AMITY SCHOOL OF BUSINESS

NTCC Term Paper 2022

WEEKLY PROGRESS REPORT (WPR) – 2

Enrolment Number-A3906421201
Program- BBA
Batch- 2021-2024
Student name- Priya Saxena
Faculty Guide’s Name- Dr. Arpan Sinha
For the Week: 27/06/2022- 03/07/2022
 HOLISTIC STUDY OF nykaa

1. Market Analysis (STP analysis) of NYKAA

STP of Nykaa Cosmetics Over the years, Nykaa has made a brand for
itself which is seen to be synonymous with excellence in the Indian
market.

Segmentation of NYKAA:
Nykaa beauty care products chiefly center around the youthful
females among the population.
Demographically, the objective age gathering of the brand is
between 18 to 35years. This significantly incorporates working
ladies who are decently independent and are fit for buying the
items again and again.
However, all through the world, the misinterpretation of just
women wearing cosmetics is being broken once in a while,
nykaa cosmetics majorly centers and draws in female
consideration.
Pyschographically, the brand fragments its crowd into those
whose personality lines up with the brands character. Qualities
such a being bold, out there and sure, not terrified of playing
with colours, and so forth are portrayed by nykaa beauty care
products, as it has an arrangement of colour cosmetics which are
genuinely novel on the lookout.
Targeting of NYKAA:
Nykaa has in excess of 2500 brands and more than 5 lac items to
satisfy the need of clients and an all in one resource answer for
them. Nykaa centers around specialty advertising methodology
while focusing on clients. The primary clients of the organization
are upper-working class society and mostly ladies. It additionally
takes care of the magnificence and wellbeing needs of men.
Generally the clients of Nykaa are in the age gathering of 18-50
years. Present day ladies are designated by the organization that is
expected to look prepped.
Nykaa's clients can be sorted in under four classes:

Dynamic Seekers
This class incorporates clients of 19-25 years of age who
require all exhortation on excellence items. These clients are
OK with innovation, shop on the web, and read web journals.

Multi-Taskers
This incorporates clients who are 27-45 years of age and who
have less time and a lot of work to do. This class comprises
of sure working females who are very much aware of what
they need.

Magnificence Aficionados
Clients old enough gathering 25-45 years who are very aware
of excellence and style and invests a lot of energy in perusing
locales of new brands or items fall under this classification.
 Brand Seekers
This class incorporates clients between the age gathering of
25-45 years who are more well defined for brands and
amazingly upscale. These clients frequently venture out and
are presented to global brands.

Positioning of NYKAA

Nykaa puts incredible significance on brand situating through the site,

and that implies that new and refreshed material is continually
accessible to the main interest group. The business utilizes sites,
instructional exercises, and designated promotions on its fundamental
stage to increment online deals.

The site plans to have an effect in the excellence and design

businesses. Additionally, it has been zeroing in on carrying quality
things and administrations to individuals at enormously limited costs.
The stage seems to have a great deal of potential for future
development and predominance.

Nykaa's YouTube playlist has an extensive variety of content,

including magnificence horoscopes, wedding cosmetics strategies,
VIP excellence mysteries, etc. They help clients and buyers in
choosing the right items and using them accurately by giving an
assortment of how-to recordings. Moreover, the firm purposes
YouTube advertisements to connect with its clients.
 2. Financial Analysis of NYKAA

Results of Operations

Total Income

Our absolute pay expanded by 37.94% to Rs.245,265.41 lakhs for the

Financial Year 2021 from Rs.1,77,808.16 lakhs for the Financial Year
2020, principally because of an expansion in income from
activities.
Revenue from operations

Our revenue from operations increased by 38.10% to Rs.2,44,089.49

lakhs for the Financial Year 2021 from Rs.1,76,753.36 lakhs for the
Financial Year 2020, primarily due to an increase in sale of products
and sale of services. Our total revenue growth was also supported by
an increase in demand for our products in Financial Year 2021 as a
result of increasing online shopping by consumers in our beauty
and personal care vertical and, as well as launch of multiple product
categories and brands as part of our fashion offering, despite the
adverse impact of the COVID-19 pandemic.

Our revenue from operations from sale of products increased by

37.70% to Rs.2,18,090.58 lakhs for the Financial Year 2021 from
Rs.1,58,382.51 lakhs for the Financial Year 2020, primarily due to the
following trends in our beauty and personal care vertical:

(i) an increase in Annual Unique Transaction Consumers from

53 lakhs for the Financial Year 2020 to 56 lakhs for the
Financial Year 2021,

(ii) a slight increase in the number of Orders placed on our

platform from 170 lakhs for the Financial Year 2020 to 171
lakhs for the Financial Year 2021 and

(iii) an increase in AOV from Rs.1,448 for the Financial Year

2020 to Rs.1,963 for the Financial Year 2021.

