Shares of FSN E-Commerce Ventures rose more than 4% on Monday after the company reported strong data for the quarter that ended in June and consumer demand was recovering. FSN E-Commerce is the parent company of beauty retailer Nykaa.

Shares in Nykaa were up 0.9% at Rs 1,425 at 11:52 am on the BSE.

On a consolidated basis, the company reported that operating income rose 41% year-on-year to Rs 11,484 million in the April-June period, while net profit rose 42% to Rs 50 million.

The beauty products company said its overall continued strong growth, with improved gross margin and fulfilment expense efficiencies leading to a year-over-year improvement in overall EBITDA margin.

Annual Unique Transaction Customers are customers identified by email ID or mobile number who placed an order on Nykaa’s website, mobile app or in-store in at least the last 12 months as measured. Gross merchandise is the monetary value of orders on a company’s website, mobile app, and brick-and-mortar stores.

The company said that the focus on customer acquisition and order volume is expected to drive long-term sustainable growth for beauty and personal care. Orders for the segment rose 40% year over year to 8.1 million in Q1FY23.

In addition to beauty and personal care, Nykaa’s fashion business also delivered strong sequential growth while focusing on conversion.