Bata India fell 1.65% to Rs 1254.90 after consolidated net profit tumbled 56.7% to Rs 38.41 crore on 8.77% decline in net sales to Rs 620.57 crore in Q4 March 2020 over Q4 March 2019.
Profit before tax (PBT) fell 45% to Rs 58.18 crore during the period under review. The result was impacted due to loss of revenue resulting from COVID-19 outbreak and due the impact of adopting Ind-AS 116.
The footwear maker reported a good growth of 8% (January & February 2020) before the pandemic forced closure of stores in mid-March resulting in a decline for the quarter.
Bata said, "This year's growth can be credited to company's continuous focus on strengthening its product portfolio, innovation and design, new store openings and renovation, enhancing customer experience as well as new marketing campaigns."
Bata India initiated the reopening of its retail stores as per government-laid safety guidelines. The company is taking up industry-relevant issues like rentals, safety of customers and retailers' needs. In parallel, it is working on various cost-optimization measures including rentals renegotiation, closure of unviable stores and digitalization drive across the organization etc. to eliminate redundancies and bring efficiency in value chain.
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The board has recommended a dividend of Rs 4 per equity share for the financial year ended 31 March 2020.
Meanwhile, the company approved the re-appointment of Ram Kumar Gupta as the director finance (chief financial officer and key managerial person) of the company.
Bata India is the largest footwear retailer in India, offering footwear, accessories and bags acrossbrands such as Bata, Hush Puppies, Naturalizer, Power, Marie Claire, Weinbrenner, North Star, Scholl,Bata Comfit and Bubblegummers, to name a few. It retails in more than 1,400 Bata stores, on bata.inand in thousands of multi-brand footwear dealer stores pan-India.
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