Footwear giant Bata India has reported a 62.84% year-on-year increase in its consolidated net profit, reaching INR 174.06 crore for the first quarter of this fiscal year. This growth was bolstered by a one-time gain of INR 133.95 crore from the sale of a property.
The company reported a net profit of INR 106.89 crore for the first quarter of the previous fiscal year.
Expenses Up by 6%:
Revenue from operations declined 1.41% year-on-year to INR 944.63 crore for the first quarter of this fiscal year, down from INR 958.15 crore for the same period last fiscal year, according to a stock exchange filing. Total expenses increased by approximately 6% year-on-year to INR 877.70 crore.
The footwear manufacturer stated that its board of directors approved the sale of a freehold industrial property to an unrelated party in April, for a consideration of INR 156 crore. The sale resulted in a net gain of INR 133.95 crore after deducting related expenses.
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INR 10 Interim Dividend Announced:
Bata has announced an interim dividend of INR 10 per share, totaling INR 128.53 crore.
Commenting on the Q1 FY25 performance, Gunjan Shah, MD and CEO, stated, “Bata India successfully navigated the sluggish consumption environment, further impacted by the elections and extreme heat wave last quarter. We maintained our gross margin through our premiumisation strategy while continuing to invest in marketing and technology platforms.”
In the first quarter, the company added 33 franchise stores, mainly in tier 3 to 5 towns, to meet the demand for branded products and achieve better returns on capital.
Shah added, “By maintaining cautious cost control and focusing on efficiency and productivity, we managed our inventory while ensuring strong in-store availability of fresh merchandise in anticipation of a consumption uptick driven by the festive season.”
