Bata India fell 1.14% to Rs 1349.25 after the footwear major posted a consolidated net loss of Rs 44.32 crore in Q2 September 2020 as against net profit of Rs 71.30 crore in Q2 September 2019.
Net sales declined 49% year on year to Rs 367.87 crore in Q2 September 2020 over Q2 September 2019. The company recorded a pre-tax loss of Rs 58.41 crore in Q2 September 2020 as against pre-tax profit of Rs 97.41 crore in Q2 September 2019. The result was announced after market hours yesterday, 10 November 2020.Bata India said it has continued its multiple measures to ensure customer safety, consumer relevant communication, product availability and drive channel expansion. All this has resulted in a consistent increase in footfalls across its retail outlets, along with growth seen via e-commerce platforms, expansion drive in smaller towns and newly launched channels Bata ChatShop and Bata Store-on-Wheels. However, the prevailing uncertainties continued to subdue the consumer demand for discretionary spends. The company added that it continues to optimize its retail network and look for cost-savings across rentals & operations, manufacturing and drive efficiencies in its value chain.
Commenting on company's performance, Sandeep Kataria, CEO of Bata India said, "We moved from revival to revitalization phase of our strategy. In this quarter, as all the stores opened-up gradually, we continued keeping safety of our customers & employees in mind. We focused on scaling up our presence in online marketplaces with an expanded range, scaling our own channel. On the physical stores, we expanded our reach in smaller towns, ensuring availability in multi-brand outlets via distribution channel and also optimizing our network in the cities. Along with channel expansion initiatives, we continued our strong focus on cost-savings measures across our network, controlling discretionary spends and enhancing productivity. These measures have laid the foundation that will help us capture the emerging consumer demand. As we inch back to a semblance of normalcy, we are mindful that this is going to be a slow & steady recovery. Therefore, innovation via agile product creation, introducing new emerging digital channels, expansion in Tier3-5 towns, and cost-saving digitalization will continue to be a priority."
The company said that it has witnessed increasing demand in semi-urban areas and has accordingly responded by opening up its 200th franchise store at Tenali, Andhra Pradesh, a small town in Guntur district. As the demand was stronger in Tiers 2-5, given relatively lesser impact of pandemic, Bata also leveraged the opportunity to expand its presence via distributor-led multi-brand outlets route. Currently the brand is getting distributed in over 30,000 Multi Brand Outlets (MBOs).
Bata India is the largest footwear retailer in India, offering footwear, accessories and bags across brands such as Bata, Hush Puppies, Naturalizer, Power, Marie Claire, etc.
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