Bata India announces Q1 results; Sales remained subdued owing to the second wave of Covid-19

 

Mumbai: Footwear major Bata India Limited today announced results for the quarter ended 30th June, 2021. Sales across retail outlets remained largely subdued, owing to the second wave of Covid-19 infections and ensuing lockdowns. However, sales through ecommerce platforms continued to remain robust and witnessed an uptick despite the restrictions. Revenue from operations for the quarter stood at INR 2670 million and net loss after tax amounted to INR 713 million.

Bata India continued to strengthen its retail presence in tier 3-5 cities by opening 7 new franchise stores during the first quarter despite the lockdown, taking the overall tally to 234 franchise stores. The brand also scaled up its website, www.bata.in, and continued to reach out to its customers through hyperlocal channels – Bata Chatshop and Bata Store on Wheels, thereby making remote shopping experience more convenient.

Supporting the country in combatting the pandemic, Bata India has been at the forefront to conduct vaccination drives across its regional offices and factories for its employees and their families. Till now, Bata has successfully vaccinated 99% of its staff with the first dose, and expects to complete full vaccination in the current quarter. The company also set up a Covid Task Force cross every region to extend support to its employees and their families in case of an emergency.

Gunjan Shah, CEO – Bata India Limited, stated: ‘The first quarter had some challenges for businesses across the country, including ours. However, this time around, we were better prepared as we had a more agile contingency plan in place which helped us navigate adroitly through the changing business landscape amidst infection surge. While our retail outlets were largely shut, we were able to serve our customers through alternate channels such as our website www.bata.in, online market places, Bata ChatShop, and Bata Store on Wheels. These channels have enabled us in minimising the overall impact of the second wave. We also continued with our retail expansion drive and opened 7 new franchise stores in tier III-V cities during the first quarter. Since the ease in lockdown, footfalls in our retail outlets have started growing, signalling strong signs of recovery.”

Keeping pace with current consumer trends, Bata India curated and prompted relevant collections for its customers like Work from Home, Fitness at Home and Monsoon Collection. The Company continued to also optimize its retail network and look for cost-savings across operations, manufacturing and drive efficiencies in its value chain.

 

Key Highlights:

· Bata continued with its retail expansion drive in tier3-5 cities through franchise route. The company opened 7 new franchise stores during the first quarter, taking the overall tally to 234

· Sales through digitally enabled services continued to witness and uptick and now contribute to 15% of total sales in the current quarter.

· The Company continued to expand I&D Business across new towns and enterprises reaching 900+ towns

· Set up COVID Task Force across regions to help employees and their family members with oxygen cylinders, concentrators, essential medicines, and hospitalization

· Launched Pan India tie-up for online doctor consultation and home collection services for employees and their families

· Donated 20 oxygen concentrators, 3,700 PPEs and 10,000 N95 masks to local hospitals and healthcare facilities. Also donated 7,000 Bata Kits to frontline workers and Covid warriors like policemen, doctors and healthcare staff