MamaEarth Parent Honasa Consumer Nosedives On NSE; Hits 20% Lower Circuit After Reporting Net Loss In Q2 FY25 Earnings

Mamaearth parent Honasa Consumer plunged on NSE (National Stock Exchange) after company announced weak Q2 results, revealing a net loss of Rs 19 crore in Q2 FY25.

The share opened in at Rs 297.25 per share, straight to 20 per cent lower circuit limit of the stock; the share were locked for trading on the exchanges.

The stock has tumbled down 30.36 per cent in this calendar year, the stock has touched an all-time high level of Rs 547.00 per share on the bourses on September 10, 2024, the stock corrected 30 per cent touching the 52-week low level at lower circuit of Rs 297.25 per share.

The share price is currently lower than what it was at the IPO. Shares of Honasa Consumer Ltd. were listed on November 7, 2023, at a 2 per cent premium amounting to Rs 324 compared to over the issue price of Rs 330 per unit. The market capitalization of the business is Rs 9,655.39 crore.

Honasa Consumer Q2 FY25

Q2 FY25 Net profit/loss

Due to inventory correction, Honasa Consumer reported a consolidated loss of Rs 18.57 crore for the second quarter of the fiscal year 2024-2025. The company reported a net profit of Rs 29.43 crore for the same period last year.

Revenue and EBITDA Q2 FY25

During the quarter under review, revenue from operations decreased 6.9 per cent to Rs 461.82 crore from Rs 496.1 crore during the same period the previous year.

With EBITDA margin adjusted for inventory correction at 4.1 per cent, the company reported in its earnings statement, indicating a 6.6 per cent decline in earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin in Q2 FY25.

Operating expenses

In comparison to the September quarter of FY24, Honasa Consumer's total expenses increased by 9.1 per cent to Rs 506.21 crore. At Rs 481.84 crore, the total income decreased by 4.24 per cent.