Bata India: Running on the right track

Focus on women's segment and store expansion expected to improve firm's growth metrics

On a day the market was trading lower, Bata India surged nearly seven per cent after the company delivered better-than-expected results for the June quarter (Q1). The results, declared after market hours on Wednesday, saw it beat operating profit and net profit expectations. Revenues were broadly in line with analysts' estimates. While the top line at Rs 736 crore was up 10 per cent year-on-year (y-o-y), the increase in the operating and net profit was much higher at 16 per cent and 20 per cent, respectively. New store additions and strong same-store sales growth of 10 per cent helped revenues