Shoemaker Bata India Ltd on Monday reported a 56.68 percent decline in consolidated net profit at Rs 38.40 crore for the fourth quarter ended March 2020 due to COVID-19 induced lockdown.
The company had posted a net profit of Rs 88.66 crore in January-March quarter a year ago, Bata India said in a BSE filing.
Revenue from operations declined 8.77 percent to Rs 620.57 crore during the quarter under review as against Rs 680.23 crore in the corresponding quarter of last fiscal.
"The decline is primarily attributed to the severe disruption in operations caused by lockdown due to the COVID-19 pandemic," Bata India said in a post-earnings statement.
Total expenses declined 3.81 percent to Rs 579.46 crore as against Rs 602.46 crore a year ago.
For fiscal year 2019-20, Bata India's net profit was almost flat at Rs 328.95 crore. It stood at Rs 328.99 crore in the previous year.
Revenue from operation rose 4.26 percent to Rs 3,056.11 crore in 2019-20 as against Rs 2,931.10 crore in 2018-19.
"It is gratifying that despite closure of our retail outlets due to the lockdown, we were able to close the year with turnover and profit growth. This was possible on account of focus on diversification of product portfolio, consumer-centric campaigns, new and franchise store openings, non-retail and digital businesses," Bata India CEO Sandeep Kataria said.
The company is expanding its e-commerce footprint and ramping its presence in online marketplaces, allowing delivery in over 1,300 cities, rolling out home delivery across over 900 stores, he added.
Bata India is also giving its customers an option to shop from homes via WhatsApp chat with neighbourhood stores of the company, Kataria said.
On future outlook, Bata India said it is closely working with the Council for Footwear, Leather and Accessories (CFLA) and Retailers Association of India (RAI) to take up industry-relevant issues like rentals, safety of customers and retailers' needs.
"In parallel, it is working on various cost-optimisation measures including rentals renegotiation, closure of unviable stores and digitalisation drive across the organisation etc to eliminate redundancies and bring efficiency in value chain," the company said.
In a separate filing, Bata India said its board has recommended a dividend of Rs 4 per equity share for the financial year ended March 31, 2020.The board also approved re-appointment of Ram Kumar Gupta as Director Finance (Chief Financial Officer and Key Managerial Person) of the company for a period of three years from August 19, 2020, it said.