Bata India rose 1.35% to Rs 1706.55 after consolidated net profit jumped 30% to Rs 71.30 crore in Q2 September 2019 from Rs 54.86 crore in Q2 September 2018.
Net sales of the footwear maker were up by 7.3% to Rs 721.96 crore in Q2 September 2019 over Q2 September 2018. The result was announced after market hours yesterday, 13 November 2019.
Bata said its momentum is driven on the back of continuous investment done over the past few years in areas of product-innovation, store renovation, customer experience and marketing campaigns.
The company elected to exercise the option permitted under section 115 BAA of the Income Tax Act,1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019, the group has recognized provision for income tax for the six months ended 30 September 2019 and re-measured its deferred tax assets basis the rate prescribed in the said section.
Accordingly, the company's total tax expenses fell by 68.6% to Rs 9.68 crore in Q2 September 2019 from Rs 30.85 crore in Q2 September 2018.
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Bata's total expenses declined by 8.5% to Rs 536.61 crore in Q2 September 2019 from Rs 586.40 crore in Q2 September 2018.
The company said that the new campaign rolled out in this quarter "New Arrivals Every Friday" featuring new designs in every Bata stores has helped to attract new and old customers back to Bata stores and "Bata.in" online store.
Sandeep Kataria, chief executive officer, Bata India, "Our momentum is driven on the back of continuous investment done over the past few years in areas of product innovation, store renovation, customer experience and marketing. We have aggressively expanded our footprint through our franchising model along with a focus on the e-commerce led omni-channel platform, making Bata accessible across the length and breadth of the country. We also employed multiple cost savings initiatives along with restructuring of contracts and long-term negotiations, thereby helping us realize better margins and profits."
In a separate announcement, Bata India informed about the appointment of Ashwani Windlass as an additional director of the company with effect from 13 November 2019 to hold office as an independent director of the company for a period of five consecutive years, subject to approval of the members of the company.
Bata India is the largest footwear retailer in India, offering footwear, accessories and bags across brands. It retails in over 1,300 Bata stores, on bata.in and in thousands of multi-brand footwear dealer stores pan-India. It sells over 47 million pairs of footwear every year and serves to over 120,000 customers almost every day.
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