Bata India Q2 Results: Net profit falls 38% to ₹33.9 crore, revenue down 1% YoY

Bata India Q2 Results: Bata India announced its July-September quarter results for fiscal 2023-24 (Q2FY24) on Wednesday, November 8, reporting a decline of 38 per cent in consolidated net profit at ₹33.9 crore, compared to ₹54.8 crore in the corresponding period last year.

The footwear retail company's revenue from operations in the second quarter of current fiscal stood at ₹819 crore, registering a drop of 1.3 per cent, compared to ₹829.7 crore in the year-ago period.

The company's consolidated profit-before-tax (PBT) in the September quarter stood at ₹46.4 crore, registering a drop of 35.5 per cent, compared to ₹72 crore in the corresponding period last year.

On the operating front, Bata India's earnings before interest, taxes, depreciation, and amortization (EBITDA) during the September quarter came in at ₹181.6 crore, registering a growth of 12.9 per cent, compared to ₹160.9 crore in the year-ago period.

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EBITDA margin in the quarter-under-review stood at 22.2 per cent, up 280 basis points (bps), compared to 19.4 per cent in the year-ago period. One basis point is one-hundredth of a percentage point.

Bata India Q2 Print: Segment, network expansion

‘’Floatz business segment displayed remarkable growth, achieving a 70 percent increase, and expanded its presence by introducing the Floatz banner in 10 new stores,'' said Bata India in its statement.

During the September quarter, Bata operated a network of 30 stores in close to 25 cities, with both franchise and shop-in-shop (SIS) outlets contributing to over 39 per cent of the company's presence. The company also executed its portfolio casualization strategy by introducing the Sneaker Studio concept in 612 stores, according to its exchange filing.

“Despite navigating through short-term demand headwinds in the quarter gone by, our focus on efficiency and productivity was reflected in robust operating profit margin growth. Prudent expansion of our retail network and marketing investments continue to be our key strategy,'' said Gunjan Shah, MD and CEO - Bata India.

‘’We unveiled our latest collection, bringing global fashion and premium designs to everyone in the country, introducing on-trend styles and comfortable offerings from Comfit, North Star, Red Label, Hush Puppies, Floatz,'' added Shah.

Meanwhile, Bata India announced earlier this week that it will sell fashion footwear and accessories of Nine West, a US-based lifestyle brand, from its retail stores, as it has entered into a licensing and manufacturing partnership with Authentic Brands Group. 

The partnership will further enhance Bata India's premium product portfolio and cater to the demands of consumers seeking trend-right fashion. The board of the company has “approved licensing and manufacturing deal with Authentic Brands Group for their world-renowned lifestyle brand Nine West,” said Bata India in a regulatory filing to the stock exchanges.

"Under the arrangement, Bata India will have rights to manufacture, market and distribute Nine West shoes and accessories across India through its stores," the filing said. Authentic Brands Group owns Nine West brand, which is known for its on-trend fashion designs. It had acquired Nine West's US business after the brand filed for bankruptcy in 2018.

Ahead of the announcement of Q2FY24 results, shares of Bata India settled 1.14 per cent higher at ₹1,556.60 apiece on the BSE.