Shoemaker Bata India on Monday announced strong financial results for the second quarter. The company reported a net profit of ₹52 billion in the three months ended September 30, 2024, up 53.1% from last year, helped by operational efficiency and bonusing.

Bata, which sells brands such as Hush Puppies and North Star in India, made a profit of ₹34 billion in the same period last year. The previous year’s profit included: ₹40.9 crore fees related to voluntary retirement scheme.

Revenue for the quarter grew 2.2% to ₹837.1 crore compared to ₹819.1 crore in the previous year.

However, the company saw a 4% decline in EBITDA at ₹174.5 crore from ₹181.6 crore YoY. Bata’s EBITDA margin also fell to 20.8% compared to 22.2% in the same quarter last year.

Compared to Bata India, most apparel and footwear retailers saw a decline in domestic sales in the second quarter due to persistent inflation, fewer wedding dates and above-average rainfall affecting consumer spending.

Metro Brands and Shoppers Stop also reported weak quarterly earnings; However, Metro predicts that there will be a recovery in demand in the second half of the fiscal year, driven by holiday and wedding season spending. Relaxo Footwears and Campus Activewear have not yet released their second quarter results.

Bata India’s share finished down 1.9% ₹1,331 on Monday.

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