Bata India Shares Rally 7% On Partnership Talks With Adidas India

According to CNBC TV, Bata India and Adidas India are in discussions about forming a strategic alliance for the Indian footwear industry. This strategic partnership's main goal is to make use of Bata's remarkable and broad retail network throughout India. Bata India will soon be enabled to house more high-end products after collaborating with Adidas. Bata India's retail reach has a strong presence in India with around 2,100 outlets distributed across 700 cities.

Bata India's net profit climbed to Rs 319 crore in the fiscal year 2023 from Rs 100 crore the previous year. The total revenue for the year was Rs 3,451.5 crore, while the current quarter's expenses were higher at Rs 826.9 crore compared to Rs 792.6 crore in Q1FY23. In Q1FY24, the company's net profit fell 10% to Rs 107 crore. In the same quarter of the previous year, the firm had a net profit of Rs 119.3 crore.

In the April to June quarter, Bata India's consolidated revenue climbed just 1.5% year on year (YoY) to Rs 958 Cr. By 2025, Bata India wants to have 500 franchisee outlets, according to Chairman Windlass.

"With our strategy of casualization and premiumization, expansion in Retail Network and accelerated investment towards core technologies (ERP, Merchandising, etc.,), we believe the template is set up for future profitable growth. Digital footprint through our omnichannel e-commerce revenue streams gained significant momentum in the quarter going by," said Gunjan Shah, MD and CEO - Bata India.

"At Bata India, we continue to implement initiatives to elevate customer experience at our stores and on our website. We have introduced a series of innovations to consumers like Bata Shoe Care Program, Buy Now Pay Later and Bata Wallet. We have gained share in higher category articles in brands like Hush Puppies, Comfit, Floatz & North Star. We continue to add Franchise and SIS stores to improve accessibility of the brand alongwith MBOs. Across all business channels of EBOs, MBOs and E-Commerce, margins remained healthy despite slowness in discretionary demand & early onset of EOSS," said Gunjan Shah.

"We continue to flesh out new opportunities across our value chain. We remain focused on cost efficiency across all operations and optimizing our resources. We are optimistic on the demand resurgence going ahead and continue to expand in Tier 3-5 towns, digital channels and make investments in elevating customer experience & brand marketing," stated Gunjan Shah.

On Thursday, the shares of Bata India opened on the BSE at Rs 1636.05 apiece and jumped 7.30% to trade at Rs 1755.60 while writing this copy.