Honasa Consumer Ltd, the parent company of the D2C unicorn Mamaearth, reported a 250 percent year-on-year increase in net profit, reaching INR 26.1 crore in Q3FY24. This surge was fueled by strong demand during the period, as reflected on a consolidated basis. Notably, the company had reported a net profit of INR 7.4 crore in the same quarter of the previous fiscal year.
The Gurugram-based startup, which entered the market in 2023, reported an operating revenue of INR 488.2 crore, marking a 28 percent increase from the previous year. In Q3FY23, Honasa had reported an operating revenue of INR 382.2 crore.
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In comparison to the previous quarter, the company managing Mamaearth experienced a 2 percent decline in operating revenue, dropping from INR 496.1 crore. Additionally, its net profit decreased by 12 percent from INR 29.8 crore on a quarter-on-quarter (QoQ) basis.
During an analyst call, Mamaearth CEO Alagh highlighted that the first half (H1) typically represents a stronger period for the company compared to the second half (H2), emphasizing that products such as facewash, sunscreen, creams, and shampoos constitute some of its core offerings.
In the said quarter, the company witnessed a sales growth of 28% year-on-year.
In terms of the portfolio, the company sold approximately 10 lakh color care units, reaching an Annual Recurring Revenue (ARR) of INR 150 crore. Meanwhile, The Derma Co. attained a positive EBITDA status year-to-date.
“Four out of six brands from our portfolio are already in the INR 150 crore ARR club and we see this as a testimony of our capabilities. Having built colorcare with Mamaearth showcases our ability to build new categories and versatility of the brand. As we move forward, focus continues to be on purpose-based brand building, innovation and distribution expansion,” said Varun Alagh, Chairman and CEO, HCL.
According to filings, employees of the holding firm exercised 3,695,191 stock options during the quarter, while the promoters of Momspresso exited.
“During the current quarter, the promoters of Momspresso resigned from their employment and the vesting conditions of the employee stock option were not fulfilled. Accordingly, the group has reversed the share based payment expense of INR 47.47 million during the current quarter,” it added.
The stock closed the day at INR 432.75 per share, marking a 3.54 percent increase from its previous close on the BSE.
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