Shares of digital healthcare and wellness solutions provider Nureca continued to be under pressure, falling 3.5% intraday on Friday to hit a 20-month low of Rs 562.50. The stock is trading near its all-time low of Rs 559.25, touched on March 19, 2021.

So far in the calendar year 2022 (CY22), Nureca’s market price is down 74% after the company reported a net loss for the third consecutive quarter. The S&P BSE Sensex has gained 5% over the same period. The stock hit an all-time high of Rs 2,317 on October 8, 2021. The company raised Rs 100 crore in the IPO by issuing shares at Rs 400 crore.

Nureca is a B2C company in home healthcare and wellness products. It provides its customers with tools to help them monitor chronic diseases and other conditions to improve their lifestyles. Nureca is a digital-first company that sells its products through online channel partners such as e-commerce players, distributors and retailers, and its website drtrust.in. The company owns brands such as Dr Trust, Dr Physio and Trumom.

For the first half (April-September) of the fiscal year 2022-23 (H1FY23), Nureca reported a consolidated net loss of Rs 7 crore and an Ebitda loss of Rs 7.6 crore against a profit of Rs 4.16 crore and Rs 5.74 crore, respectively, in H1FY22. Operating income fell 63% to Rs 62.3 crore from Rs 166.4 crore a year ago.

The company said overall demand was down in the first half of FY23 compared to the same period last year when demand surged due to Covid-19. Gross margins were impacted in H1FY23 due to lower demand, input cost inflation, currency fluctuations and inflationary pressure on other non-core costs such as packaging and transportation.
The company said staff costs increased year-on-year due to active recruitment in business functions and verticals, mainly for application development and offline distribution network expansion.