Bata reports 9.6% y-o-y decline in Q1FY24 net profit; stock slips ~3%

10 Aug 2023 , 10:34 AM

Bata shares were down 2.78% at Rs 1,653 apiece in early morning trade after the company said that its net profit declined 9.6% year-on-year to Rs 107 crore in the April-June quarter.

At around 10.28 AM, Bata was trading 0.98% lower at Rs 1,683.70 per piece, against the previous close of Rs 1,700.30 on NSE.

In the same quarter, Bata’s revenue increased by 2% year-on-year to Rs 971 crore. Gross margin shrank by 190 basis points y-o-y to 54.70%.

According to management, demand in the footwear market has remained sluggish. The sluggishness in markets continued since the end of March 2023. During the holiday season, however, demand is likely to recover and accelerate.

‘We have introduced a number of consumer innovations, such as the Bata Shoe Care Program, Buy Now Pay Later, and Bata Wallet. We have increased our market share in higher category articles with brands such as Hush Puppies, Comfit, Floatz, and North Star,’ the business stated in an exchange filing.

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