Honasa Consumer, the parent company of Mamaearth, reported its first quarterly loss in five quarters, putting its shares in the spotlight for November 18. The company recorded a net loss of ₹19 crore for the July-September 2024 quarter, compared to a profit of ₹29 crore in the same period last year.
Revenue fell 7% year-on-year to ₹462 crore, down from ₹496 crore. Meanwhile, total expenses rose 9% to ₹506 crore, driven by higher operational costs, although they were slightly lower on a sequential basis.
Attributing reasons, the company said that the loss is on account of its ongoing restructuring under Project ‘Neev’ and a shift to D2C distribution model which has upset inventories thereby impacting near-term performance.
The weak results have prompted brokerages to cut their target prices for Honasa Consumer stock, reflecting unease over the challenges faced in the near term due to the transition. The headwinds are likely to persist at the moment, but it is still optimistic regarding long-term gains arising from its D2C strategy aimed at smoothening operations and fortifying its market position in the burgeoning consumer goods business.
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Source: Moneycontrol
News Desk
