SUMMARY
While net profit rose on a YoY basis, it declined from INR 29.4 Cr in Q2 FY24
Operating revenue zoomed 28% to INR 488.2 Cr in Q3 FY24 from INR 382.1 Cr in the year-ago quarter
The startup’s EBITDA zoomed 192% to INR 34 Cr from INR 12 Cr in the year-ago quarter
Honasa Consumer Ltd, the parent of D2C unicorn mamaearth
, posted a 264% increase in its consolidated net profit to INR 25.9 Cr in the quarter ended December 2023 from INR 7.1 Cr in the year-ago quarter.
However, profit declined sequentially from INR 29.4 Cr in the preceding September quarter.
Operating revenue zoomed 28% to INR 488.2 Cr in Q3 FY24 from INR 382.1 Cr in the year-ago quarter. Its revenue from operations stood at INR 496.1 Cr in Q2 FY24.
Founded in 2016 by the husband-wife duo Varun and Ghazal Alagh, Mamaearth sells a range of beauty and personal care (BPC) products across categories including hair care, body care, and makeup. Honasa also counts brands such as The Derma Co., Aqualogica, Ayuga, BBlunt, and Dr. Sheths in its portfolio.
Commenting on the results, Honasa chairman and CEO Varun Alagh said, “The Q3 results is a testimony of our deep understanding of the beauty market in India. As we move ahead to capture this market further, our innovation-driven brand building playbook uniquely positions us to identify many opportunities to continue our growth trajectory. Four out of six brands from our portfolio are already in the INR 150 Cr ARR club…”
The startup’s EBITDA zoomed 192% to INR 34 Cr from INR 12 Cr in the year-ago quarter
Where Did Mamaearth Spend?
The startup’s total expenditure rose 22.7% to INR 464.4 Cr from INR 378.4 Cr in Q3 FY23. Procurement cost continued to be the biggest expenditure and stood at INR 153.1 Cr in Q3 FY24 against INR 151.4 Cr in the year-ago quarter. It accounted for 33% of the startup’s total expenditure.
Advertisement expenditure increased 27% to INR 66 Cr in Q3 FY24 from INR 131 Cr in Q3 FY23.
Interestingly, the startup’s employee benefit expenses decreased 2% to INR 44.1 Cr in Q3 FY24 from INR 45.1 Cr during the same period last year.
Honasa said that The Derma Co achieved EBITDA profitability during the quarter under review.
The startup added that it continued to increase its offline presence in Q3 FY24. During the quarter under review, Honasa said it reached 1,77,366 FMCG retail outlets in India and increased its presence in around 8,000 stores.
Shares of Honasa listed at INR 324 on the BSE in November last year. The stock has gained over 30% from its listing price. On Friday, shares of Honasa ended the trading session 3.54% higher at INR 432.75 on the BSE.
