Footwear major Bata India on Monday reported a marginal 1% growth in its net profit at Rs 58.6 crore during the October-December quarter, as compared to Rs 57.9 crore in the same quarter in 2023-24. Bloomberg consensus estimates had pegged the net profit during the quarter at Rs 72 crore.
The company’s revenue from operations also came in below the estimates of Rs 950 crore at Rs 918.7 crore, 1.6% higher year-on-year.
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The company’s Ebitda, however, beat the estimates of Rs 200 crore at Rs 208.7 crore. Its expenses rose 0.4% to Rs 840.5 crore.
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The company said it saw a muted demand during the quarter but was able to gain volumes despite that.
“To foster ease of choices for customers, we are driving affordability and reducing complexity across categories,” said Gunjan Shah, MD and CEO, Bata India.
“On account of these initiatives, we are seeing significant volume growth after a long time.”
Bata India also said it took the benefit of a prolonged ‘End of Season Sales’ to reduce the average age of its customers.
During the quarter, the company also launched its new website and entered quick commerce via Zepto. It said these initiatives are helping it in improving its market reach.
Moreover, its premium offering under the brand name Hush Puppies saw a double-digit growth, higher than other categories.
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Bata India said it would continue to move ahead with a “cautious control on costs” and focus on efficiency.
The company’s profits were also dragged down by a one-time expenditure of Rs 10.8 crore towards a voluntary retirement scheme (VRS). In December, it rolled out the scheme at its Hosur unit in Tamil Nadu.
“We remain optimistic about demand recovery basis concerted efforts on driving volume-based revenue growth,
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