Bata India Limited , a leading footwear manufacturer and retailer, has announced its financial results for the first quarter, showcasing steady growth and strategic expansion initiatives.

Financial Performance

Bata India reported revenue from operations of INR 9,418.00 million for Q1, representing a 5.5% growth year-over-year. The company achieved a profit after tax of INR 5,035.00 million, with a gross margin of 22.9%. However, the gross margin saw a decline of 112 basis points compared to the previous year.

On a positive note, the company's EBITDA margin improved by 157 basis points year-over-year, indicating enhanced operational efficiency.

Retail Expansion and Store Growth

Bata India continued to expand its retail footprint, reaching a total of 1,978 stores. The company added 20 franchise stores during the quarter, bringing the total number of franchise stores to 644.

The company also launched 36 new concept stores, enhancing its store identity with improved customer comfort, accessibility, and focused category zoning. These renovations aim to provide a better shopping experience for customers.

Operational Improvements

Bata India reported several key operational improvements:

• Inventory reduction to 0.78X
• Line reduction to 0.67X
• Availability improvement of 450 basis points

These improvements demonstrate the company's focus on inventory management and operational efficiency.

Digital Presence and E-commerce

Bata India expanded its digital presence, with e-commerce contributing approximately 4% of retail turnover. The company's omnichannel strategy includes:

• Presence on major e-commerce marketplaces
• Bata's own website (Bata.com)
• Quick commerce partnerships with Zepto and Swiggy Instamart in over 25 cities through 140+ superstores

Key Retail Outlets (KROs) and Distribution

The company added 319 Key Retail Outlets (KROs) over the previous year, reaching a total of 1,480 KROs. Bata India also expanded its presence to 1,590 towns via Multi-Brand Outlets (MBOs), with approximately 15,000 MBOs and over 350 distributors.

Product Portfolio and Brand Initiatives

Bata India continued to evolve its product portfolio:

• Launched the 'Tropical Breeze Collection'
• Expanded the 'Floatz' and 'Power' brands
• Introduced new offerings in the 'Hush Puppies' line, including office sneakers

Customer Satisfaction and Recognition

The company reported an improvement in its Net Promoter Score (NPS) to 81, up 600 basis points year-over-year. Bata India also received the Diamond Award for "Best Workplace Culture" by iNFHRA.

Exceptional Costs

Bata India reported exceptional costs of INR 48.00 million related to a Voluntary Retirement Scheme in Q1.

As Bata India continues to navigate the competitive footwear market, its focus on retail expansion, digital growth, and operational efficiency appears to be yielding positive results. The company's strategic initiatives in product development and customer experience enhancement position it well for future growth in the Indian market.

Bata India Limited , a leading footwear manufacturer and retailer, has announced its financial results for the first quarter ending June 30. The company demonstrated resilience in the face of challenging market conditions, reporting stable revenue and strategic initiatives to enhance operational efficiency.

Financial Performance

Bata India reported consolidated revenue from operations of Rs. 9,418.54 million for Q1, compared to Rs. 9,446.34 million in the same quarter of the previous year. The company's consolidated net profit stood at Rs. 519.99 million, with earnings per share of Rs. 4.05.

Operational Highlights

Despite facing headwinds such as fluctuating weather patterns and geopolitical uncertainties, Bata India implemented several strategic initiatives:

1. Affordability Focus: The company pushed ahead with affordability initiatives across categories to drive volume-based growth.

2. Inventory Management: Significant progress was reported in inventory efficiencies, both in terms of quantity and quality. Initiatives are in place to improve stock turns and forecast accuracy.

3. Zero Base Merchandising: This project was scaled to 194 stores, yielding positive results in consumer experience and revenue per square foot.

4. Product Launches: New collections were introduced including the Tropical Breeze collection, Power Easy slide & Power Move+ collections, and a new Office Sneakers range.

5. Marketing Campaign: The "Ease, Please" campaign featuring brand ambassador Vir Das was launched to promote the new Office Sneakers range.

6. Retail Expansion: 20 Franchise Stores were added during the quarter, focusing on town expansion and semi-urban markets.

Management Commentary

Gunjan Shah, MD and CEO of Bata India Limited, commented on the quarter's performance: "The quarter witnessed headwinds accentuated by fluctuating weather patterns and geopolitical uncertainties. Amidst these and considering the demand trends, we pushed ahead our affordability initiatives across categories to drive volume based growth."

Shah also noted strong resilience in premium brands like Hush Puppies Comfit and Floatz. He expressed optimism about consumption recovery in the coming quarters, citing the company's strong market positioning and wide network.

Exceptional Items

The company incurred an exceptional expense of Rs. 47.78 million related to a voluntary retirement scheme at one manufacturing unit during the quarter.

Outlook

Bata India maintains a balanced approach between managing near-term challenges and investing in long-term growth drivers. The company remains focused on cost efficiencies while leveraging its strong market position and extensive retail network of over 1,950 stores.

As India's largest footwear retailer and manufacturer, Bata India continues to evolve its product offerings and retail strategies to meet diverse customer needs, selling close to 47 million pairs annually through various channels including company-owned stores, franchises, and online platforms.