The Hindu Business Line : Bata Q1 net up at Rs 5 cr

Kolkata April 30 Bata India Ltd, for the first quarter ended March 31, 2007, has achieved a 9.5 per cent increase in its net turnover, on a quarter to quarter basis, at Rs 182.67 crore (Rs 166.84 crore).

Profit before tax has improved from Rs 4.81 crore to Rs 9.09 crore — an increase of 89 per cent over the corresponding period of the previous year.

Net profit has climbed to Rs 5.05 crore against the Rs 4.41 crore in the same period of 2006.

As per the Note attached to the first quarter results, taken on record by the company's board of directors at its meeting on April 28,, retail restructuring (taken up at a one-time cost of Rs 3.74 crore) already put in place from February/March 2007, was undertaken to serve customers better by keeping shops open for longer hours and on all seven days of a week, wherever permissible, and to be more flexible in managing the business as per market realities.

Talking to Business Line on Monday, Mr Shaibal Sinha, Director, Finance, of the company said the increase in net turnover truly reflected the growing success of the turnaround strategy adopted by Bata India some two years ago.

Design makeover

He said sales in high-end flagship stores increased by 15.1 per cent in the first quarter of 2007, compared to the corresponding period of the previous calendar financial year (2006), contributing to 37.4 per cent of the total turnover for the period. The growth has come mainly through better shoe design and renovation of the existing stores/new stores of international standard.

Bata India now operates in two segments — manufacturing and sale of footwear, and investment in Joint Venture for surplus property (within the Batanagar factory area) development.

Batanagar township

Asked on the progress of the property development joint venture project with Calcutta Metropolitan Group Ltd, of which the Kolkata Metropolitan Development Authority (KMDA) is a partner, Mr Sinha said construction work was expected to start soon, after all the required clearances are received.

He said the project for re-developing the Batanagar Township, in a total area of 262 acres, was progressing as per schedule.