The company saw stronger revenue growth on the Nykaa platforms, led by sustained consumption by tier-1 consumers.
“During the quarter, our Beauty & Personal Care (BPC) categories have seen sustained strong demand, partly aided by the ‘Pink Love’ sale introduced during the quarter,” the company said in a release.
The BPC business saw higher year-on-year growth rates in the March quarter compared to the year-on-year growth seen in the December quarter.
The BPC segment accounted for nearly 90% of Nykaa’s total revenue in FY22.
Further, the operating numbers for the BPC business, that is average order values and conversion rates were also robust in the fourth quarter, which aided the overall growth in the topline.
“For FY23, we expect our percentage revenue growth rates to be in line with the ones seen in 9M FY23, early thirties,” the company said.While the BPC segment growth has been healthy, Nykaa said lower discretionary spending by consumers had some impact on its fashion business. This impacted the growth in the March quarter.
As a result, the company expects revenue growth in percentage terms in the fashion business to be in the late teens.
“This comes on the back of our focussing on business efficiency and unit economics,” it said.
Meanwhile, the company’s average order values and conversion rates have improved steadily.
For FY23 at the consolidated level, it expects to sustain the growth rate seen in the nine month period of FY23.
The sharp rise in shares of FSN E-commerce today suggests that a section of the market got a whiff of the development. The stock ended nearly 8% higher on the National Stock Exchange at Rs 136.65.
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