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Tuesday, December 3, 2024

Bata registers 53% profit growth, reaches INR 52 cr in Q2 FY25

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Bata India Ltd. announced on Monday, November 4, a 53% increase in consolidated net profit, reaching INR 51.97 crore for the second quarter ending September 2024. This growth was due to better operations and selling premium products. 

Bata’s revenue from operation sees 2.2% jump

According to India Retailing, Bata India had a net profit of INR 33.99 crore for July-September FY24, as stated in a regulatory filing. Revenue from operations increased by 2.2% to INR 837.14 crore during the quarter. “The EBITDA profit stability showcased the company’s resilience in managing operational efficiencies,” said the company in its earnings statement.

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Notably, total expenses for the September quarter were INR 784.55 crore, a 5% increase from last year. Total income, including other income, rose by 2.36% to INR 854.32 crore.

“The results for the quarter reflect continued momentum in the transformation journey, driven by strategic investments in product innovation, elevated customer experience, technology integration and brand premiumisation, positioning Bata strongly for future growth,” it said.

Meanwhile, MD and CEO Gunjan Shah released a statement regarding the result, saying, ”Despite continuing market headwinds and subdued consumption, we saw some recovery in our growth trajectory through the quarter backed by focused execution of strategic initiatives.”

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“We are seeing strong validation of our premiumisation strategy across channels, with premium products showing robust growth and increased contribution to our revenue mix. Our Brand stories connected well with the targeted audience,” he added.

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Additionally, Bata India continued to expand its retail network, reaching 1,955 stores nationwide by the end of the quarter, including both COCO and franchise stores. It opened 4 Exclusive Brand Outlets (EBOs) for Power, 136 EBOs for Hush Puppies, and 14 kiosks for Floatz.

“Our expansion through franchise stores in Tier 3-5 markets, combined with our robust digital presence, is helping us tap into new growth opportunities with strengthened omni-channel approach. Our conscious efforts on Franchise model expansion are showing good results,” stated Shah.

He said that Bata will keep balancing between handling short-term challenges and investing in long-term growth opportunities.

“We are optimistic about consumption recovery in the coming quarters, backed by festive season momentum and our strong market positioning,” he further added.

On Monday, Bata India Ltd.’s shares closed at INR 1,336.90 each on the BSE, a drop of 1.47%.

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