July 21, 2024

Nykaa- Revenue Update- Q4FY23


This Revenue Update seeks to provide an overall summary of the revenue growth trends achieved by FSN E-Commerce Ventures Limited together with its subsidiaries(“Nykaa”) during the quarter ended on 31st March, 2023(Q4FY23). A detailed performance update will be issued once the audited financials for Q4 FY23 are approved by the Board.

Nykaa has continued to display healthy revenue growth trends.

In Q4 FY23, against the backdrop of subdued industry growth, Tier 1 consumers have demonstrated sustained consumption. This has led to stronger revenue growth on the Nykaa platforms.

During the quarter, our Beauty & Personal Care (BPC) categories have seen sustained strong demand, partly aided by the ‘Pink Love’ sale introduced during the quarter. 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. The Operating  parameters for the BPC business viz. average order values and conversion rates have been robust which has aided growth in revenue. For FY23, we expect our percentage revenue growth rates to be in line with the ones seen in 9M FY23, early-thirties.

Consumer pullback in discretionary spends has had some impact on our fashion business, leading to subdued growth in NSV this quarter. For Q4 FY23, we expect our 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.

For FY23 at the consolidated level, we expect to sustain our percentage growth rate in line with