 levels.
FSN E-Commerce Ventures is involved in the manufacturing, selling, and distribution of beauty, wellness, fitness, personal care, health care, skin care, and hair care products. These products are sold through various channels, including online platforms such as e-commerce and m-commerce, as well as offline stores and stalls. The company launched an initial public offering (IPO) of Rs 5,352 crore in late October 2021.
First Published: Aug 14 2024 | 9:56 AM IST
