07 August 2024, Mumbai
For Q1, FY25 ending June 2024, Bata India reported a 62.84 per cent increase in its consolidated net profit, reaching Rs 174.36 crore. This growth was driven by margin expansion and gains from the sale of industrial land. In comparison, the company had posted a net profit of Rs 106.89 crore in the same period a year ago.
However, Bata India's revenue from operations declined by 1.41 per cent to Rs 944.63 crore during the quarter under review from Rs 958.14 crore in the corresponding period last year.
Total expenses for Bata India increased by 6 per cent to Rs 877.03 crore in the June quarter. The company's total income decreased by 1.08 per cent to Rs 960.86 crore.
Bata continued its expansion during the quarter. The company added 33 franchise stores in Tier III-V towns, to cater to the demand for branded products and achieve better returns on capital. Bata also expanded its presence in new-age channels and saw significant growth in digital sales over the previous quarter.
Gunjan Shah, Managing Director and CEO, highlights, the company successfully navigated through a challenging consumption environment, further impacted by elections and an extreme heatwave. It sustained its gross margins through a premiumisation strategy while continuing to invest in marketing and technology platforms, Shah adds.
Along with cautious control on costs and a focus on efficiency and productivity, Bata also managed its inventory well, ensuring strong in-store availability of fresh merchandise in anticipation of a festive season-driven consumption uptick.
