Net sales

Bata India profit rises 72% to Rs 119 cr; net sales up to Rs 943 cr in the first quarter

Bata India on Thursday announced a 71.82% increase in its consolidated net profit to Rs 119.37 crore for the first quarter of FY23 as the shoemaker achieved the “highest quarterly sales on record”.

The company had recorded a net profit of Rs 69.47 crore in the April to June quarter a year ago, Bata India Ltd said in an ESB filing.

Its operating revenue in the quarter under review was Rs 943.01 crore, more than tripling from Rs 267.04 crore in the corresponding pandemic-hit quarter of FY22.

“A direct result of the continued focus on the key areas of franchise and MBO expansion, consumer-friendly communication, portfolio insecurity and digital footprint expansion has been reflected in the quarterly sales hitting lifetime high,” Bata India said in its press release.

This was supported by a continued increase in portfolio and marketing investments. Additionally, footfall at outlets has seen significant growth in addition to sales through digital channels, he added.

Bata India’s total expenditure was Rs 792.58 crore, twice in the first quarter of FY23 from Rs 371.61 crore a year ago.

During the quarter, the company continued to optimize its cost structures and gain efficiencies in its value chain.

“All the cost-driven initiatives, which have been implemented across multiple workflows, are showing growing impact quarter-on-quarter,” Bata India said.

Managing Director and CEO Gunjan Shah said that over the past three quarters, Bata has witnessed a significant increase in sales with growing demand for fashionable, fashionable and comfortable shoes.

“We continue to expand our reach through new franchise stores and multi-brand outlets. We opened over 20 new franchise stores, bringing the total number to over 320 with a strong future pipeline, expanded availability through a distribution channel that has continued to expand to nearly 1,100 cities,” Shah said.

Simultaneously, Bata also continued to focus on driving volumes in times of inflation, which should impact the period ahead.

“In the face of volatile inflation and geopolitical unrest, we are mindful of our cost savings and therefore various cost reduction measures across our network continue to be implemented, which has been reflected in the profitability metrics. We continue to flesh out new opportunities across our value chain, which will help us effectively capture emerging consumer demand,” he said.

Regarding the outlook, Shah said, “We continue to be optimistic about the momentum going forward through innovation through building agile products, scaling digital channels , expansion into Tier 3-5 cities and improving productivity as well as investing in our brands and stores.”

Shares of Bata India Ltd stood at Rs 1,915.35 on BSE on Thursday, up 1.69% from the previous close.

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