Shares of FSN E-commerce, the parent company of the major beauty and fashion ecommerce platform Nykaa, surged more than 6% in Monday’s trading session, buoyed by the company’s optimistic growth projections for Q4.
Nykaa’s shares were priced at INR 179.65 each at 12:40 PM on Monday, up from its previous closing price of INR 168.50.
Last week, the company announced its expectation of achieving a “high twenties” year-on-year revenue growth for the January-March quarter. Additionally, Nykaa recorded an “early thirties” growth in gross merchandise value (GMV).
“We anticipate a high twenties year-on-year growth in NSV and revenue for the quarter. As a result, our full-year revenue growth for 2024 is projected to be in the mid-twenties year-on-year,” stated the company.
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During the quarter, Nykaa reported strong momentum across crucial aspects such as customer acquisition, platform conversion, and user growth. This has led to a significant increase in order volume, highlighting strong customer demand.
The company attributed the overall growth in beauty and personal care (BPC) to robust sales in key categories like makeup and skincare, as well as the highly successful ‘Pink Love Sale’ held during the quarter.
“Our GMV for the BPC vertical in the quarter is projected to increase by approximately thirty percent, and the NSV growth is anticipated to be in the mid-twenties year-on-year. We believe this outpaces industry growth,” stated Nykaa.
“Nykaa Fashion continues to grow at a robust rate over the last two quarters in the fashion business, despite the industry’s mild expansion. With year-over-year NSV growth expected to be in the mid-20s, the fashion vertical’s GMV is expected to rise in the high 20s for the quarter,” according to the company’s detailed projections.
The ecommerce startup reported that its consolidated net profit surged to INR 17.4 Cr in the December quarter (Q3) of the financial year 2023-24 (FY24), more than doubling from INR 8.5 Cr in the same quarter of the previous year. This growth was driven by a significant expansion in its fashion business and improved margins.
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Nykaa’s operating revenue rose by more than 22%, reaching INR 1,788.8 Cr compared to INR 1,462.8 Cr in the same quarter of the previous year.
The BPC category remained the largest contributor to Nykaa’s total sales, accounting for 84% of the total operating revenue.
Meanwhile, the fashion segment generated an operating revenue of INR 152.6 Cr during the quarter, marking a 20% growth from INR 127.5 Cr in the corresponding period last year.
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