Mamaearth Reports Doubling of PAT and 21% Revenue Growth in Q2 FY24
Mamaearth has announced impressive financial results for the second quarter of FY24, with its Profit After Tax (PAT) doubling to Rs 30 crore. The company reported a robust 21 per cent year-on-year increase in operating revenue, reaching Rs 496.1 crore compared to Rs 410.5 crore in Q2 FY23. This marks the company’s first quarterly result after its listing on the stock exchanges, highlighting its continued growth trajectory and strong performance in the market.
Market-Beating Growth and Improved Profitability
Varun Alagh, Chairman and CEO of Honasa Consumer, the parent company of Mamaearth, attributed the impressive financial performance to market-beating growth and enhanced profitability. He noted that Honasa Consumer’s business grew by 33 percent year-on-year in H1 FY24, outperforming the median growth of FMCG companies in India by 3.8 times. This underscores Mamaearth’s strong market position and the effectiveness of its business strategies in driving sustainable growth and profitability.
Positive Market Response
The positive financial results have been reflected in the market sentiment towards Honasa Consumer’s stock. Mamaearth’s parent company saw its stock close at Rs 349 on Wednesday, indicating investor confidence in the company’s growth prospects and financial performance.
Fiscal Year 2023 Performance
In FY23, Mamaearth reported a loss of Rs 151 crore. However, the company witnessed a significant increase in operating revenue, reaching Rs 1,493 crore from Rs 943 crore in the previous year. Despite the revenue growth, overall expenditure also surged from Rs 942 crore to Rs 1,502 crore, reflecting the company’s investment in scaling its operations and expanding its market presence.
Investor Returns and Market Reception
Peak XV Partners, formerly known as Sequoia Capital India and Southeast Asia, has reportedly seen exceptional returns from Mamaearth’s oversubscribed initial public offering (IPO). Within just six months of separating from Sequoia, Peak XV Partners has witnessed a remarkable tenfold or greater return on its investment in Mamaearth. This highlights the strong investor interest and market reception towards Mamaearth’s business model, growth potential, and strategic direction.
Conclusion
Mamaearth’s stellar financial performance in Q2 FY24, marked by a doubling of PAT and a significant increase in operating revenue, underscores the company’s resilience, market strength, and ability to deliver sustained growth. With a focus on market-beating growth, improved profitability, and strategic investments, Mamaearth is well-positioned to capitalize on emerging opportunities in the FMCG sector and drive value for its stakeholders in the years to come.
