The company said in an exchange filing today that the net sales value (NSV) in its BPC business is expected to grow around 20% YoY
The growth in its BPC business was supported by the success of its flagship event ‘Hot Pink Sale’ that took place in July this year but delayed the festive season likely to have a base impact on the Q2 FY24 growth to some extent
Nykaa expects its consolidated NSV to grow in the mid-twenties and revenue to grow in the early twenties on a YoY basis in Q2
Shares of beauty and fashion ecommerce major Nykaa jumped over 3% to INR 151.55 during the early trading hours on the BSE on Friday (October 6) on the back of the startup’s robust performance update for Q2 FY24.
The company said in an exchange filing today that the net sales value (NSV) in its beauty and personal care (BPC) business is expected to grow around 20% on a year-on-year (YoY) basis during the quarter.
“The beauty vertical continues to expand through the ecommerce business, physical store expansion and growth of our owned brands,” said Nykaa, adding that the growth was supported by the success of its flagship event ‘Hot Pink Sale’ that took place in July this year.
In fact, it claims to have witnessed a strong quarter across all its verticals despite industry estimates indicating a slightly subdued discretionary consumption in Q2, primarily due to a delayed festive season this year.
The shift of the festive season sales from September last year to October this year has influenced the Q2 FY24 growth for the company to a certain degree. However, the company has not elaborated further on the impact.
Meanwhile, its fashion vertical has also witnessed strong momentum in Q2 FY24, which stands in contrast to the overall apparel industry which continued to see sluggish demand this quarter.
“Within the quarter, Nykaa Fashion has optimised the core category mix along with improvement in order volumes. Fashion net sales for the quarter is expected to grow in early thirties on YoY basis,” it said.
In Q2 FY23, the NSV of its BPC and fashion businesses stood at INR 981.5 Cr and INR 175.3 Cr, respectively. Nykaa’s total NSV stood at 1,204.9 Cr during the same period.
Nykaa expects its consolidated NSV to grow in the mid-twenties and revenue to grow in the early twenties on a YoY basis during the quarter, both at levels similar to the prior quarter – Q1 FY24.
Nykaa saw an 8.2% YoY rise in its net profit to INR 5.4 Cr in the prior quarter while its operating revenue jumped to INR 1,421.8 Cr.
In Q2 FY23, the beauty ecommerce giant reported a net profit of INR 5.2 Cr and an operating revenue of INR 1,230.8 Cr.
Nykaa said that its overall performance in H1 FY24 sets up the company well for the year with the second half historically witnessing superior consumer demand.
The stock was trading 1.6% higher at INR 149.25 on the BSE by 12 PM IST today.