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MamaEarth's Parent Company Registers Rs 488 Cr Revenue in Q3 FY24 Amidst Profit Dip

Honasa Consumer Ltd, the umbrella company behind the direct-to-consumer (D2C) brand MamaEarth, reported a slight decline in both revenue and profit for the quarter ending December 2023 compared to the previous quarter of FY24.

According to the unaudited consolidated quarterly report filed with the National Stock Exchange (NSE), MamaEarth's revenue from operations dipped by 1.62% to Rs 488 crore in Q3 FY24 from Rs 496 crore in Q2 FY23. However, the company also generated a non-operating income of Rs 10.9 crore, primarily from interest and financial asset gains, bringing the total revenue to Rs 499.1 crore in Q3 FY24. Comparing this to the same quarter of the previous fiscal year (Q3 FY23), revenue from operations witnessed a notable increase of 27.75% from Rs 382 crore.

For MamaEarth, the cost of material procurement accounted for 33% of the total expenditure, experiencing a marginal uptick of 1.3% to Rs 153 crore in Q3 FY24. Additional costs including employee benefits, advertising, freight, legal expenses, and other overheads totaled Rs 464 crore in the same quarter.

However, MamaEarth's profits saw a decline of 11.9% to Rs 25.9 crore in Q3 FY24 from Rs 29.4 crore in Q2 FY24. The company's EBITDA margin stood at 9.1%, and it spent Rs 0.95 to earn a rupee in Q3 FY24.

In the fiscal year ending March 2023, the company, led by Ghazal and Varun Alagh, reported revenue of Rs 1,394 crore with a loss of Rs 120.5 crore. Notably, in the first nine months of the ongoing fiscal year, MamaEarth's revenue amounted to Rs 1,337 crore, with profits exceeding Rs 94 crore.

As of the time of writing, MamaEarth's shares were trading at Rs 435.00. Last month, the company reached its 52-week high at Rs 511.00 per share. The total market capitalization of MamaEarth currently stands at Rs 13,995 crore or $1.7 billion. 

Despite the slight decline in profits, MamaEarth's strong market performance and consistent revenue generation showcase its resilience and potential for growth in the competitive D2C market.


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