Bata India Limited — Q4 FY25
Bata India's Q4 FY25 revenue declined 1.2% YoY to INR 788 crore, with PAT down 215 bps to INR 46 crore.
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.
54%Questions answered3Evaded / deflected12Questions auditedContradictedNumbers vs filing
Evasive
High priority
Quantify gross margin contraction impact from franchising and other reasons.
Asked by Sameer Gupta, India Infoline
Asked for quantification but only gave qualitative factors without numbers.
no quantificationvague factors
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Question
Sir, firstly, on the gross margin contraction this quarter, now I understand that increased franchising operations will also lead to some gross margin dilution. If you can maybe quantify the impact of that and rest if there is any gross margin contraction, the reasons for that.
Gunjan Shah, Managing Director and CEO
A couple of factors contributed to it. One is obviously the mix with obviously franchise and e-commerce does, as I mentioned in the past, have a different implication on the way it flows through from a gross margin to EBIT level. Also, the fact that we have been consciously providing value proposition...
Answered
High priority
Provide channel mix revenue breakdown for the year.
Asked by Sameer Gupta, India Infoline
Provided specific percentages for each channel.
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Question
Second is, sir, more bookkeeping question. If you can help me with the channel mix in terms of revenues for this year, Coco, franchisee, multi-brand distribution, and e-commerce. Should be basically about for the year, can I have it handy?
Gunjan Shah, Managing Director and CEO
Retail would be about 70% COCO. You will have franchise at about 7.5%, e-commerce at about 10%, and you will have IND at about 12%-13%.
Partial answer
Medium priority
Store addition momentum going forward after 100 stores added.
Asked by Videesha Sheth, Ambit Capital
Said higher but did not give a specific target number.
no specific numbervague guidance
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Question
The first question was that you ended the year with 100-odd stores being added. So how should we think of store addition momentum going forward?
Gunjan Shah, Managing Director and CEO
Yeah, it should be a little higher going forward, Videesha. Right now, as we look at it, right, obviously, as I mentioned, we would want to continue, and we've largely retained, which is about an 80-20 ratio between franchise and COCO. It should be a little higher next year compared to the previous year that we've seen.
Partial answer
Medium priority
Revenue contribution of key brands like Bata, Hush Puppies, etc.
Asked by Videesha Sheth, Ambit Capital
Refused to share full mix but gave a range for two brands.
declined to share full breakdowngave only range for two brands
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Question
If you could just help with the revenue contribution of the revenue mix from the key brands that you operate, being Bata and Hush Puppies, Comfort, etc.?
Gunjan Shah, Managing Director and CEO
We don't share that, but basically, I would say that the second and the third largest brands after Bata, which is the largest by far, right, is Hush Puppies and Power. They would be in the strong double digits in the range of about 20%.
Answered
High priority
Explain lower other expenses due to license rights adjustment.
Asked by Gaurav Jogani, JM Financial Institutional Securities Limited
Explained the accounting change clearly and confirmed it is recurring.
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Question
My question is with regards to just the lower other expenses this quarter. You did, I think, mention that there is some adjustment with regards to the license rights. If you can explain that a bit in detail and what exactly it is.
Amit Aggarwal, Director of Finance and CFO
In terms of, see, there is a change in the construct of one of our license brands, and in line with the earlier, the royalty what we were paying towards the usage of the brand was being charged as other expenses. However, in line with the index requirement due to change in the structuring of the agreement, the same has been led to creation of an intangible asset...
Evasive
Medium priority
Revenue performance of non-ZBM stores vs muted demand.
Asked by Gaurav Jogani, JM Financial Institutional Securities Limited
Did not directly answer why non-ZBM stores underperformed; spoke generally.
did not address non-ZBM stores specificallygeneral commentary
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Question
And sir, my next question is with regards to the overall demand conditions. So you did highlight that in the 146 stores where you have implemented the zero-based budgeting, there you were able to see a better revenue conversion volume, etc. But what about the remaining? Is it largely because of the muted demand environment exactly, or there is some other issue as well because of this the overall revenue performance has not been being flattish rather is what I would say.
Amit Aggarwal, Director of Finance and CFO
Yeah. No, so obviously, we know that the demand conditions have been tight, Gaurav. However, within that, what we see is that our ability to do two, three things, right? One is provide the right kind of portfolio to consumers...
