Bata India’s Net Up 17% to Rs 62 Crore

Bata India, the leading footwear manufacturer in the country, has come up with a good set of numbers for the June 2013 quarter. The company has reported 13.7% growth in the topline to Rs 572 crore while its net profit surged by 17.6% to Rs 62 crore.

During the quarter, the company has seen a rise in the EBITDA margins. Overall, the EBITDA margins of the company stood at 16.79% against 16.52% reported a year earlier. On a sequential basis, the margins have shown an improvement of 293 basis points. The main reason behind this is the decline in the shop rents. The company has reported a rent of Rs 32.18 crore in the quarter against Rs 53.82 crore reported in the corresponding quarter of the last fiscal, which is a 40% decline in the rent expenses, thus boosting its EBITDA margins by 27 basis points to 16.79%.

The company is also looking at increasing the number of stores and will be opening approximately 100 new format stores this year. During the June quarter, the company has opened 15 new stores in prime shopping locations across major cities.

Rajeev Gopalakrishnan, Managing Director of Bata India has said that the year so far has been good and the company continues to see strong growth and greater opportunities going ahead. He also said that the company will benefit from its aggressive retail expansion plan, newer designs and newer product ranges.

The shares of Bata India, in the last two sessions, have lost 6.3% but, owing to the results, we expect a price appreciation in the next few sessions.