Bata India’s fourth quarter revenues have declined by 4.8 per cent to Rs 588.9 crore. The company has witnessed a 21.9 per cent Y-o-Y decline in profit after tax to Rs 29.4 crore. The fourth quarter results indicate steady and consistent growth, in line with the quarter’s seasonality. The company has adequate cash reserves and is curbing discretionary expenses to eliminate redundancies and introduce efficiencies in its value chain. It hopes ongoing vaccination to further boost sales.
Bata India’s gross margins during the quarter improved by around 160 basis points (bps) quarter-on-quarter (QoQ) to 53.1 per cent. However, on a YoY basis, gross margins declined 570 bps owing to an unfavorable product mix. Subsequently, EBITDA margins declined 340 bps YoY to 19 per cent.
Bata India continues to strengthen e-commerce in Q4FY21 by making a wider portfolio available on all marketplaces. The company has tweaked its product portfolio from formals and fashion categories to casuals, fitness, and essential categories, covering comfortable sneakers, open and sandals styles, says ICICI Securities.
