Bata India hits 52-week low post Q2 results

The stock dipped 4% to Rs 465 after the company posted profit of Rs 54 crore in Q2, due to one-time gain from sale of trademark, Sparx.

Bata India has dipped 4% to Rs 465, also its 52-week low on the BSE, after the company reported a net profit of Rs 54 crore for the second quarter ended September 30, 2015 (Q2), due to one-time gain from sale of trademark, Sparx.

The company had posted a net profit of Rs 39 crore during the same period of previous fiscal.

Net sales grew by 5% to Rs 575 crore for the second quarter compared with Rs 548 crore during the same period of previous fiscal.

Bata India earned exceptional gain of Rs 31.7 crore which represents gain from sale of trademark (Sparx) of Rs 60.8 crore and charge off of expenditure incurred (except the expenditure on perpetual license) amounting Rs 29.1 crore on setbacks in implementation of ERP system, Bata India said in a regulatory filing.

The company will be expanding its product offering, focusing on the same-store growth and strengthening e-commerce business to reach out to a larger consumer base, Bata India, Group Managing Director, South Asia, Rajeev Gopalakrishnan said.

At 09:54 AM, the stock was down 3.5% at Rs 469 on the BSE. A combined 649,191 shares changed hands on the counter so far on the BSE and NSE.