Bata India share price drops 3% on weak Q2 operational performance

Bata India share price: Shares of footwear manufacturer Bata India dropped up to 3.04 per cent to hit an intraday low of Rs 1,296.15 per share on Tuesday, November 05, 2024.

 

The fall in the Bata India share price came on the back of weak operational performance posted by the company in the September quarter of financial year 2025 (Q2FY25).

 

The company’s earnings before interest, taxes, depreciation and amortisation (Ebitda), also known as, operating profit, dropped 4 per cent year-on-year (Y-o-Y) to Rs 174.5 crore in Q2FY25, from Rs 181.6 crore in Q2FY24. 

 

Therefore, Ebitda margin squeezed 140 basis points (bps) to 20.8 per cent in the September quarter of FY25, from 22.2 per cent in the September quarter of FY24. 

 

Overall, the company’s bottom line, also known as profit, zoomed 53 per cent annually to Rs 52 crore, as opposed to Rs 34 crore in the same quarter last year.

 

The company’s revenue from operations also surged 2.2 per cent annually to Rs 837.1 crore in Q2FY25, from Rs 819.1 crore in Q2FY24.

 

“Despite continuing market headwinds and subdued consumption, we saw some recovery in our growth trajectory through the quarter backed by focused execution of strategic initiatives. We are seeing strong validation of our premiumisation strategy across channels, with premium products showing robust growth and increased contribution to our revenue mix. Our Brand stories connected well with targeted audience. Our expansion through franchise stores in Tier 3-5 markets, combined with our robust digital presence, is helping us tap into new growth opportunities with strengthened omni-channel approach. Our conscious efforts on Franchise model expansion are showing good results. Cost efficiency remains a cornerstone across all operations including manufacturing facilities,” said Gunjan Shah, MD and CEO of Bata India.

 

Shah added, “We continue to maintain a balanced approach between managing near-term challenges and investing in long-term growth drivers. We are optimistic about consumption recovery in the coming quarters, backed by festive season momentum and our strong market positioning.” 

 

Bata India is the country’s largest footwear manufacturer and retailer, offering a diverse range of products for men, women, and children. The company’s extensive collection includes casual, formal, running, training, and walking shoes, as well as apparel like joggers, shorts, t-shirts, polos, and tights. 

 

Bata India’s portfolio features a variety of well-known brands, including Bata, Hush Puppies, NINE WEST, North Star, Power, Bata Red Label, BATA COMFIT, Bubblegummers, Disney, Naturalizer, Marie Claire, Scholl, Floatz By Bata, and Weinbrenner. 

 

With over 1,860 stores across India—comprising franchise and company-operated locations—Bata India also maintains a strong online presence, selling products through its website, bata.in, and other marketplaces. 

 

Additionally, Bata has a specialised division, Bata Industrials, which manufactures industrial footwear at its factory in Batanagar, Kolkata. 

 

Founded by Thomas Bata in the Czech Republic, the company has a rich history spanning over 125 years and has successfully expanded its operations globally, including in India.

 

At 10:20 AM, Bata India shares were trading 1.62 per cent lower at Rs 1,315.20. In comparison, BSE Sensex was trading 0.21 per cent lower at 78.619.49 levels.