Bata India on Thursday reported a 71.82 per cent rise in consolidated net profit at Rs 119.37 crore for the first quarter of FY23, as the shoemaker achieved “highest ever quarterly sales”.
Bata India Limited said in a BSE filing that the company had posted a net profit of Rs 69.47 crore in the April-June quarter a year ago.
Its revenue from operations stood at Rs 943.01 crore during the quarter under review, which was three times higher than Rs 267.04 crore in the corresponding quarter of FY22.
“The quarterly sales reached lifetime highs, a direct result of continued focus on key areas of franchise and MBO expansion, consumer contextual communication, portfolio casualization and digital footprint expansion,” Bata India said in its earnings statement.
This was supported by continued growth in portfolio and marketing investments. In addition, retail outlets, apart from sales through digital channels, saw a significant increase in the number of customers.
Bata India’s total expenditure stood at Rs 792.58 crore, which was more than two times in the first quarter of FY23, from Rs 371.61 crore a year ago.
During the quarter, the company continued to optimize cost structures and drive efficiencies across its value chain.
Bata India said, “All the cost-focused initiatives, implemented across multiple work streams, are increasing their impact quarter on quarter.”
MD & CEO Gunjan Shah said that in the last three quarters there has been a significant growth in the sales of Bata with the increasing demand for fashionable, trendy and comfortable footwear.
“We continue to expand our reach through new franchise stores and multi-brand outlets. We have opened more than 20 new franchise stores, taking the total number to over 320, with a strong future pipeline, through distribution channels. Expanded availability through the medium which continued to grow to around 1,100 towns,” said Shah.
Simultaneously, Bata also continued to focus on increasing volumes in these inflationary times, which should see an impact in the coming period.
“In the face of volatile inflation and geopolitical unrest, we are conscious of our cost efficiency and accordingly continue to implement various cost-saving measures across our network, which is reflected in profitability metrics. We continue to open up new opportunities. Our value chain, which will help us efficiently capture the emerging consumer demand,” he said.
On the outlook, Shah said: “We remain optimistic on innovation-driven momentum through agile product creation, growing digital channels, expanding into tier 3-5 cities, and increasing productivity with investments in our brands and stores “