It’s beauty vertical’s revenue growth for the quarter is expected to be around 22-23% YoY, similar to the consolidated entity’s revenue growth
The company also anticipates its Gross Merchandise Value (GMV) to rise in the mid-twenties percentage range year-over-year
In Q3 FY24, the ecommerce startup’s net profit soared to INR 17.4 Cr, doubling from INR 8.5 Cr in the previous year, bolstered by strong fashion business growth
FSN ecommerce, which operates beauty and fashion ecommerce major Nykaa, projected a strong revenue growth of around 22-23% year-over-year for the first quarter of FY2025.
The company said in a statement that it also anticipates its Gross Merchandise Value (GMV) to rise in the mid-twenties percentage range year-over-year.
“Our beauty vertical’s revenue growth for the quarter is expected to be around 22-23% YoY, similar to the consolidated entity’s revenue growth. GMV growth is expected to be higher, in the high twenties YoY, in line with long-term BPC (Beauty & Personal Care) industry growth trajectory. This is despite relatively slower growth in our physical retail business, which was impacted by elections as well as heatwaves across North India,” the statement added.
It further said that the overall fashion industry in India was experiencing challenges with a muted demand environment.
It said that the growth had been further affected in the seasonally weak quarter due to limited weddings and festivities. “Within this context, our Fashion vertical revenue is expected to deliver a healthy performance, with revenue growth of around twenty percent YoY. GMV growth for the quarter is expected to be lower at mid-teens YoY.”
The ecommerce startup’s consolidated net profit more than doubled to INR 17.4 Cr in the December quarter (Q3) of the financial year 2023-24 (FY24) from INR 8.5 Cr in the year-ago quarter, on the back of a sharp growth in its fashion business and margin expansion.
Nykaa
saw its operating revenue rise by more than 22% to INR 1,788.8 Cr from INR 1,462.8 Cr in the same quarter last year. The Beauty & Personal Care (BPC) category remained the primary driver of Nykaa’s sales, comprising 84% of its total operating revenue.
Meanwhile, the fashion segment contributed an operating revenue of INR 152.6 Cr during the quarter, an increase of 20% from INR 127.5 Cr in the same period last year.
This comes days after Nykaa announced its Middle East expansion plans, with its subsidiary Nessa International Holdings officially forming a wholly-owned subsidiary in Qatar named ‘Nysaa Cosmetics Trading’.
Nysaa Cosmetics Trading was established to handle international exports and the retail of beauty and personal care (BPC) products, both online and offline, along with other related activities.
