Bata India Q2FY14 Net Profit Down By 4.14%

On standalone basis Bata India reported decline in the bottomline by 4.1% to Rs 59.36 crore against Rs 61.94 crore on yearly basis. The decline in the net profit was primarily due to increase in the total expense of the company.

The total expenses of the company increased by 18.31% to Rs 540.31 crore against Rs 450.48 crore in the corresponding quarter of the previous year. The increase in the expenses can be attributed to increase in the employees benefit expense which shot up by 50.74% YoY. The other expenses also increased by 14.91% YoY. The EBITDA for the quarter stood at Rs 96.7 crore against Rs 96 crore on YoY basis. The EBITDA margin fell by 120 basis points to 15.6% against 16.7% in the corresponding quarter of previous year. However the net sales of the company went up by 8.64% to Rs 621.58 crore against Rs 572.13 crore in the corresponding quarter of previous year. Cost of raw materials as a percentage of net sales was up by 12.96% against 13.88% YoY basis.

Commenting on the results, Mr. Rajeev Gopalkrishnan, Group MD, Bata Emerging Markets, Bata India said, "The aggressive retail expansion and renovation of stores, aspirational designs and addition of a wider range of accessories like bags, sunglasses, belts to our product portfolio, the expectation is to increase this growth momentum on the back of increase in consumer confidence level as we move through the year."

Management of Bata India further added that, they will be opening over 100 new stores this year. For the forthcoming Autumn Winter Collection launching in the month of August, Bata India will further be seen catering to a wide range of consumers with an exotic range for men, women and children.