Bata India Q3 Results: Net profit drops 30% to ₹58 crore on muted demand, revenue up marginally
Bata India Q3 Results: Bata India announced its October-December quarter results for fiscal 2023-24 (Q3FY24), reporting a drop of 30 per cent in standalone net profit at ₹58 crore, compared to ₹83 crore in the year-ago period. The footwear retail company’s revenue from operations in the third quarter of current fiscal rose marginally by 0.4 per cent to ₹903.4 crore, compared to ₹900 crore in the corresponding period last year.
On the operating front, Bata India’s earnings before interest, taxes, depreciation, and amortization (EBITDA) during the December quarter dropped 11.5 per cent to ₹182.4 crore, compared to ₹206 crore in the year-ago period. EBITDA margin in the quarter-under-review stood at 20.2 per cent compared to 22.9 per cent in the year-ago period.
Also Read: Bata India Q2 Results: Net profit falls 38% to ₹33.9 crore, revenue down 1% YoY
Overall expenses for the quarter were higher at ₹836 crore compared to ₹798 crore in the corresponding period last year. The company in a statement attributed the decline in net margin to significant investments made in brand and technology during the quarter.
Bata India Q3 Print: Segment, network expansion
Bata India expanded its network with 54 net new stores and franchise and COCO expansion, while also renovating 36 stores to enhance the brand experience during the December quarter.
“Despite persistent market headwinds accentuated in discretionary spending, we continued to invest in new product launches, enhancing customer experience, and expanding our reach across channels & markets,” said Gunjan Shah, MD and CEO of Bata India Limited.
‘’We saw handsome growth in Red Label, Floatz, Comfit and Hush Puppies. Our strategy for premiumization continues progressively. Prudent expansion of our Retail Network and marketing investments continue to be our key strategy. We launched our latest campaign “Every Walk is a Ramp Walk” that has met encouraging response and impact on the brand,” added Shah.
Ahead of the announcement of Q3FY24 results, shares of Bata India settled 1.93 per cent lower at ₹1,459.60 apiece on the BSE.
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Published: 01 Feb 2024, 08:27 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.