The company estimated subdued growth in the fashion business, due to consumers tightening their wallets on discretionary spending
New Delhi: Beauty and fashion firm FSN E-Commerce Ventures, which operates under the Nykaa brand, is expecting over 30 per cent growth in revenue in the just-ended fiscal 2023, the company said on Wednesday.
However, it has estimated subdued growth in the fashion business, due to consumers tightening their wallets on discretionary spending.
“The Operating parameters for the BPC business viz. average order values and conversion rates have been robust, which has aided growth in revenue. For FY23, we expect our percentage revenue growth rates to be in line with the ones seen in 9M (nine months) FY23, early-thirties,” Nykaa said in its revenue update for the fourth quarter of the last fiscal.
The company had registered 37 per cent growth in the consolidated revenue of nine months ended December 31, 2022.
“Consumer pullback in discretionary spending has had some impact on our fashion business, leading to subdued growth in NSV this quarter. For Q4 FY23, we expect our percentage revenue growth rates in the Fashion business to come through in the late teens,” the filing said.
Nykaa said that during the last quarter (Q4) of FY 2023, its Beauty and Personal Care (BPC) categories have seen sustained strong demand, partly aided by the ‘Pink Love’ sale introduced during the quarter.
“BPC business has seen higher year-over-year growth rates in Q4, FY23 as compared to the year-on-year growth rates seen in the third quarter of FY23,” the filing said.
Nykaa had registered about a 33 per cent year-on-year increase in consolidated revenue to Rs 1,462.82 crore, while its consolidated profit plunged by 70.75 per cent to Rs 8.48 crore for the third quarter ended December last year.
In the third quarter of FY23, the Beauty and personal care GMV of Nykaa grew 26 per cent to Rs 1,901.4 crore on a year-on-year basis, with annual unique transacting customers increasing by 27 per cent to 96 lakh.
Nykaa’s fashion vertical GMV rose 50 per cent to Rs 724.4 crore during the reported quarter on YoY basis, and annual unique transacting customers grew 50 per cent YoY to 24 lakh in December 2022 quarter.
