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Beauty ecommerce company Nykaa said that its beauty and personal care (BPC) segment—its largest revenue contributor—saw a 20% rise year-on-year in net sales value in the second quarter of FY24, boosted by the Hot Pink Sale.

The flagship sale event started on July 21 and offered deals on global beauty and cosmetic products, including Anomaly, Charlotte Tilbury, and Bobbi Brown.

“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,” Nykaa said in a BSE filing on Friday.

The Mumbai-headquartered company said it witnessed a strong quarter across all verticals in Q2 FY24 despite an industry-wide slowdown in discretionary spending.

“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,” Nykaa added.

However, it said that 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,” it cautioned investors.

Nykaa Fashion—the second largest vertical by revenue—is expected to grow in the early thirties in terms of net sales value on an annual basis. This stands in contrast to the overall apparel industry that continued to see sluggish demand this quarter, especially in the small towns, according to the company. 

“However, the industry is expected to see improving trends in the festive season. Within the quarter, Nykaa Fashion has optimised the core category mix along with improvement in order volumes,” the beauty retailer added.

On a consolidated basis, Nykaa expected its net sales value to grow in the mid-twenties and revenue to grow in the early twenties on a YoY basis in Q2 FY24, both at levels similar to Q1 FY24. 

“Overall, the H1 FY24 performance sets up Nykaa well for the year with the second half historically witnessing superior consumer demand,” the Falguni Nayar-led company noted.

Last month, Falguni Nayar, Managing Director and CEO of beauty retailer Nykaa, said that India’s BPC segment is likely to witness a per capita consumption of $50 by 2030. 

The Mumbai-based ecommerce firm’s current per capita consumption is $80 in the BPC vertical, which is five times the national average, Nayar had said during the company’s 11th annual general meeting (AGM) on September 18.

Nykaa posted a 24% increase in operating revenue to Rs 1,421 crore in the first quarter of FY24, up from Rs 1,148 crore in the same period last year. However, this was matched by a 23% rise in total expenses to Rs 1,419 crore, which weighed down the firm’s bottom line.