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Bata India’s stock dipped 4.96 per cent at Rs 1440 per share on the BSE in Wednesday’s intraday trade. This came after the company’s revenues dipped marginally in the first quarter of the financial year 2024-24 (Q1FY25).
On Tuesday, Bata India reported a 62.84 per cent increase in its consolidated net profit for the first quarter ending June 2024, reaching Rs 174.36 crore. This growth was driven by margin expansion and gains from the sale of industrial land. In comparison, the company had reported a net profit of Rs 106.89 crore in the same period the previous year, according to a regulatory filing.
Despite the profit increase, Bata India experienced a 1.41 per cent decline in revenue from operations, which amounted to Rs 944.63 crore for the quarter. This was down from Rs 958.14 crore reported in the corresponding period a year earlier.
Bata also had a one-time gain on sale of property of Rs. 1,34 crore, while the results also incorporated a one-time expenditure of Rs. 14.7 crore towards investments in technology. The company has also announced an interim dividend of Rs. 10 per share, amounting to Rs. 128.52 crore.
“Bata India navigated well through the slugging consumption environment further accentuated due to the elections and extreme heat wave in the last quarter. We sustained our gross margin with our premiumisation strategy while continuing investments in marketing and technology platforms. We added 33 Franchise Stores in the quarter, primarily in Tier 3 – 5 towns to cater the demand for branded products and achieve better returns on capital,” said Gunjan Shah, MD and CEO – Bata India.
Shah further said that the company focussed on efficiency and productivity, managing inventory while having strong instore availability of fresh merchandise in anticipation of festive season driven consumption uptick.
Bata India is the largest footwear retailer and manufacturer in the country. The company specialises in the production and trading of footwear and accessories through both retail and wholesale channels.
With a robust pan-India presence, Bata operates 1,569 stores across various cities, including franchisee locations. It also boasts four strategically positioned manufacturing units, collectively capable of producing 21 million pairs of footwear annually. Bata’s product range includes leather footwear, rubber and canvas footwear, and plastic footwear.
The market capitalisation of Bata India is Rs 18,761crore, according to BSE. At 11:22 AM; the share price of the company dropped 3.58 per cent at Rs 1460.95 per share on the BSE. By comparison, the BSE Sensex surged by 0.81 per cent to 79,226 levels.
First Published: Aug 07 2024 | 11:37 AM IST
