Why FirstCry parent's shares are down 50% from issue price
What's the story
Brainbees Solutions, the parent company of e-commerce platform FirstCry, has witnessed a major drop in its share value. The company's stock fell over 6% today to ₹221.55 after it reported a net loss for the fourth quarter. The loss, however, was lower than what it had reported during the same period last year. With the latest price decline, it is now down over 50% from its issue price of ₹465 per share.
Financial performance
Brainbees Solutions reports net loss of ₹48.2cr
Brainbees Solutions reported a net loss of ₹48.2 crore for the fourth quarter, down from a loss of ₹111.5 crore in the same period last year. The company's revenue also grew by 12% year-on-year to ₹2,162.6 crore during this period. Its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter more than quadrupled to ₹70.1 crore from ₹15.9 crore in Q4 last year.
Margin growth
Company's EBITDA margins expand to 3.2%
The EBITDA margins of Brainbees Solutions expanded to 3.2% from last year's 0.8%. The company's India multi-channel business, a key margin driver, reported an 11.4% revenue growth over the last year. However, the vertical's Earnings Before Interest & Tax (EBIT) for the quarter fell by 12.7% year-on-year to ₹109.1 crore from ₹125 crore last year, with margins narrowing to 7.3% from earlier levels of 9.3%.
Global performance
International business segment witnesses revenue growth
The international business segment of Brainbees Solutions also witnessed a 9.4% revenue growth over the last year. Its EBIT loss was reduced to ₹20.6 crore from ₹30.7 crore last year. Another business vertical, Globalbees, performed well during this quarter, with its EBIT rising from ₹2.9 crore last year to ₹26.4 crore and margins expanding to 5.7% from earlier levels of 0.7%.