A 22-23% increase in consolidated revenue is expected by Nykaa in April-June quarter 😊

Forecast of Revenue Growth in Q1 FY2025 for FSN E-Commerce Ventures

FSN E-Commerce Ventures, the parent company of Nykaa, anticipates a year-on-year consolidated revenue growth of approximately 22-23 per cent in the first quarter of 2024-25 (FY25). This projection is in line with the growth momentum for the beauty vertical, although the fashion industry is experiencing a subdued demand environment. The company disclosed this information in a BSE filing regarding its quarterly revenue update for the April-June quarter of FY25.

Consolidated Entity Performance

The GMV growth for the quarter is forecasted to be in the mid-20s year-on-year for the consolidated entity.
FSN E-Commerce Ventures will commence vertical-wise segmental reporting starting from this quarter.

Revenue Growth and GMV Expectations

In Q1 FY2025, Nykaa – FSN E-Commerce Ventures Limited, along with its subsidiaries, expects the following:

The revenue growth for the consolidated entity is projected to be around 22-23 per cent year-on-year.
Beauty vertical revenue growth is estimated to be in the range of 22-23 per cent year-on-year, mirroring the overall revenue growth of the consolidated entity.
GMV growth is expected to be higher, in the high twenties year-on-year, aligning with the long-term BPC industry growth-trajectory.
Despite slower growth in the physical retail sector due to external factors like elections and heatwaves, GMV growth is anticipated to remain robust.

Challenges in the Fashion Industry

While the beauty segment is poised for growth, FSN E-Commerce Ventures highlighted challenges in the Indian fashion industry:

The overall fashion industry is grappling with a subdued demand environment.
Growth in the fashion vertical was impacted by fewer weddings and festivities during this seasonally weak quarter.
Despite these challenges, the fashion vertical is anticipated to deliver a healthy performance, with revenue growth expected at around twenty per cent year-on-year.
GMV growth for the fashion segment is projected to be lower, in the mid-teens year-on-year.

Segment Details

The beauty segment comprises:

Online beauty platform Nykaa.
Beauty owned brands and physical stores.
eB2B distribution business ‘Superstore by Nykaa’.
Nykaa Man BPC business.

The fashion segment includes:

Nykaa Fashion platform.
Fashion owned brands.
LBB (Little Black Book) – the content platform.
Nykaa Man lifestyle business.

Hot Take: Analysis of FSN E-Commerce Ventures Q1 FY2025 Forecast

As a crypto enthusiast, staying informed about the performance of key players in the e-commerce and beauty sectors is crucial for identifying potential investment opportunities. FSN E-Commerce Ventures’ bold revenue growth projections for Q1 FY2025 indicate a promising outlook for the company, especially in the beauty vertical. However, challenges in the fashion industry highlight the importance of diversification and adaptability in the ever-evolving market landscape. Keeping a close watch on how the company navigates these challenges can provide valuable insights for making informed investment decisions.