Bata India Q2 net profit tanks 38% to Rs 34 cr on exceptional items

Leading shoemaker Bata India Ltd on Wednesday reported a decline of 37.77 per cent in its consolidated net profit at Rs 34 crore in the second quarter ended September 2023, citing exceptional items in its balance sheet.

Revenue dips 1.28%

The company's revenue from operations was down 1.28 per cent to Rs 819.11 crore during the quarter in comparison to Rs 829.75 crore in the corresponding period a year ago.

Expenses down 5.31%

Total expenses of Bata India in the September quarter was at Rs 747.61 crore, down 5.31 per cent.

Voluntary retirement scheme

Under exceptional expenses, Bata India spent Rs 40.90 crore on the voluntary retirement scheme VRS at its one manufacturing unit during the quarter.

Bata MD and CEO Gunjan Shah

Bata India MD and CEO Gunjan Shah said: "Despite navigating through short-term demand headwinds in the quarter gone by, our focus on efficiency and productivity was reflected in robust operating profit margin growth. Prudent expansion of our retail network and marketing investments continue to be our key strategy."

Bata India shares

Shares of Bata India Ltd on Wednesday settled at Rs 1,556.60 on BSE, up 1.14 per cent.

Despite the decline in net profit, Bata India remains optimistic about its future growth prospects. The company's focus on efficiency and productivity improvements, as well as its continued expansion of its retail network and marketing investments, should help it to weather the current economic headwinds and emerge stronger in the long run.