Q1-FY25 · Gunjan Shah
It's been overall a relatively tough quarter, reflecting in our sales for a long time having dipped actually negative to -1%.
Bata India · tone and specificity signals across the available quarters.
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It's been overall a relatively tough quarter, reflecting in our sales for a long time having dipped actually negative to -1%.
Float continues significant momentum now on reasonably sizable base, contributions which are upwards of almost 4.5% in retail business.
We have successfully transitioned, I think actually about a month or so prior to even the 1st of August from our sourcing as well as manufacturing days.
While overarching, the quarter was a relatively tough one. It seemed a little better than what we had seen in the previous quarter of June to March. It still resulted in only flattish kind of a growth.
The lower price point, less than INR 1,000, is where the stress is, and that's where we want to basically keep accelerating ourselves while we push the premium part separately.
We are very aware in terms of top-line challenges because of various factors... Therefore, we are very tightly running the ship in terms of all the structural costs.
We would have at least reported a flat revenue versus a 4% decline what we're seeing right now from a top-line perspective.
The A&P investments have been almost two weeks compared to the previous period, and we are doing almost 3.5% versus 1.5%, which is there in the base previously.
We have seemingly cracked the model of moving this much faster, so instead of doing almost about 60-70 stores a quarter, we should be accelerating much faster now.
We actually sucked out the stocks, but we had not put in the fresh stocks sufficiently. And we actually lost sales for a week, and which is criminal.
The core will be to make sure that 1,250-store Bata banner keeps growing.
We have also closed unprofitable stores, right? Stores which were diluting from, let's say, like-for-like growth within the town.
We saw turnover growth of about 3% this quarter, it's been welcome after some time. We do see signs of momentum and green shoots.
The biggest one, not a hard decision but the one with the longest gestation, is the product piece.
We have reduced the number of lines, therefore less inventory to be managed. We are improving the freshness of the inventory.
We want to make sure Bata is the heart of our consumer base, which is basically the middle-class Indian.
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.
The overall cost structure, which is including your employee expenses, finance cost, depreciation, and other expenses, overall the spend is marginally lower versus last year.