Answered
High priority
Floats brand revenue run rate and current revenue.
Asked by Gaurav Jogani, JM Financial Institutional Securities Limited
Provided a specific revenue range for the current year.
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Question
Sir, I think last time you did mention that this has already crossed, I think, INR 1 billion plus in revenues for us. Any number that you would want to put out for this brand?
Amit Aggarwal, Director of Finance and CFO
At the run rate, in fact, it crossed out by a handsome margin. I'm assuming INR 1 billion is INR 100 crores, right? So it crossed it by a handsome margin last year. And this year, my sense is if this continues momentum, we should be in the range of about INR 200 crores.
Answered
Medium priority
What inventory is being reduced to introduce new products?
Asked by Ankit Kedia, Phillip Capital
Explained the types of inventory being reduced (aged, slow-moving, cannibalizing).
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Question
Sir, my first question is on the inventory. We are introducing more of the power products in the stores, which could be at a higher ASP. Two, we are reducing inventory in the stores of other products. Floats two years back was not there. Apple was not there two years back in the store. So what kind of the inventory are we reducing in the stores? I understand the clutter getting reduced, but what are these new products replacing in the store?
Gunjan Shah, Managing Director and CEO
There are two, three pivots that are there on this, Ankit. I mean, obviously, we can speak a long time because there's a lot of effort that's gone in. The results are now being seen, but it's been in the works for almost about a year, right? The first thing that's there is the one that I'm sure you can tangibly see is reducing the aged inventory...
Partial answer
Medium priority
Impact of lean demand on discounting and supply chain.
Asked by Ankit Kedia, Phillip Capital
Acknowledged discounting but did not quantify or give specific supply chain details.
no specific data on discountinggeneral process description
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Question
Sir, in a lean demand environment, what we have seen in the last two or three quarters, if the demand doesn't play out, do we see higher discounting? How does the supply chain at the back end work, given that you're more sharper in the inventory today?
Gunjan Shah, Managing Director and CEO
Yeah. It does result in that. It comes with a lag, and which is what I answered to someone else who was talking about it, that we are now also making sure that the products that we are looking for value proposition, we want to reset the cost price...
Evasive
High priority
Long-term financial metrics vision for Bata in 3-5 years.
Asked by Rahul Agarwal, Ikigai Asset
Declined to give specific financial metrics; gave qualitative aspirations.
refused forward-looking guidanceno specific financial targets
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Question
From an investor perspective, what would you expect Bata to look like three, five years out? When you are tangibly measuring success of these changes, how should we look at it? Specifically, talk about financial metrics. Will the Bata look very different from what we are looking at today in terms of growth margins, in terms of balance sheet terms? Anything you want to highlight?
Gunjan Shah, Managing Director and CEO
We don't normally give forward-looking commentary, but however, at least from a trust area and an impetus perspective, I will try and give you a few markers... One is that we want to make sure Bata is, how do you say, the heart of our consumer base... The second piece that's there is that we want over the next not only two years, but also five years to make sure that it's a volume-driven growth trajectory overall...
Partial answer
Medium priority
Inventory reduction: is the delta largely aged inventory?
Asked by Rajiv Bharati, Nuvama
Did not confirm the exact proportion but said large part is aged.
no exact breakdownqualitative only
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Question
Sir, on slide number 14, the inventory reduction part. And there you have mentioned that aged part, right? Is it safe to assume that this 16.5 or the delta between the two is basically largely aged in the inventory reduction?
Gunjan Shah, Managing Director and CEO
I cannot mathematically do it, but the large part would be, which is what I mentioned to another gentleman on this call sometime back, which is that there are multiple levers towards this inventory. I think the one that is the fastest and the most profitable is reduction of aged inventory...
Partial answer
High priority
Overall volume growth percentage at company level.
Asked by Rajiv Bharati, Nuvama
Refused to share exact figure but gave a qualitative range (mid-single digits).
declined to give exact numbergave vague range
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Question
On the overall volume growth at the company level, can you specify that number? How much is that?
Gunjan Shah, Managing Director and CEO
We do not share that, but as I have mentioned in my press release also, as well as my commentary at the start, the second quarter that we have seen reasonably broad-based volume growth in the mid-single digits would be the best.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Volume growth mid-single digits in Q4 | 5% | -1.2% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.