Bata India Q1 Results: Shares Tumble 4% Following Weak Q1 EarningsBata India Q1 Results: Shares Tumble 4% Following Weak Q1 Earnings

On Wednesday, Bata India’s shares fell by nearly 4% to ₹1,459.55 each on the NSE after the company announced disappointing results for the June 2024 quarter. Despite a 62.84% year-on-year (YoY) increase in Q1 net profit to ₹174 crore, this included a one-time gain of ₹134 crore from selling a property.

The company’s total consolidated income for the quarter dropped by 1.08% YoY to ₹960.8 crore. Additionally, earnings before interest, taxes, depreciation, and amortisation (EBITDA) decreased by 23% YoY to ₹184.9 crore.

By June 30, 2024, Bata India expanded its network to include 1,916 Company Owned Company Operated (COCO) and franchise stores. The company also renovated 37 stores during the quarter, focusing on portfolio upgrades.

Bata’s casual footwear strategy, led by its sneaker brand Power, performed well. The company also expanded its Sneaker Studios and Floatz Kiosk.

To cater to growing demand in tier 3-5 towns, Bata opened 33 franchise stores during the quarter. This expansion aims to meet the increasing demand for branded products and achieve better returns on capital.