Bata India
Bata India posted a set of disappointing set of numbers for its second quarter ended 30th June 2014. The company reported an over 4% (YoY) drop in net profit for the quarter at Rs.59 crore. Net sales had shown rise of 9% at Rs.621 crore and the slip in the bottomline was on account of a rise in operating costs, there is an expense of Rs.2 crore on its VRS and tax outgo too has risen 7% at Rs.29 crore. In operating cost, apart from rise in cost of raw material, a 50% rise in employee costs and 16% hike in rents added to the burden on the bottomline.
For the six months ended 30th June’14, net profit fell 2% at Rs.99 crore but the company has stated that this year’s numbers include an investment of Rs.5 crore made in Spring Summer 2014 marketing campaign and it hopes that benefits of the same will accrue during the second half of the year. It plans to open 100 new stores this year.