Footwear retailer Bata India posted its third straight decline in quarterly profit on Monday, reporting a 73.26 % drop in consolidated net profit at Rs 13.9 crore in the September quarter. The profit was impacted by lower revenue and higher expenses.
The company had posted a consolidated net profit of Rs 51.98 crore in the corresponding period last fiscal.
Bata, which sells brands such as Hush Puppies and North Star in India, pointed to GST transition issues in Q2, saying that the festive season had showed signs of recovery after September 22.
Consolidated revenue from operations in the second quarter stood at Rs 801.33 crore compared to Rs 837.14 crore in the year-ago period. Its total expenses in the second quarter were higher at Rs 795.2 crore against Rs 785.09 crore in the year-ago period.
The company also reported an additional expense of Rs 8.27 crore due to a voluntary retirement scheme at a manufacturing unit. It added that, without disclosing details, that disruption in one of the company’s largest warehouses in July had a temporary business impact.
The company has been focusing on casual and athleisure lines to attract younger consumers amid a broader retail slowdown. Most analysts expect the firm to report better numbers in the second half of the year due to GST rate cuts and a consumption boost.