HomeBUSINESSFootwear maker Bata reports Q1 PAT of ₹119 cr, garners highest ever...

Footwear maker Bata reports Q1 PAT of ₹119 cr, garners highest ever quarterly sales

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Footwear manufacturer, Bata India registered strong earnings in the quarter ending June 30, 2022 (Q1FY23) by extending its robust growth on the bottom-line front. The retail company logged a net profit of 119.3 crore in Q1FY23 against a loss of 69.5 crore in the same quarter last year. Further, the company recorded a whopping nearly 89.6% in Q1 PAT from a profit of 62.96 crore in the preceding quarter. Bata India’s sales significantly surpassed lifetime quarterly numbers.

Consolidated revenue from operations stood at 943.02 crore in Q1FY23 registering a breath-taking over 3.5 times jump compared to 267.05 crore in Q1FY22. The revenue climbed 41.75% from 665.25 crore in Q4FY22.

The top-line front witnessed robust growth on the back of the highest ever quarterly sales, showcasing significant momentum across all sales channels.

Bata in its audit report said, with a continuous increase in portfolio freshness and consumer/marketing investments, footfalls across retail outlets saw a significant growth supported by sales through digital channels and strong expansion of footprint across EBOs and MBOs.

In Q1FY23, sales through digitally enabled channels continued their momentum driven by 3 levers – D2C bata.in e-store, Marketplaces, and Omnichannel Home Delivery and contributed 10% of total sales which is 2.5x of the June 2019 quarter.

Gunjan Shah, MD and CEO of Bata India said, “Over the last three quarters, we are witnessing significant uptick in demand with rising demand for fashionable, trendy yet functional and comfortable footwear. The evolution in consumer mindset including brand consciousness was catered by our enhanced offerings in casual segment across categories. Our continuous investments behind marketing campaigns continue to help strengthen our already solid brand recall.”

“We continue to expand our reach through new franchise stores & multi-brand outlets. We opened 20+ new Franchise stores taking the total number 320+ with a strong future pipeline, expanded availability via Distribution channel that continued to scale up close to 1100 towns. Sneakers strengthened momentum and continued driving growths across businesses. Digital footprint through our omnichannel e-commerce revenue streams gained significant momentum in the quarter going by,” Shah added.

During the quarter, Bata continued with its retail expansion drive in tier 3-5 cities through the franchise route, taking the overall tally to 320+ as of date. Also, the company continued to expand its Distribution Business in MBOs crossing ~1100 towns.

Simultaneously, Shah added, “we continued our strong focus on driving the volumes in these inflationary times, which should show impact in the ensuing period. In the face of volatile inflation, geo-political unrest, we are conscious about our cost efficiencies and accordingly various cost-savings measures across our network continue to be implemented which has reflected in the profitability metrics. We continue to flesh out new opportunities across our value chain will help us capture the emerging consumer demand efficiently.”

Further, the MD and CEO added, “We continue being optimistic on momentum going ahead driven by Innovation via agile product creation, scaling up digital channels, expansion in Tier 3-5 towns, and productivity enhancement along with investments in our brands & stores.”

On BSE, Bata shares closed at 1913.60 apiece higher by 30 or 1.59%. The company’s market valuation is around 24,642.59 crore.

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