FirstCry Narrows Q3 Loss By 69% To INR 15 Cr

Kids-focussed omnichannel retailer FirstCry’s consolidated net loss narrowed 69.5% to INR 14.78 Cr in the third quarter of the fiscal year 2024-25 (Q3 FY25) from INR 48.41 Cr in the year-ago quarter on the back of healthy growth in its top line.

Sequentially, net loss contracted 76.5% from INR 62.85 Cr.

Revenue from operations surged 14.3% to INR 2,172.30 Cr during the quarter under review from INR 1,900.19 Cr in Q3 FY24. On a quarter-on-quarter basis, it went up 14% from INR 1,904.91 Cr.

Including other income of INR 44.27 Cr, the company’s total revenue stood at INR 2,216.58 Cr during the quarter ended December 31, 2024.

Its consolidated adjusted EBITDA stood at INR 293 Cr during the quarter under review, up 30% year-on-year.

“Q3 FY25 has been our best quarter in terms of profitability in the last 4 years. We have achieved the highest adjusted EBITDA for our consolidated business as well as India multi-channel business in the last 4 years,” the company said in its investor presentation.

The surge in revenue was driven by a strong growth in FirstCry’s India multichannel business’ annual unique transacting customers (UTC), which rose 17% to 9.8 Mn in Q3 FY35 from 8.4 Mn in the corresponding quarter last year.

The company processed 11.1 Mn orders in the reported quarter, up 13.8% from 9.8 Mn orders processed in Q3 FY24. The business had a gross merchandise value of INR 2,566.8 Cr in the September-December quarter, up 14% from INR 2,251.1 Cr in the corresponding period of the previous fiscal year.

FirstCry raked in INR 1,510.6 Cr in revenue from its India operations in Q3 FY25, up 15% from INR 1,312.9 Cr in Q3 FY24.

Meanwhile, revenue from the company’s roll-up business GlobalBees rose 13% to INR 422.3 Cr in Q3 FY25 from INR 374.4 Cr in the same period last year. The subsidiary’s adjusted EBITDA zoomed 2.6X to INR 6 Cr during the quarter under review from INR 2.3 Cr in Q3 FY24.

FirstCry strengthened its roll-up business in Q2 FY25. In September 2024, the company raised its stake in Frootle India and Wellspire India. In the same month, it also infused INR 8 Cr into The Butternut Co and INR 4.5 Cr into Dynamic IT Solution.

Further, the company’s international business is growing sustainably on the back of improving margins. The international business contributed INR 261.4 Cr to its revenue in Q3 FY25, up 13% from INR 230.8 Cr in the year-ago quarter.

Where Did FirstCry Spend In Q3?

The growth in the top line outpaced the rise in expenditure for FirstCry during the quarter under review. Total expenses grew 12% to INR 2,064.42 Cr during the quarter ended December 2024 from INR 1,841.56 Cr in the same quarter last year. Sequentially, it rose 11.7% from INR 1,847.88 Cr.

Purchase Of Stock-In-Trade: The company spent INR 1,258.41 Cr under this head in Q3 FY25, up 16.2% from INR 1,082.83 Cr in the year-ago period. On a QoQ basis, spending under this bracket declined 2.4% from INR 1,289.14 Cr

Employee Cost: FirstCry’s employee benefit expenses rose 2.4% YoY and 7.4% QoQ to INR 177.27 Cr during the quarter under review. Of this, it spent INR 28.32 Cr on employee share-based payment expenses.

Cost Of Materials Consumed: FirstCry spent INR 192.83 Cr on the cost of materials in the December quarter of FY25, up 23.5% from INR 156.11 Cr Cr in Q3 FY24.

The board of FirstCry has approved an investment of INR 299.59 Cr in its subsidiary Digital Age Retail Private Limited by way of subscription to equity shares, it said in an exchange filing. Digital Age is into multi-brand retailing and operates FirstCry’s online platform and mobile application.

Digital Age will use the fresh capital for setting up new modern stores, towards lease payments for existing identified stores and repayment of dues worth INR 45 Cr owed to Brainbees Solutions Limited, the parent company of FirstCry.

Ahead of Q3 results, shares of FirstCry ended Friday’s (February 8) trading session 9.87% lower at INR 417.90 on the BSE.