Bata India Ltd. shares went down by 2 per cent after the company reported a 10 per cent decrease in profit for the quarter ended June 30, 2023, at ₹106.89 crore compared to ₹119.37 crore during the corresponding quarter last year. The company’s revenues were up 1.60 per cent to ₹958.14 crore compared to ₹943 crore last year. Sequentially, the company’s profits were higher by 63 per cent compared to ₹65.22 crore in the previous quarter.

According to a report by ICICI Securities, In the first quarter of the fiscal year 2024 (Q1FY24), Bata India expanded its retail footprint during this period, with a 1 per cent y-o-y increase in company-owned, company-operated (COCO) stores, which constitute 62% of the total, and an overall growth of 11 per cent y-o-y, bringing the total store count to 2,100. The company’s entry into 27 new towns, primarily in tier 3 to 5 cities, was driven by a strategic focus on franchise and Shop-in-Shop (SIS) outlets.

Company management emphasised their ongoing commitment to the casual and fashion footwear segments, with notable implementations such as the Sneaker Studio in 565 stores and the successful launch of the Floatz banner, achieving its highest-ever quarterly turnover with the opening of a kiosk in Delhi. 

Margins hit during the quarter due to the early End of Season Sale (EOSS), with gross margin down by 187 basis points YoY and 366 basis points QoQ, settling at 54.7 per cent. Additionally, EBITDA margin contracted by 86 basis points YoY, standing at 25.1 per cent. 

The shares went down by 2 per cent to ₹1,665 at 1.02 pm on BSE.

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