11th August, 2022: Footwear major Bata India Limited today announced its quarterly financial results. Revenue from Operations for the quarter ended June 30, 2022 was Rs. 9,430 million as against 2,670 million in quarter ended June 30, 2021, its highest ever quarterly sales, showcasing significant momentum across all sales channels. The Company clocked a profit before tax of Rs. 1,597 million as against the Loss before tax of Rs. (949) million in the quarter ended June 30, 2021.
Sales significantly surpassing lifetime quarterly numbers
A direct outcome of the continued focus on key thrust areas of franchise & MBO expansion, consumer relevant communication, portfolio casualisation and digital footprint expansion, was reflected in the quarterly sales reaching lifetime high. With continuous increase in portfolio freshness and consumer/marketing investments, footfalls across retail outlets saw a significant growth supported by sales through digital channels and strong expansion of footprint across EBOs and MBOs.
Continuous focus on optimizing costs across value chain
The Company continued to optimize cost structures and drive efficiencies across its value chain. All the cost-focused initiatives, which have been put in place across multiple work streams are showing increasing impact quarter on quarter.
Gunjan Shah, MD and CEO – Bata India Limited, stated:
“Over the last three quarters, we are witnessing significant uptick in demand with rising demand for fashionable, trendy yet functional and comfortable footwear. The evolution in consumer mindset including brand consciousness was catered by our enhanced offerings in casual segment across categories. Our continuous investments behind marketing campaigns continue to help strengthen our already solid brand recall.
We continue to expand our reach through new franchise stores & multi-brand outlets. We opened 20+ new Franchise stores taking the total number 320+ with a strong future pipeline, expanded availability via Distribution channel that continued to scale up close to 1100 towns. Sneakers strengthened momentum and continued driving growths across businesses. Digital footprint through our omnichannel e-commerce revenue streams gained significant momentum in the quarter going by.
Simultaneously, we continued our strong focus on driving the volumes in these inflationary times, which should show impact in the ensuing period. In the face of volatile inflation, geo-political unrest, we are conscious about our cost efficiencies and accordingly various cost-savings measures across our network continue to be implemented which has reflected in the profitability metrics. We continue to flesh out new opportunities across our value chain will help us capture the emerging consumer demand efficiently.
We continue being optimistic on momentum going ahead driven by Innovation via agile product creation, scaling up digital channels, expansion in Tier 3-5 towns, and productivity enhancement along with investments in our brands & stores”
Key Highlights for the quarter:
· Store renovation strategy to enhance customer experience. 60+ Stores were renovated during the quarter.
· Net Promoter Score (NPS), feedback for loyalty for all offline and online channels that Bata services, stood at 70
· Continued investments in large Marketing campaigns to inspire youth.
· Sales through digitally enabled channels continued its momentum driven by 3 levers – D2C bata.in e-store, Marketplaces and Omnichannel Home Delivery and contributed 10% of total sales which is 2.5x of the June 2019 quarter.
· Continued growth of sneaker category that led the growth recovery vs rest of other categories. Sneaker Studio was implemented in 125 Stores across the country to display up to 300 styles across 9 brands.
· Bata continued with its retail expansion drive in tier 3-5 cities through franchise route, taking the overall tally to 320+ as on date.
· The Company continued to expand Distribution Business in MBOs crossing ~1100 towns.