Honasa Shares Slump 5% In Morning Trade

SUMMARY

The stock recouped some of its losses and was trading 3% lower later at 11:12 AM

Honasa reported a flat profit in the third quarter of the fiscal year 2024-25 (Q3 FY25)

The company's operating revenue rose 6% to INR 517.51 Cr during the quarter under review from INR 488.22 Cr in Q3 FY24

Shares of Mamaearth parent Honasa Consumer slipped 5% to INR 219.55 during the early trading hours on Friday (February 14), a day after the stock surged 9%.

The stock recouped some of its losses and was trading 3% lower later at 11:12 AM. The company’s market capitalisation stood at INR 7,259 Cr at the time.

Shares of Honasa have ended in the red in five out of the last seven trading sessions. While the stock has delivered a negative return of nearly 8% over the last month, it has lost 49% over the last year.

Earlier this week, the company reported a flat profit in the third quarter of the fiscal year 2024-25 (Q3 FY25). Honasa reported a consolidated net profit of INR 26.02 Cr in Q3 FY25, a marginal 0.4% increase from INR 25.90 Cr in the year-ago quarter.

However, operating revenue rose 6% to INR 517.51 Cr during the quarter under review from INR 488.22 Cr in Q3 FY24.

On a quarter-on-quarter (QoQ) basis, Honasa’s revenue from operations rose 12% from INR 461.82 Cr.

While EBITDA declined 24% YoY to INR 26 Cr, EBITDA margin also contracted to 5% from 7.1% in Q3 FY24. Despite the slide in EBITDA, the company claims to be back on a “growth trajectory” with a “gradual” scale up in general trend.

Founded in 2016 by husband-wife duo Varun Alagh and Ghazal Alagh, Honasa provides personal and beauty care products and claims to be a safe and toxin-free D2C brand. Its brand portfolio includes Mamaearth, The Derma Co., Aqualogica, BBlunt, Dr. Sheth’s, and Staze Beauty.

Last month, the company roped in Lokesh Chhaparwal as senior vice president – technology and engineering, while its chief business officer (CBO) Zairus Master resigned in the same month.