Riding on the back of a significant momentum across all sales channels, Bata India registered a standalone net profit of ₹119 crore for the quarter ended June 30, 2022, as compared with a net loss of (₹71 crore) same period last year.
Revenue from operations on a standalone basis increased by nearly 253 per cent at ₹943 crore during the quarter under review as against ₹267 crore same period last year.
Quarterly sales at lifetime high
A direct outcome of the continued focus on key thrust areas of franchise and MBO expansion, consumer relevant communication, portfolio casualisation and digital footprint expansion, was reflected in the quarterly sales reaching lifetime high, the company said in a press statement.
With continuous increase in portfolio freshness and consumer/marketing investments, footfalls across retail outlets saw significant growth supported by sales through digital channels and strong expansion of footprint across EBOs and MBOs.
Impact of initiatives
The company continued to optimise cost structures and drive efficiencies across its value chain. All the cost-focused initiatives, which have been put in place across multiple work streams are showing increasing impact quarter on quarter.
“Over the last three quarters, we are witnessing significant uptick in demand with rising demand for fashionable, trendy yet functional and comfortable footwear. The evolution in consumer mindset including brand consciousness was catered by our enhanced offerings in casual segment across categories. Our continuous investments behind marketing campaigns continue to help strengthen our already solid brand recall,” Gunjan Shah, MD and CEO of Bata India, said in the release.
20 new franchise stores
The company continues to expand its reach through new franchise stores and multi-brand outlets. It opened over 20 new franchise stores taking the total number to 320 with a strong future pipeline, expanded availability via distribution channel that continued to scale up close to 1,100 towns.
“Digital footprint through our omnichannel e-commerce revenue streams gained significant momentum in the quarter going by. Simultaneously, we continued our strong focus on driving the volumes in these inflationary times, which should show impact in the ensuing period. In the face of volatile inflation, geo-political unrest, we are conscious about our cost efficiencies and accordingly various cost-savings measures across our network continue to be implemented which has reflected in the profitability metrics. We continue to flesh out new opportunities across our value chain will help us capture the emerging consumer demand efficiently,” she said.
The company’s scrip closed at ₹1915.35, up by 1.69 per cent on the BSE on Thursday.