Honasa Share Price Dips 20%; Posted 163% PAT Decline in Q2 FY25 Financial Results

Honasa Consumer Ltd, the parent company of popular brands like The Derma Co., Aqualogica, BBlunt, and Dr. Sheth’s, reported its financial performance for the quarter ended September 30, 2024.

On November 18, 2024, Honasa share price opened at ₹306.00, down from its previous close of ₹371.55. At 10:19 AM, the share price of Honasa was trading at ₹297.25, down by 20.00%. Notably, the stock touched its 52-week low at ₹297.25 on Monday.

Q2 and H1 FY 2025 Highlights

The company posted a revenue of ₹462 crore in Q2, reflecting a 6.9% growth year-on-year. Adjusted for inventory correction, revenue stood at ₹525 crore, marking a 5.7% increase compared to the same period last year.

However, the company experienced a decline in profitability, with an EBITDA margin of -6.6% for Q2 FY25. When adjusted for inventory correction, the EBITDA margin improved to 4.1%. The Profit After Tax (PAT) for Q2 was reported at a loss of ₹19 crore, a significant decline from ₹29 crore in Q2 FY24, reflecting a 163.1% drop.

Despite the challenges, Honasa Consumer has shown strong growth in the first half of FY25, with revenue growth of 12.3% (adjusted for inventory correction), outperforming its competition and gaining market share. Younger brands such as The Derma Co., Aqualogica, BBlunt, and Dr. Sheth’s experienced year-to-date growth of over 30% in both quarters of FY25.

The company stated that their focus on key categories such as face washes, sunscreens, and face serums has been a major driver of growth, with these segments showing 28%+ YoY growth in H1 FY25. These categories now contribute nearly 50% of the business, with Honasa Consumer aiming to become a national leader or at least secure a top-3 position in these categories within the next 3-5 years.

In H1 FY25, the company reported a PAT of ₹22 crore, down from ₹54 crore in the same period of FY24, reflecting a 60.0% decrease.

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