Bata India Shares in Focus After Release of Q2 FY25 Results

Bata India Limited, a leading footwear company, today announced its financial results for the quarter ended September 30, 2024. The company reported a revenue of ₹8,371 million, showing a positive growth from ₹8,191 million in Q2FY24. 

Operating profit for the quarter stood at ₹524 million, reflecting stable EBITDA margins and highlighting the company’s operational efficiency. These results demonstrate continued progress in Bata’s transformation journey, fueled by strategic investments in product innovation, customer experience enhancement, technology integration, and brand premiumization—positioning the company for sustained growth.

Key Operational Highlights

• Network Expansion: Bata’s store network grew to 1,955 locations, including both company-owned and franchised outlets (COCO & Franchise).
• Store Renovations: 48 stores were renovated this year, enhancing the customer experience with modernized designs and cutting-edge technology.
• Casualisation Strategy: Bata successfully executed its portfolio casualization strategy, including the roll-out of Sneaker Studios in 756 stores.
• Customer Satisfaction: The company achieved a notable improvement in its Net Promoter Score (NPS), rising to 80.
• Brand Expansion: Bata continued to expand its brand portfolio with 4 exclusive brand outlets (EBOs) for Power, 136 EBOs for Hush Puppies, and 14 kiosks for Floatz.
• Collaborations & Limited-Edition Collections: Bata launched exclusive, limited-edition collections, including Bata Red Label x Emily in Paris and Hush Puppies x Peanuts, reflecting its commitment to innovation and collaboration.
• Festive Launch: In anticipation of the festive season, Bata unveiled the Pujo Glam Collection, capturing the spirit of celebration.
• Fitness & Lifestyle: Bata introduced the Stronger Inside global campaign for its Power brand, alongside the launch of the Energy Collection, offering accessible fitness solutions for a wider audience.

Speaking on the Q2FY25 performance, Gunjan Shah, MD and CEO – of Bata India Limited stated: “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. 

He added, “Our Brand stories connected well with a targeted audience. 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 a strengthened omni-channel approach. Our conscious efforts on Franchise model expansion are showing good results. Cost efficiency remains a cornerstone across all operations including manufacturing facilities. We 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.” 

On November 05, 2024, Bata India shares opened at ₹1,296.15 and touched the day high of ₹1,296.15cat 09:30 AM, reflecting a fall of 0.61% from the previous close.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.