Honasa Consumer, the parent company of popular skincare brand Mamaearth, has reported a profitable fourth quarter driven by robust demand for beauty and personal care products.
The company’s consolidated net profit after tax for the quarter ending March 31 surged to 304.8 million rupees ($3.7 million), marking a significant turnaround from a loss of 1.62 billion rupees in the same period last year.
Analysts attribute the profit to increased consumer purchases, particularly during end-of-season sales, coupled with heightened demand from high-income urban consumers for moisturizers and shampoos.
Honasa Consumer, which also distributes products under brands like The Derma Co and Aqualogica, witnessed a nearly 22% rise in revenue from operations, reaching 4.71 billion rupees.
The company’s earnings before interest, tax, depreciation, and tax (EBITDA) margin expanded to 7% from a loss of 0.8% in the previous year, reflecting improved operational efficiency. Honasa plans to further enhance cost efficiency by transitioning to direct distribution, focusing on established fast-moving consumer goods distributors.
Despite the positive financial performance, shares of Honasa closed 1.9% lower ahead of the results, following a trend of 8.7% decline in the January-March quarter. The surge in skincare product demand underscores Indian consumers’ inclination towards offers and discounts amid inflation, which has impacted discretionary spending.
