Nykaa expects revenue growth to be over 30% in FY 23

6 Apr 2023 , 03:34 PM

FSN E-Commerce Ventures (Nykaa) anticipates sales growth of over 30% in FY 23, the company announced on Wednesday. However, it predicts muted growth in the fashion industry as a result of consumers cutting back on discretionary spending.

'The BPC business' operating characteristics, such as average order values and conversion rates, have been strong, which has benefited revenue growth. According to Nykaa's revenue statement for the fourth quarter of the previous fiscal, 'we estimate our percentage revenue growth rates to be in line with the ones witnessed in 9M (nine months) FY23, early-thirties.

For the nine months that concluded on December 31, 2022, the company's consolidated revenue had increased by 37%.

'Consumer discretionary spending declines have had some effect on our fashion division, resulting in muted NSV growth this quarter. We anticipate our fashion business's percentage revenue growth rates to be in the late teens for Q4 FY23, according to the filing.

Nykaa reported that its Beauty and Personal Care (BPC) categories experienced consistent, strong demand during the fourth quarter (Q4) of FY 2023, helped in part by the 'Pink Love' promotion that was introduced during the quarter.

In comparison to the year-over-year growth rates seen in the third quarter of FY23, the BPC company had stronger year-over-year growth rates in Q4, FY23, according to the filing.

For the third quarter that concluded in December of last year, Nykaa's consolidated revenue increased by roughly 33% year over year to Rs 1,462.82 crore, but its consolidated profit fell by 70.75% to Rs 8.48 crore.

On an annual basis, Nykaa's beauty and personal care GMV increased by 26% to Rs 1,901.4 crore in the third quarter of FY23, while the number of yearly unique transacting consumers rose by 27% to 96 lakh.

Annual unique transacting consumers increased by 50% YoY to 24 lakh in the December 2022 quarter, while Nykaa's fashion vertical's GMV increased by 50% to Rs 724.4 crore during the reporting quarter.

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