Archive · 23 May 2025
Honasa Consumer Shares Rise Despite a Decline in Profits
Mamaearth's parent company, Honasa Consumer, saw its stock price go up even though its profits went down.
Sales increased by 13% in the last quarter, reaching Rs 534 crore.
However, the company's profit dropped by 18% to Rs 25 crore.
Honasa changed how it sold products, moving to a direct distribution model to reach more stores, which led to temporary costs.
Despite the profit decrease, the company's operations improved, and the business is growing well.
New brands are also doing well, and Honasa is expanding its reach to more stores.
Honasa Consumer's shares rose 13% in early trade.
Revenue from operations increased by 13% YoY to Rs 534 crore in Q4FY25.
Consolidated net profit fell by 18% YoY to Rs 25 crore in Q4FY25.
The company implemented a direct distribution model, impacting sales returns.
The company expanded retail distribution by 26% YoY to 2.36 lakh outlets.
- Who
- Honasa Consumer, parent company of Mamaearth.
- What
- Honasa Consumer's shares rose 13% despite a drop in net profit.
- When
- Q4FY25 (Financial Year 2024-25)
- Where
- BSE
- Why
- The stock rose due to increased revenue and expanded retail presence, despite a fall in profits.
- Q4FY25 Revenue from Operations
- Rs 534 crore
- YoY Revenue Growth (Q4FY25)
- 13%
- Q4FY25 Net Profit
- Rs 25 crore
- YoY Net Profit Decline (Q4FY25)
- 18%
- Q4FY25 EBITDA
- 5.1%
- Q4FY25 Gross Profit Margin
- 70.7%