Bata India Q1 net loss at Rs101.2cr due to lockdown; stock slips 2%

The company's results in the first quarter of FY20-21 were severely impacted because of disruptions caused by the ongoing COVID-19 pandemic.

Aug 10, 2020 05:08 IST India Infoline News Service

Bata India, the country’s leading footwear brand, posted revenue from operations stood at Rs134.8cr, lower by 85% compared to the corresponding period last year due to the lockdown in April & May followed by a graded unlocking across the country. Consequently, the Company incurred a loss after tax of Rs101.2cr as against profit after tax of Rs100.6cr in the corresponding period last year.

The stock ended at Rs1,234.80, down by Rs23.6 or 1.88% from its previous closing of Rs1,258.40 on the BSE.

The company’s results in the first quarter of FY2020-21 were severely impacted because of disruptions caused by the ongoing COVID-19 pandemic. The Company witnessed a gradual improvement in business once the lockdown was lifted. While multiple measures taken by the Company for customer safety, product availability and channel expansion have helped increase sales, the prevailing uncertainties have dampened the consumer demand for discretionary spends. The Company is focusing on controlling its costs-related to retail stores, factories, rentals & operations and drive efficiencies in its value chain. The impact of cost-saving exercise is visible in these results. Multiple workstreams have been put into place to look at all cost-lines and come out of the pandemic fighting fit.

Sandeep Kataria, the CEO – Bata India Limited, stated: “It was an unprecedented quarter in Bata India’s history. During the quarter we had low sales and no production due to lockdown mandated by the Government due to the pandemic. Our stores started opening up in a graded fashion, but running operations was a challenge due to frequent lockdowns and restrictions mandated by local administration across the country. We re-started our operations keeping the safety of our customers & employees in mind and in line with government and our global standards. The results have to be viewed in this context.

Related Story