Bata India announces Q1 results;
Product Newness and Network Expansion Strategy working well; Operating Metrics Improve
Gurugram, August 6, 2024: Footwear major Bata India Limited today announced results for the quarter ended June 30, 2024. Revenue from operations for the quarter stood at Rs. 9,446 million vs. Rs. 9,581 million for Q1FY24. The Net Profit stood at Rs. 1,744 million. The results for the quarter demonstrate disciplined execution of our strategies on premiumisation, investment in marketing and technology, elevating customer experience, by maintaining Gross Margins in the face of sluggish consumption momentum during the quarter.
Bata also had a one-time gain on sale of property of Rs. 1,340 million. The results for the quarter also incorporate a one-time expenditure of Rs. 147 million in aggregate towards investments in technology.
Bata has also announced an interim dividend of Rs. 10 per share, amounting to Rs. 1285.28 million.
Key Highlights
· Continued expansion with a network of 1916 (COCO and Franchise) stores.
· E-commerce performance was encouraging. Bata achieved significant growth in digital sales over the previous quarter.
· Portfolio casualisation strategy continues to work well, with Sneaker category led by Power. Sneaker Studios and Floatz Kiosk expanded.
· 37 stores were renovated during the quarter with significant thrust towards portfolio newness with style & technology propositions.
· Launched an industry first promo for trying on shoes - “Try and Fly” campaign to draw footfalls.
Speaking on the Q1FY25 performance, Gunjan Shah, MD and CEO - Bata India Limited, stated:
“Bata India navigated well through the slugging consumption environment further accentuated due to the elections and extreme heat wave in the last quarter. We sustained our gross margin with our premiumisation strategy while continuing investments in marketing and technology platforms.
We added 33 Franchise Stores in the quarter, primarily in Tier 3 – 5 towns to cater the demand for branded products and achieve better returns on capital. Bata also launched its 2nd Power EBO in Delhi.
Along with cautious control on costs and focus on efficiency and productivity, we continued to manage our inventory while having strong instore availability of fresh merchandise in anticipation of festive season driven consumption uptick.
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