In comparison to Q2 FY24, Honasa Consumer Ltd., the parent company of D2C brand MamaEarth, had a drop in revenue and profit in the quarter that ended in December 2023.
In Q3 FY24, MamaEarth’s income from operations dropped to Rs 488 crore from Rs 496 crore in Q2 FY23, 1.62% less than in Q2 FY23, as per the company’s unaudited consolidated quarterly report that was submitted to the NSE.
In Q3 FY24, the company’s total revenue was Rs 499.1 crore, with an additional non-operating income of Rs 10.9 crore, primarily from interest and gains on financial assets.
Revenue from operations increased by 27.75% from Rs 382 crore to Q3 FY23, the same quarter of the previous fiscal year.
The cost of material acquisition for the D2C brand constituted 33% of overall expenditures, which increased by just 1.3% to Rs 153 crore in Q3 FY24. Including employee benefits, advertising, freight, legal fees, and other overheads, the total cost in Q3 FY24 was Rs 464 crore.
Ultimately, MamaEarth’s earnings decreased from Rs 29.4 crore in Q2 FY24 to Rs 25.9 crore in Q3 FY24, an 11.9% decline. In Q3 FY24, the company’s EBITDA margin was 9.1%, and it cost Rs 0.95 to make one rupee.
During the fiscal year that ended in March 2023, the company led by Ghazal and Varun Alagh reported revenue of Rs 1,394 crore and a loss of Rs 120.5 crore. Notably, MamaEarth’s revenue for the first nine months of the current fiscal year was 1,337 crore, while profits were over Rs 94 crore.
As of the publication of this article, the share price of MamaEarth was Rs 435.00. At Rs 511.00 per share last month, the business reached its 52-week high. The current market capitalization of MamEarth is Rs 13,995 crore, or $1.7 billion.
