Shoemaker Bata India declared their Q1 FY21 results on Friday. The company reported an 85% fall in net sales year-on-year (YoY). A massive fall in the bottom line also forced the company to report net loss of Rs 101.13 crore. Last June, Bata India reported a net profit of Rs 100.73 crore.
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About the Company
Bata India is the leading footwear manufacturer in India. They are also the largest footwear retailer in the country. The company was set-up in Calcutta in 1932. It went public after 40 years in 1973. The company currently has around 1500 retail stores. Also, they cater the customers through non-retail stores with the aid of 30,000 dealers.
Company’s total expenses also registered a fall of 56.72% from Rs 743 crore to Rs 321 crore. This helped in limiting the damage to the bottom line of the company.
“Results in the first quarter of FY 2020-21 were severely impacted because of disruptions caused by the ongoing COVID-19 pandemic. We re-started our operations keeping the safety of our customers and employees in mind and line with government and our global standards. The results have to be viewed in this context.” said Bata.
Bata India CEO, Sandeep Kataria, also stated that this was one of the most unprecedented quarter in the history of the company. The production lines were completely shut due to the national lockdown and the sales dropped drastically low.
Bata is now focussing on increasing their digital presence. They are in discussion to put more of their items on e-commerce platforms. They are also ready to launch two local channels of shopping: Bata Chat Shop and Bata Stores on Wheel. The former one will help in shopping over the medium of Whatsapp. The latter will allow customers to shop at their doorsteps.
It will be interesting to see how the company deals with opening up of shops and their production houses, without compromising on the social distancing measures. You can find the quarterly results here.