Nykaa Performance Update - Q2 FY2024

Macro indicators of the Indian economy continue to remain stable with strong GDP growth, robust GST collections, and stable interest rates. However, the industry estimates indicate slightly subdued discretionary consumption, primarily on account of a delayed festive season.

In contrast, Nykaa has witnessed a strong quarter across all verticals.

Consumption in the Beauty and Personal Care (BPC) categories remain healthy. The beauty vertical continues to expand through the ecommerce business, physical store expansion and growth of our owned brands. The growth was supported by the success of our flagship event 'Hot Pink Sale' in July. Our BPC business NSV for the quarter is expected to grow around twenty percent on YoY basis. The festive season is a big driver for lifestyle categories and has witnessed a delay this year, moving into October versus commencing in September last year. This shift has a base impact on the Q2 FY24 growth to some extent.

Nykaa Fashion has witnessed strong momentum in Q2 FY24. This stands in contrast to the overall apparel industry which continued to see sluggish demand this quarter, especially in the small towns. However, the industry is expected to see improving trends in the festive season. Within the quarter, Nykaa Fashion has optimized the core category mix along with improvement in order volumes. Fashion NSV for the quarter is expected to grow in early thirties on YoY basis.

For Q2 FY24, at a consolidated level, we expect our NSV to grow in the mid-twenties and revenue to grow in the early twenties on YoY basis, both at levels similar to Q1 FY24. Overall, the H1 FY24 performance sets up Nykaa well for the year with second half historically witnessing superior consumer demand.

This update seeks to provide an overall summary of the operating performance of the company and demand trends witnessed during the quarter ended 30th September, 2023. A detailed performance update will follow once the Board approves the financial results for Q2 FY24.

Shares of FSN E-Commerce Ventures Ltd was last trading in BSE at Rs. 149.40 as compared to the previous close of Rs. 146.95. The total number of shares traded during the day was 279871 in over 4588 trades.

The stock hit an intraday high of Rs. 151.55 and intraday low of 148.00. The net turnover during the day was Rs. 41788506.00.

Source : Equity Bulls

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