The company reported a consolidated Q4 net profit of just $1.1 million, down from $2.1 million in the same time period last year, parent company FSN E-Commerce Ventures Ltd FSNE.NS noted in a regulatory filing.
Meanwhile, Nykaa’s revenue from operations reached $125.4 million, up from $95.5 million a year ago.
Since the company went public in November 2021, it has shed 32% of its stock value. The decline has come as a result of a burden of past expectations and a fear of rising competition. The company’s decision to hire several high profile executives, including Flipkart’s head of marketing as the CEO of its B2B segment, are also indicative of the company’s ambition to capture a larger market share at the expense of thinner profit margins, CNBC TV18 reported.
According to brokerage firm ICICI Securities, the company will have to go more mainstream to attain a 35% to 40% compound annual growth rate in the beauty and personal care segment over the next five to six years.