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Last Updated : Jul 31, 2012 10:38 PM IST | Source: CNBC-TV18

Bata plans Rs 100cr capex for FY13; co to open 150 stores

Footwear brand Bata India's net profit rose by 28.6% to Rs 52.6 crore in the quarter ended June. However, the company's sales growth was disappointing in the second quarter and Rajeev Gopalakrishnan, MD of Bata said sales were hit by a delayed monsoon.


Footwear brand Bata India's net profit rose by 28.6% to Rs 52.6 crore in the quarter ended June. However, the company's sales growth was disappointing in the second quarter and Rajeev Gopalakrishnan, MD of Bata said sales were hit by a delayed monsoon.


He held the low growth in its Sandak brand of shoes, a renowned segment popular among the masses during the rainy season, responsible for the sales hit.


The company saw over 20% growth in April-May, he told CNBC-TV18. Bata also reported 14-15% same store sales growth in Q2, informed Gopalakrishnan.


Here is the edited transcript of the interview on CNBC-TV18.


Q: Your sales are growing at a good clip but it has slowed down from 30% plus rate you were experiencing earlier, is there any slowdown that you are witnessing in key consumer segments?


A: The sales growth in the second quarter was slightly dipped because of a couple of reasons. One is because you have a delayed monsoon. In Mumbai as well as in the south, delayed monsoon has affected the sale of Sandak - which is one of our peak businesses.


In the month of June we had a dip in sales but, otherwise in May and April, we did more than 20-22% growth. In July again we are going back to the same kind of growth as before. It is only a temporary phase which has happened in the month of June and it has pulled us down a bit.


But the retail business is still growing at 21% even in this quarter. The wholesale business has been slightly affected because of the weather and the heat in the northern part of India.


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Q: How many new stores did you open this quarter and are you on track to achieve your full year guidance?


A: We will be opening more than 140 stores. So far we have opened around 115 stores, out of that almost 100 are Bata stores and the rest are Hush Puppies and Footin stores. We opened around 8 Footin stores this year and we are targeting 140-150 stores this year.


Q: What is the same store-sales growth this quarter that you have seen? How much can you maintain by the end of the year?


A: Same-store growth is also good; we are growing at almost 14-15% on same-stores.


Q: Could you detail the capex plans for the full year, the company has given some guidance of approximately Rs 100 crore, are you in track with that?

A; The capex plan for the full year is Rs 100 crore. Out of that, 80% will be spent on expansion of the retail stores, renovation and the relocation plan. The rest will be spent in manufacturing. We have already spent 50% of our capex for this year.



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First Published on Jul 31, 2012 04:18 pm
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