Q3 2025 Bata India Ltd Earnings Call Transcript
Key Points
- Bata India Ltd (BOM:500043) reported a 1.7% growth in revenue from operations, indicating a positive trend in sales.
- The company achieved a gross margin improvement of 17 basis points year-over-year, reflecting better cost management and efficiency.
- EBITDA margin expanded by 141 basis points, showcasing enhanced operational efficiency.
- The Floatz brand continues to perform exceptionally well, contributing significantly to turnover and margins.
- Bata India Ltd (BOM:500043) has successfully reduced inventory levels to the lowest in eight quarters, while maintaining high availability, indicating effective inventory management.
- The company is behind its target for implementing zero-based merchandising, with only 17 stores completed against a target of 100 by December.
- There was a one-time exceptional item related to VRS at a South factory, impacting the reported PAT.
- Store additions have been flat, with no net increase in the number of stores this quarter.
- The transition to a higher proportion of franchise stores could potentially impact gross margins negatively.
- Revenue growth was modest at 1.7%, which may not be sufficient to leverage cost structures and improve profitability significantly.
(audio in progress) Bata India Limited Q3 FY25 earnings conference call hosted by Nirmal Bang Equities Pvt Ltd. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Rahul Arora, CEO of Nirmal Bang Equities Pvt Ltd. Thank you and over to you, Mr. Arora.
Thank you, Ranju. I'd like to welcome one and all on this call and I'd like to thank the Bata management for giving us the opportunity to host the earnings call for the quarter ended December '24. At the outset, I would like to introduce Mr. Nitin Bagaria, the Assistant Vice President and Company Secretary, to make the introductions and introduce the management, following which, I think the management will make some opening comments and then we'll take the Q&A.
So thank you once again to one and all, and to the management especially, and Nitin, over to you.
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