Bata India in Dialogue with Adidas for Strategic Partnership for Indian Markets
Sources reported on Aug 17 that Bata India is in talks with Adidas about a strategic partnership for the Indian market. As of 11:10 a.m., the share of Bata India was up 1.80%, while the benchmark indices were down nearly 0.3%. In Q1FY24, the company's net profit fell by 10%. In the same quarter last year, the company earned Rs 119.3 crore in net profit. The revenue from operations for the quarter was Rs 958.1 crore, a 2% increase over Q1FY23. Expenses increased to Rs 826.9 crore from Rs 792.6 crore in the previous quarter.
That was the company's slowest revenue growth since the March quarter of 2021, as it grapples with a growing consumer preference for casual wear, despite its better-known formal shoes. According to a May note from brokerage Ambit Capital, Bata has lagged behind its peers due to a slow pace of innovation and ebbing brand pull, while its lower-priced products have grown slower. As a result, analysts say, it has struggled with high inventory, forcing it to hold an early end-of-season sale.
During the quarter, the company's retail network grew by 70 stores, bringing the total store count to 2,100 across the country.
Bata India's Managing Director and CEO Gunjan Shah said that the company is re-entering the premium price points with new portfolios while increasing spending on advertising and promotions to connect with young, digitally savvy consumers.