FirstCry Parent Company Sees 5.5% Share Price Decline Following Disappointing March Quarter Earnings.

Brainbees Solutions Shares Plummet 5.55% After Reporting Weak March Quarter Earnings

Shares of Brainbees Solutions, the parent company of FirstCry, experienced a significant decline of more than 5 percent in trade on Wednesday following the release of disappointing March quarter earnings.

As per data from the National Stock Exchange (NSE), Brainbees Solutions shares were trading at Rs 223.95, a decrease of Rs 13.16 or 5.55 percent, at 11:54 am.

The company reported a net loss of Rs 48.2 crore for the March quarter, a stark contrast to the loss of Rs 111.5 crore in the same period last year. Despite the decline in losses, the company's financial performance was marred by several weak indicators.

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Revenue from operations rose 12 percent year-on-year to Rs 2,162.6 crore, while EBITDA jumped to Rs 70.1 crore from Rs 15.9 crore a year ago. EBITDA margins expanded to 3.2 percent from 0.8 percent in the corresponding quarter last year.

Brainbees' India multi-channel business, the company's key margin-generating segment, posted revenue growth of 11.4 percent year-on-year. However, EBIT for the segment declined 12.7 percent to Rs 109.1 crore from Rs 125 crore in the year-ago period. Margins for the vertical also narrowed to 7.3 percent from 9.3 percent earlier.

On a more positive note, the company's international business recorded revenue growth of 9.4 percent, while its EBIT loss narrowed to Rs 20.6 crore from Rs 30.7 crore a year earlier. Additionally, Globalbees, another business segment under the company, delivered a strong performance during the quarter. EBIT for the segment rose to Rs 26.4 crore from Rs 2.9 crore last year, while margins improved to 5.7 percent from 0.7 percent.

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