Bata India Reports Mixed Q1 FY25 Results: Revenue Slipped, But Net Profit Soared

Bata India Limited announced its financial results for the quarter ended June 30, 2024. While the company reported a net profit of ₹1,744 million, revenue experienced a slight decline compared to the previous year.

The company attributed the results to a combination of factors. A one-time gain of ₹1,340 million from the sale of the property positively impacted the bottom line. However, this was partially offset by a one-time expenditure of ₹147 million on technology investments. Despite these factors, Bata maintained its gross margins amid sluggish consumption trends, demonstrating its ability to manage costs effectively.

Bata’s focus on premiumisation, marketing, and technology, coupled with a growing store network, is evident in the company’s strategy. The expansion of the Sneaker category and the launch of innovative initiatives like the “Try and Fly” campaign showcase Bata’s efforts to enhance customer experience and drive sales.

While the company’s financial performance was mixed, its strategic direction and operational efficiency remain key strengths. The ability to maintain profitability during a challenging economic environment underscores Bata’s resilience.

Speaking on the Q1FY25 performance, Gunjan Shah, MD and CEO – of Bata India Limited, stated: “Bata India navigated well through the slugging consumption environment further accentuated due to the elections and extreme heat wave in the last quarter. We sustained our gross margin with our premiumisation strategy while continuing investments in marketing and technology platforms.”

He also stated” We added 33 Franchise Stores in the quarter, primarily in Tier 3 – 5 towns, to cater for the demand for branded products and achieve better returns on capital. Bata also launched its 2nd Power EBO in Delhi. Along with cautious control of costs and focus on efficiency and productivity, we continued to manage our inventory while having strong in-store availability of fresh merchandise in anticipation of the festive season-driven consumption uptick.”

Key Takeaways

• Slight revenue decline but a positive net profit due to one-time gains.
• Maintenance of gross margins amid challenging market conditions.
• Focus on premiumisation, technology, and customer experience.
• Expansion of store network and product categories.

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