FirstCry‘s parent company, BrainBees Ltd, has encountered fresh legal troubles after receiving an order from the Senior Inspector, Legal Metrology Department, Varanasi, on November 16. The company has been directed to pay a compounding fee of INR 50,000 for violating provisions of the Legal Metrology Act, 2009.
BrainBees ltd asks disposal via compounding procedure
According to regulatory filings, the company sought disposal of the case through a compounding procedure under Section 48(3) of the Legal Metrology Act. BrainBees Ltd assured that the fine would not significantly impact its financials or operations beyond the penalty amount.
Continue Exploring: FMCG growth sluggish due to rising housing cost and lower wage in urban areas – Britannia
Despite this setback, FirstCry’s shares rallied 5.95% to INR 550 during intraday trading on November 18, with its market capitalization standing at $3.37 billion. This is the second instance of legal troubles for the company this month. On November 11, FirstCry paid INR 1.74 crore, including interest, to Mumbai tax authorities due to discrepancies in GST returns for financial years FY19-23.
BrainBees announces 47.4% loss reduction to INR 62.85 Cr
However, the company reported a significant improvement in its financial health in Q2 FY25. On November 14, BrainBees Ltd announced a 47.4% reduction in losses to INR 62.85 crore, down from INR 119.41 crore in the year-ago quarter. Revenue from operations rose to INR 1,935.85 crore, up from INR 1,527.68 crore in Q2 FY24.
Continue Exploring: Luxury jewellery brand Giva registers 66% revenue growth to INR 274 Cr
The growth was driven by a 16% year-over-year (YoY) increase in annual unique transacting customers (UTC) for its Indian multi-channel operations. Across its portfolio, including FirstCry and Baby Hug, the company registered 9.4 million UTC in Q2 FY25.
