Shares of Bata India soared 5 per cent to its fresh 52-week high of Rs 1754.80 on the BSE in intra-day session on Thursday following the footwear maker’s June quarter results. Bata India on Wednesday, post-market hours, reported a narrowing of loss to Rs 69.5 crore in the April-June quarter (Q1) compared with Rs 101 crore net loss in the corresponding quarter last year.
The firm’s operating revenue grew 98 per cent to Rs 267 crore on a low base of Rs 135 crore that it has reported in the year-ago period. However, Bata’s toppling and bottomline suffered significantly when compared to the previous quarter. While its operating revenue plunged 55 per cent from Rs 590 crore that it had posted in the March quarter, its bottomline went into the red from Rs 30 crore it had reported in the previous quarter. READ MORE
During the quarter, its cost of materials consumed jumped 189 times to Rs 33.2 crore but a deduction due to its inventory positions kept losses in control.
According to the company, sales across retail outlets remained largely subdued, owing to the second wave of Covid-19 infections and ensuing lockdowns. However, sales through e-commerce platforms continued to remain robust and witnessed an uptick despite the restrictions.
“While our retail outlets were largely shut, we were able to serve our customers through alternate channels. These channels have enabled us in minimising the overall impact of the second wave. Since the ease in lockdown, footfalls in our retail outlets have started growing, signalling strong signs of recovery,” said Gunjan Shah, chief executive officer, at Bata India.
Bata is likely to be a key beneficiary of improved mobility as things normalise, analysts at ICICI Securities said in a note. However, they added, that an inferior product mix, away from formals and fashion and more towards open style footwear, is likely to put further pressure on profitability till then.
At 10.55 am, the stock had pared most gains and was trading 0.84 per cent higher at Rs 1,680.15 on the BSE while the benchmark Sensex was up 0.31 per cent at 54,694 around the same time.
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