Bata India records PAT of Rs 63 crore in Q4 FY22

Bata India reported consolidated net profit of Rs 62.96 crore in Q4 FY22 compared to net profit of Rs 29.47 crore in Q4 FY21.

Operating revenue rose 12.8% year-on-year to Rs 665.24 crore in the quarter.

Pre-tax profit in Q4 FY22 stood at Rs 84.60 crore, which is significantly higher than the Rs 40.38 crore recorded in Q4 FY21.

Bata India said the company continues to focus on the key areas of expanding franchises and MBOs, consumer-relevant communication, portfolio insecurity and digital footprint expansion. All of this has resulted in an increase in footfall at outlets, as well as significant growth driven by e-commerce platforms and expansion into Tier 3-5 cities.

This helped revenue in the quarter to stay in line with pre-pandemic levels for a second consecutive quarter, despite Omicron-related disruptions during the first part of the quarter. This was offset in the later part of the quarter where we saw a significant rebound in growth.

The company reported a consolidated net profit of Rs 102.99 crore in FY22 against a net loss of Rs 89.31 crore in FY21. Operating income increased by 39.75% to Rs 2,387.71 crore in FY22 compared to FY21.

The board of directors of the company has recommended a dividend of Rs 54.5, which also includes a special dividend of Rs 50.5 per share, to be paid in August 2022. The total outflow because of this will be Rs 700, 5 crore, which would be funded from existing cash.

Gunjan Shah, MD and CEO – Bata India Limited, said: Over the past two quarters, we have witnessed a significant recovery in demand amid improved consumer sentiment and better understanding of the pandemic, the availability of vaccines and a more rapid easing of restrictions.

We continued to expand our reach through new franchise stores and multi-brand outlets. We opened 22 new franchise stores bringing the total number to over 300, expanded availability through the distribution channel which continued to expand to over 1,000 cities. We have improved our portfolio in the casual and fashion footwear section in all categories.

At the same time, we continued to focus on cost reduction measures across our network, controlling discretionary spending, improving productivity and premiumization in the face of volatile inflation. These measures have laid the foundation that will help us effectively capture emerging consumer demand.

With the above expansion/efficiency levers scaling and consumer sentiment rebounding, we expect momentum to continue towards the pre-pandemic growth rate in the current quarter, also as seen in the quarter to date at 11% ahead of pre-covid levels, with gross margins supporting at levels of 58%.”

Bata India Bata India is India’s largest footwear retailer. It offers shoes, accessories and bags from brands such as Bata, Bata Red Label, Hush Puppies, Naturalizer, Power, Marie Claire, Weinbrenner, North Star, Scholl, Bata Comfit and Bubble. gum trees, to name a few. It is retailed in over 1,700 Bata stores, franchise stores and outlets, and thousands of multi-brand shoe stores across India.

The certificate rose by 0.55% to currently trade at Rs 1756.45 on BSE.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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