Bata India's shares fell 4.96 percent to Rs 1440 per share on the BSE during Wednesday's intraday trade. This came after the company's revenues fell somewhat in the first quarter of fiscal year 2024-24 (Q1 FY25).
On Tuesday, Bata India announced a 62.84 percent growth in total net profit for the first quarter ending June 2024, to Rs 174.36 crore. This rise was fueled by margin expansion and profits from the selling of industrial land. According to a regulatory filing, the company posted a net profit of Rs 106.89 crore during the same time last year. Despite the earnings gain, Bata India's income from operations fell 1.41 percent, to Rs 944.63 crore for the quarter. This was down from Rs 958.14 crore reported in the same period a year ago.
Bata also reported a one-time gain of Rs. 1,34 crore from the sale of property, as well as a one-time expenditure of Rs. 14.7 crore for technology investments. The company has also announced an interim dividend of Rs. 10 per share, totaling 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 at Bata India.
Shah added that the company focused on efficiency and productivity, managing inventories while maintaining robust in-store availability of fresh merchandise in preparation of the festive season's increased consumption. Bata India is the country's leading footwear retailer and producer. The company specializes in the manufacture and selling of footwear and accessories through retail and wholesale outlets.
Bata has a strong pan-India presence, operating 1,569 stores in various cities, including franchisee locations. It also has four strategically placed production sites capable of producing 21 million pairs of footwear annually. Bata's product line includes leather, rubber, canvas, and plastic footwear. Bata India's market capitalization is Rs 18,761 crore, according to BSE. At 11:22 AM, the company's share price fell 3.58 percent to Rs 1460.95 per share on the BSE. In comparison, the BSE Sensex rose 0.81 percent to 79,226 levels.
