Footwear maker Bata India Ltd on Wednesday (November 8) reported a 38% year-on-year (YoY) decline in net profit at ₹34 crore for the second quarter that ended September 30, 2023.
In the corresponding quarter last year, Bata India posted a net profit of ₹54.8 crore, falling short of CNBC-TV18 poll's estimated profit of ₹65.8 crore for the quarter under review.
The company's revenue from operations declined 1.3% to ₹819.1 crore against ₹829.7 crore in the corresponding period of the preceding fiscal. The CNBC-TV18 poll had predicted a revenue of ₹871 crore for the quarter under review.
At the operating level, EBITDA jumped 12.9% to ₹181.6 crore in the second quarter of this fiscal over ₹160.9 crore in the year-ago period. The CNBC-TV18 poll had predicted an EBITDA of ₹185 crore for the quarter under review.
The EBITDA margin stood at 22.2% in the reporting quarter compared to 19.4% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation. The CNBC-TV18 poll had predicted a margin of 21.2% for the quarter under review.
Bata India has opened 30 new stores in nearly 25 cities. This expansion strategy includes both franchise-owned stores and Shop-in-Shop (SIS) outlets, constituting over 39% of their retail presence. Additionally, the company has renovated 54 stores during the quarter.
In terms of product innovation, Bata India has taken a significant step by commissioning the IMEVA (Injection Molded EVA) capability in its Batanagar manufacturing unit.
Furthermore, Bata India has introduced a Voluntary Retirement Scheme in one of its manufacturing units. This scheme is being accounted for as an exceptional item in the financial reports for the quarter.
Gunjan Shah, MD and CEO of Bata India said, "Despite navigating through short-term demand headwinds in the quarter gone by, our focus on efficiency and productivity was reflected in robust operating profit margin growth. Prudent expansion of our retail network and marketing investments continue to be our key strategy."
"We continue to flesh out new opportunities across our value chain. We remain focused on cost efficiency across all operations, including manufacturing facilities and optimising our resources," he added.
The results came after the close of the market hours. Shares of Bata India Ltd ended at ₹1,554.00, up by ₹15, or 0.97% on the BSE.
(Edited by : Shoma Bhattacharjee)
First Published: Nov 8, 2023 6:28 PM IST
