Restructuring puts Bata's fiscal health on front foot
04 May '07
2 min read
The Company initiated a retail restructuring in Feb/ March 2007. The additional one time expense of retail restructuring incurred during the quarter is Rs.37.4 million.
This was undertaken to better serve the customers by keeping the shops open for longer hours and seven days in a week wherever permissible and to be more flexible in managing the business as per market realities.
In the 1st quarter of 2007 Profit before Tax and one time Retail restructuring expenses has improved from Rs. 48.1 million to Rs. 90.9 million i.e. an increase of 89% over the same period last year.
However, net profit has come down by Rs. 37.4 million due to the one time Retail restructuring cost, to Rs. 50.5 million against Rs. 44.1 million in the same period last year.
Net turnover has increased by 9.5 % on quarter to quarter basis against an increase of 3% in first quarter of 2006 over the same period of 2005.
Sales in High-End Flagship stores have increased by 15.1 % in first quarter of 2007 compared to first quarter of 2006 and constitutes around 37.4% of total Turnover.
The growth was substantially contributed by better shoe design and renovation of the existing stores/ new stores of international standard.
In terms of amended clause 41 of the listing agreement, details of number of investor complaints for the quarter ended 31st March, 2007 : beginning Nil, received 10, disposed off 10 and pending Nil.
The Company operates in two segment manufacturing and sale of footwear and investement in Joint Venture for surplus Property Development.
These results have been reviewed by the Audit Committee and taken on record by the Board of Directors in their meeting held on 28th April, 2007 and figures of the previous year have been regrouped and rearranged, wherever necessary.
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