Nykaa expects BPC biz revenue growth rates for FY23 in early 30%, Q4 performance robust

In its regulatory filing, Nykaa said, “In Q4 FY23, against the backdrop of subdued industry growth, Tier 1 consumers have demonstrated sustained consumption. This has led to stronger revenue growth on the Nykaa platforms. “

Nykaa’s Beauty & Personal Care (BPC) categories in Q4FY23 has n sustained strong demand, partly aided by the ‘Pink Love’ sale introduced during the quarter.

As per Nykaa, 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, Nykaa expects BPC business’ percentage revenue growth rates to be in line with the ones seen in 9M FY23, early-thirties.

Further, in regards to the fashion business, Nykaa stated that “consumer pullback in discretionary spends has had some impact on our fashion business, leading to subdued growth in NSV this quarter.”

For the fourth quarter of FY23, Nykaa expects its fashion business’ percentage revenue growth rates in the Fashion business to come through in the late teens. It added, “This comes on the back of our focussing on business efficiency and unit economics. Our average order values and conversion rates have improved steadily.”

For overall FY23, Nykaa said, at the consolidated levels, “we expect to sustain our percentage growth rate in line with 9MFY23.”

Nykaa’s revenue update seeks to provide an overall summary of the revenue growth trends achieved by FSN E-Commerce Ventures together with its subsidiaries during the quarter ended on 31st March 2023(Q4FY23).

On BSE, Nykaa’s share price skyrocketed by a whopping 7.86% to end at ₹136.55 apiece.