Fashion retailer Nykaa, while sharing the business update for the fourth quarter of fiscal year 2022-23 on April 5, said the company's revenue growth rate was set to be in line with the first nine months of FY23.
Nykaa's revenue had grown by 41 percent year-on-year to Rs 1,148.4 crore in the first quarter of the fiscal. In the second quarter, it grew by Rs 39 percent YoY to Rs 1,230 crore, and surged to Rs 1,462 crore in Q3, marking an on-year surge of 33 percent.
"We expect our percentage revenue growth rates to be in line with the ones seen in 9M FY23," Nykaa informed the stock exchanges.
In Q4 FY23, against the backdrop of subdued industry growth, Tier 1 consumers demonstrated sustained consumption, which led to "stronger revenue growth on the Nykaa platforms", the regulatory filing added.
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The company's beauty and personal care (BPC) categories saw "sustained strong demand", partly aided by the ‘Pink Love’ sale introduced during the quarter, it said.
"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," Nykaa said, adding that the operating parameters for the BPC business, such as average order values and conversion rates, were robust which aided the growth in revenue.
Nykaa, however, noted that its business in the fashion category has faced "some impact" due to the "consumer pullback in discretionary spends". This led to a "subdued growth" in new sale values during the January-March quarter, it said.
The company said it expected the percentage revenue growth rates in the fashion business to "come through in the late teens".
"This comes on the back of our focussing on business efficiency and unit economics. Our average order values and conversion rates have improved steadily," it added.
Nykaa is expected to declare the Q4 financial results in the near future. On the day the company shared the quarterly business update, its scrip settled higher at the stock market. At the BSE, the closing price was Rs 136.55 per share, which was 7.8 percent above the previous day's close.
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