Bata India (500043) Q3 24/25 earnings summary

Executive summary

• Focused on growth and efficiency through store-centric initiatives, portfolio expansion, digital growth, and operational simplicity.

• Strategic levers include Zero-Based Merchandising (ZBM), value proposition simplification, merchandising, and inventory optimization.

• Brand campaigns and new product launches targeted at youth and festive seasons, with Floatz and Power showing strong momentum.

• Franchise network surpassed 600 stores, up from under 100 three years ago, with expansion to 1550+ towns and 14,500+ MBOs.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were approved and released following a board meeting on February 10, 2025.

Financial highlights

• Consolidated revenue from operations for Q3 FY25 was Rs. 9,187.94 million, up from Rs. 9,034.72 million in Q3 FY24; nine-month revenue was Rs. 27,005.72 million, up from Rs. 26,807.39 million year-over-year.

• Gross margin at 56.2%, up 141 bps YoY; EBITDA margin at 22.7%, up 17 bps YoY.

• Consolidated net profit for Q3 FY25 was Rs. 586.99 million, compared to Rs. 579.77 million in Q3 FY24; nine-month net profit was Rs. 2,847.41 million, up from Rs. 1,988.62 million year-over-year.

• Reported PAT was ₹58.2 crore, flat year-over-year, impacted by an exceptional VRS item of ₹11 crore.

• Volume growth turned positive for both the quarter and nine-month period.

Outlook and guidance

• ZBM rollout to focus on top 250-300 COCO stores, targeting those contributing to 50% of turnover.

• Continued focus on franchise and distribution expansion, digital sales, eCommerce, and omni-channel growth.

• Net store additions to resume after ongoing rationalization, aiming for 30-40 EBOs per quarter.

• Interim dividend of Rs. 10.00 per share and final dividend of Rs. 12.00 per share were declared and paid during the nine months ended December 31, 2024.

• Ongoing cost control and supply chain agility in a dynamic environment.