Honasa Q4 Earnings; PAT Surges To Rs 30 Cr, Stock Soars 3%

Honasa Consumer, which owns FMCG brands such as Mamaearth and The Derma Company, reported a consolidated profit after tax of Rs 30.47 crore for the fourth quarter ended March 2024.

The firm’s revenue from operations grew 21.46 per cent to Rs 471.09 crore in the fourth quarter of this fiscal. It was Rs 387.85 crore a year ago.

Notably, it had a loss after tax of Rs 161.75 crore in the year-ago period, according to a regulatory filing by Honasa Consumer.

Its total expenses stood at Rs 450.88 crore, up 12.66 per cent in the March quarter of FY24.

Company’s Commentary

"With a 780-bps improvement in EBITDA margins year-on-year, Honasa Consumer clocked its highest ever quarterly Profit After Tax (PAT) of Rs 30 crore," Honasa Consumer said in its earnings statement.

The company said it continued growth momentum in Q4 with increasing profitability and added its brand Mamaearth reaching 1,88,377 FMCG retail outlets in India as of March 2024, increasing distribution up by 34 per cent Year-on-Year (YoY).

"New products accounted for around 18 per cent of FY24 revenue from operations," it said.

"Despite industry headwinds, Honasa has demonstrated remarkable resilience and growth for the quarter and fiscal, with a robust LFL growth of 23.3 per cent for the quarter and 31.6 per cent annually," its Chairman and CEO Varun Alagh said.

Annual Earnings

In the January-March quarter, the total income of Honasa Consumer rose 24.38 per cent to Rs 490.14 crore.

For the financial year ended on March 31, 2024, Honasa Consumer's profit after tax was Rs 110.52 crore. It reported a loss of Rs 150.96 crore a year ago.

In FY24, its revenue from operations increased 28.61 per cent to Rs 1,919.90 crore. The same was Rs 1,492.74 crore in FY23.

Stock Performance

Ever since its IPO listing on 07 November 2023 the Honasa Consumer stock has delivered 30 per cent returns, however the stock has shredded nearly 3 per cent year-to-date (YTD).