Highest-ever EBITDA (8.0%) & PAT since IPO.

On fashion business - do you think this is a business which requires a stronger presence in offline given the category might require more touch and feel? Are there any new categories like wellness which could be relevant?

Most physical retail multi-brand stores have at best 60 to 80 brands while what sells online is so many more brands. The role physical retail has in a large geographically diverse market like India is meaningful but limited and both will have to go hand in hand. Nykaa is going for representation in top 100 cities of destination stores. On wellness - it remains an interesting category. Globally and in India, increasingly wellness through products and sometimes services will be embraced. We already retail wellness on our platform, growing rapidly.

On Beauty business - considering we have decently broad base of offline distribution, any color on customer overlap or consumer behavior between online and offline?

In India, there is nothing like an exclusively online consumer nor an exclusively offline consumer. Consumers have different use cases - online for replenishment and convenience, in-store for education and learning. We see a lot of overlap between consumers who shop in our stores then come purchase online and vice versa. Consumers shopping online we also actively send them into stores where they can premiumize themselves. Majority of consumer is very channel agnostic.

On the operating cash flow side, we see a very sharp improvement Y-o-Y. Can you qualify what has gone through? What have you really done to ensure these improvements happen?

It's a greater focus, greater cross-functional alignment, which has actually resulted in we being able to manage working capital far more tightly than we have done in the past. There is far greater focus, which has come through and which is why you're seeing the benefit flowing through across inventory, across receivables, across payables. It's actually tightly controlling that. That's really what's happened.

What explains the improved GMV growth momentum in fashion segment? Even the order growth has been ahead of AUTC growth for the quarter.

The proposition has not fundamentally changed, but it's a function of onboarding the right set of brands and just continuing to do deeper engagement with brands. When we add strong brands like Victoria's Secret, Rare Rabbit, Hopscotch - business tends to be incremental in nature. It doesn't cannibalize existing business. We have not slowed down on new customer acquisition. So it's a combination of continuing to acquire new customers and just continuing to build better assortment.

When I look at your segment-wise performance, the asset for the fashion segment has decreased to INR320 crores. Any particular reason?

Fashion business is not very asset heavy because we are focusing on building more and more brands through marketplace than inventory-led. And the inventory-led business is mostly restricted to fashion own labels.

When we are asking about margin improvement in Beauty business, you are kind of indicating we are at a high margin already. But given the kind of value add you give for the brand, do you not think you are leaving some margin on the table?

It's like an age-old debate between retailers and brands. There's always scope for more. Each of the 3 businesses that sit within beauty vertical have scope to improve margin profile. For multi-brand retailing - scope to continue to improve marketing income by creating more advertising opportunities, building a campaign manager allowing brands to bid for ad inventory in real-time, enabling smaller brands to advertise via personalization. Own brands continuing to outperform can be margin accretive. Operating leverage benefits of scale - employee and G&A won't scale at the same level. Own brands and eB2B still not where we want to be in terms of margin.

Fourth quarter versus the last few quarters, there has been a change in profitability profile. Is the fourth quarter having some one-off, which is why there was a loss there?

The private label portfolio grew slower than the platform business overall. The largest part of the business is still the fashion platform which structurally as well as sequentially has been very healthy on the gross margin front. But when we include everything else, including the private label portfolio where we have chosen to go much slower on certain third-party channels consciously in this year, it may seem like the margin growth is not as much as you would expect on a sequential basis.

On the Beauty side - we've seen gross margins continue to perform well. How is each individual segment behaving, and whether the competitive concerns on the private/own brand side is now behind us?

Each business continues to improve gross margin with different degrees possible given stage of business. eB2B has meaningful scope to improve. Own brands has healthier gross margin like any consumer brands business but still room for improvement. Multi-brand beauty retail has opportunity through ad income and mix - if premiumization and sale of more prestige and luxury goods continues to play out, that should be net positive.

On Nykaa Now - are we really using any of our physical store network for the fulfillment?

Nykaa Now is being done in a more traditional rapid delivery quick commerce model leveraging dark store concept or micro fulfillment centers. But we have the capability built during pandemic to service hyperlocal delivery - using our physical stores to service e-commerce orders in that relevant pin code. That capability exists, used predominantly for luxury products. Stores are destination stores in relatively expensive real estate. Technology built and we use it to dispatch certain products and assortment to consumers from stores.