In the fourth quarter of financial year 2023, against the backdrop of subdued industry growth, Nykaa’s Tier 1 consumers have demonstrated sustained consumption, the company announced through an exchange filing. This has led to stronger revenue growth on the Nykaa platforms.
During the quarter, Nykaa’s Beauty & 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 on-year growth rates in Q4 FY23 as compared to the year-on-year growth rates seen in Q3 FY23. 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, the company expects its percentage revenue growth rates to be in line with the ones seen in nine months of FY23, early-thirties.
Consumer pullback in discretionary spends has had some impact on our fashion business, leading to subdued growth in NSV this quarter. For Q4 FY23, Nykaa expects its percentage revenue growth rates in the Fashion business to come through in the late teens. This comes on the back of the company's focus on business efficiency and unit economics. The company’s average order values and conversion rates have improved steadily.
For FY23 at the consolidated level, Nykaa expects to sustain its percentage growth rate in line with 9MFY23.
Nykaa shares
The shares of Nykaa on Wednesday closed at Rs 136.40, up by 7.57 per cent.
