Footwear major Bata India Limited announced results for the quarter ended 31st March 2022 and reported over two-fold increase in its consolidated net profit at Rs 62.96 crore helped by robust sales.
The company had posted a net profit of Rs 29.47 crore in the Jan-March quarter, a year ago. Its revenue from operations increased 12.77% to Rs 665.24 crore during this quarter as against Rs 589.90 crore during the corresponding quarter of 2020-21.
“The Company continued the focus on key thrust areas of franchise & MBO expansion, consumer relevant communication, portfolio casualisation and digital footprint expansion. All these have resulted in increase in footfalls across retail outlets, along with significant growth driven via e-commerce platforms and expansion in Tier 3-5 towns”, said Bata India in its earning statement.
This has resulted in revenue for the quarter staying in line with pre-pandemic levels for a second consecutive quarter, despite Omicron related disruptions in the initial part of the quarter.
Bata India’s total expenses were at Rs 599.63 crore, up 6.2% in Q4 as against Rs 563.90 crore in the January-March quarter of the previous fiscal.
Gunjan Shah, MD and CEO – Bata India Limited, stated “In the last two quarters, we witnessed significant recovery in demand in the backdrop of improvement in consumer sentiments and deeper understanding of the pandemic, availability of vaccines and faster easing of restrictions. We kept expanding our reach through new franchise stores & multi-brand outlets. We opened 22 new Franchise stores taking the total number 300+, expanded availability via Distribution channel that continued to scale up to 1000+ towns. We have enhanced our portfolio in casual & fashion footwear section across categories. Sneakers led the growth recovery in the quarter while formal & fashion also recovered significantly. We continued upshift in marketing investments with campaigns like Unlimited Sneaker, Neo casuals for Neo Leaders and It’s Got to be Bata, 24×7 Casual Collection which strengthened our consumer connect for our brand. Simultaneously, we continued our strong focus on cost-savings measures across our network, controlling discretionary spends, enhancing productivity and premiumisation in the face of volatile inflation. These measures have laid the foundation that will help us capture the emerging consumer demand efficiently. With scaling of above expansion/efficiency levers & rebound in consumer sentiments, we expect the momentum to continue towards pre-pandemic growth rate in the current quarter also as seen in quarter till date at 11% ahead of pre-covid levels, gross margins sustaining at 58% levels. Innovation via agile product creation, scaling up digital channels, expansion in Tier 3-5 towns, and productivity enhancement will continue to be a priority along with investments in our brands & stores”
Ashwani Windlass, Chairman also commented and highlighted “Bata India has had a robust performance and is on a sound trajectory ahead. Given its focus on newer collection, expansion through all channels and omni channel in particular, Bata India is well poised for the future. Its new business model and focus is reflected in the quick retrieval of business to pre pandemic levels and further growth. Returning surplus cash to shareholders in the form of this special dividend is an important and effective component of our capital management strategy; This also reflects Bata India’s strong financial position and our confidence in the Company’s financial future. Our free cash from operations and operating leverage remains at a significant level, which affords us the financial flexibility to grow our business organically and/or inorganically as appropriate”