Bata India Q1 results: Net profit rises 63% to Rs 174 cr, revenue falls 1.4%

Shares of Bata India Ltd. closed at Rs 1,515.20 on the BSE on Tuesday, down 2.66 per cent from its previous close | Photo: Wikimedia Commons

2 minutes of reading Last updated: August 6, 2024 | 21:10 IST

Shoemaker Bata India Ltd. on Tuesday reported a 62.84 per cent rise in consolidated net profit at Rs 174.36 million for the first quarter ended June 2024, led by margin expansion and gains from sale of industrial land.

According to Bata India’s regulatory filings, a year earlier in the April-June period the company had posted a net profit of Rs 106.89 million.

However, revenue from operations declined by 1.41 per cent to Rs 944.63 cr in the quarter under review, from Rs 958.14 cr in the year-ago period.

“The quarterly results demonstrate disciplined execution of our premiumization strategies, investment in marketing and technology, enhancing customer service quality and maintaining gross margin despite weak consumption during the quarter,” the company said in its earnings statement.

Additionally, Bata recorded a one-off gain from the sale of real estate of Rs 134 million in the June quarter.

“The quarterly results also include a one-time expense of Rs 14.7 cr on total technology investments.”

Bata India’s total expenses in the June quarter rose 6 per cent to Rs 877.03 million.

Bata India’s total income for the June quarter was Rs 960.86 billion, down 1.08 per cent year-on-year.

Bata continued its expansion during the quarter and had a network of 1,916 stores, including both company-owned and franchised stores. It added 33 franchise stores during the quarter, mainly in Tier 3-5 cities, to meet the demand for branded products and achieve better returns on capital.

Additionally, the company expanded its presence in next-generation channels and “achieved significant growth” in digital sales compared to the previous quarter.

Managing Director and CEO Gunjan Shah said the company had weathered the slump in consumption well, which was exacerbated by the election and heatwave in the last quarter.

“We maintained our gross margin through our premiumization strategy while continuing to invest in our marketing and technology platforms,” he said.

Shah added: “In addition to prudent cost control and focus on efficiency and productivity, we continued to manage our inventory while having ample availability of fresh goods in stores in anticipation of the increase in consumption due to the festive season.”

Shares of Bata India Ltd. closed at Rs 1,515.20 on the BSE on Tuesday, down 2.66 per cent from its previous close.

(Only the headline and image of the report may have been edited by the Business Standard team; the rest of the content is automatically generated from a syndicated feed.)

First published: August 6, 2024 | 21:10 IST