Why Did Bata India's Q4 Net Profit Plummet by 28%?
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Synopsis
In an alarming financial report, Bata India has disclosed a staggering decline in its Q4 net profit, reflecting the challenges faced in the footwear market. With lower sales and weak demand impacting earnings, the company still managed to showcase resilience through its franchise and e-commerce channels. What does this mean for the future of one of India's leading footwear retailers?
Key Takeaways
- 27.8% drop in Q4 net profit year-on-year.
- Revenue fell to Rs 788.21 crore, a 1.2% YoY decrease.
- EBITDA margin shrank to 6.83%.
- Proposed final dividend of Rs 9 per share.
- Bata continues to grow through e-commerce and franchises.
Mumbai, May 28 (NationPress) Bata India revealed on Wednesday that its consolidated net profit experienced a significant decline of 27.8 percent year-on-year (YoY), totaling Rs 45.92 crore in the fourth quarter (Q4 FY25), a drop from Rs 63.65 crore during the same timeframe last fiscal (Q4 FY24).
The firm also reported a 21.8 percent decrease in profit sequentially, compared to Rs 58.70 crore recorded in the third quarter (Q3 FY25), as per its stock exchange filing.
Revenue from operations for Q4 was Rs 788.21 crore, a slight reduction from Rs 797.87 crore noted in Q4 FY24, marking a 1.2 percent YoY decline.
In comparison to the preceding quarter, revenue sharply fell by 14.2 percent, declining from Rs 918.79 crore, the company disclosed in its regulatory filing.
At the operating level, EBITDA for Q4 shrank by 26.4 percent YoY to Rs 53.8 crore, down from Rs 73.1 crore in the same quarter last year.
The EBITDA margin also diminished by over 200 basis points, decreasing to 6.83 percent from 9.16 percent in the corresponding period of the previous fiscal.
The company reported an operating profit of Rs 37.41 crore in Q4 FY25, down from Rs 58.26 crore in the same quarter of the prior financial year.
In spite of facing market challenges, it achieved volume-driven growth for the second consecutive quarter, buoyed by robust performance in its franchise and e-commerce segments.
Bata India's board has proposed a final dividend of Rs 9 per share for the fiscal year, pending shareholder approval.
Bata India's stock closed at Rs 1,275.60 on the Bombay Stock Exchange (BSE) on Wednesday.
Bata India is a prominent player in India's footwear sector and is a member of the global Bata Shoe Organisation, which originated in Czechoslovakia back in 1894.
The Indian division commenced operations in 1932 in Konnagar near Kolkata and has since evolved into the country's largest retailer and manufacturer of footwear.
The company operates India’s largest footwear manufacturing facility in Batanagar, Kolkata, catering to both retail and institutional clientele with a diverse range of footwear and accessories across the nation.
Point of View
Bata India's recent financial performance reflects broader trends in the retail sector, highlighting the impact of changing consumer behaviors and economic conditions. As a key player in the footwear market, it is essential for Bata to adapt and innovate to maintain its leadership position. The reported earnings, while disappointing, can serve as a vital catalyst for strategic adjustments in their business model.
NationPress
22/09/2025
Frequently Asked Questions
What caused Bata India's profit decline?
Bata India's profit decline was primarily attributed to weak consumer demand and lower sales in the fourth quarter.
How much did Bata India’s revenue fall?
Bata India's revenue from operations fell to Rs 788.21 crore in Q4, marking a 1.2% year-on-year decline.
What measures is Bata India taking in response to the decline?
Despite the decline, Bata India has focused on volume-led growth through its franchise and e-commerce channels.
Is Bata India issuing dividends?
Yes, Bata India's board has recommended a final dividend of Rs 9 per share, pending shareholder approval.
What is Bata India's history?
Bata India has been a part of the footwear industry since 1932 and is the largest footwear retailer and manufacturer in India.
