Footwear major Bata India on Wednesday reported a 38 per cent year-on-year fall in its consolidated net profit to ₹33.99 crore for the second quarter this fiscal due to lower revenue and a one-time charge for introducing a voluntary retirement scheme.
The company had posted a net profit of ₹54.82 crore for the second quarter last fiscal. During the period under review, revenue from operations fell 1.3 per cent y-o-y to ₹819.11 crore (₹829.75 crore).
VRS introduced
During the quarter and half year ended September 30, 2023, the company introduced a scheme for voluntary retirement (VRS) at one manufacturing unit and ₹40.90 crore was offered for the same, according to the company’s stock exchange filing. The quarterly results included the amount offered for VRS.
In a release, Bata said its profit before tax and exceptional items stood at around ₹87.46 crore for Q2FY24, registering a 28.4 per cent growth, showcasing consistent efficiency improvements across operations. “This is in alignment with the company’s commitment to make sustainable profitable growth,” it added.
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Speaking on the Q2FY24 performance, Gunjan Shah, MD and CEO, Bata India, said, “Despite navigating through short-term demand headwinds in the quarter gone by, our focus on efficiency and productivity was reflected in robust operating profit margin growth. Prudent expansion of our retail network and marketing investments continue to be our key strategy.”
Shah said the company would continue to flesh out new opportunities across its value chain. “We remain focused on cost efficiency across all operations including manufacturing facilities and optimising our resources. In line with our strategy of sustainable profitable growth, we continue to expand across tiers in a capital-efficient manner, digital channels and make investments in elevating customer experience and brand marketing,” he added.
During the September quarter, the footwear maker renovated as many as 54 stores and successfully executed its portfolio casualisation strategy.