Bata India Reports Significant Profit Drop Due to VRS and Forex Losses
Bata India Ltd has announced a 95.2% drop in quarterly profit due to VRS costs and forex losses. The company reported a net profit of Rs 2.20 crore, compared to Rs 45.91 crore the previous year. However, revenue showed a modest increase, reflecting operational efficiency and cost management focus.
- Country:
- India
Shoe giant Bata India Ltd revealed a substantial 95.2% decrease in consolidated net profit for the March quarter of fiscal year 2025-26. The profit fell to Rs 2.20 crore, primarily attributed to voluntary retirement scheme (VRS) expenses and foreign exchange losses.
The company, in contrast, enjoyed robust revenue growth with operational income climbing 5% to Rs 827.6 crore compared to the same period the prior year. Although facing profit challenges, Bata India maintained focus on efficiency and strong cost management, yielding strong cash flow generation of Rs 132.2 crore. CEO Gunjan Shah highlighted the company's efforts in brand engagement and demand generation, underscoring a period of impressive topline growth.
(With inputs from agencies.)
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