Profit before tax declined 6.08% to Rs 82.93 crore in March 2024 quarter from Rs 88.30 crore recorded in the same period last year.

Operating profit stood at Rs 58.27 crore for the quarter. The footwear maker stated that the results for the quarter are a factor of resilience despite sluggish demand conditions to drive growth in a sustainable manner with strong margin performance.

Bata continued expansion with a network of 1,329 COCO and franchise stores. On digital sales front, e-commerce performance was encouraging. The firm achieved significant growth in e-commerce sales for previous year.

The portfolio casualisation strategy continued to work well, with Sneaker category led by Power. Sneaker studios expanded to 698 stores. Floatz achieved highest ever quarterly turnover, enhanced by 11 Floatz Kiosk. Bata also launched its 1st Power EBO launched in Noida and another 5 to be opened shortly.

To enhance customer experience, Bata continued to renovate stores. 67 stores were renovated during the quarter with significant thrust towards portfolio newness with style & technology propositions.

Bata continued to leverage its fixed cost across the value chain and ERP has gone live as per plan.

On full year basis, the company's consolidated net profit declined 18.73% YoY to Rs 262.51 crore in the financial year ended March 2024.

However, revenue from operation increased marginally to Rs 3,478.61 crore in FY24 as compared with Rs 3,451.57 crore in FY23.

Gunjan Shah, MD and CEO of Bata India, stated, “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. Our strategies helped us defending margins.

With cautious control on costs and focus on efficiency and productivity, we were able to defend our margin growth across channels and maintain our standing in premium segments across brands like Red Label, Comfit, Power. We added 24 franchise stores in the quarter, primarily in Tier 3 – 5 towns to cater the demand for branded products and achieve better returns on capital.

We are further bolstering our offering with international tie-ups, such as Hush Puppies and Nine West which saw a significant higher ASP driving premiumization. We are optimistic of demand revival going forward.”

Meanwhile, the company’s board recommended a dividend of Rs 12 per equity share for the financial year ended 31 March 2024, subject to approval of the shareholders. The dividend will be paid 22 August 2024.

Bata India is the largest retailer and manufacturer of footwear in the country. The company is engaged in the business of manufacturing and trading of footwear and accessories through their retail and wholesale network. Their products include leather footwear, rubber/canvas footwear and plastic footwear.

Shares of Bata India advanced 1.81% to Rs 1,398.40 on the BSE.