Bata India PAT rises 63% YoY to Rs 174 crore in Q1 FY25

Last updated: August 7, 2024 | 12:16 PM IST

Bata India’s consolidated net profit rose by 62.84 per cent to Rs 174.06 crore in Q1 FY25 as compared to Rs 106.89 crore reported in Q1 FY24.

However, revenue from operations declined by 1.41% year-on-year (YoY) to Rs 944.63 crore in the quarter ended June 30, 2024.

Profit before exceptional items and tax declined by 42.07 per cent to Rs 83.17 crore in Q1 FY25 as compared to Rs 143.56 crore reported in Q1 FY24.

Bata reported a one-time gain (exceptional item) of Rs 134 crore from sale of real estate. Also, the quarter’s results include a one-time expense of Rs 14.7 crore related to investments in technology.

Bata continued its expansion with a network of 1,916 COCO and franchise stores. The company said it achieved significant growth in digital sales compared to the previous quarter.

The casualization strategy of the portfolio continued to work well, with Power leading the Sneaker category. Sneaker Studios and Floatz Kiosk expanded, added the footwear maker.

During the quarter, 37 stores were renovated, with particular emphasis on modernizing the offer by introducing new stylistic and technological solutions.

Gunjan Shah, Managing Director and CEO, Bata India, said, “Bata India has weathered the challenging consumer environment, exacerbated by the elections and extreme heatwave in the last quarter, and we have maintained our gross margin through our premiumisation strategy, while continuing to invest in our marketing and technology platforms.”

We added 33 franchise stores during the quarter, mostly in Tier 3-5 cities to meet demand for branded products and achieve better returns on capital. Bata also launched its 2nd Power EBO in Delhi.

In addition to carefully controlling costs and focusing on efficiency and productivity, we continued to manage our inventory while ensuring ample availability of fresh goods in stores in anticipation of the Christmas consumption boost.

Meanwhile, the company’s board has declared an interim dividend of Rs 10 per equity share for the financial year 2024-25. The record date for the right to the dividend is August 16, 2024 and the payment will be on September 2, 2024.

Bata India is the largest retailer and manufacturer of footwear in the country. The company is engaged in the manufacturing and trading of footwear and accessories through its retail and wholesale network. Its products include leather footwear, rubber/canvas footwear and plastic footwear.

The securities fell 4.52% to Rs 1,446.65 on the BSE.

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First published: August 7, 2024 | 11:16 AM IST