Bata India Q4 PAT declines 3% to ₹63.6 crore, stock trades in red, board recommends dividend of ₹12 per share

The company’s operating earnings before interest, tax, depreciation, and amortisation (EBITDA) saw a marginal increase in Q4FY24 having risen by 0.1% YoY at ₹182.2 crore.

For the financial year ending on March 31, 2024, the company’s net profit saw a decline of 18.7% YoY to ₹262.5 crore. Total consolidated revenue for FY24 rose by 1.43% YoY at ₹3,540 crore.

Bata India’s operating EBITDA for the financial year saw a fall of 1% YoY to ₹786 crore.

The company said it had renovated 67 stores during the quarter with a significant thrust towards portfolio newness with style and technology propositions. Bata India said it has 1,329 company-owned company-operated (COCO) and franchise stores.

The firm pointed out that on the digital sales front, e-commerce performance was encouraging and it achieved significant growth in e-commerce sales.

Gunjan Shah, managing director and chief executive officer of Bata India said that the company navigated well through unforeseen circumstances during the quarter.

“With cautious control of costs and focus on efficiency and productivity, we were able to defend our margin growth across channels and maintain our standing in premium segments across brands like Red Label, Comfit, and Power. We added 24 franchise stores in the quarter, primarily in tier 3 – 5 towns to cater to the demand for branded products and achieve better returns on capital,” Shah said.

The board of directors of Bata India recommended a dividend of ₹12 per share.

Shares of the company have declined by nearly 16% since the beginning of the year. The stock has lost nearly 13% in the last one year.