Shares of Bata India, a leading shoemaker, rose by 3% on the BSE on Thursday after the company announced its results for the quarter ending March 2024 (Q4FY24).
The stock climbed 3% to reach ₹1,415. It is now 20% below its 52-week high of ₹1,770.10, which was reached on August 7, 2023. However, it has increased by over 9% from its 52-week low of ₹1,293.65, recorded on May 13, 2024.
In the past year, Bata India’s stock has lost almost 13%, and it is down over 14% in 2024 so far. It rose 3% in May following a 0.3% increase in April. Earlier in the year, the stock fell 3.3% in March, 5.4% in February, and 9.8% in January.
For Q4FY24, Bata India reported a 3.02% decrease in consolidated net profit, totaling ₹63.64 crore. Despite this, the company’s revenue from operations increased by 2.47%, reaching ₹797.87 crore, compared to ₹778.58 crore in the same period the previous year.
Bata India’s total expenses for the March quarter rose by 5.22%, totaling ₹736.83 crore.
Dividend Announcement
The Board recommended a dividend of ₹12 per fully paid-up ₹5 equity share for the financial year ending March 31, 2024, pending shareholder approval at the upcoming annual general meeting (AGM).
MD and CEO Gunjan Shah commented on the performance, saying, “Bata India successfully navigated the market’s unexpected sluggishness, focusing on sustainable growth supported by significant investments in marketing and technology. Our strategies helped us maintain margins.”
He added that the company is continuing to invest heavily in the brand and technology to ensure a positive outlook and accelerate growth.
Annual Performance
For the financial year ending March 31, 2024, Bata India reported an 18.7% decline in consolidated net profit, amounting to ₹262.51 crore, compared to ₹323 crore the previous year. The company’s revenue from operations for FY24 saw a slight increase, reaching ₹3,478.61 crore, up from ₹3,451.56 crore a year ago.
Bata continued its expansion, operating 1,329 Company Owned Company Operated (COCO) and franchise stores, and experienced significant growth in e-commerce sales. The company’s strategy of focusing on casual shoes, especially sneakers under the Power brand, performed well. Sneaker Studios expanded to 698 stores, and the Floatz line achieved its highest-ever quarterly turnover, supported by 11 Floatz Kiosks. Bata also launched its first Power Exclusive Brand Outlet (EBO) in Noida, with plans for five more.
To improve customer experience, Bata renovated 67 stores, introducing new styles and technology. Major marketing campaigns, like the 10/10 campaign and influencer partnerships, promoted a fashion-forward image. Additionally, Bata effectively managed fixed costs across its value chain, with the ERP implementation progressing as planned.
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