FSN Ecommerce Ventures, which operates under the Nykaa brand, reported about a 57 per cent decline in consolidated profit after tax (PAT) to Rs 29 crore in the third quarter ended December 31, 2021. The company had registered a PAT of Rs 68.9 crore.

CNBC-TV18’s Mangalam Maloo spoke with Nykaa Founder and CEO - Falguni Nayar about the road ahead. Nayar said business was looking up and that consumer sentiment was intact.

"We haven’t seen a slowdown in consumer sentiment. There’s great growth potential in the Indian beauty and fashion market," she said.

In 2019, Nykaa’s advertising expense was at 11.8 percent, in 2020 it was at 11.4 percent, however, in 2021 it came down to 6.9 percent. Nayar expects to see an increase in marketing expense, which is expected to sustain at pre-COVID levels of 11.5-12 percent going forward.

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Nayar sees great growth potential in the India beauty and fashion market. In beauty metrics, there has been a huge increase in orders – it has gone up from 1.6 million in Q2FY22 to 7.8 million in Q3FY22. Similarly, annual transacting customer base has increased to 7.9 million for nine months in FY22 compared to 5.5 million a year ago. The company is investing in acquiring customers.

In fashion, the annual transacting customer number has gone up to 1.6 million compared to 1.3 million a quarter ago doubling the orders from 0.7 million to 1.4 million on an annual basis, she said.

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(Edited by : Abhishek Jha)