Footwear retail company Bata India Ltd’s share prices on Thursday surged 5.3% to hit a record high of Rs.1,755 apiece. The price hike comes at a time when sales loss of the company in June quarter was narrowed down to 69 crores.
In the 2020 June quarter, the loss was reported to be Rs.101 crores. Speaking about the loss reduction, Gunjan Shah, CEO at Bata India said in a statement. “The first quarter had some challenges for businesses across the country, including ours. However, this time around, we were better prepared as we had a more agile contingency plan in place which helped us navigate adroitly through the changing business landscape amidst infection surge.”
“Since the ease in lockdown, footfalls in our retail outlets have started growing, signalling strong signs of recovery.” Shah further added.
Bata in the statement said that the sale at retail stores remains somber due to the second wave of COVID-19. But the sale of its products through e-commerce continues to remain strong.
According to a report released by ICICI Securities Ltd on August 12, Bata’s sales declined due to “lower demand for formals” as schools were shut down and offices had restricted operations.
Bata India’s total revenue was Rs. 267.04 in the quarter that ended in June 2021. In 2020, the net revenue of the company was Rs. 135 crores. The company opened seven more retail stores in 2021, taking the total number to 234. Sale through e-commerce platforms contributed to 15% of the total sales.
