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Business News/ Markets / Stock Markets/  Bata India stock gains 3% after Q4 results, management says growth outlook positive

Bata India stock gains 3% after Q4 results, management says growth outlook positive

Bata India's shares rose 3% after the company posted Q4FY24 results. While a 3.02% decline was seen in the net profit, the revenue increased by 2.47%. The company recommended a dividend of ₹12 per share for FY24.

Bata India's shares rose 3% after the company posted Q4FY24 results.Premium
Bata India's shares rose 3% after the company posted Q4FY24 results.

Shares of leading shoemaker Bata India rose 3 percent in intra-day deals on the BSE on Thursday after the firm posted its results for the quarter ended March 2024 (Q4FY24).

The stock rose 3 percent to its day's high of 1,415. It is now 20 percent away from its 52-week high of 1,770.10, hit on August 7, 2023. Meanwhile, it has advanced over 9 percent from its 52-week low of 1,293.65, hit on May 13, 2024.

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It has lost almost 13 percent in the last one year and over 14 percent in 2024 YTD. It has risen 3 percent in May after a 0.3 percent rise in April. However, the stock was in the red in the first 3 months of the year, down 3.3 percent in March, 5.4 percent in February and 9.8 percent in January.

Bata India reported a 3.02 percent decline in consolidated net profit, amounting to 63.64 crore, for the fourth quarter ending March 2024. However, the company's revenue from operations saw a 2.47 percent increase, reaching 797.87 crore during the quarter, compared to 778.58 crore in the same period the previous year.

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Total expenses for Bata India in the March quarter rose by 5.22 percent, totaling 736.83 crore.

The Board also recommended a dividend of 12 per fully paid-up 5 equity share for the financial year ending March 31, 2024. This is subject to shareholder approval at the upcoming annual general meeting (AGM).

Commenting on the performance, MD and CEO Gunjan Shah said, "Bata India navigated well through the unforeseen sluggishness in the market driving towards sustainable growth led by brands backed by significant investments in marketing and technology. Our strategies helped us defend margins."

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He added that the company continues to make significant investments in the brand and technology to maintain a positive outlook and accelerate growth.

For the financial year ending on March 31, 2024, Bata India reported an 18.7 percent decline in consolidated net profit, amounting to 262.51 crore, compared to 323 crore the previous year. The company's revenue from operations for FY24 saw a marginal increase, reaching 3,478.61 crore, up from 3,451.56 crore a year ago.

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Bata continued its expansion by operating 1,329 COCO (Company Owned Company Operated) and franchise stores, and experienced significant growth in e-commerce sales. The casualisation strategy, especially in the Sneaker category led by the Power brand, performed well, with Sneaker Studios expanding to 698 stores. Floatz achieved its highest-ever quarterly turnover, supported by 11 Floatz Kiosks. Additionally, Bata launched its first Power Exclusive Brand Outlet (EBO) in Noida, with five more planned.

To enhance customer experience, Bata renovated 67 stores, focusing on new styles and technology. Major marketing campaigns, such as the 10/10 campaign and influencer engagements, promoted a fashion-forward image. Furthermore, Bata effectively leveraged fixed costs across its value chain, with the ERP implementation progressing as planned.

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Published: 30 May 2024, 11:35 AM IST
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