In Q4 FY23, against the backdrop of subdued industry growth, the company said that Tier-1 consumers had demonstrated sustained consumption. This led to stronger revenue growth on the Nykaa platorms.

During the quarter, the company's Beauty & Personal Care (BPC) categories saw sustained strong demand. BPC business has seen higher year on-year growth rates in Q4 FY23 as compared to the year-on-year growth rates seen in Q3 FY23.

The operating parameters for the BPC business viz. average order values and conversion rates have been robust which has aided growth in revenue. For FY23, the company expects its percentage revenue growth rates to be in line with the ones seen in 9M FY23, early-thirties.

Consumer pullback in discretionary spends has had some impact on our fashion business, leading to subdued growth in NSV this quarter. For Q4 FY23, the company expects its percentage revenue growth rates in the Fashion business to come through in the late teens.

This comes on the back of our focussing on business efficiency and unit economics. The company's average order values and conversion rates have improved steadily.

"For FY23 at the consolidated level, we expect to sustain our percentage growth rate in line with 9M FY23,” FSN E-Commerce Ventures said in a statement.

Nykaa (FSN E-Commerce) is one of India's leading lifestyle-focused consumer technologies platforms. Since its launch, Nykaa expanded its product categories by introducing online platforms Nykaa Fashion, Nykaa Man, and Superstore. Delivering a comprehensive omnichannel e-commerce experience, Nykaa offers over 4,500+ brands through its website and mobile applications.

On a consolidated basis, Nykaa reported a net profit of Rs 4.11 crore in Q2 FY23, steeply higher than Rs 1.17 crore posted in Q2 FY22. Revenue from operations jumped 39.04% to Rs 1230.83 crore in quarter ended 30 September 2022 from Rs 885.26 crore recorded in the corresponding quarter previous year. Profit before tax surged to Rs 8.76 crore in Q2 FY23 as against Rs 1.37 crore posted in the same period last year.

The scrip declined 2.97% to currently trade at Rs 132.50 on the BSE.