Bata India slips as Q4 PAT drops 28% YoY to Rs 46 cr
Bata India reported an operating profit of Rs 37.41 crore for Q4 FY25, a decline from Rs 58.26 crore in Q4 FY24. Despite ongoing market headwinds, the company posted volume-led growth for the second consecutive quarter, fueled by strong performance in its franchise and e-commerce channels.
The company continued its retail expansion, bringing the total number of company-owned and franchise stores to 1,962, with a strong focus on scaling the franchise model. Inventory management remained a top priority, with efforts aimed at enhancing both the quantity and quality of stock.
To improve operational efficiency, Bata implemented initiatives to boost stock turnover and forecasting accuracy. As a result, the company successfully reduced its gross inventory by 15%, bringing it down to Rs 815.06 crore as of 31 March 2025.
The company?s net profit declined 21.77%, while net sales dropped 14.21% in Q4 FY25 compared to Q3 FY25.
For the full year FY25, revenue from operations rose 0.29% to Rs 3,488.79 crore, while net profit jumped 25.96% to Rs 330.66 crore.
Gunjan Shah, MD and CEO, Bata India, stated, ?Despite navigating through the demand headwinds persisting during the quarter, we managed to gain volumes in line with our strategy of driving volume-led growth. We continue to drive affordability and reduce complexity across categories.
Our initiatives on inventory, merchandising, and decluttering worked well, and all key inventory metrics improved. We added 19 Franchise Stores in the quarter, driven by franchise model focused on town expansion/semi-urban markets Along with cautious control on costs and focus on efficiency and productivity, we continued to manage our inventory while having strong deployment of fresh merchandise in anticipation of demand revival and consumption uptick.
Meanwhile, the board recommended a final dividend of Rs 9 per share, subject to shareholder approval, in addition to the interim dividend of Rs 10 per share paid in September 2024, bringing the total dividend for FY25 to Rs 244.2 crore.
Additionally, the zero-base merchandising project was scaled up to 146 stores, continuing to deliver positive outcomes in terms of consumer experience and revenue per square foot.
Bata India is the largest retailer and manufacturer of footwear in the country. The company is engaged in the business of manufacturing and trading footwear and accessories through their retail and wholesale network. Their products include leather footwear, rubber/canvas footwear, and plastic footwear.
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