Bata India posts a drop of 6% net

Bata, India’s leading footwear retailer and manufacturer, has posted a 6.35 per cent drop in its net profit for the quarter ended March 31, 2009, to Rs 10.33 crore over the corresponding period last year. Bata posted a net profit of Rs 11.03 crore in first quarter last financial year.

However, during the quarter, net sales of the company rose by 6.8 per cent to Rs 233.03 crore from Rs 218.19 crore, in the corresponding period last year.Shares of Bata India closed at Rs 116.25, down 2.33 per cent on the BSE.

According to Marcelo Villagran, Managing Director, Bata India, “Our strategy of opening large format stores has been successful and we would continue to invest in expanding our retail business. We have also focused on providing our customers with a new trendy collection and better shoe designs. Our value pricing, coupled with improved customer service, has helped us grow.”

Bata India opened 32 new retail stores and renovated three existing stores during the first quarter of 2009. These new stores are based on the international format of Bata stores and have an minimum area of 3000 sq ft. Primarily located in Tier I and II cities, such as Kota, Jodhpur, Ludhiana, Kakinada, Berampur, Mandya, Gangtok, Hassan, Hubli, Ahmednagar, Nasik, apart from the metros, these new stores have helped Bata in bringing to its customers its trendy range of footwear.Currently Bata India has over 1200 stores and over 20,000 independent shoe dealers, located in over 400 cities across India.