Mamaearth Q3 results: Honasa Consumer profit up 250% to Rs 26 crore

Mamaearth co-founders Varun and Ghazal Alagh.

Honasa Consumer, the parent company of digital-first skincare firm Mamaearth, reported a 250 percent year-on-year (YoY) rise in net profit at Rs 26.1 crore in Q3FY24, buoyed by strong demand during the period, on a consolidated basis. The company had reported a net profit of Rs 7.4 crore in the same quarter of the previous fiscal year.

The Gurugram-based startup, which made its market debut in 2023 amid noise around its valuation, reported an operating revenue of Rs 488.2 crore, up 28 percent from the year-ago period. In Q3Fy23, Honasa had reported an operating revenue of Rs 382.2 crore.

On a sequential basis, the company that operates Mamaearth saw its operating revenue fall 2 percent from Rs 496.1 crore. Even its net profit fell 12 percent from Rs 29.8 crore on a quarter-on-quarter (QoQ) basis.

Mamaearth CEO Alagh told analysts in a call that the first half (H1) is a stronger period for the company, versus the second half (H2), as facewash, sunscreen, creams and shampoos are some of its core products.

In the said quarter, the company reported a sales growth of 28% YoY.

On the portfolio, the company sold about 10 lakh color care units, touching an ARR of Rs 150 crore, while The Derma Co. achieved an Ebitda positive status year-to-date.

"Four out of six brands from our portfolio are already in the Rs 150 crore ARR club and we see this as a testimony of our capabilities. Having built colorcare with Mamaearth showcases our ability to build new categories and versatility of the brand. As we move forward, focus continues to be on purpose-based brand building, innovation and distribution expansion," said Varun Alagh, Chairman and CEO, HCL.

During the quarter, 36,95,191 stock options were exercised by the employees of the holding firm while the promoters of Momspresso took an exit, the filings show.

"During the current quarter, the promoters of Momspresso resigned from their employment and the vesting conditions of the employee stock option were not fulfilled. Accordingly, the group has reversed the share based payment expense of Rs 47.47 million during the current quarter," it added.

The stock ended the day’s at Rs 432.75 apiece, up 3.54 percent from its previous close on the BSE.

(This is a developing story, please check back for updates.)