Bata shares in focus after reporting marginal Q3 growth

The shares of shoe manufacturer Bata India may attract attention on Tuesday, February 11, after reporting a marginal rise of 1.3% year-on-year (YoY) to Rs 58.7 crore, compared with Rs 57.97 crore in the corresponding quarter of the previous fiscal year.

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The footwear company’s revenue from operations increased by 1.7% YoY, reaching Rs 919 crore in Q3FY25, up from Rs 903 crore in Q3FY24.


The company's operating profitability showed a more substantial improvement, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) growing by 9.4% to Rs 99.52 crore in Q3FY25, compared to Rs 91.44 crore in the corresponding quarter of the previous year.

The EBITDA margin also expanded, reaching 21.7% in Q3FY25, an increase of 152 basis points from 20.2% in Q3FY24.

The results for the quarter also include a one-time exceptional expenditure of Rs 10.8 crore towards Voluntary Retirement Scheme (VRS) in the company’s factory, consistent with Bata’s long-term strategy to build capability, agility, and efficiency in its supply chain.

“We continue to focus on our portfolio to attract new customers. To make choices easier for customers, we are driving affordability and reducing complexity across categories. As a result of these initiatives, we are seeing significant volume growth for the first time in a long while. We also took advantage of the prolonged End of Season Sales to reduce aging inventory. Despite muted demand, we managed to gain volumes," said Gunjan Shah, MD and CEO of Bata India.

"We saw double-digit growth in Hush Puppies through our premium offerings. These strategies helped us sustain margins. We experienced robust growth in our e-commerce channel with the launch of our new and revamped website. Our omni-channel initiatives, including entry into quick-commerce and continuous expansion into newer towns, have significantly enhanced our market reach,” Shah added.

On Monday, the shares of Bata India closed flat at Rs 1,339.55 on the BSE.

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