Nykaa shares Q1 business update, says revenue grows in mid-twenties

Falguni Nayar-led FSN E-Commerce Ventures Ltd (Nykaa) on Friday said it expects consolidated revenue for the June quarter to grow in the mid-twenties on year-on-year (YoY) basis. In a filing to BSE, Nykaa said consumption in the Beauty and Personal Care (BPC) category continued to remain strong in the June quarter, in line with longer-term trajectory, despite a slowdown in discretionary spends.

The company made the announcement ahead of Friday's trading hours.

Nykaa said apparel industry was impacted due to discretionary slowdown during the quarter, especially in small towns.  It expects discretionary spending 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. AOV stands of average order value.

The lifestyle-focused consumer technologies platform said macro indicators of the Indian economy reflect a healthy trend, which augers 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 stabilising, it added.

"Nykaa was witness to this with the success of this quarter flagship sale event ‘Pink Summer Sale’ during the quarter. 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 said.

NSV stands for net sales value. Nykaa said Nykaa Fashion NSV for the quarter is expected to grow in low to mid-teens on YoY basis.

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