Nykaa expects BPC biz FY23 revenue growth rates 30%, Q4 performance robust

In its regulatory filing, Nykaa said that in Q4 FY23, against the backdrop of subdued industry growth, Tier 1 consumers have demonstrated sustained consumption

Nykaa, online retailer for clothing and cosmetics, has released its fourth quarter revenue update for FY23 in a stock exchange filing.

According to the statement, Nykaa has continued to show positive trends in revenue growth.

In Q4FY23, the Beauty & Personal Care (BPC) categories continued to experience robust demand, the company said.

Nykaa anticipates that overall revenue growth rates for FY23 would be comparable to those for 9MFY23. Thus, it anticipates revenue growth rates in the early 30 per cent range for FY23.

In its regulatory filing, Nykaa said, "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. "

Nykaa's Beauty & Personal Care (BPC) categories in Q4FY23 has n sustained strong demand, partly aided by the ‘Pink Love’ sale introduced during the quarter.

According to Nykaa, the BPC industry experienced stronger year-over-year growth rates in Q4 FY23 compared to Q3 FY23. Average order values and conversion rates, which are the operating factors for the BPC business, have been strong, which has aided in revenue development.

Nykaa anticipates that the percentage revenue growth rates for the BPC business would be in the mid- to high-thirties for FY23.

Further, in regards to the fashion business, Nykaa stated that "consumer pullback in discretionary spends has had some impact on our fashion business, leading to subdued growth in NSV this quarter."

For the fourth quarter of FY23, Nykaa expects its fashion business' percentage revenue growth rates in the Fashion business to come through in the late teens.

It added, "This comes on the back of our focussing on business efficiency and unit economics. Our average order values and conversion rates have improved steadily."

At the consolidated levels, Nykaa stated for FY23 overall, "we expect to sustain our percentage growth rate in line with 9MFY23."