Nykaa expects revenue to grow in the "mid-twenties" in the quarter ended June, largely unaffected by the pullback in discretionary consumer spending.
The net sales value in the beauty and personal care segment is expected to grow in the "early twenties" over the previous year, supported by strong urban demand, according to an exchange filing. The fashion business, on the other hand, is expected to report net sales value growth in the "low-to-mid teens".
"Despite the overall discretionary spend slowdown, consumption in the beauty and personal care categories continues to remain strong, in line with the longer-term trajectory," the company said in the filing.
"Nykaa was witness to this with the success of this quarter's flagship sale event, ‘Pink Summer Sale' during the quarter," it said.
The fashion business, despite the larger trend of discretionary slowdown, has also witnessed relative resilience through gradual improvement in order volumes and sustained average order value over the previous year.
During the quarter, the apparel industry was impacted due to a discretionary slowdown, especially in small towns. However, the macro indicators of the Indian economy reflect a healthy trend, with inflation moderating and interest rates showing signs of stabilising, and this auger well for the long-term health of the industry, according to Nykaa.
Nykaa expects spending to improve with the revival of seasonal demand.
Shares of FSN E-Commerce Ventures Ltd., the parent company of Nykaa, rose 0.69% to Rs 145 apiece as of 9:37 a.m. on Friday, compared with the benchmark Nifty50's decline.
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