Bata India Reports Impressive Q4 Profit Surge Driven by Increased Demand and Lower Costs

Footwear manufacturer Bata India Ltd (BATA.NS) has announced better-than-expected quarterly profits, driven by increased demand for popular brands like Hush Puppies and Comfit, coupled with reduced raw material costs. The Netherlands-based Bata BN’s flagship recorded a consolidated profit of 656.23 million rupees ($8.02 million) for the three months ending March 31, surpassing last year’s figure of 629.6 million rupees. Analysts had estimated a profit of 614.6 million rupees, on average.

Bata’s consolidated revenue from operations also witnessed a substantial 17% growth, reaching 7.79 billion rupees in the fourth quarter. This surge in revenue was attributed to strong demand for the company’s Hush Puppies, Comfit, Floatz, Red Label, and North Star brands. Bata emphasized that it had refreshed its product portfolio to include premium offerings under these brands.

Gunjan Shah, CEO and Managing Director of Bata, expressed that the company has experienced consistent demand for casual and comfortable footwear in recent quarters. This trend is attributed to a growing preference for non-occasion wear, as well as a focus on comfort and style. Bata’s strong performance aligns with the footwear industry, with larger competitor Relaxo Footwears Ltd (RLXO.NS) also reporting a 9.6% increase in quarterly profits last week, fueled by high demand for shoes and slippers.

Additionally, Bata, based in Gurugram, recommended a dividend of 13.5 rupees per share. The company’s shares closed slightly lower by 0.43% ahead of the earnings announcement.
Source:https://www.reuters.com/business/retail-consumer/footwear-maker-bata-indias-q4-profit-rises-lower-costs-higher-demand-2023-05-18/