Bata India Limited , a leading footwear and accessories company, has announced its unaudited financial results for the second quarter, revealing a significant decline in both revenue and profitability.

Financial Highlights

• Consolidated net profit fell 73% to Rs 23.80 crore, compared to Rs 51.98 crore in the same period last year
• Revenue declined 4.3% to Rs 801.00 crore from Rs 837.00 crore year-over-year
• EBITDA dropped 16.7% to Rs 145.00 crore
• EBITDA margin contracted to 18.1% from 20.8% in the previous year

The company's performance has fallen short of expectations, missing top line estimates for consecutive quarters. In the previous quarter, Bata India had reported a 70% drop in consolidated net profit to Rs 52.00 crore compared to Rs 174.00 crore in the corresponding period.

Factors Affecting Performance

The decline in revenue is attributed to several factors:

• Deferred purchases by channel partners and customers following GST rate rationalization announcements
• Lower gross margins from higher markdowns
• Increased marketing investments
• Temporary impact from warehouse disruption in July

Brand Performance

Despite the overall revenue decline, some of Bata India's premium brands showed resilience:

• Hush Puppies and Power brands performed well
• Victoria Ballerina campaign helped gain 1% additional sales mix
• Power Easy Slide collection achieved highest weekly contribution

Expansion and Optimization

Bata India continued its expansion efforts:

• Added 30 franchise stores
• Expanded Zero Base Merchandising Project to 200 stores
• Implemented a voluntary retirement scheme at one factory, resulting in an exceptional expenditure of Rs 83.00 million

Market Outlook

Management noted positive recovery signs during the festive season post September 22 and remains cautiously optimistic about recovery for the balance of the year. The impact of the GST 2.0 transition on demand is expected to be temporary as the market adjusts to the new tax structure.

The company's focus on premium brands and expansion strategies, coupled with the implementation of voluntary retirement schemes, indicates efforts to optimize operations and improve efficiency in response to market challenges.

Bata India Limited , a leading footwear manufacturer and retailer, has successfully completed the sale of its industrial land in Faridabad, marking a significant step in its asset monetization strategy. The company announced the transaction in a recent statement, highlighting the details of the deal.

Key Transaction Details

Sale Execution and Payment

Bata India has confirmed that it has executed the sale deed for the Faridabad property. The company has also received the entire consideration amount, net of TDS (Tax Deducted at Source), marking the successful conclusion of the transaction.

Strategic Asset Monetization

This land sale is part of Bata India's broader asset monetization strategy for its Faridabad property. The move suggests that the company is actively managing its real estate portfolio, potentially to optimize its assets and focus on core business operations.

Implications for Bata India

The sale of this substantial industrial land parcel could have several implications for Bata India:

1. Cash Infusion: The Rs. 154.44 crore transaction provides a significant cash influx, which could be used for various purposes such as debt reduction, expansion, or operational improvements.

2. Operational Efficiency: By divesting non-core assets, Bata India may be streamlining its operations and focusing on its primary business of footwear manufacturing and retail.

3. Strategic Realignment: This move might be part of a larger strategy to realign the company's assets with its current business needs and future growth plans.

The successful completion of this land sale demonstrates Bata India's commitment to its asset monetization strategy. Investors and market analysts will likely be watching closely to see how the company utilizes the proceeds from this sale and what it might mean for Bata India's future strategic decisions.