Bata reports $258 million net profit for FY21 Q3

By

Isabelle Crossley

Published
Feb 10, 2021

Footwear brand Bata India has reported a net profit of $258 million (Rs 1,716 crore) for the financial quarter ending on December 31, 2020. The brand opened 45 franchise outlets during the quarter. 

 
Bata’s operational revenue for the third quarter of the 2021 financial year totalled $6.15 billion, it announced in a press release. The brand attributes the total to festive demand and a focus on hyper-local digital channels Bata ChatShop and Bata Store on Wheels.
 
“Owing to decline in Covid cases and vaccine rollout, the overall market sentiment is improving significantly,” said Bata CEO, Sandeep Kataria, in a press release.

“Backed by good festive sales and our targeted consumer outreach, our sales have recovered to 74% of pre-Covid levels. As a result of our focus on omni-channel retailing and scaling up our digital presence via online marketplaces and our online store, 60% of our marketplaces’ orders today are fulfilled by Bata stores and 100°% for bata.in.”
 
Bata saw footwear demand grow over the past three to six months, according to Kataria.

“We kept expanding our reach through new franchise and multi-brand outlet stores,” he said.

“While we focused on reviving sales, we also kept focus on cost-savings measures across our network and enhancing productivity. Overall, we're encouraged by the increasing momentum during the December quarter and we continue to launch new ways to serve our customers better, offering them greater convenience and flexibility. All these measures have enabled us to revitalise the business and soon we expect to get into the thrive phase of our recovery plan.”
 
The brand saw online sales increase threefold over the past year. Bata has also launched a number of campaigns in recent months including ‘Kick Out 2020’ and ‘Ready Again’, as well as its first-ever ‘Sneaker Fest’. With manufacturing back to pre-Covid levels, the business is also continuing to expand its retail footprint and opened 45 new franchise stores in the recent quarter, taking its current total to 221 franchise outlets.