Bata India Q4FY23 PAT up 4.22% at Rs66 crore on rent concession adjustments

Bata India reported 17.04% higher revenues for the March 2023 quarter on consolidated basis at Rs779cr on increased premiumization resulting in better price realization. Sequential revenues were down -13.51%. The company continues with its aggressive store expansion taking its network to over 2050 stores across 700 cities. Premiumization led to much better realization of yields on shoes leading to higher sales.

Operating profits for the quarter were up 15.1% in Q4FY23 at Rs75.78 crore. NPS improved from 76 to 80 over the last year ago quarter. The company has declared dividend of Rs13.50 per share subject to approval of shareholders. The quarter also saw sharp growth across all channels including the EBO channel, MBO channel and also the ecommerce channel.

Financial highlights for Mar-23 compared yoy and sequentially

The pressure on net profits came from the expensing of lease rental concessions which led to a sharp spike in the other expenses in the quarter. The net margins went down from 9.46% to 8.43% yoy. However, the premiumization of products, especially the premium category, should result in better margins in coming quarters.