Five executives from Nykaa, FSN ecommerce Venture’s cosmetics company, have resigned as the company’s share price falls and competition heats up.
According to reports in the media, the reported exits are part of the routine annual appraisal and transition process.
Manoj Gandhi (Chief Commercial Operations Officer), Vikas Gupta (Chief Executive Officer of Wholesale Business), and Gopal Asthana are among those who have resigned (Chief Business Officer of the fashion division).
Also, Suchi Pandya, Vice President of Nykaa’s fashion division’s owned brands business, and Lalit Pruthi, Vice President of Finance in the fashion division, have resigned.
Nykaa’s stock price dropped 0.22 per cent on Friday, ending the day at Rs 137.80 per share. The corporation refers to them as ‘voluntary and involuntary exits.’
Executives who have left Nykaa had only been with the company for 1 to 3.5 years. Asthana has spent the most time at Nykaa, having been there for three years and five months.
The revenue of the Falguni Nayar-led ecommerce firm increased 33 per cent year on year to Rs 1,463 crore in the December quarter, while net profit fell to Rs 8.5 crore from Rs 29 crore in the previous year.
Overall expenses increased 36 per cent year on year to Rs 1,456 crore in the third quarter. Increased employee benefit expenditures and other expenses reduced Nykaa’s EBITDA margin to 5.3 per cent from 6.3 per cent the previous year.