Bata India Limited — Q3 FY25
Bata India reported a muted Q3 FY25 with revenue of INR 918.55 crore, up only 1.7% YoY, reflecting sluggish demand.
neutral
medium
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
71%Questions answered1Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Challenges in executing zero-based merchandising, behind target of 100 stores by Dec.
Asked by Ankit Kedia, PhillipCapital
Acknowledged delay but gave no specific new target or quantified impact.
no revised timeline givenqualitative explanation only
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Question
Last quarter, we had given a target of 100 stores by December and 250 stores by March 2025. We are still at around 17 stores in the presentation for December. So we are behind that target. So any challenges in executing zero-based merchandising?
Gunjan Shah, Managing Director and CEO
Yes, you're right. ... we realized that three, four things go together. ... the physicality of the change and simultaneously the question of training the trainers ... took time. ... I'm pretty confident we should get back to the earlier plan, albeit with a lag of a quarter or a few months.
Partial answer
High priority
Will zero-based merchandising cover COCO stores by end FY26?
Asked by Ankit Kedia, PhillipCapital
Gave a ballpark store count but no specific timeline for full rollout.
no number givenvague timeline
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Question
Sir, so in the overall, say by end of FY26, will we be able to implement zero-based merchandising across the COCO stores first?
Gunjan Shah, Managing Director and CEO
I don't have a number to give you right now, but the objective and endeavor would be to cover Pareto turnover contribution stores within such a long time period. ... top 50% turnover, which is what 250, 300 stores ballpark gets us there, is where we want to first wrap it up.
Answered
Medium priority
Exiting entry-level price points like INR 499, 599, 699 – impact on customer?
Asked by Ankit Kedia, PhillipCapital
Explained that price points vary by store and consumer cohort, directly addressing the concern.
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Question
At least in the example we have shared, we have exited the INR 499, INR 599, INR 699, the entry-level price points. Is that the right way to look at it? ... So how does the customer behave in that?
Gunjan Shah, Managing Director and CEO
No, Ankit, very perceptive question. ... it will be depending on consumer cohort. ... for a store that I have, let's say, in Meerut, I will have a very different, but they will still have three price points ... where maybe the 599 becomes now the critical price point.
Answered
High priority
What drove volume growth turning positive in Q3?
Asked by Ankit Kedia, PhillipCapital
Listed three specific drivers for volume growth, directly answering the question.
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Question
So till first half, our volumes were negative for YTD. You made a comment that for nine months, we have become positive on volume growth. So what changed in this quarter in terms of MBO traction, entry-level price points, value proposition?
Gunjan Shah, Managing Director and CEO
Three things. ... volume growth is across channels ... we have also leveraged and obviously set up the entire execution calendar for EOSS much better. ... some of these areas ... where consumers are looking for value.
Answered
High priority
No store additions this quarter – reason and future momentum?
Asked by Videesha Sheth, Ambit Capital
Explained net additions flat due to closures, gave timeline for improvement.
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Question
You've not added any stores this quarter. So anything that you'd like to call out over here on the store addition momentum going forward?
Gunjan Shah, Managing Director and CEO
The net additions have been flattish. That doesn't mean that we have not added. Gross additions have been there ... but we have also closed unprofitable stores. ... It will be there for another quarter or so, but then the gross additions will keep happening. Eventually, net will start taking over.
Answered
Medium priority
Will net store additions return to 30-40 per quarter?
Asked by Videesha Sheth, Ambit Capital
Confirmed the run rate directly.
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Question
And the net additions, once the momentum improves, should it return to the earlier run rate of 30-40 stores per quarter?
Gunjan Shah, Managing Director and CEO
Yeah. Absolutely. 30-40 on the EBO front, including franchise, for sure.
Partial answer
Medium priority
Revenue contribution of Pareto stores for zero-based merchandising?
Asked by Videesha Sheth, Ambit Capital
Initially said no number, then gave a ballpark for top 100 stores.
no ready numberdeferred to team
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Question
These Pareto-based stores, they would be contributing to what percentage of overall revenue that you're looking to roll out zero-based merchandising?
Gunjan Shah, Managing Director and CEO
I don't have ready numbers, Vidisha. I'm sure the team can share it with you. But the top 100 stores that we will want to first attack should be contributing to about 25% of our turnover.
Answered
High priority
What drove gross margin expansion YoY despite higher EOSS and volume growth?
Asked by Gaurav Jogani, JM Financial
Provided specific drivers and quantified margin expansion.
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Question
While we have seen that there are higher sales on the EOSS bit and also volume growing faster, so what really has helped the margin expansion on a YOY basis?
Amit (likely CFO) and Gunjan Shah
The overall gross margin has expanded by 17 basis points. This has come on account of ... tightening of the entire way we source the product as well as in-house manufacturing. ... the sale from discounted products has been slightly on the lower side versus year on year.
Answered
Medium priority
Impact of increasing franchise stores on gross margins?
Asked by Gaurav Jogani, JM Financial
Acknowledged the math and explained focus on EBITDA level.
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Question
As the proportion of the franchise stores are increasing, and mathematically, the gross margins for the franchise stores should be lower. So going ahead, what kind of margin expansion thought process should be there at the gross level?
Gunjan Shah, Managing Director and CEO
No, you're right in your thinking. Mathematically, that's how it works. ... we look at it basically at an EBITDA level, right? So at that level, basically, both of these get neutralized, and their franchise is significantly more accretive.
Partial answer
Medium priority
Performance of Power stores and future plans?
Asked by Gaurav Jogani, JM Financial
Gave qualitative progress but no quantitative performance metrics.
no specific numbersqualitative only
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Question
On the power part, now we have seven stores ... any further updates you can give how the performance has been for these seven stores, and how do you plan to take these ahead?
Gunjan Shah, Managing Director and CEO
The numbers show that there is progress happening. Are we satisfied with where we are? No. ... the prime driver will be Trading Density.
Partial answer
High priority
Bata brand contribution trend pre-COVID vs now?
Asked by Sameer Gupta, India Infoline
Did not provide specific contribution numbers, gave qualitative trends.
no numbers givendeferred to offline
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Question
Wanted to understand Bata as a brand. What is the contribution currently and how it has trended over time, let's say, pre-COVID versus current? ... there is a belief that the contribution has decreased significantly.
Gunjan Shah, Managing Director and CEO
I might not have the numbers handy, but Samir, we can definitely see how I can share it. ... the premium as well as the sneaker part has outgrown, and the massy piece, which was the 500 and thereabouts, is what has begun to erode contribution-wise.
Declined
High priority
Consumer-level growth adjusted for franchise mix?
Asked by Sameer Gupta, India Infoline
Explicitly said no answer available.
no answerdeferred to later
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Question
If the proportion of franchisee increases, this kind of also depresses the top line. So can you give a number on a consistent basis and for this quarter adjusted for franchisee or, let's say, consumer level, what kind of growth is happening in the turnover?
Gunjan Shah, Managing Director and CEO
I don't have an answer right now. We will try and get back to you.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Gross margin expanded by 17 bps YoY | 17 bps | 141 bps | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.