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FirstCry Parent's Stock Plunges 11% to Record Low After Wider Q3 Loss

Shares of Brainbees Solutions, which operates FirstCry, plunged over 11% to a record low following its December quarter results. The company reported a significantly wider net loss of Rs 39 crore, compared to a loss of Rs 15 crore in the same quarter last year. Revenue growth was hampered by intense competition and procurement challenges in its key India business segment. The stock is now trading about 50% below its IPO price and has been on a consistent downtrend for months.

Key Points: FirstCry Stock Hits Record Low After Q3 Loss Widens

  • Wider Q3 net loss of Rs 39 crore
  • Stock hits fresh record low of Rs 236.8
  • Revenue up 12% but key segment growth slows
  • Shares trade 50% below IPO price
2 min read

FirstCry operator Brainbees shares sink over 11 pc to record low after wider Q3 loss

Brainbees Solutions, operator of FirstCry, sees shares sink over 11% to a record low after reporting a wider quarterly net loss of Rs 39 crore.

"The higher losses were mainly due to increased operating costs, higher discounting and modest revenue growth - Company Report"

Mumbai, Feb 16

Shares of Brainbees Solutions, which operates baby and mother care retailer FirstCry, came under heavy selling pressure on Monday, as the stock fell sharply by nearly 11.3 per cent to hit a fresh record low of Rs 236.8 apiece as investors reacted negatively to the company's December quarter results.

However, at the close of the trading session, it was down by Rs 30.35 or 11.25 per cent to trade at Rs 239.45.

The company reported a wider net loss of Rs 39 crore in the third quarter, compared to a loss of Rs 15 crore in the same period last financial year.

The higher losses were mainly due to increased operating costs, higher discounting and modest revenue growth in its key India multi-channel business.

Revenue from operations rose 12 per cent year-on-year to Rs 2,424 crore during the quarter, up from Rs 2,172 crore a year ago.

However, growth in its India multi-channel (IMC) segment stood at 9 per cent, impacted by intense competition in the diapering category and procurement challenges in third-party consumable brands.

International business growth also remained subdued at 7 per cent year-on-year, as horizontal players stepped up promotional activities in overseas markets.

The stock has been under consistent pressure on Dalal Street, closing lower in each of the last five months and losing around 34 per cent during this period.

With the latest fall, the share is now trading about 50 per cent below its IPO price of Rs 465 and nearly 67 per cent below its record high of Rs 734 per share.

In last one week, the shares were down by 12.53 per cent while in last one month, it was down by 12.24 per cent, according to NSE's official data.

On year-to-date (YTD) basis, the stock has dropped 16.53 per cent. However, in last one year, it has dropped by 40.93 per cent on NSE.

- IANS

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Reader Comments

P
Priya S
As a new mom, I love FirstCry for the convenience and variety. But honestly, the discounts aren't as deep as they used to be. Maybe that's part of their problem? Competition from Amazon and local stores is fierce. Wishing them the best! 🤞
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Aman W
IPO price was ₹465, now ₹239? That's a brutal haircut for retail investors. This is a cautionary tale about investing in loss-making companies just because they are a known brand. Fundamentals matter in the long run.
S
Sarah B
The diaper category is a bloodbath with so many brands. Procurement issues for third-party consumables sound like a serious operational flaw. Management needs to address this clearly in their next communication.
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Vikram M
Loss doubling from ₹15 Cr to ₹39 Cr YoY is alarming, even if revenue is up. Operating costs are out of control. They need a solid path to profitability, not just top-line growth. The market has lost patience.
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Karthik V
With all due respect to the company, this feels like a classic case of overvaluation at IPO. The business model was always tough with thin margins. Hope they can streamline and survive, but investors should be very careful.
N
Nisha Z

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