Bata India Posts Modest Q3 Growth Despite Market Headwinds
Bata India Ltd reported some profit for the third quarter ended December 2024. The company's net earnings rose 1.2% to Rs 58.7 crore despite challenging market conditions. The footwear giant's performance was impacted by one-time expenses related to factory restructuring.
Financial Performance
The company's Q3 results showed:
- Revenue from operations increased 1.69% to Rs 918.79 crore
- Total income, including other income, rose 1.54% to Rs 928.65 crore
- Total expenses reached Rs 840.57 crore
- EBITDA margin expanded by 141 basis points
A one-time exceptional expense of Rs 10.8 crore for a voluntary retirement scheme (VRS) at one of its factories affected the quarter's bottom line.
Business Highlights
Managing Director and CEO Gunjan Shah highlighted several positive developments despite muted demand:
- Double-digit growth in the Hush Puppies premium segment
- Strong performance in e-commerce following website revamp
- Successful expansion into quick-commerce
- Continued growth in smaller towns
"Despite the muted demand, we managed to gain volumes," Shah said. "These strategies helped us in sustaining margins."
Future Outlook
Bata remains highly optimistic about demand recovery despite a lot of market competition. It plans to focus on:
- Volume-based revenue growth
- Affordability initiatives
- Product freshness
- Cost control measures
- Efficiency improvements
Bata India's shares closed at Rs 1,339.55 on BSE, up 0.39% for the day.