Festival demand didn't meet expectations: Honasa Consumer CEO Varun Alagh

He dwells on the company's Q3 performance, challenges, and plans

Honasa Consumer – the parent company of direct-to-consumer (D2C) brand Mamaearth – posted a 264 per cent year-on-year (Y-o-Y) increase in its net profit to Rs 25.9 crore in the December quarter. In a telephonic interview with Aryaman Gupta, Varun Alagh, chairman and chief executive officer (CEO) of Honasa Consumer, dwells on the company’s Q3 performance, challenges, and plans. Edited excerpts:

What has driven profits in this quarter?

We are seeing leverage on two fronts. As we are scaling overall, both our advertising expenses and operational expenditures are growing at a much slower pace, leading to improvements in Ebitda (earnings