Footwear major, Bata India Ltd, registered 15 per cent growth in standalone net profit at ₹83 crore for the quarter ended December 31, 2022, as against ₹72 crore same period last year on the back of portfolio premiumization and expansion.
Revenue from operations on a standalone basis increased by seven per cent at ₹900 crore during the quarter under review as against ₹841 crore same period last year.
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Results for the quarter showcased momentum behind strategic levers driving strong portfolio evolution, strong footprint expansion across touchpoints coupled with improving cost efficiencies, helping drive revenue growth and increased margins despite significant inflationary pressure, the company said in a press statement.
The company has been undertaking store expansion taking its total footprint to 2000. It has also been taking up store renovation strategy to enhance and premiumise customer experience. It has also scaled up the distribution channel to over 1150 towns and has rolled out over 100 new lines, majorly in Sandak, Bata Comfit, and Sunshine.
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“Continuous focus on refreshing product portfolio with our strategy of casualisation and offering premium fashionable products reflected in overall ASP growth and expansion in the share of our premium category brands like Hush Puppies, Marie Claire, Red Label, etc., which was backed by festivity and wedding season in the quarter. We also saw encouraging demand for our comfort and casual wear ranges of Bata Comfit, Floatz, etc. The quarter also marks the highest-ever addition of franchise stores with a total footprint crossing the 2000+ milestone for the first time. We continue to drive various cost optimisation initiatives across the value chain. In the mass categories, the demand remains sluggish due to inflationary pressures. We have continued investments in marketing and technology to fuel accelerated momentum,” Gunjan Shah, MD and CEO, Bata said in the statement.
The company’s scrip closed at ₹1501, up by 0.49 per cent on the BSE on Tuesday.