FSN E-Commerce Ventures (Nykaa) on Friday released its first quarter update for the financial year 2023-24. It expects its consolidated revenue for the first quarter of the current financial year (Q1FY24) to grow in the mid-twenties on a year-on-year basis on the back of various indicators including moderating inflation, etc., it said in a regulatory filing. “Macro indicators of the Indian economy reflect a healthy trend which augurs well for the long-term health of the industry. GST collections continue to be robust, and inflation has started to moderate. Interest rates are also showing signs of stabilizing,” the company said.
Despite overall discretionary spend slowdown, Nykaa stated that the consumption in the Beauty and Personal Care (BPC) categories continue to remain strong, in line with longer term trajectory. “Our BPC business NSV for the quarter is expected to grow in the early twenties YoY. This is supported by strong urban demand in the category,” it added.
Further, in the apparel segment, Nykaa said that while the industry has been impacted due to discretionary slowdown during the quarter, the spending is expected to improve with the revival of seasonal demand. “Despite the larger category trend, our fashion business has witnessed relative resilience through gradual improvement in order volume with sustained AOV YoY,” it said. Nykaa Fashion NSV for Q1FY24 is expected to grow in low to mid-teens on-year. For Q1FY24, revenue at a consolidated level is expected to grow in the mid-twenties YoY.
During the previous quarter, FSN E-Commerce Ventures, had posted profit at Rs 2.41 crore, down 71.8 per cent in comparison to Rs 8.56 crore in the same quarter last year. While Nykaa’s total income for the quarter was at Rs 1311.46 crore, its total expenses for the period was at Rs 1302.83 crore. The company had reported that the cost of material consumed during the quarter increased by 277.2 per cent to Rs 97.28 crore from the previous year’s 25.79 crore.
Nykaa (FSN E-Commerce) was founded in 2012 by Falguni Nayar. Since its launch, Nykaa has expanded its product categories by introducing online platforms Nykaa Fashion, Nykaa Man, and Superstore. Nykaa offers over 4,500+ brands through its website and mobile applications.