Bata India reports turnaround Q1 earnings

12 Aug 2022 , 10:01 AM

The shoemaker reported revenue from operations of Rs 943.02 crore in the quarter ended 30 June 2022, steeply higher than Rs 267.05 crore recorded in the same period last year, its the highest ever quarterly sales, showcasing significant momentum across all sales channels. A direct outcome of the continued focus on key thrust areas of franchise & MBO expansion, consumer relevant communication, portfolio casualisation and digital footprint expansion, was reflected in the quarterly sales reaching lifetime high. With continuous increase in portfolio freshness and consumer/marketing investments, footfalls across retail outlets saw a significant growth supported by sales through digital channels and strong expansion of footprint across EBOs and MBOs, Bata India stated in its press release. The company clocked a profit before tax of Rs 159.7 crore in the first quarter as against a pre tax loss of Rs 92.37 crore posted in the quarter ended 30 June 2021. Total expenses zoomed 113.28% year on year to Rs 792.58 in Q1 FY23. Cost of raw materials and components consumed was at Rs 82.17 crore (up 147.87% YoY) and employee expenses stood at Rs 104.82 crore (up 18.01% YoY). The company said that it continued to optimize cost structures and drive efficiencies across its value chain. All the cost focused initiatives, which have been put in place across multiple work streams are showing increasing impact quarter on quarter. Gunjan Shah, MD and CEO of Bata India, said, ?Over the last three quarters, we are witnessing significant uptick in demand with rising demand for fashionable, trendy yet functional and comfortable footwear. The evolution in consumer mindset including brand consciousness was catered by our enhanced offerings in casual segment across categories. Our continuous investments behind marketing campaigns continue to help strengthen our already solid brand recall. We continue to expand our reach through new franchise stores & multi-brand outlets. We opened 20+ new Franchise stores taking the total number 320+ with a strong future pipeline, expanded availability via Distribution channel that continued to scale up close to 1100 towns. Sneakers strengthened momentum and continued driving growths across businesses. Digital footprint through our omnichannel e-commerce revenue streams gained significant momentum in the quarter going by. Simultaneously, we continued our strong focus on driving the volumes in these inflationary times, which should show impact in the ensuing period. In the face of volatile inflation, geo-political unrest, we are conscious about our cost efficiencies and accordingly various cost-savings measures across our network continue to be implemented which has reflected in the profitability metrics. We continue to flesh out new opportunities across our value chain will help us capture the emerging consumer demand efficiently. We continue being optimistic on momentum going ahead driven by Innovation via agile product creation, scaling up digital channels, expansion in Tier 3-5 towns, and productivity enhancement along with investments in our brands & stores? Bata India is the largest footwear retailer in India, offering footwear, accessories, and bags across brands such as Bata, Bata Red Label, Hush Puppies, Naturalizer, Power, Marie Claire, Weinbrenner, North Star, Scholl, Bata Comfit and Bubble gummers, to name a few. It retails in more than 1700 Bata own, shop-in-shops and franchisee stores, on bata.in and in thousands of multi-brand footwear dealser stores pan-India. Shares of Bata India were down 0.64% to Rs 1,903 on the BSE. Powered by Capital Market - Live News