FirstCry Trims Q2 Loss By 47% To INR 62.8 Cr

Kids-focused omnichannel retailer FirstCry managed to narrow its consolidated net loss by 47.4% to INR 62.85 Cr in the second quarter of the ongoing fiscal year (Q2 FY25) from INR 119.41 Cr in the year-ago quarter, on the back of a strong growth in its top line.

On a sequential basis, loss declined 16.9% to INR 75.69 Cr. 

Revenue from operations jumped 26.7% to INR 1,935.85 Cr during the quarter under review from INR 1,527.68 Cr in Q2 FY24. On a quarter-on-quarter (QoQ) basis, this was a 15.3% increase from INR 1,678.87 Cr.

The company said its adjusted EBITDA for the quarter stood at INR 80.1 Cr, up 66% year-on-year (YoY). 

The reason behind the revenue spike in the quarter was a healthy 16% YoY growth in its Indian multi channel operations’ annual unique transacting customers (UTC). Across its portfolio businesses FirstCry, Baby Hug, among others, the company registered a UTC of 9.4 Mn in Q2 FY25. 

It also processed 9.5 Mn orders in the quarter, up 19% from 8 Mn in the same quarter last year. The company’s gross merchandise volume (GMV) for the quarter stood at INR 2,109.5 Cr, up 21% from INR 1,750.2 Cr in the year-ago quarter. 

With this, its India multichannel operations continued to be the driver for its revenues in the quarter. The company made INR 1,280.42 Cr from its India multi-channel business in the quarter, up about 19% from INR 1,077.58 Cr in the previous year quarter. 

Meanwhile, revenue of the company’s roll up business GlobalBees surged 55% to INR 432.6 Cr from INR 279.8 Cr in the previous year’s quarter. The subsidiary also saw a 2.5X YoY jump in its adjusted EBITDA to INR 8.5 Cr during the quarter under review.

It is pertinent to note that FirstCry was on an expansion spree for its roll up business in the September quarter. After raising stake in Frootle India and Wellspire India on September 4, the company invested INR 8 Cr in The Butternut Co and INR 4.5 Cr into Dynamic IT Solution. 

The company is now looking to replicate its India playbook in the international market. It said that its international segment average order value (AOV) is 3.9X the AOV of India business in the September quarter.

Earlier in August, the company announced an investment of INR 114.1 Cr in its UAE subsidiary, FirstCry Management DWC LLC.

At the end of the September quarter, FirstCry had invested INR 155.6 Cr to fuel its overseas expansion, the entirety of the sum reserved for the purpose from its IPO proceeds.

Where Did FirstCry Spend? 

Total expenditure grew 22.2% YoY and 15.2% QoQ to INR 1,847.88 Cr in the September quarter.

Purchase Of Stock In Trade: The company spent INR 1,289.15 Cr under this head, up 30.5% from INR 987.71 Cr in the year-ago quarter. 

Employee Benefit Expenses: Employee costs rose 16% to INR 144.30 Cr from INR 124.44 Cr in Q2 FY24. Moreover, it spent INR 20.78 Cr on employee share based payment expenses during the September quarter. 

Cost Of Materials Consumed: FirstCry spent INR 179.16 Cr on cost of materials in the quarter, up about 30% from INR 137.98 Cr in Q2 FY24.

Ahead of the Q2 results, shares of BrainBees ended 0.05% higher at INR 519.10 on the BSE.