Bata India Limited has announced its audited financial results for the quarter and financial year ended March 31, 2023, showcasing a remarkable improvement in its financial performance.

Financial Highlights

The footwear and accessories company reported a significant increase in profit for the financial year, reaching Rs. 3,191.17 million, a substantial rise from Rs. 1,008.87 million in the previous year. This impressive growth in profit represents a year-on-year increase of over 216%.

Revenue from operations also saw a notable uptick, climbing to Rs. 34,515.68 million from Rs. 23,877.19 million in the previous year, marking a growth of approximately 44.6%.

The company's improved financial performance is further reflected in its earnings per share (EPS), which rose to Rs. 24.83 from Rs. 7.85 in the previous year, representing a significant increase of about 216%.

Dividend Announcement

In light of the strong financial results, the Board of Directors has recommended a dividend of Rs. 13.50 per equity share, which translates to 270% on the face value of Rs. 5.00. This dividend recommendation is subject to shareholder approval at the upcoming Annual General Meeting (AGM).

Annual General Meeting

Bata India Limited has scheduled its 90th Annual General Meeting for August 10, 2023. The meeting will be conducted through video conferencing, in line with current corporate practices.

Audit Opinion

Price Waterhouse Chartered Accountants LLP, the company's auditors, have provided an unmodified audit opinion on the financial results, further reinforcing the credibility of the reported figures.

Segment Information

Bata India Limited continues to operate primarily in the footwear and accessories segment, maintaining its focus on its core business area.

The strong financial performance of Bata India Limited, coupled with the significant dividend recommendation, reflects the company's resilience and growth in the challenging market conditions. Shareholders and investors may view these results positively, as they demonstrate the company's ability to generate increased profits and returns.

Bata India , a leading footwear retailer, has unveiled ambitious expansion plans targeting tier-3 to tier-5 towns across India. The company aims to capitalize on the growing urbanization and increasing demand for enhanced retail experiences in these areas.

Expansion Strategy

Bata India is set to significantly expand its franchise network over the next 2-3 years. The company plans to increase its franchise stores from the current 650 to an impressive 1,000 outlets. This strategic move is designed to tap into the evolving market dynamics in smaller towns and cities.

E-commerce Growth

In addition to its physical store expansion, Bata India is experiencing robust growth in its e-commerce channel. The company reports that e-commerce has become its fastest-growing business segment, now contributing a double-digit percentage to overall revenue.

GST Reduction Impact

The recent reduction in Goods and Services Tax (GST) on footwear priced up to ₹2,500 is expected to benefit Bata India significantly. The tax rate for this category has decreased from 12% to 5%. This change is particularly advantageous for Bata, as approximately 80% of its product portfolio falls within this price range, with nearly 40% priced below ₹1,000.

Consumer Benefits and Sales Strategy

Bata India plans to pass on the tax benefits to consumers, making its footwear more affordable. This strategy is aimed at driving higher sales volumes, especially in the upcoming festive season. The company anticipates increased demand, particularly for products priced under ₹1,000.

Market Performance

Despite its expansion plans and positive market factors, Bata India's stock has faced some challenges. The company's shares are currently trading at ₹1,239.20, reflecting a 13.00% decline over the past year. However, Bata India maintains a substantial market capitalization of ₹15,921.00 crore.

Outlook

As Bata India implements its expansion strategy and leverages the benefits of the GST reduction, the company is positioning itself for potential growth. The focus on tier-3 to tier-5 towns, coupled with its strong e-commerce performance, may help Bata India capture new market segments and strengthen its position in the Indian footwear industry.