Our revenue from sale of services increased by 37.90% to

Rs.25,029.88 lakhs for the Financial Year 2021 from Rs.18,150.90
lakhs for the Financial Year 2020 due to the growth in revenue from
marketing
support revenue and income from marketplace services.

Other income
Our other pay expanded by 11.48% to Rs.1,175.92 lakhs for the
Financial Year 2021 from Rs.1054.80 lakhs for the Financial Year
2020, essentially because of an expansion to our greatest advantage
pay on security store and bank store, and unfamiliar trade gain, to
some extent offset by a decline in incidental pay and no increase on
monetary resources brought at fair worth through benefit and
misfortune during
the Financial Year 2021 (when contrasted with an increase on
monetary resources brought at fair worth through benefit furthermore,
deficiency of Rs.759.92 lakhs for the Financial Year 2020.

Cost of goods sold

Cost of products sold expanded by 47.86% to Rs.1,49,257.67 lakhs

for the Financial Year 2021 from Rs.1,00,945.49 lakhs for the
Financial Year 2020, essentially because of an expansion in offer of
items that
we buy from brand connections or their approved wholesalers and
production under our possessed brands which we sell
straightforwardly to our shoppers, in accordance with the
development in the quantity of Orders on our foundation which was
driven by an expansion in the quantity of Annual Unique Transacting
Consumers and AOV.

Employee benefits expense

Worker benefits cost expanded by 45.00% to Rs.28,364.66 lakhs for

the Financial Year 2021 from Rs.19,561.39 lakhs for the Financial
Year 2020, basically because of an expansion in compensations,
compensation and reward to Rs.25,820.57 lakhs for the Financial
Year 2021 from Rs.18,222.82 lakhs for the Financial Year
2020 and an oddball remunerated nonappearances costs of
Rs.1,028.08 lakhs for the Financial Year 2021 owing to an adjustment
of our leave strategy during the Financial Year 2021 which permitted
representatives to aggregate pass on dependent upon specific cutoff
points and convey forward into resulting a very long time for
availment/encashment. Likewise, here we have made an arrangement
for repaid nonappearances according to the leave strategy existing as
of March 31, 2021. The expansion in pay rates, wages and reward was
principally because of an expansion in representative headcount to
2,045 as at March 31, 2021 from 1,772 as at March 31, 2020 and
yearly augmentation.

Finance costs
Our money costs diminished by 30.69% to Rs.3,070.14 lakhs for the
Financial Year 2021 from Rs.4,429.34 lakhs for the Financial Year
2020, fundamentally because of (I) a lessening in interest costs on
borrowings to Rs.1,624.24 lakhs for the Financial Year 2021 from
Rs.2,930.41 lakhs for the Financial Year 2020 because of the
reimbursement of specific borrowings, lower usage of, and a decrease
in financing costs on, working capital credit, and (ii) a reduction in
interest costs on rent liabilities to Rs.1,296.87 lakhs for the Financial
Year 2021 from Rs.1,404.29 lakhs for the Financial Year 2020.

Depreciation and amortization expense

Our depreciation and amortization cost expanded by 10.90% to
Rs.7,158.94 lakhs for the Financial Year 2021 from Rs.6,455.41 lakhs
for the Financial Year 2020, essentially because of an expansion in
devaluation of privileges of-purpose resources for Rs.4,083.58 lakhs
for the Financial Year 2021 from Rs.3,827.73 lakhs for the Financial
Year 2020 and an expansion in devaluation of property, plant and
gear to Rs.1,861.16 lakhs for the Financial Year 2021 from
Rs.1,345.24 lakhs for the Financial Year 2020.

Other expenses
Our other expenses expanded by 6.12% to Rs.50,801.59 lakhs for the
Financial Year 2021 from Rs.47,869.86 lakhs for the Financial Year
2020, basically because of
(I) an expansion in cargo costs to
Rs.15,800.77 lakhs for the Financial Year 2021 from Rs.1,3141.53
lakhs for the Financial Year 2020, which was driven by the expansion
in the volume of Orders handled through our foundation and an
expansion in the quantity of rethought faculty in satisfaction
communities and
(ii) an expansion in utilization of pressing materials to Rs.4,387.26
lakhs for the Financial Year 2021 from Rs.3,457.42 lakhs for the
Monetary Year 2020, which was fundamentally because of an
expansion in shipments in accordance with an expansion in Request
volume. The expansion in different costs was somewhat
counterbalanced by the lessening showcasing and commercial cost to
Rs.16,947.95 lakhs for the Financial Year 2021 from Rs.20,198.02
lakhs for the Financial Year 2020, essentially because of a decrease in
costs on promoting and computerized showcasing.

