Bata Q4 results: Records revenue at INR 5,899mn; profits at INR 403mn

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Footwear major Bata India Limited announced results for the fourth quarter ended 31 March, FY 2021. Continuing with the positive trajectory of the previous quarter, the company registered profit of INR 403 Mn, with revenue from operations standing at INR 5,899 Mn.

While the third quarter ended on a comparatively stronger note because of festive sales, the Q4 results indicated steady and consistent growth in line with quarter’s seasonality.

Bata India further strengthened its ecommerce and omni-channel facilities to cover more pin codes across India. Bata also continued expanding retail network in tier 3-5 towns via franchisee route by opening 10 new franchisee stores and appointing new distributors to serve multi-brand stores.

image-Sandeep-Kataria-CEO-–-Bata-Brands-mediabrief.jpgSandeep Kataria, CEO – Bata, said, “The Q4 results are satisfactory for us, considering Q3 sales have historically been always better because of festive season. We continued our march towards recovery via our channel expansion efforts via Franchising, distribution and marketplaces routes.

“As the economy gained pace and offices started re-opening, we rolled out our first campaign of the year showcasing ‘Relaxed Workwear’ collection offering the best of comfort technologies across Bata, Hush Puppies, Bata Red Label, Comfit & Naturalizer brands.

“With omni-channel customer generating more revenue than a single-channel customer, we scaled up our tech-related solutions & investments to engage & offer better experiences and driving up cross-channel purchases, customer service & retention. With the surge in Covid cases in wave 2, we refocused to make Essentials & Fitness Sneakers available to our customers, as consumers stayed back in their homes.

“I am confident that the collective resilience across the country will see the nation through this trying phase also and would like to urge everyone to register for vaccination as it is our strongest shield against the virus,” Kataria said.

With the second wave forcing people to stay safe indoors, Bata will continue to serve its customers at their doorstep via multiple channels – www.bata.in, marketplaces, Home delivery, Bata Store-on-Wheel mobile kiosk activation in residential areas and Bata ChatShop WhatsApp shopping with same day delivery promise from nearby stores.

The company has adequate cash reserves and is curbing discretionary expenses to eliminate redundancies and introduce efficiencies in its value chain. Bata India remains hopeful that with the roll-out of vaccines for everyone above 18 years, business would start growing back.

Key highlights:

  • Bata India onboarded popular Bollywood actor Kartik Aaryan as its brand ambassador
  • Bata improved its customer experience for online & retail customers via investing in new technologies in areas of ticketing solution, online reputation management, new contact center partner & automating ecommerce-related processes
  • Bata continued to strengthen its e-commerce and omni-channel facilities in the fourth quarter as well by making a wider portfolio available on all marketplaces
  • Bata continued its cost-savings measures by collaborating with landlords for store rentals, controlling discretionary spends and looking for areas to drive efficiencies
  • Retail network was expanded through franchise expansion. The company opened a total of 10 franchise stores in smaller towns and cities, taking the total to 228 franchise stores
  • Bata was recognized by industry with multiple awards, namely, Best contactless Digital service – Bata ChatShop by The Customer Fest Show 2021; Most Admired Omni-channel retailer of the year by Mapic (Indian Retail Forum – IRF); ‘Retailer of the year – Footwear’ & “Bata X Coke Collaboration” as ‘Deal of the Year-Retail’ by Indian Retailer at LABELS conference & awards 2021
  • Carrying forward its fashion forward narrative, Marie Claire, the women’s fashion brand from Bata, collaborated with the designer duo of Gauri & Nainika to launch exclusive collection at FDCI X Lakme Fashion Week

Changes in the Board

  • The Board of Directors at meeting took note that Mr. R. K. Gupta (DIN: 01125065) would retire at end of business hours on June 30, 2021, upon completion of his tenure of services with the Company, from his position as Director Finance and CFO (KMP). The Board also placed on record its appreciation for the contributions and services of Gupta spanning over 35 years in various positions in Bata Group.
  • The Board of Directors also, approved the following, subject to approval of Members of the Company at the ensuing 88th AGM:
    1. Appointment of Ms. Vidhya Srinivasan (DIN: 06900413) as a Director Finance and CFO (KMP) (Whole-time Director) of the Company, liable to retire by rotation, for a period of 5 (five) consecutive years with immediate Ms. Vidhya Srinivasan is a qualified Chartered Accountant and holds a PGBDM degree from IIM – Ahmedabad. She had joined Bata India Limited as CFO during January 2021 from Puma Sports India Pvt. Ltd. where she was working as Executive Director – Finance, Legal and IT and CFO.
    2. Appointment of Radha Rajappa (DIN: 08530439) as an Independent Director of the Company, for a term of 5 (five) consecutive years with immediate effect. Ms. Radha Rajappa is an entrepreneurial business leader with more than 29 years of experience in IT industry handling diverse roles of creating, nurturing and leading businesses from start and scaling existing businesses. She has successfully built and passionately led various businesses in Digital Transformation and IT products and services. She holds degree in Electronics and Communications Engineering and a management degree from the Indian Institute of Management (IIM) Bangalore.