Fashion retailer Nykaa on Wednesday said its revenue growth during the January-March quarter will be in line with the first nine months of FY23. “We expect our percentage revenue growth rates to be in line with the ones seen in nine months of FY23,” the company informed the stock exchanges as part of its fourth-quarter business update.
The company’s revenue had grown by 41% year-on-year to Rs 1,148.4 crore in the first quarter of the fiscal. In the second quarter, it grew by 39% to Rs 1,230 crore, and was up 33% to Rs 1,462 crore in the third quarter.
In Q4FY23, against the backdrop of subdued industry growth, tier-1 consumers demonstrated sustained consumption, which led to stronger revenue growth on the Nykaa platforms, the regulatory filing said.
The company’s beauty and personal care (BPC) categories saw sustained strong demand, partly aided by the ‘Pink Love’ sale introduced during the quarter, it said.“BPC business has seen higher year-on-year growth rates in Q4FY23 compared with the year-on-year growth rates seen in Q3FY23,” Nykaa said, adding that the operating parameters for the BPC business, such as average order values and conversion rates, were robust which aided the growth in revenue.
The company, however, noted that its business in the fashion category has faced some impact due to the consumer pullback in discretionary spends. This led to a subdued growth in new sale values during the January-March quarter, it said.
Nykaa further said it expected the percentage revenue growth rates in the fashion business to come through in the late teens.“This comes on the back of our focussing on business efficiency and unit economics. Our average order values and conversion rates have improved steadily,” it added.