Nykaa noted the positive trajectory of long-term macro indicators such as robust GDP growth, stable interest rates and increasing GST collections, reflecting India’s strong consumer-driven economic growth. However, the short-term pressures have impacted discretionary consumption, affecting Nykaa’s beauty and personal care (BPC) vertical.
The company anticipates mid-twenties growth in gross merchandise value (GMV) and around 20 per cent growth in net sales value (NSV) on a year-on-year basis for the BPC segment in the quarter. The disparity between GMV and NSV growth primarily stems from brand-led pricing and discounting, notably in mass and masstige categories. Despite this, the firm highlights a consistent and healthy order volume growth, signaling robust customer demand.
Nykaa emphasised its commitment to expanding the beauty category, leveraging initiatives like “Nykaaland,” India’s inaugural beauty and lifestyle festival, which drew over 15,000 ticketed visitors in Mumbai.
While Nykaa believes its BPC growth surpasses industry levels, it also anticipates industry growth to normalize and align more closely with long-term trends, given the robust macroeconomic and demographic outlook.
The company reported significant progress in newer ventures like Superstore By Nykaa, witnessing substantial growth and now contributing significantly to overall NSV. Across all BPC businesses, the combined NSV is projected to grow at a rate in the low to mid-twenties year-on-year.
In the fashion segment, industry consumption remained subdued despite festive expectations. Nykaa Fashion, however, sustained robust growth in Q3 FY24, building upon the momentum from the preceding quarter. The company attributed this to product assortment quality, strong customer engagement, and platform robustness.
The GMV for the fashion vertical is anticipated to grow by approximately 40%, with NSV growth in the low thirties on a year-on-year basis for the quarter.
Consolidated projections for Nykaa expect mid-twenties growth in NSV and low twenties growth in revenue on a year-on-year basis for Q3 FY24.
Nykaa (FSN E-Commerce) stands as a prominent lifestyle-focused consumer tech platform in India. Expanding its product categories to include Nykaa Fashion, Nykaa Man, and Superstore has contributed to its comprehensive omnichannel e-commerce experience, offering a vast array of brands through its online platforms.
Financially, the company experienced a significant surge in consolidated net profit by 50.29 per cent to Rs 7.80 crore in Q2 FY24 compared to Rs 5.19 crore in Q2 FY23. Meanwhile, revenue from operations witnessed a year-on-year increase of 22.44 per cent to Rs 1507.02 crore in Q2 FY24.
