Supply chain issues hit Bata show

The company plans to invest in various activities such as development of new channels and stores.

The company has extended its financial year by three months to have an April-March accounting year instead of the earlier January-December schedule. File photo

Bata India Ltd. (BIL), the footwear major, saw a 36 per cent decrease in its net profit and a 0.8 per cent drop in net revenue for the quarter ended March 31, 2015, mainly on account of supply chain issues.

Net sales stood at Rs.491 crore for the quarter ended March 31, 2015, down 0.8 per cent over the same period last year. Net profit was higher on account of inclusion of exceptional items (gains from property sale) but lower at Rs.25.20 crore after excluding the Rs.23.9 crore receipts.

The company has extended its financial year by three months to have an April-March accounting year instead of the earlier January-December schedule.

“Our Q-5 performance continued to be impacted by supply chain-related issues,” Group Managing Director Rajeev Gopalakrishnan said. Things had now improved, he said. BIL had diversified with an expanded accessories catalogue, he added. As part of its brand extension strategy, the company has begun selling accessories since 2014. The product offerings contained leather and non-leather items including items such as belts, scarves and sunglasses.

“The company plans to invest in various activities such as development of new channels and stores to address the growing consumer demand and preferences,” the company said.

The last quarter saw an opening of over 38 stores and new catalogues vying to catch the eye of the young generation.

For the 15-month period ended March 31, 2015, Bata’s income from operations was Rs.2,692 crore with a net profit of Rs.231 crore.