The stock fell 20 percent on BSE to Rs. 295.80 – the lower circuit limit – was reached. (Representative Image)
Shares of Honasa Consumer Ltd, which owns FMCG brands such as MamaEarth and The Derma Co, tumbled 20 per cent on Monday after the company closed its second quarter ended September 30, 2024, on an inventory correction. 18.57 crore reported a consolidated loss.
The stock fell 20 percent on BSE to Rs. 295.80 – the lower circuit limit – was reached.
At the NSE, it fell 19.99 percent to Rs. The day’s lowest trading at 297.25 touched the permissible limit.
The company said in a regulatory filing on Thursday that in the year-ago period it had posted Rs. 29.43 crore in profit after tax was reported.
Revenue from Honasa Consumer’s operations in the second quarter of the current fiscal fell 6.9 percent to Rs. 461.82 crores.
Honasa Consumer said in its earnings statement, “Revenue in Q2 was Rs. 462 crores representing a growth of around 6.9 per cent, while income adjusted for inventory correction grew at a rate of 5.7 per cent at Rs. 525 crore,” Honasa Consumer said in its earnings statement.
Chairman and CEO Varun Alag said Honasa Consumer has been working on optimizing its distribution model for the past few months.
“This quarter, we have taken strategic steps towards transitioning from super-stockists to direct distributors in top 50 cities. This transition has affected our revenue and profitability, causing a slowdown for MamaArtha,” he said.