Bata India Q1 Results: Profit Jumps 63%
Revenue fell 23% year-on-year to Rs 944.63 crore for the three months ended June.
Bata India Ltd. reported an increase in profit in the first quarter of this financial year, helped by margin expansion and gains from sale of industrial land.
The shoemaker recorded a net profit of Rs 174.36 crore for the quarter-ended June, compared to Rs 106.89 crore in the same quarter of the previous fiscal, according to an exchange filing.
Revenue fell 23% year-on-year to Rs 944.63 crore for the three months ended June. Operating income, or earnings before interest, taxes, depreciation, and amortisation, was at Rs 184.95 crore, while the Ebitda margin was at 19.6%.
Besides, Bata also had a one-time gain on the sale of property of Rs 134 crore in the June quarter. "The results for the quarter also incorporate a one-time expenditure of Rs 14.7 crore in aggregate towards investments in technology," the company said.
"The results for the quarter demonstrate disciplined execution of our strategies on premiumisation, investment in marketing and technology, elevating the customer experience, by maintaining gross margins in the face of sluggish consumption momentum during the quarter," said an earnings statement from the company.
During the quarter, Bata continued its expansion and had a network of 1,916 stores, including company-owned and franchise stores. It added 33 franchise stores in the quarter, primarily in tier 3-5 towns to cater for the demand for branded products and achieve better returns on capital.
Besides, it also expanded presence at new-age channels and "achieved significant growth" in digital sales over the previous quarter.
MD and CEO Gunjan Shah said the company navigated well through the slugging consumption environment, further accentuated due to the elections and extreme heatwave in the last quarter.
"We sustained our gross margin with our premiumisation strategy while continuing investments in marketing and technology platforms," he said.
Shah further added, "Along with cautious control on costs and focus on efficiency and productivity, we continued to manage our inventory while having strong in-store availability of fresh merchandise in anticipation of festive season-driven consumption uptick."
Shares of the company closed 2.70% lower at Rs 1,515.10 apiece, as compared to a 0.26% decline in the NSE Nifty 50. The stock has fallen 7.71% year-to-date and 14.15% over the past 12 months.
(With inputs from PTI)
