Cutting down on its losses over the last year, footwear major Bata India today reported a Rs 69.5 crore net loss for the April-June quarter. In the corresponding quarter previous year, the firm had posted Rs 101 crore net loss.
The firm’s operating revenue grew 98 percent to Rs 267 crore on a low base of Rs 135 crore that it has reported in the year ago period. However, Bata’s toppling and bottomline suffered significantly when compared to the previous quarter. While, its operating revenue plunged 55 percent from Rs 590 crore that it had posted in the March quarter, its bottomline went into red from Rs 30 crore it had reported in the previous quarter.
Bata’s financial continue to suffer in comparison to pre-COVID levels. Its operating revenue remained 70 percent lower than June, 2019 quarter, when it had posted Rs 101 crore net profit.
During the quarter, its cost of materials consumed jumped 189 times to Rs 33.2 crore but a deduction due to its inventory positions, kept losses in control.
According to the company, sales across retail outlets remained largely subdued, owing to the second wave of Covid-19 infections and ensuing lockdowns. However, sales through e-commerce platforms continued to remain robust and witnessed an uptick despite the restrictions.
During the quarter, Bata continued to strengthen its retail presence in tier three to five towns by opening seven new franchise stores during the first quarter despite the lockdown, taking the overall tally to 234 franchise stores. “The brand also scaled up its website and continued to reach out to its customers through hyperlocal channels like Bata Chatshop and Bata Store on Wheels, thereby making remote shopping experience more convenient.”
“The first quarter had some challenges for businesses across the country, including ours. However, this time around, we were better prepared as we had a more agile contingency plan in place which helped us navigate adroitly through the changing business landscape amidst infection surge. While our retail outlets were largely shut, we were able to serve our customers through alternate channels. These channels have enabled us in minimising the overall impact of the second wave. Since the ease in lockdown, footfalls in our retail outlets have started growing, signalling strong signs of recovery,” said Gunjan Shah, chief executive officer, at Bata India.