Bata posts 15% YoY growth in Q3 PAT to ₹83.11 crore
2 min read . Updated: 14 Feb 2023, 07:04 PM IST
Premium- Overall, Bata's Q3 showcased momentum behind the strategic levers driving strong portfolio evolution, strong footprint expansion across touchpoints coupled with improving cost efficiencies, helping drive revenue growth and increased margins despite significant inflationary pressure.
Footwear manufacturer, Bata India posted a 14.86% growth in net profit to ₹83.11 crore in December 2022 quarter compared to ₹72.36 crore in the same period a year ago. The company garnered an operating profit of ₹102.1 crore, rising by 22% year-on-year. Bata said that it is stepping ahead positively driven through portfolio premiumization and expansion.
Meanwhile, revenue from operations came in at ₹900.2 crore, a growth of 7% over the December 2021 quarter.
The company expanded its stores through franchises and SIS. Its footprint crossed 2,000 store milestones. In the quarter, the company added 39 new franchise stores, taking its total to over 390 franchise stores.
Gunjan Shah, MD and CEO - Bata India said, "Continuous focus on refreshing product portfolio with our strategy of casualization and offering premium fashionable products reflected in overall ASP growth and expansion in share of our premium category brands like Hush Puppies, Marie Claire, Red Label, etc., that was backed by festivity and wedding season in the quarter. We also saw encouraging demand for our comfort and casual wear ranges of Bata Comfit, Floatz, etc. The quarter also marks highest ever addition of Franchise stores with total footprint crossing the 2000+ milestone for the 1st time."
Key highlights from the third quarter are:
- Store renovation strategy to enhance and premiumize customer experience. 35 stores were renovated during the quarter.
- Expanded Floatz collection to 1000+ stores. Floatz 2.0 collection launch is planned for the current quarter.
- Distribution channel continued to scale up to 1150+ towns. Rolled out 100+ new lines, majorly in Sandak, Bata Comfit, and Sunshine.
- Sourcing strategies of L2L, import substitution, etc., to support speed to market, contributing significantly to lead time reduction as well as improving margins across Retail and I&D businesses.
- Stepped up Infrastructure to enhance productivity and efficiencies in Supply Chain.
- Continued implementation of cost-savings measures across Operations and Manufacturing.
- Technology Investment (ERP, Merchandising, etc.,) to fuel future growth.
Overall, Bata's Q3 showcased momentum behind the strategic levers driving strong portfolio evolution, strong footprint expansion across touchpoints coupled with improving cost efficiencies, helping drive revenue growth and increased margins despite significant inflationary pressure.
Shah added, "We continue to drive various cost optimization initiatives across the value chain. In the mass categories, the demand remains sluggish due to the inflationary pressures. We have continued investments in marketing and technology to fuel accelerated momentum."
On BSE, Bata's share price closed at ₹1,501 apiece up by 0.49%.
