Nykaa Soars 5% on Anticipation of Explosive Q4 Revenue Growth

8 Apr 2024 , 01:00 PM

Early trading on April 8 saw shares of Nykaa parent firm FSN E-commerce rise as much as 5% as the company expressed hopes for good growth in Q4.

Nykaa’s shares were trading at ₹173.55 on the NSE at 10.40 am. The counter’s volume was also quite robust, with 81 lakh shares trading hands on exchanges so far—much more than the average of 50 lakh shares moved daily over the course of a month.

The company said in its most recent business report that it expects sales growth in the “high twenties” on an annual basis during the January–March quarter. The Gross Merchandise worth (GMV), which measures the total worth of goods sold through its e-commerce platforms before any deductions, increased by “early thirties” according to Nykaa.

The business anticipated a net sales value increase of more than 25% annually, which was consistent with its strong revenue growth.

The company added that robust offtake from important categories like beauty and skincare, as well as good volume growth, were the results of strong consumer demand.

Nykaa predicts a mid-twenties surge in net sales value and a year-over-year GMV gain of about 30% in the beauty and personal care area. This segment’s growth is probably going to outpace industry trends.

As per Nykaa, the fashion category is seeing muted industry growth. However, the business projects that its GMV will increase in the “high twenties” and its NSV growth will occur in the “mid-twenties.”

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