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Bata India Reports Resilient Q3 Results with Gross Margin Expansion
- Bata India Limited, a leading footwear company, disclosed its financial outcomes for the quarter ending December 31, 2023.
- Despite subdued demand, revenue from operations rose to Rs. 9,035 million compared to Rs. 9,002 million in Q3FY23, fueled by growth in premium categories.
- The quarter exhibited a Gross Profit expansion of 119 basis points, reflecting consistent efficiency enhancements in operational processes, aligning with the company’s commitment to sustainable profitable growth.
- However, increased investments in branding and technology during the period affected net margins.
Additional Read: Q3 Results Dashboard
Key Highlights:
- Network Expansion: Bata India added 54 net new stores, emphasising both Franchise and Company-Owned, Company-Operated (COCO) expansion strategies.
- Store Renovation: Thirty-six stores underwent renovation during the quarter to offer an enhanced brand experience.
- Casualization Strategy: Implementation of the Sneaker Studio concept in 655 stores to cater to evolving consumer preferences.
- Floatz Business Growth: Floatz business demonstrated robust growth of 65%, supported by the introduction of the Floatz banner in seven new stores.
- E-commerce Performance: Strong performance in the E-commerce segment contributed significantly to overall growth.
- Marketing Initiatives: The launch of the “Every Walk is a Ramp Walk” campaign substantially enhanced Brand metrics, garnering positive response.
- Operational Progress: Progression in the HPM – Merchandising project and Enterprise Resource Planning (ERP) system implementation.
- Logistics Optimization: Implementation of Third-Party Logistics (3PL) in Hosur to enhance operational efficiency.
- Upcoming Launch: Preparations for the launch of Nine West in stores scheduled for Q4FY24.
Gunjan Shah, MD and CEO of Bata India Limited, commented on the Q3FY24 performance:
“Despite persistent market challenges, particularly in discretionary spending, we remain committed to investing in new product offerings, elevating customer experience, and expanding our market presence. We witnessed significant growth in our Red Label, Floatz, Comfit, and Hush Puppies segments, underscoring the effectiveness of our premiumization strategy. Our focus remains on prudent expansion of our retail network and strategic marketing initiatives. The ‘Every Walk is a Ramp Walk’ campaign has received positive feedback, reinforcing our brand impact. Looking ahead, we will continue to prioritise efficiency, productivity, and digital transformation to ensure readiness for the future, while maintaining a cautious optimism.”
Additional Check: Bata Share Price
About Bata India Limited
Bata India Limited is a footwear company that is part of the Bata Shoe Organization, a global footwear and fashion accessory manufacturer and retailer. Bata India is the largest retailer and leading manufacturer of footwear in India, with over 1375 stores across the country. It offers a wide range of products for men, women, and kids, from casual to formal shoes, sneakers to sandals, and accessories like bags, socks, and belts. Bata India also has several popular brands under its umbrella, such as Hush Puppies, Power, Weinbrenner, and more. Bata India was incorporated in 1931 and started its operations in Konnagar, near Kolkata, in 1932. It went public in 1973 and is listed on the Bombay Stock Exchange and the National Stock Exchange. Bata India’s vision is to serve with passion, be bold, count on me, and exceed customer expectations.
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Source: https://www.bseindia.com/xml-data/corpfiling/AttachLive/d5082e9e-9a0f-4e94-b909-5367e987e62e.pdf
