Footwear maker Bata India reported a 95.2% year-on-year drop in consolidated net profit to ₹2.2 crore in the March quarter (Q4FY26), hurt by a voluntary retirement scheme (VRS) charge and a forex-related accounting loss.
The profit is down sequentially by 96.6%. Bata incurred VRS cost of ₹28 crore and a non-cash forex loss of ₹22.4 crore due to restatement of financial liability towards royalty amid currency fluctuation in the quarter, according to an exchange filing on Wednesday.
In January, the company had approved a VRS option for workers at its Bata Shatak Unit in Hosur, Tamil Nadu. The company has rolled out similar schemes across manufacturing units in recent years and has also shut some facilities.
Bata posted a “volume-led” 4.9% revenue growth in the quarter to ₹827.6 crore. The company said it is the “second consecutive period of accelerating topline growth, supported by sequential improvement in momentum, with March performance stronger than January.”
“We also continued to invest in demand generation, consumer engagement and brand relevance, with advertising spends increasing by 1.5 times,” said Gunjan Shah, managing director and CEO, Bata India, in a press release.
Growth focus
The company said its gross inventory reduced by 13%, showing inventory discipline. Its premium portfolio, led by brands such as Hush Puppies and Power, outpaced overall growth.
Earlier in March, management told Mint that the company aims to derive about 25% of its total revenue from digital platforms in the next three years.
“In the next 2-3 years, it should be anywhere between 20 to 25% of our business,” Shah had said, adding that appealing to a younger customer base is among the company’s top priorities.
The board of Bata India has recommended a dividend of ₹9 per share in the board meeting.
Shares of the company closed over1% lower at ₹691 on the National Stock Exchange, while the benchmark Nifty50 ended down a tad lower. The stock is down about 45% over the past year.