Mamaearth Q2 results: Firm's net profit rises 93% to Rs 29 cr

Honasa Consumer Ltd, the parent firm of Mamaearth and The Derma Co, on Wednesday reported 93% surge in consolidated net profit at Rs 29 crore for the quarter ended September 30, 2023. It reported consolidated net profit of Rs 15 crore in the year-ago period. 

The firm's consolidated revenue from operations rose 21% to Rs 496 crore in Q2FY24 as against Rs 410 crore in the year-ago period. 

On Wednesday, Honasa's scrip on BSE closed nearly 5% lower at Rs 349.

"We are India’s largest digital-first Beauty and Personal Care (BPC) company with a diverse portfolio of six brands. Each brand in our portfolio has a differentiated value proposition enabling us to acquire new users with distinct needs and preferences and increase share of wallet from existing consumers," said the firm in its first earnings statement after getting listed on stock markets.

Honasa Consumer was founded by former Hindustan Unilever executive Varun Alagh and his wife Ghazal in 2016.

Mamaearth's initial public offering (IPO) was oversubscribed by 7.6 times, fetching bids worth Rs 7,130 crore, exchange data showed.

Investors bid for more than 220 million shares, compared with the 28.9 million shares on offer, with institutional investors showing the most interest, the data showed.

Varun Alagh, Chairman and CEO, Honasa Consumer Ltd. said: ” I am proud of the Q2 and H1FY24 results. The beauty market in India is brimming with opportunities, and we are receiving a lot of consumer love for our on trend innovations across brands. Honasa has been able to deliver market beating growths and constantly improve the profitability portfolio of the company. 

"Our business has grown by 33% YoY in H1 FY24 which is 3.8 times the median growth of FCMG companies in India. Mamaearth, our largest brand has entered the Top 15 BPC brands in India, overtaking many legacy brands, as per a report by Jefferies. Our profits grew much faster than our revenues, with H1 PAT growing by 1,377% to Rs 54 CR. Dr Sheths has become the 4’th brand from Honasa portfolio to enter the 150 Cr Club after Aqualogica and Derma Co. We will continue to deliver on our commitments to our business, consumers, and investors."

"Dr. Sheths became the fourth brand from Honasa Consumer portfolio to join the Rs 150 crore ARR club, after The Derma Co and Aqualogica. Honasa Consumer grew 3.8X compared to the FMCG market in H1FY24," said the firm.