Footwear major Bata India reported a 48.3 percent jump in net profit at Rs 58.43 crore for the quarter ended March 31, 2015, mainly boosted by gains from exceptional items.
The company had posted a net profit of Rs 39.40 crore in the same period previous fiscal, the company said in a statement.
Net sales during the period under review, however, declined marginally to Rs 491.00 crore as against Rs 495.12 crore in the corresponding period previous fiscal, it added.
During the period under consideration, the company said it had a gain of Rs 23.91 crore related to part receipt of constructed space from an erstwhile joint venture and also partial write back of provision no longer required for meeting obligations relating to property development amounting to Rs 9.3 crore.
"Excluding the exceptional items, net profit has decreased by 36 percent. This was primarily impacted by supply chain issues," the company said.
Commenting on the company's financial performance, Bata India Group Managing Director Rajeev Gopalakrishnan said during the quarter the company's performance continued to be impacted by supply chain related issues.
"However, we are on a recovery path with gradual improvement in supply chain, new store openings and emphasis on customer service. The product catalogue has also diversified with an expansion in the accessories category," he added.
Bata India said its board has announced a split of face value of the equity shares of the company from one share of Rs 10 each to two shares of Rs 5 each, subject to approval of the shareholders at the forthcoming Annual General Meeting.
On future plans, Gopalakrishnan said: "The company plans to invest behind various activities like development of new channels and stores to address the growing consumer demand & preferences. The last quarter saw an opening of more than 38 stores and we intend to open more stores in the coming quarters."
The company has changed its financial year from January -December to April-March and accordingly the last financial year was extended till March 31, 2015 covering a period of 15 months, it said.
Bata India also announced appointments of Ravi Dhariwal as an Independent Director and Shaibal Sinha as an Additional Director (Non-Executive Director, liable to retire by rotation) subject to approval of the shareholders at the forthcoming Annual General Meeting.
Shares of Bata India ended the day at Rs 1,037.30 per scrip, down 4.20 percent from the previous close on the BSE.