Footwear maker Bata India today posted over seven fold increase in net profit in first quarter ended March 31, 2011 at Rs 109.36 crore on the back of one- time gain from stake sale in a township development joint venture with Riverbank Developers Pvt Ltd (RDPL).
The company had posted a net profit of Rs 14.33 crore in the same period in the previous fiscal.
In a filing to the Bombay Stock Exchange, the company said it had a net gain of Rs 98.70 crore from its stake sale in the 50:50 joint venture with RDPL.
The company's net sales during the period under review increased 19.87% at Rs 310.65 crore, compared to Rs 259.15 crore in the same period previous year.
"In addition, we also have other income of Rs 109.35 crore related to Batanagar project," it said.
In 2010, the firm had restructured its agreements with revised terms and conditions for the development of modern integrated township project at Batanagar in West Bengal.
"The conditions precedent to recognising sale of investment and variation of rights in the joint development agreement has crystallised in the month of March 2011, consequently gains of Rs 109.35 crore before tax arising on the said transaction have been recognised under other income," the filing said.
Further as a part of consideration, the company is yet to receive 3.24 lakh square feet of constructed space at no additional cost as per the terms of agreement.
Bata India scrip closed the day at Rs 421.10 per piece on the BSE, down 2.83% from the previous close.