Bata India on Thursday announced a 71.82 percent increase in consolidated net profit for the first quarter of FY23, at Rs 119.37 crore, as the shoemaker recorded "highest ever quarterly sales".
Bata India Ltd reported a net profit of Rs 69.47 crore in the April-June quarter a year earlier in a BSE filing.
Its revenue from operations was Rs 943.01 crore during the quarter under review, up over three-fold from Rs 267.04 crore in the pandemic-hit equivalent quarter of FY22.
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"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 a lifetime high," Bata India said its earnings statement.
This was aided by ongoing increases in portfolio and marketing investments. Furthermore, footfalls at retail stores increased significantly, as did purchases through digital platforms, according to the report.
Total expenses at Bata India were Rs 792.58 crore, up two-fold in Q1FY23 as against Rs 371.61 crore a year ago.
During the quarter, the firm continued to optimise its cost structures and achieve efficiency throughout 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," said Bata India.
Gunjan Shah, MD and CEO of Bata, stated that the company has seen a considerable increase in sales over the previous three quarters due to increased demand for fashionable, trendy, and comfortable footwear.
"We continue to expand our reach through new franchise stores and multi-brand outlets. We opened 20-plus new franchise stores taking the total number over 320 with a strong future pipeline, expanded availability via distribution channel that continued to scale up close to 1,100 towns," said Shah.
Additionally, Bata also maintained its focus on boosting volumes during these inflationary times, which should have an impact in the ensuing period.
"In the face of volatile inflation and geopolitical unrest, we are conscious of our cost efficiencies and accordingly various cost-savings 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 capture the emerging consumer demand efficiently," he said.
On outlook, Shah said, "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 and stores."
Bata India Ltd shares closed at Rs 1,915.35 on the BSE on Thursday, up 1.69 percent from the previous close.
(With inputs from agency)
