Honasa Consumer (HONASA) Q4 22/23 earnings summary

Executive summary

• FY23 consolidated revenue was Rs 14,927.48m versus Rs 9,434.65m; a Rs 1,546.97m impairment on goodwill and intangible assets contributed to a net loss of Rs 1,509.66m, versus profit of Rs 144.43m.

• Pre-exceptional consolidated profit before tax was Rs 136.57m, down from Rs 224.39m; the audited statements received unqualified opinions.

Financial highlights

• Consolidated revenue from products was Rs 14,255.12m and services Rs 672.36m; total revenue was Rs 14,927.48m versus Rs 9,434.65m in FY22.

• Consolidated total expenses rose to Rs 15,016.61m from Rs 9,419.06m; exceptional impairment of goodwill and other intangible assets was Rs 1,546.97m.

• Consolidated net loss was Rs 1,509.66m versus profit of Rs 144.43m; loss attributable to parent equity holders was Rs 1,428.09m versus profit of Rs 157.15m.

• Net cash used in consolidated operating activities was Rs 515.54m versus Rs 445.88m generated in FY22; year-end cash and cash equivalents were Rs 46.46m versus Rs 303.88m.

Outlook and guidance

• Draft IPO prospectus was filed with SEBI on Dec. 28, 2022; responses to preliminary observations were submitted and further SEBI response was pending.

• The proposed IPO comprised a fresh issue and an offer for sale; exchange in-principle approvals were received subject to SEBI observations.