Bata back in black after three years

 The company's net sales at the end of December 31,2005 stood at Rs 706.75 crore compared to Rs 698.49 crore. Total income was at Rs 725.39 crore as against Rs 698.49 crore.

Profit before tax was at Rs 13.59 crore compared to a loss of Rs 63.47
crore. Net profit was at Rs 12.49 crore compared to a net loss of Rs 62.75 crore.

 The company at its board meeting held today did not declare any dividend in view of the losses.

P M Sinha, chairman Bata India said, the turnaround was possible primarily due to cost control on all fronts.

He said, the increase in topline was marginal as the company held back sales to wholesalers and reduced outstanding by Rs 20 crore.

 Bata managed to pare staff cost by introducing voluntary retirement scheme (VRS) and reduced around 1,000 employees.

 The company managed to improve margins by more than 31 per cent over the previous year. Some of the stores were remodelled, which drove sales by 20-40 per cent.

Sinha said, Bata was eyeing a 10 per cent topline growth next year. The
growth would come from new stores, new designs with a thrust on quality.

The company planned to add 40 new stores and 10 of them were already
functioning. Bata was also eyeing new markets for its exports but Sinha
clarified that exports would be for higher margins. The company was
expecting significant profits this year.

Sinha said, the company would look at better utilisation of its factory. The
company was producing a major part of its sales and outsourcing the rest.
When asked whether Bata was planning any change in the ratio of outsourcing, Sinha said, the company would play according to marketplace requirements.