Bata India posts net loss of Rs 44.32 crore in Q2FY21
The footwear major Bata India on Tuesday reported a consolidated net loss of Rs 44.32 crore in the second quarter ended September 30, 2020, as it moved towards recovery from the coronavirus pandemic-induced disruptions.
The footwear major Bata India on Tuesday reported a consolidated net loss of Rs 44.32 crore in the second quarter ended September 30, 2020, as it moved towards recovery from the coronavirus pandemic-induced disruptions. The company had posted a consolidated net profit of Rs 71.30 crore in the corresponding quarter last fiscal, Bata India said in a regulatory filing.
The company's revenue from operation stood at Rs 367.87 crore during the quarter under review as against Rs 721.96 crore in the year-ago quarter. Its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at Rs 18 crore in the reported quarter against Rs 185.2 crore posted last year in the same quarter. On the same line, the margins contracted to 4.89 per cent in the second quarter of the financial year 2020-21 against 25.65 per cent reported in the same quarter of the previous financial year 2019-20.
Since the reopening of the economy in June, the company has continued its multiple measures to ensure customer safety, consumer-relevant communication, product availability and drive channel expansion, it said.
During the quarter, Bata India continued to optimise its retail network and look for cost savings across rentals and operations, manufacturing and drive efficiencies in its value chain. The company said, "All the cost-focused initiatives that have been put in place across multiple work streams will continue to have a long-term visible impact on the results, post-pandemic as well."
Commenting on the performance, Bata India Ltd CEO Sandeep Kataria said, "In this quarter, as all the stores opened-up gradually, we continued keeping the safety of our customers and employees in mind." He added, the company focused on scaling up presence in online marketplaces with an expanded range, scaling its channel bata.in and new digital channels such as 'Bata ChatShop', 'Bata Home Delivery' and 'Bata Store-on-Wheels' mobile kiosk to reach out to a wider customer base.
On the outlook, he said, "As we inch back to a semblance of normalcy, we are mindful that this is going to be a slow and steady recovery. Therefore, innovation via agile product creation, introducing new emerging digital channels, expansion in tier 3-5 towns, and cost-saving digitalization will continue to be a priority."