Shares of Brainbees Solutions, the company behind FirstCry, faced significant selling pressure, dropping by 11.3% to a record low of Rs 236.8 per share due to negative investor response to its December quarter results. The company’s net loss widened to Rs 39 crore in the third quarter, compared to Rs 15 crore in the same period last year, primarily due to higher operating costs and increased discounting. Despite a 12% year-on-year increase in revenue to Rs 2,424 crore, the India multi-channel business saw only a 9% growth, impacted by competitive pressures in the diapering segment and procurement challenges in third-party brands.
Revenue growth in the international business also remained sluggish at 7% year-on-year, as competitors intensified promotional activities in global markets. Brainbees Solutions’ stock has been consistently declining on Dalal Street, registering losses for the past five months and plummeting by around 34% during this period. Currently trading nearly 50% below its IPO price of Rs 465 and almost 67% lower than its all-time high of Rs 734 per share, the company’s shares have experienced a 12.53% drop in the last week and a 12.24% decrease in the past month, according to NSE data. Year-to-date, the stock has fallen by 16.53%, while over the last year, it has declined by 40.93% on NSE.
