Footwear maker Bata India's Q4 profit rises on lower costs, higher demand
18/05/2023 15:06
BENGALURU, May 18 (Reuters) - Footwear maker Bata India
Ltd BATA.NS reported a better-than-expected quarterly profit
on Thursday as raw material costs softened and demand for brands
such as Hush Puppies and Comfit rose.
Consolidated profit at the Netherlands-based Bata BN's
flagship rose to 656.23 million rupees ($8.02 million) in the
three months ended March 31, from 629.6 million rupees a year
ago.
Analysts on average had expected the company to post a
profit of 614.6 million rupees.
Bata's consolidated revenue from operations increased 17% to
7.79 billion rupees as fourth-quarter demand was also boosted by
robust growth in its Hush Puppies, Comfit, Floatz, Red Label and
North Star brands.
The company said in a statement that it had refreshed its
portfolio to offer premium products under these brands.
"During the last few quarters, we are witnessing consistent
demand for casual and comfortable footwear. This is due to
increasing trend for purchase of non-occasion wear and demand
for comfort and style," Bata Chief Executive Officer and
Managing Director Gunjan Shah said in a statement.
Strong demand for shoes and slippers also helped bigger
rival Relaxo Footwears Ltd RLXO.NS report a 9.6% jump in its
quarterly profit last week.
Separately, Gurugram-based Bata recommended a dividend of
13.5 rupees per share.
Bata's shares closed 0.43% lower ahead of results.
($1 = 81.7800 Indian rupees)
(Reporting by Manvi Pant in Bengaluru; Editing by Pooja Desai)
((Manvi.Pant@thomsonreuters.com;))