Bata India Q2 net profit jumps ~53% y-o-y to ₹52 Crore

5 Nov 2024 , 10:32 AM

Bata India announced strong financial results for the second quarter on Monday. The company posted a net profit of ₹52 Crore in the three months ending September 30, 2024, a jump of 53.1% from the previous year, boosted by operational savings and premiumisation.

Bata, which distributes brands including Hush Puppies and North Star in India, reported a profit of ₹34 Crore during the same time last year. Last year’s profit included a ₹40.9 Crore charge for a voluntary retirement scheme.

Revenue for the quarter climbed by 2.2% to ₹837.1 Crore from ₹819.1 Crore the prior year. 

The company’s EBITDA decreased by 4% to ₹174.5 Crore, compared to ₹181.6 Crore the previous year. Bata’s EBITDA margin also fell to 20.8%, from 22.2% in the same quarter previous year.

Compared to Bata India, most apparel and footwear retailers reported reduced domestic sales in the second quarter due to continued inflation, fewer wedding dates, and above-average rainfall, all of which impacted consumer purchasing.

Metro Brands and Shoppers Stop both reported weak quarterly profitability, while Metro expects demand to increase in the second half of the fiscal year, buoyed by holiday and wedding season spending. Relaxo Footwear and Campus Activewear have yet to announce their Q2 results.

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