Nykaa expects 23% revenue growth, GMV increase in Q1FY25, stock gains

Nykaa anticipates its Gross Merchandise Value (GMV) in Q1FY25 to grow in the mid-twenties percentage range on a year-on-year basis.

Shares of Nykaa parent FSN E-Commerce Ventures Ltd gained on July 8 after the beauty and fashion platform announced that the company and its subsidiaries are expected to post a revenue growth of around 22-23 percent on-year during the first quarter of FY25.

The consolidated GMV (Gross Merchandise Value) growth is projected to be in the mid-twenties on a YoY basis. Gross merchandise value (GMV) is the total value of merchandise sold over a given period of time through a customer-to-customer (C2C) exchange site.

Starting this quarter, Nykaa will commence vertical-wise segmental reporting, wherein the Beauty segment will comprise of online beauty platform Nykaa, beauty-owned brands, physical stores, additionally including its eB2B distribution business ‘Superstore by Nykaa’, and the Nykaa Man BPC business.

Nykaa's Fashion segment will consist of the Nykaa Fashion platform, and fashion-owned brands, additionally including LBB, the company’s content platform and the Nykaa Man lifestyle business.

Follow our market blog to catch all the live action

According to the Q1FY25 business update shared by Nykaa, the company’s Beauty vertical is expected to post revenue growth of around 22-23 percent on-year during the first quarter, similar to the consolidated entity’s revenue growth.

GMV growth for the segment is expected to be higher, in the high-twenties on YoY basis. This is despite relatively slower growth in its physical retail business which was impacted by elections as well as heat waves across North India, it said.

Further, despite the muted demand environment in the fashion industry, and with the quarter being seasonally weak due to limited weddings and festivities, Nykaa’s Fashion vertical is expected to post revenue growth of around 20 percent YoY. GMV growth for the quarter is expected to be lower at mid-teens YoY.

Earlier in May, Nykaa had recorded a net profit of Rs 9.07 crore for Q4FY24, a jump of 297.8 percent on-year. It had posted revenue from operations at Rs 1,667.98 crore, up 28.1 percent YoY. During the quarter, its consolidated GMV grew 32 percent YoY to Rs 3,217.20 crore, as all the businesses continued to deliver superior performance.

Also Read | Stock Radar: Nykaa, Titan, IndusInd Bank, Tata Motors, NLC India in focus

In the previous session, Nykaa shares ended 3.2 percent higher at Rs 176.93 on the National Stock Exchange (NSE). So far this year, the stock has gained 2.93 percent, underperforming benchmark Nifty 50 which has rallied nearly 12 percent during this period.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.