Bata India reported 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 ever. The company had recorded a net profit of Rs 69.47 crore in the April to June quarter a year ago.
Its operating revenue in the quarter under review was Rs 943.01 crore, more than tripling from Rs 267.04 crore in the corresponding quarter of FY22 affected by the pandemic.
“A direct result of the continued focus on the key areas of franchise expansion and MBOs, consumer-relevant communication, portfolio insecurity and digital footprint expansion has been reflected in quarterly sales hitting a lifetime high,” Bata India said.
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 across its entire value chain.
“All the cost-driven initiatives, which have been implemented across multiple workflows, are showing growing impact quarter-on-quarter,” Bata India said.
Gunjan Shah, MD and CEO of Bata India, said that over the past three quarters, Bata has witnessed a significant increase in sales with an increasing 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 noted.
Simultaneously, Bata also continued to focus on driving volumes in these inflationary times, which should have an impact on the following period.
“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 added, “We continue to be optimistic about the momentum ahead, driven by innovation through building agile products, scaling digital channels, expanding in Tier III-V cities and improving productivity as well as investing in our brands and stores.”