30 May , 2024 By : Debdeep Gupta
Shares of Bata India Limited gained 3 percent to Rs 1,415 apiece in morning trade on May 30 even as the company reported a marginal dip in net profit in the fourth quarter.
At 11:25 am on May 30, shares of the company were trading at Rs 1,410 apiece, up 2.6 percent from the previous close on the NSE. Bata India shares have had a rough start to the year, slipping nearly 15 percent on the bourses.
During the fiscal fourth quarter, the company reported a consolidated net profit of Rs 63.64 crore, down 3 percent compared to the same quarter of the previous financial year.
Meanwhile, the company's revenue increased a marginal 3 percent to Rs 798 crore from the year-ago period. The footwear makers' earnings before interest, tax, depreciation, and amortization (EBITDA) were flat at Rs 182.3 crore on an annual basis. Its margins contracted to 22.8 percent from 23.4 percent a year ago.
During the quarter, the company operated 1,329 COCO and franchise stores and saw significant growth in e-commerce sales. The management said that its strategy, particularly in the Sneaker category led by Power, performed well, with Sneaker Studios expanding to 698 stores. Floatz achieved its highest-ever quarterly turnover, boosted by 11 Floatz Kiosks, and Bata launched its first Power exclusive outlets. Five more are planned, it said.
"Bata India navigated well through the unforeseen sluggishness in the market driving towards sustainable growth led by brands backed by significant investments in marketing and technology," said Gunjan Shah, MD and CEO.
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