The parent company of Mamaearth, had an uninspiring start on the stock exchanges on November 7. The shares of Honasa Consumer began trading at Rs 330 on the NSE and Rs 324 on the BSE, which was slightly higher than the issue price of Rs 324. Despite oversubscription, the initial trading performance may not have met expectations. During the IPO, qualified institutional bidders (QIB) showed strong interest, subscribing 11.5 times the allotted quota.
The significant net loss of Rs 150.9 crore in the year ended March 2023 can be attributed to the impairment loss on goodwill and other intangible assets. This loss represents a sharp decline from the profit of Rs 14.4 crore achieved in the previous year. In terms of volume growth, the company experienced a decline, with growth falling to 68.23 percent in FY23 from 143.3 percent in FY22 and 298.42 percent in FY21.
Over the period of FY21-FY23, revenue from operations grew at a Compound Annual Growth Rate (CAGR) of 80.14 percent. This indicates that while the company may have experienced challenges in terms of volume growth, it was able to generate increased revenue from its business operations.
