Home NEWS India Bata India gains on reporting Q2 profit at Rs 37 cr

Bata India gains on reporting Q2 profit at Rs 37 cr

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Bata India rose 0.84% to Rs 2053.15 after the footwear major reported net profit of Rs 37.05 crore in Q2 September 2021 compared with net loss of Rs 44.39 crore in Q2 September 2020.

Net sales surged 66.94% to Rs 614.12 crore in Q2 September 2021 over Q2 September 2020, showcasing healthy and consistent recovery since opening of lockdown.

Pre-tax profit stood at Rs 50.02 crore in Q2 September 2021, as against pre-tax loss of Rs 58.51 crore in Q2 September 2020.

Bata said it continued with its retail expansion drive in tier 3-5 cities through franchise route, taking the overall tally to 270+ as on date. Sales through digitally enabled services contributed about 14% of total sales in the quarter. The company said it continued to expand distribution business across 49 new towns.

The firm said it is expanding across all leading marketplaces with full range & assortment, powered via Omni-channel technology.

Since the opening of the economy, the company has witnessed a consistent increase in footfalls across its retail outlets, along with growth seen via e-commerce platforms and expansion drive in smaller towns in Tier 3-5, the company said in a statement.

“Despite the prevailing uncertainties, we are looking forward to the forthcoming festive season and onwards with cautious optimism,” it added.

The company said it continued to optimize its retail network and look for cost-savings across rentals & operations, manufacturing, and drive efficiencies in its value chain. All the cost-focused initiatives, that had been put in place across multiple work streams have shown positive impact, it added.

Gunjan Shah, MD and CEO – Bata India stated: “In this quarter, we expanded our reach in smaller towns by opening our 250th Franchise store, ensuring availability in multi-brand outlets via Distribution channel and also optimized our network through right sizing and right locations. We have enhanced our portfolio in casual footwear section across categories led by Floatz and renewed range of North Star footwear. We launched a major campaign of the year ‘Step Ahead’ along with our new collection, which is resonating well with consumers. We also focused on scaling up presence of our e-store, Bata.in, with an expanded range. Along with channel expansion initiatives, we continued our strong focus on cost-savings measures across our network, controlling discretionary spends and enhancing productivity. These measures have laid the foundation that will help us capture the emerging consumer demand efficiently. Innovation via agile product creation, introducing new emerging digital channels, expansion in Tier 3-5 towns, and productivity enhancement will continue to be a priority along with safety of our customers and employees through robust vaccination drive.”

Bata India is the largest footwear retailer in India, offering footwear, accessories and bags across brands such as Bata, Bata Red Label, Hush Puppies, Naturalizer, Power, Marie Claire, Weinbrenner, North Star, Scholl, Bata Comfit and Bubble gummers, etc.