Why Bata India shares plunged over 3% today - Explained
Bata India plunged over three per cent today, a day after the company reported its net profit declined 10 per cent to ₹106 crore in the April-June quarter of fiscal 2023-24 (Q1FY24). Bata India's consolidated net profit in the corresponding period last year stood at ₹119.3 crore. The footwear major's revenue from operations stood at ₹958.1 crore, reporting a marginal rise of 1.6 per cent, compared to ₹943 crore in the year-ago period.
The stock hit an intra-day low of ₹1,636.95, over three per cent lower than its opening price of ₹1,679.90 apiece on the BSE. Shares of Bata India settled 3.01 per cent lower at ₹1,648.90 apiece on the BSE. On the operating front, the company's earnings before interest, tax, depreciation and amortization (EBIDTA) for the June quarter stood at ₹239.3 crore, dropping 2.2 per cent compared to ₹244 crore in the year-ago period.
EBIDTA margin came in at 25 per cent and declined by 100 basis points compared to 26 per cent in the same period last year. One basis point is one-hundredth of a percentage point. On the discretionary spending front, demand remains subdued in the footwear sector, prolonging the deceleration that started towards the end of March 2023, said Bata India in regulatory filing to the stock exchanges.
The company expects the demand recovery and acceleration during the festive season. The decline in net profit during the June quarter was also on the back on early start of End of Season Sale by the industry, said Bata India. ‘’Bata India remains focused on cost efficiency across all operations and optimizing our resources.
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