Q3 2024 Bata India Ltd Earnings Call Transcript
Key Points
- Bata India Ltd (BOM:500043) saw a 120 basis point expansion in gross margins, reaching 56% from 54.8% last year.
- The company continued its premiumization journey, with premium categories like Hush Puppies and Bata Comfort outgrowing the overall portfolio.
- Digital commerce showed strong double-digit growth, contributing significantly to overall business performance.
- Bata India Ltd (BOM:500043) successfully expanded its franchise network, crossing 500 stores, which is a more capital-efficient channel.
- The company made significant investments in marketing, resulting in improved brand health metrics and higher consumer awareness.
- Revenue growth was muted at 0.4%, with total revenue reaching INR904 crores compared to INR900 crores last year.
- The mass market segment continued to see sluggishness, impacting overall growth.
- Despite significant marketing investments, consumer response was muted, affecting sales throughput.
- The company faced a mid-single-digit decline in volume growth, attributed to lower price point segments.
- Increased expenses in technology and marketing led to a 10% decline in EBITDA, with EBITDA margin falling to 21.3%.
Ladies and gentlemen, good day, and welcome to Bata India Q3 FY24 earnings conference call hosted by ICICI Securities. (Operator Instructions). Please note that this conference is being recorded.
I now hand the conference over to Mr. Varun Singh from ICICI Securities. Thank you and over to you, sir.
Thank you, Manuja. Good afternoon, everyone on behalf of ICICI Securities. It is our absolute pleasure to host Bata's Q3 FY24 earnings conference call. From the management today, we have with us Mr. Gunjan Shah, MD and CEO; Mr. Anil Somani, Director, Finance and CFO; and Mr. Nitin Bagaria, AVP, Company Secretary. Thank you. And over to you, sir.
Thanks, Manuja, thanks, Varun and ICICI Securities. A warm welcome to all of you. We have Gunjan, our India CEO and we have Anil, Director, Finance and CFO. We have shared the presentation with the stock exchanges sometime earlier.
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