New Delhi: Shares of Honasa Consumer Ltd, which owns FMCG brands such as Mamaearth and The Derma Co, tumbled 20 per cent on Monday after the firm reported a consolidated loss of Rs 18.57 crore for the second quarter ended September 30, 2024 on account of inventory correction. The stock slumped 20 per cent to Rs 295.80, the lower circuit limit on the BSE.
At the NSE, it tanked 19.99 per cent to hit the lowest trading permissible limit for the day at Rs 297.25. It had reported a profit after tax of Rs 29.43 crore in the year-ago period, the company said in a regulatory filing on Thursday. Honasa Consumer's revenue from operations was down 6.9 per cent to Rs 461.82 crore in the second quarter of this fiscal.
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"Revenue in Q2 stood at Rs 462 crore reflecting around 6.9 per cent growth, while revenue adjusted for inventory correction was Rs 525 crore with the growth rate of 5.7 per cent," Honasa Consumer said in its earnings statement.
Chairman CEO Varun Alagh said over the past few months, Honasa Consumer has been working to optimise its distribution model. "In this quarter, we have taken strategic steps towards transitioning from super-stockists to direct distributors in the top 50 cities. This transition has impacted our revenue and profits, leading to a slowdown for Mamaearth," he said.
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