Leading shoemaker Bata India Ltd on Monday reported 53 per cent rise in consolidated net profit at Rs 51.97 crore for the second quarter ended September 2024, helped by operational efficiencies and premiumisation.
It had posted a net profit of Rs 33.99 crore for July-September FY24, according to a regulatory filing from Bata India.
Revenue from operations was up 2.2 per cent to Rs 837.14 crore during the quarter under review.
"The EBITDA profit stability showcased the company’s resilience in managing operational efficiencies," said Bata India in its earning statement.
Total expenses in the September quarter were at Rs 784.55 crore, up 5 per cent year-on-year.
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"The results for the quarter reflect continued momentum in the transformation journey, driven by strategic investments in product innovation, elevated customer experience, technology integration and brand premiumisation, positioning Bata strongly for future growth," it said.
Total income, which includes other income, was up 2.36 per cent to Rs 854.32 crore.
Commenting on the result, MD and CEO Gunjan Shah said:"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 the targeted audience," he said.
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Bata India continued its retail expansion and by the end of the quarter it was having a network of 1,955 stores across the country including both COCO and Franchise partner operating stores.
It launched 4 Exclusive Brand Outlets (EBOs) for Power, 136 EBOs for Hush Puppies, 14 Kiosk for Floatz.
"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," said Shah.
Over the outlook, he said Bata 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,” he said.
Shares of Bata India Ltd on Monday settled at Rs 1,336.90 apiece on BSE, down 1.47 per cent.
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