Nykaa’s strong performance in Sept quarter bucks new-age tech bloat

At a time when listed new-age technology-led businesses are struggling to be profitable and improve share price, online fashion and cosmetics retailer Nykaa has managed to improve its profitability parameters and narrow its share performance.

A standout feature in the second-quarter (Q2) results of the company was an improvement in margins and profitability. Net profit was up nearly 330 per cent year-on-year (YoY).

While margin performance was driven by growth in revenue, the company is also making structural changes that allow it to control cost better.

For instance, Falguni Nayar, executive chairperson, managing director, and chief executive officer, Nykaa,