Bata India (500043) Q3 24/25 earnings summary

Executive summary

• Focused on growth and efficiency through store-centric initiatives, portfolio simplification, digital expansion, and operational agility.

• Zero-Based Merchandising (ZBM), value proposition projects, and digital initiatives are central to improving consumer experience and store performance.

• Strategic brand campaigns, new product launches, and collaborations supported festive season sales and digital growth.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were approved and released following a board meeting on February 10, 2025.

• Statutory auditors conducted a limited review and found no material misstatements in the financial statements.

Financial highlights

• Consolidated revenue from operations for Q3 FY25 was Rs. 9,187.94 million, up from Rs. 9,034.72 million in Q3 FY24; nine-month revenue was Rs. 27,005.72 million, up from Rs. 26,807.39 million year-over-year.

• Gross margin improved by 17 basis points to INR 515.6 crores; EBITDA margin expanded by 141 basis points to 22.7%.

• Consolidated net profit for Q3 FY25 was Rs. 586.99 million, compared to Rs. 579.77 million in Q3 FY24; nine-month net profit was Rs. 2,847.41 million, up from Rs. 1,988.62 million year-over-year.

• Basic and diluted EPS (consolidated) for Q3 FY25 was Rs. 4.57, and for the nine months, Rs. 22.15.

• Reported PAT was INR 582 million, flat year-over-year, impacted by an INR 11 crore exceptional VRS item.

Outlook and guidance

• ZBM rollout is behind schedule but expected to accelerate, targeting top 250-300 stores covering 50% of turnover.

• Store addition momentum to resume after rationalization, aiming for 30-40 net new stores per quarter.

• Continued focus on expanding franchise and distribution network, digital sales, and omni-channel strategies.

• Ongoing investment in marketing to attract younger demographics.

• Interim dividend of Rs. 10.00 per share and final dividend of Rs. 12.00 per share were declared and paid during the nine months ended December 31, 2024.