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New Delhi: Shoemaker Bata India Ltd on Tuesday reported an increase of 62.84 per cent in its consolidated net profit at Rs 174.36 crore in the first quarter ended June 2024, helped by margin expansion and gains from sale of industrial land.
It had posted a net profit of Rs 106.89 crore in the April-June period a year ago, according to a regulatory filing from Bata India.
However, its revenue from operations was down 1.41 per cent to Rs 944.63 crore during the quarter under review. It was at Rs 958.14 crore in the corresponding period a year ago.
"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 an earnings statement from the company.
Besides, Bata also had a one-time gain on the sale of property of Rs 134 crore in the June quarter.
"The results for the quarter also incorporate a one-time expenditure of Rs 14.7 crore in aggregate towards investments in technology." Total expenses of Bata India in the June quarter increased 6 per cent to Rs 877.03 crore.
Bata India's total income in the June quarter was at Rs 960.86 crore, down 1.08 per cent.
During the quarter, Bata continued its expansion and had 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.
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 further 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." Shares of Bata India Ltd on Tuesday settled at Rs 1,515.20 on BSE, down 2.66 per cent from previous close.