 "Bata India share price rises 3% as management sees demand revival ahead")
Bata India stock soars: Shares of footwear company Bata India rose as much as 3.01 per cent to hit an intraday high of Rs 1,414.95 per share, on Thursday.
The increase in stock occurred despite the company reporting a weak set of Q4 results. Bata stock's ascent followed optimistic remarks from management regarding the potential for demand recovery in the near future.
“We are further bolstering our offering with international tie-ups, such as Hush Puppies and Nine West which saw a significant higher ASP driving premiumisation. We are optimistic of demand revival going forward,” said Gunjan Shah, managing director and chief executive officer of Bata India Limited.
Overall, Bata India’s consolidated net profit fell 3 per cent to Rs 63.6 crore for the March quarter of financial year 2024 (Q4FY24). Meanwhile, the company’s revenue rose 2.5 per cent to Rs 797.8 crore.
“The results for the quarter are a factor of resilience despite sluggish demand conditions to drive growth in a sustainable manner with strong margin performance,” Bata India said in a statement.
The Board of Directors have recommended a dividend of Rs 12 per fully paid-up Rs 5 equity share for FY24, subject to shareholder approval at the upcoming AGM.
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“Bata India navigated well through the unforeseen sluggishness in the market driving towards sustainable growth led by brands backed by significant investments in marketing and technology. Our strategies helped us defending margins. With cautious control on costs and focus on efficiency and productivity, we were able to defend our margin growth across channels and maintain our standing in premium segments across brands like Red Label, Comfit, Power. We added 24 Franchise Stores in the quarter, primarily in Tier 3 – 5 towns to cater the demand for branded products and achieve better returns on capital,” Shah added.
At 11:07 AM, shares of Bata India were trading 2.73 per cent high rat Rs 1,411 per share. By comparison, S&P BSE Sensex was trading 0.46 per cent lower at 74,161.45 levels.