Bata India Q1 Results: Net profit rises 63% to ₹174 crore, revenue down 1.5% YoY; dividend declared

Bata India Q1 Results: Bata India announced its April-June quarter results for fiscal 2024-25 (Q1FY25), reporting a rise of 63 per cent in standalone net profit at ₹174 crore, compared to ₹107 crore in the year-ago period, aided by a one-time gain from sale of property. The footwear retail company's revenue from operations in the first quarter of current fiscal rose marginally by 1.4 per cent to ₹944.6 crore, compared to ₹958 crore in the corresponding period last year.

On the operating front, the domestic footwear major's earnings before interest, taxes, depreciation, and amortization (EBITDA) during the June quarter dropped 22.7 per cent to ₹185 crore, compared to ₹239 crore in the year-ago period. EBITDA margin in the quarter-under-review stood at 19.6 per cent compared to 25 per cent in the year-ago period.

Also Read: For Bata India, chasing growth continues after a lacklustre FY24

Bata India Q1 Results: Key Metrics

Bata India, which sells brands such as Hush Puppies and North Star in India, also announced that its board approved an interim dividend of 200 per cent at ₹10 per equity share of ₹5 for the current fiscal (FY25). The record date for payment of the dividend is set as September 2, 2024.

‘’The Board at the meeting declared an Interim Dividend of Rs. 10 (200 per cent) per equity share of Rs. 5 each, fully paid-up of the company, for the current financial year ending March 31, 2025,'' said Bata India in a regulatory filing to the stock exchanges.

‘’As informed earlier vide our letter dated July 22, 2024, regarding intimation of board meeting and record date, pursuant to Regulation 42 of the SEBI listing regulations, the record date shall be Friday, August 16, 2024 for the purpose of interim dividend. Dividend on equity shares, shall be paid from Monday, September 2, 2024 onwards to those members who are entitled,'' it added.

Also Read: Bata India Q4 Results: Net profit falls by 2.86% YoY

Bata India also had a one-time gain on the sale of property of ₹134 crore in the June quarter. "The results for the quarter demonstrate disciplined execution of our strategies on premiumisation, investment in marketing and technology, elevating the customer experience, by maintaining gross margins in the face of sluggish consumption momentum during the quarter," said Bata India in its exchange filing.

“The results for the quarter also incorporate a one-time expenditure of ₹14.7 crore in aggregate towards investments in technology,'' it added. The total expenses of the footwear retailer the June quarter increased 6 per cent to ₹877.03 crore. Bata India's total income was at ₹960.86 crore, down 1.08 per cent.

Ahead of the announcement of Q1FY25 results, shares of Bata India settled 2.66 per cent lower at ₹1,515.20 apiece on the BSE. Bata continued its expansion in the June quarter with a network of 1,916 stores including company-owned and franchise stores. It 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.

Also Read: Bata grabs rights to manufacture, sell Nine West brand in India

Besides, it also expanded presence at new-age channels and "achieved significant growth" in digital sales over the previous quarter. MD and CEO Gunjan Shah said the company navigated well through the slugging consumption environment further accentuated due to the elections and extreme heatwave in the last quarter.

"We sustained our gross margin with our premiumisation strategy while continuing investments in marketing and technology platforms," he said. Shah added, "Along with cautious control on 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 festive season-driven consumption uptick."