Honasa Consumer slips ~6% despite robust performance in Q1

12 Aug 2024 , 12:54 PM

Mamaearth parent Honasa Consumer’s shares slid more than 6% to ₹444 in Monday’s BSE session, despite the firm announcing a 63% year-on-year (YoY) increase in consolidated net profit for the June quarter of FY25, up to ₹40 Crore from ₹24 Crore in the same period last year.

The company’s income from operations in the June quarter increased 19% year on year (YoY) to ₹554 Crore, up from ₹466 Crore in the same period last year.

Honasa saw product business growth of 20.3% and underlying volume growth (UVG) of 25.2%.

The EBITDA margin increased by 201 basis points year on year (YoY) to 8.3%, yielding an EBITDA of ₹46 Crore.

The Mamaearth brand’s operator credited its good performance to higher gross profit margins and scale-driven efficiencies.

While the first quarter’s performance exceeded expectations, revenue growth fell short. The main concerns are intense competitiveness and potential inventory corrections.

At around 12.35 PM, Honasa Consumer was trading 4.16% lower at ₹453.95, against the previous close of ₹473.65 on NSE. The counter touched an intraday high and low of ₹493, and ₹444.60, respectively.

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