Tax expense/(income)
Our all out charge cost diminished by 47.12% to Rs.447.64 lakhs for
the Financial Year 2021 from Rs.846.58 lakhs for the Financial Year
2020. Our assessment costs for the Financial Year 2021 included
an ongoing duty of Rs.4,007.80 lakhs and a conceded charge pay of
Rs.3,560.16 lakhs, while our assessment costs for the Financial Year
2020 contained an ongoing duty of Rs.605.91 lakhs and a conceded
expense of Rs. 240.67 lakhs. Conceded charge pay for the Financial
Year 2021 higher because of conceded charge resource perceived for
charge misfortunes in FSN Brands and Nykaa Fashions of Rs.
2,040.10 lakhs.

Profit/(loss) for the year

Because of the previous, Your Company recorded a Profit After Tax
of Rs.6,164.77 lakhs for the Monetary Year 2021 when contrasted
with a deficiency of Rs.(2,299.91) lakhs for the Financial Year 2020.

Liquidity and Capital Resources

By and large, our essential liquidity necessities have been to fund our
capital use and working capital requirements for our tasks. We have
met these prerequisites through incomes from tasks, value mixtures
from investors and borrowings. As of March 31, 2021, we had
Rs.8,358.20 lakhs in endlessly cash counterparts and Rs.16,408.73
lakhs in other bank adjusts other than endlessly cash counterparts.
That's what we trust, subsequent to considering the normal money to
be produced from activities and proposed gathering pledges, we will
have adequate liquidity for our current prerequisites
furthermore, expected prerequisites for capital use and turning out
capital for the following a year.

Cash Flows
The following table sets forth our cash flows for the years indicated:

Operating Activities
Net cash flows from operating activities was Rs. 14,984.86 lakhs for
the Financial Year 2021. While our benefit before charge was
Rs.6,612.41 lakhs, we had a working benefit prior to working capital
changes of Rs.18, 556.34 lakhs, fundamentally because of changes for
devaluation and amortization of Rs. 7,158.94 lakhs, interest cost and
money expenses of Rs.3070.14 lakhs and arrangement for
remunerated nonattendance costs of Rs. 1,028.08 lakhs, to some
degree offset by interest pay of Rs.1,029.23 lakhs. Our working
capital changes for the Financial Year 2021 essentially comprised of
an increment of inventories of Rs.4,737.81 lakhs, an expansion in
current monetary resources of Rs.1,754.29 lakhs and an expansion in
other current resources of Rs.1,759.26 lakhs, to some degree offset by
an expansion in current other monetary liabilities of Rs.4,608.78 lakhs
and a lessening in exchange receivables of Rs.1,525.02 lakhs. Our
money created from activities was Rs.1,6301.95 lakhs, changed by
installment of duties of Rs.1,317.09 lakhs.

Investing Activities
Net money utilized in financial planning exercises was Rs.12,974.34
lakhs for the Financial Year 2021, basically containing interest in
fixed stores of Rs.8,966.03 lakhs and installment for acquisition of
property,
plant and gear, elusive resources remembering development for
capital work in progress ("CWIP") and capital lenders (net of
continues from deals) of Rs.4,206.99 lakhs, offset by interest got of
Rs.360.18 lakhs.
Net incomes from money management exercises was Rs.155.92 lakhs
for the Financial Year 2020, fundamentally containing continues from
offer of ventures of Rs.13,288.39 lakhs, offset by interest in fixed
stores of Rs.8,055.25 lakhs and installment for acquisition of
property, plant and gear, immaterial resources remembering
development for CWIP and capital lenders (net of continues from
deals) of Rs.5,082.64
lakhs.

Financing Activities

Net money utilized in supporting exercises was Rs.3,772.23 lakhs for

the Financial Year 2021, principally containing (reimbursement) of
current borrowings (net) of Rs.8,152.07 lakhs, guideline installment
of rent responsibility of Rs.2,995.01 lakhs, interest paid of
Rs.1,765.50 lakhs and interest costs on rent liabilities of Rs.1,296.87
lakhs, to some extent offset by continues from protections premium of
Rs.10,225.59 lakhs.
Net incomes from supporting exercises was Rs.7,344.49 lakhs for the
Financial Year 2020, principally including continues from protections
premium of Rs.10,800.90 lakhs and continues from current
borrowings (net) of Rs.4,188.08 lakhs, somewhat offset by rule
installment of rent risk of Rs.3,309.63 lakhs, interest paid of
Rs.2,976.95 lakhs and interest costs on rent liabilities of
Rs.1,404.29 lakhs.