BENGALURU Reuters India39;s FSN ECommerce Ventures Ltd, parent of cosmeticstofashion retailer Nykaa, reported an almost 50 rise in fourthquarter profit before tax on Wednesday, helped by a sales campaign that convinced customers to buy despite inflationary pressures.

Nykaa39;s consolidated profit before tax rose to 86.29 million rupees from 58.16 million rupees a year ago.

The company39;s profit attributable to shareholders, however, fell 71.8, as it had reported a tax benefit of 17.6 million rupees in the March quarter of fiscal 2022.

Its earnings before interest, taxes, depreciation and amortization EBITA margin rose to 5.4 from 4 a year ago. Average order value of its main beauty and personal care BPC segment rose 5 to 1,803 rupees.

The lipstick effect where customers are willing to buy less expensive goods during an economic downturn was on full display this quarter, with Nykaa39;s 39;Pink Love39; sales campaign playing a crucial role in mustering up sales.

BPC orders rose 22 in the quarter, with merchandise value GMV the monetary value of orders across its platforms rising 36 to 24.45 billion rupees.

The GMV from the BPC business, which accounts for roughly 67 of total GMV, rose 29.

Nykaa39;s shares closed down 2.7 ahead of the results. The stock fell around 19 in the JanuaryMarch quarter.

Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Janane Venkatraman

Source Reuters