Bata India’s net profit slips to Rs 34.48 crore owing to VRS outgo

While the company’s direct expenses went down for the quarter under review, the outgo of Rs.40.9 crore towards voluntary retirement scheme pulled down the net.

Chennai: Footwear major Bata India Ltd’s net profit slipped to Rs 34.48 crore for the second quarter of FY24 as against Rs 51.1 crore logged during the previous year’s corresponding period.

In a regulatory filing, Bata India said for the quarter ended September 30, 2023, it had earned an operational revenue of Rs 819.11 crore (Q2FY23 Rs.829.75 crore) and a net profit of Rs 34.48 crore (Rs 51.1 crore).

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While the company’s direct expenses went down for the quarter under review, the outgo of Rs.40.9 crore towards voluntary retirement scheme pulled down the net.

“Despite navigating through short-term demand headwinds in the quarter gone by, our focus on efficiency and productivity was reflected in robust operating profit margin growth. Prudent expansion of our retail network and marketing investments continue to be our key strategy,” Managing Director and CEO Gunjan Shah said.

A comprehensive licensing and manufacturing agreement has been signed with globally renowned fashion brand Nine West for bringing on-trend fashion designs to Indian consumers, the company said.