Shares of Nykaa parent FSN E-commerce rose 3.5 percent in the opening trade on January 8 after the company rolled out a positive business update for the quarter gone by.
FSN E-commerce said it saw consistent growth across its three business verticals in the December quarter even as some impact on discretionary consumption was seen due to short-term pressures.
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Nykaa also expects its Beauty and Personal Care (BPC) vertical to report a GMV (Gross Merchandise Value) growth in the mid-20s for the October-December quarter, while Net Sales Value growth to be around 20 percent on an year-on-year basis.
"The difference in GMV and NSV growth is primarily due to brand-led pricing and discounting, mainly in mass and masstige categories. The underlying order volume growth is healthy and consistent, reflecting strong customer demand," the company said.
Masstige are mass-produced goods marketed as prestigious or luxurious to an aspirational audience.
The company said its BPC growth was ahead of the that for the overall industry. However, the firm said the industry growth slipped below long-term trajectory but should revert to the median in the near to mid-term, given the strong macroeconomic and demographic outlook.
The firm has forecast its combined NSV of all BPC businesses to grow at low to mid-twenties on a YoY basis.
As for the fashion vertical, GMV growth is likely to be around 40 percent while NSV growth expected in the low thirties.
For the quarter , at a consolidated level, Nykaa expects its NSV to grow in the mid-twenties and revenue to grow in the low twenties on a YoY basis.
At 9.51 am, the stock was trading at Rs 75.80 on the National Stock Exchange, up 1.38 percent from the previous close.
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