FSN E-commerce, the parent company of Nykaa, experienced a surge of 5% in its shares during the early trading hours on April 8, buoyed by the company’s promising growth outlook for the fourth quarter.
At 10:40 am, Nykaa’s shares were trading at Rs 173.55 on the NSE, with trading volumes significantly surpassing the one-month daily average at 81 lakh shares exchanged.
In its latest business update, FSN E-commerce revealed optimistic projections for the January-March period, anticipating a robust “high twenties” year-on-year growth in revenue. Moreover, the company reported an impressive “early thirties” growth in Gross Merchandise Value (GMV), representing the total value of goods sold through its e-commerce platforms before any deductions.
Nykaa’s anticipated net sales value growth is poised to exceed 25% year-on-year, reflecting the company’s strong revenue momentum.
Investors responded positively to these projections, driving the uptick in FSN E-commerce’s share price as market participants embrace the potential for continued growth and success in the upcoming quarter.
In addition to its overall optimistic outlook, the firm highlighted strong customer demand driving healthy volume growth, particularly in key categories such as makeup and skincare.
Nykaa expects robust growth in the beauty and personal care segment, forecasting a year-on-year GMV increase of approximately 30%, coupled with a ‘mid-twenties’ spike in net sales value. This anticipated growth is expected to outpace industry trends in this segment.
Despite subdued industry growth in the fashion segment, Nykaa foresees an upward trajectory, with GMV projected to rise in the “high twenties” and net sales value growth in the “mid-twenties.” These projections underscore the company’s resilience and strategic positioning amidst evolving market dynamics.
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