MamaEarth’s Parent Company, Honasa Consumer Ltd, Reports Decline in Revenue and Profit in Q3 FY24
- ByStartupStory | February 12, 2024
Honasa Consumer Ltd, the parent firm of D2C brand MamaEarth, saw a decline in its revenue and profit in the quarter ending December 2023 as compared to Q2 FY24.
MamaEarth’s revenue from operations decreased 1.62% to Rs 488 crore in Q3 FY24 from Rs 496 crore in Q2 FY23, according to the company’s unaudited consolidated quarterly report filed with the National Stock Exchange (NSE).
The company also generated a non-operating income of Rs 10.9 crore, mainly from interest and gain of financial assets, taking the total revenue to Rs 499.1 crore in Q3 FY24.
When compared to the same quarter of the previous financial year (Q3 FY23), revenue from operations are up by 27.75% from Rs 382 crore.
For the D2C brand, the cost of procurement of materials accounted for 33% of the total expenditure which saw an increase of mere 1.3% to Rs 153 crore in Q3 FY24. Its employee benefits, advertising, freight, legal, and other overheads took the overall cost to Rs 464 crore in Q3 FY24.
At the end, MamaEarth’s profits fell by 11.9% to Rs 25.9 crore in Q3 FY24 from Rs 29.4 crore in Q2 FY24. Its EBITDA margin stood at 9.1%, and the company spent Rs 0.95 to earn a rupee in Q3 FY24.
The Ghazal and Varun Alagh-led company posted Rs 1,394 crore of revenue with a loss of Rs 120.5 crore during the fiscal year ending March 2023. Notably, in the nine-month-period of the ongoing fiscal year, MamaEarth’s revenue stood at 1,337 crore, whereas, profits hovered above Rs 94 crore.
At the time of writing this story, MamaEarth’s share was trading at Rs 435.00. Last month, the company touched its 52-week high at Rs 511.00 per share. MamEarth’s total market cap currently stands at Rs 13,995 crore or $ 1.7 billion.
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