Bata India Q2 PAT rises 47% YoY to Rs 55 cr

The footwear major's consolidated net profit rose 47.44% to Rs 54.82 crore on 35.1% increase in net sales to Rs 829.76 crore in Q2 September 2022 over Q2 September 2021.

On a consolidated basis, the company clocked a profit before tax (PBT) of Rs 72.06 crore in the second quarter, up 43.5% over PBT of Rs 50.21 crore posted in the same quarter last year.

Total expenses rose 34.1% year on year to Rs 742.40 in Q2 FY23. Cost of raw materials and components consumed was at Rs 74.72 crore (up 6% YoY) and employee expenses stood at Rs 107.05 crore (up 19.4% YoY).

On a standalone basis, Bata India's net profit stood at Rs 51.1 crore as against net profit of Rs 37 crore in the quarter ended September 2021, showing a growth of 38%.

Revenue from operations for the quarter stood at Rs 829.7 crore (a growth of 35% over quarter ended September 2021) showcasing consistent improvements across channels.

Bata India said that despite the tough operating environment and significant material inflation, it managed to drive broad volume driven revenue growths across business channels of retail/franchise/distribution/E-comm.

Continued growth of sneaker category that led the growth recovery Vs rest of other categories. Sneaker Studio was implemented in 250 stores across the country.

Digital business achieved its highest revenue of Rs 95 crore during the quarter. Sales through digitally enabled channels continued its momentum and contributed 11% of total sales which is 125% of the September 2021 quarter.

The company renovated 27 stores were during the quarter and opened 30 new Franchise stores taking the total number to 350+. Distribution channel continued to scale up to 1100+ towns.

The company made provisions for a few pending legal cases and old deposits amounting to Rs 11 crore.

Gunjan Shah, MD and CEO - Bata India, stated: "The festivity around the corner and positive customer sentiments reflected in increased footfalls. Our continued improvement in Customer Experience and engagement has reflected in ever highest Net Promoter Score.

Company continued its momentum on key strategic thrust levers. Sneakers continued to lead the momentum and growth across businesses. We rolled out new campaigns in this quarter keeping in mind the festive mood, featuring new designs across our stores. The Company's efforts towards cost optimization and product premiumization with the launch of new products continued during the quarter backing significant marketing investments.

To capture the market, we persisted on expansion through franchise & multi-brand outlets. In the mass categories, there has been sluggishness witnessed due to the inflationary pressure. Further, the management is keeping a close watch on the pricing trends to ensure timely corrective actions."

Bata India is the largest footwear retailer in India, offering footwear, accessories, and bags across brands such as Bata, Bata Red Label, Hush Puppies, Naturalizer, Power, Marie Claire, Weinbrenner, North Star, Scholl, Bata Comfit and Bubble gummers, to name a few. It retails in more than 1950 Bata own, shop-in-shops and franchisee stores, on bata.in and in thousands of multi-brand footwear dealers stores pan-India.

Shares of Bata India fell 1.77% to Rs 1779.20 on the BSE.

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