Nykaa Q3 FY24: Fashion vertical surges ahead, GMV expected to grow about 40% YoY

Beauty and fashion ecommerce major Nykaa said in its Q3 FY24 performance update that the company witnessed consistent growth across its three business verticals during the quarter.

However, the Falguni Nayar-led company also said that despite improvements in long-term macro indicators, discretionary consumption was impacted during the quarter owing to short-term pressures.

Following Nykaa’s exchange filing on Sunday (January 7), its shares jumped almost 5% to INR 182 during the intraday trading hours on Monday.

By 2.45 PM IST, the shares shed some of the gain to trade 2.5% higher at INR 177.7 on the BSE.

Continuing the momentum from the previous quarter, the company said Nykaa Fashion witnessed “strong” growth in the quarter.

It said the fashion vertical’s gross merchandise value (GMV) for Q3 FY24 is expected to grow at around 40%, with net sales value (NSV) growth expected in the low thirties on a year-on-year (YoY) basis.

The GMV of the fashion vertical stood at INR 724.4 Cr in the previous year’s quarter – Q3 FY23, while its NSV stood at INR 210 Cr.

While Nykaa Fashion was under pressure following Q3 FY23, the vertical has been picking up pace since the last quarter. Its GMV grew 27% YoY to INR 762.8 Cr in Q2 FY24, while NSV jumped 32% YoY to INR 232.1 Cr.

Meanwhile, Nykaa’s beauty and personal care (BPC) business continued to remain under pressure.

The company said that its BPC vertical’s GMV growth for Q3 FY24 was expected to be in the mid-twenties and NSV growth at around 20% on a YoY basis.

In the year-ago period – Q3 FY23 – the BPC vertical GMV stood at INR 1,901.4 Cr and NSV at INR 1,151.3 Cr.

Amid slow growth in this segment, Nykaa’s GMV for the BPC segment stood at INR 1,850.8 Cr and NSV at INR 1,167.5 Cr in its last reported quarter – Q2 FY24.