Q2 2025 Bata India Ltd Earnings Call Transcript
Key Points
- Bata India Ltd (BOM:500043) reported strong growth in its premium brands, with Bata Comfit and Hush Puppies showing significant double-digit growth.
- The company expanded its retail footprint by adding 34 new franchise stores, bringing the total to 600 franchise stores and 1,355 COCO stores.
- Digital commerce continues to be the fastest-growing channel, with significant contributions from brands like Floatz and Bata Comfit.
- The company is focusing on supply chain efficiency by consolidating sourcing partners, aiming to reduce complexity and improve quality and cost-effectiveness.
- Bata India Ltd (BOM:500043) is implementing a zero-based merchandising initiative, which has shown promising results with a 20% increase in sales per square foot in pilot stores.
- Overall revenue growth was muted at 2.2%, with the company acknowledging a challenging consumption environment.
- Gross margins saw a contraction of 140 basis points, attributed to a mix of increased franchise and e-commerce sales and efforts to clear inventory.
- The mass portfolio, particularly products priced below INR1,000, has underperformed, with its contribution dropping significantly from pre-COVID levels.
- The company faces challenges in the value segment, with competition from private labels and modern retailers impacting market share.
- There is a noted increase in receivables, attributed to seasonal factors and marketplace business dynamics, which the company expects to normalize.
Ladies and gentlemen, good day, and welcome to the Q2 FY25 Bata India conference call hosted by Nirmal Bang Equities Private Limited. (Operator Instructions) Please note that this conference is being recorded.
I would now like to hand the conference over to Mr. Rahul Arora from Nirmal Bang. Thank you and over to you, sir.
Thank you, sir. On behalf of Nirmal Bang Institutional Equities, I'd like to welcome everyone on this call for the second quarter results of Bata India Limited. From the management, we have Mr. Gunjan Shah, the Managing Director and CEO; and Mr. Nitin Bagaria, the AVP Special Projects and Company Secretary.
At the outset, I'd like to thank the management for giving us this opportunity to host this earnings conference call. And I'd like to wish everyone a very happy Diwali and a prosperous new year on this call.
I request the management to begin with certain opening remarks on how the quarter has gone by, subsequent to which we can open up the floor to the
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