Bata tumbles by more than 3 per cent; stock declines more than 20 per cent on YTD basis
On Wednesday, the shares of Bata India fell by around 3.39 per cent per share on BSE after the company announced a net loss for Q2FY21.
For the quarter ended September 2020, on a consolidated basis, the company’s net sales declined by 49.05 per cent YoY to Rs 367.8 crore due to the business disruptions caused by the COVID-19 led lockdown. For Q2FY21, Bata India incurred a net loss of Rs 44.3 crore as against a net profit of Rs 71.3 gained in Q2FY20.
During Q2FY21, the company launched digitally-enabled channels like Bata ChatShop, Bata Home Delivery, and Bata Store on Wheels.
With the reopening of the economy, the company’s stores have gradually resumed operations. As Bata enjoys a strong brand positioning, demand for its product is expected to revive soon. Going forward, Bata intends to continue expanding its digital presence and focus on cost-cutting initiatives. Innovation via agile product creation, the introduction of new emerging digital channels, expansion of the company’s presence in tier 3-5 towns, etc. will be Bata’s priorities to build up strong revenue growth.
The stock of the company was trading at Rs 1,323.65per share, down by 3.01 per cent or Rs 41.10 per share. Its 52-week high is Rs 1,897 and the 52-week low is Rs 1,017.20 on BSE.