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Saturday, December 3, 2022

Bata India Falls After Profit Drops Nearly 80% In December Quarter

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Shares of shoe maker and retailer Bata India fell the maximum amount as 6.84 per cent to ₹ 1,462.20 on the BSE each day after it reported December quarter earnings. Bata India’s net income in October-December period declined 78 per cent to ₹ 26 crore compared with ₹ 118 crore during an equivalent period last year.

Its revenue from operations fell 26 per cent to ₹ 616 crore as against ₹ 831 crore within the corresponding period a year ago.
On a sequential basis, Bata India swung to profit because it reported net loss of ₹ 44 crore in quarter ended September 2020.

“Owing to the varied customer-centric measures adopted within the wake of Covid-19, Bata India has been successful in getting back on its recovery path, with improvement in sales through its shops and e-commerce platforms, and hyperlocal digital channels- Bata ChatShop and Bata Store on Wheels,” Bata India said during a handout .

“Sales through digitally enabled platforms now structure 15 per cent of the entire sales, growing by 3 times within the last one year. In terms of portfolio-mix, the Formals (incl. School business) & Fashion categories continued to be subdued needless to say thanks to prevailing market conditions, the Casual, Fitness & Essentials categories bounced back resulting in company’s overall volume reaching 88 per cent of pre-Covid levels,” Bata India added.

“Owing to say no in Covid cases and vaccine rollout, the general market sentiment is improving significantly. Backed by good festive sales and our targeted consumer outreach, our sales have recovered to 74 per cent of pre-Covid levels.

As a results of our specialise in omni-channel retailing and scaling up our digital presence via online marketplaces and our online store, 60 per cent of our marketplaces’ orders today are fulfilled by Bata stores and 100 per cent for bata.in,” Sandeep Kataria, CEO, Bata Brands said during a statement.

As of 12:26 pm, Bata India shares traded 4 per cent lower at ₹ 1,506, underperforming the Sensex which was trading on a flat note.