Bata India Limited

Gunjan Shah

MANAGING DIRECTOR AND CHIEF

Amit Aggarwal

DIRECTOR (FINANCE) & CHIEF

Nitin Bagaria

AVP AND COMPANY SECRETARY – BATA INDIA LIMITED

Rahul Arora

NIRMAL BANG EQUITIES PRIVATE LIMITED

rs,

ndix has been uploaded. You can have a look at it at your leisure. Moving into the key growth levers, therefore, I am on Slide #6, which is basically talking about six items that I will be talking to

60%

of the network, as well as in isolation per se. So, lines in these stores have reduced by almost 60%. Sales per square foot have actually gone up. And because this has resulted in significant invent

38%

is has resulted in significant inventory reduction along with lines at, as you can see, 0.628, so 38% reduction, the ROIC on these stores has gone up. It's also over a period of time. Now we have s

300 basis point

average of two minutes. These stores are now at 45 seconds. And the NPS of these stores is under 300 basis points better than the rest of the network. So, progress continues. I would have wanted a much larger p

8%

communicate our entire Floatz portfolio. It's now become, in many stores, contributing to almost 8% to 10% of turnover, significantly accretive from a margin perspective. Obviously, we have worke

10%

cate our entire Floatz portfolio. It's now become, in many stores, contributing to almost 8% to 10% of turnover, significantly accretive from a margin perspective. Obviously, we have worked on back

Rs. 100 crore

hould continue going forward. As I mentioned to you all last quarter, Floatz was the fastest to Rs. 100 crores plus, and that's what we saw in the calendar year, and we will hopefully want that momentum to o

33%

is the progress that we have managed to achieve. I think we will see a little more going forward, 33% reduction in the planned range for a store, right? That's the first quadrant that you see on the

Rs. 918.5 crore

p for questions here. Amit Aggarwal: Good afternoon, everyone. Revenue from operations stood at Rs. 918.5 crores, which represents 1.7% value growth. Gross margin at Rs. 515.6 crores, which is improvement by 1

1.7%

: Good afternoon, everyone. Revenue from operations stood at Rs. 918.5 crores, which represents 1.7% value growth. Gross margin at Rs. 515.6 crores, which is improvement by 17 bps over the last year

Rs. 515.6 crore

ue from operations stood at Rs. 918.5 crores, which represents 1.7% value growth. Gross margin at Rs. 515.6 crores, which is improvement by 17 bps over the last year gross margin. EBITDA margin at 22.7%, which a

17 bps

es, which represents 1.7% value growth. Gross margin at Rs. 515.6 crores, which is improvement by 17 bps over the last year gross margin. EBITDA margin at 22.7%, which also expanded by 141 bps, and whil

“Moving into the key growth levers, therefore, I am on Slide #6, which is basically talking about six items that I will be talking to you, the entire thing of keeping the store at the center to drive store growth, so both in terms of merchandising, it's become much larger than just merchandising, but the project is still called ZBM; and the value proposition which has also opened up in the last quarter; I will talk about that.”

“There is a lot of exciting work happening on it, some progress update as well as what we want to do going forward on Floatz and Power.”

“That's still in fine tune working, as well as in terms of store windows, etc., as you will see going forward.”

“So, good momentum and should continue going forward.”

“100 crores plus, and that's what we saw in the calendar year, and we will hopefully want that momentum to only continue going forward.”

“I think we will see a little more going forward, 33% reduction in the planned range for a store, right?”

“We will want to see a lot more reduction going forward, and I will keep updating you on that.”

“Backed by, as I said, better demand planning, supply chain and logistics, forecast accuracy is one of them, which is leveraging the technology tool that we have put in place called high performance merchandising, which I talked to you all in the previous quarters.”

“Last quarter, we had given a target of 100 stores by December and 250 stores by March '25.”

“So, it's not just initially, it started off and which is like the project is called zero-based merchandising, but it's much broader than just merchandising.”

Gunjan Shah

35

Moderator

10

Tejas Shah

7

Sameer Gupta

6

Ankit Kedia

5

Videesha Sheth

5

Gaurav Jogani

5

Amit Aggarwal

3

Awais Bakshi

3

Nitin Bagaria

2

Rahul Arora

Thank you, Ranju. I would like to welcome one and all on this call. And I would like to thank the Bata Management for giving us the opportunity to host the Earnings Call for the Quarter Ended December '24. At the outset, I would like to introduce Mr. Nitin Bagaria – the Assistant Vice President and Company Secretary, to make the introduction and introduce the management. Following which I think the management will make some opening comments and then we will take the Q&A. So, thank you once again to one and all and to the management especially. And Nitin, over to you.

Nitin Bagaria

Thank you, Rahul, and thank you, Nirmal Bang team, for putting this together. Very warm welcome to all of you. I have with me Mr. Gunjan Shah – MD and CEO. We also have Amit Aggarwal, who has joined us as a Director of Finance and CFO in December. We have shared the presentation with the stock exchanges sometime earlier today. We will be taking you through the same. We will navigate the slides as well as the page numbers to stay synchronized. On Slide number 2, we have the disclaimer. I am sure you have gone through the same. I now request Gunjan to take over and thank you once again for joining.

Gunjan Shah

Okay. Hi, everyone. Welcome to the call. I will now want to move to the presentation, and I will try and navigate through slides. I am on the Slide #3, which is the one with the levers: I have spoken about this, and we have changed the format a little for all of you, ladies and gentlemen. We have obviously uploaded the standard template, which gives you a little amount of longer-term direction, but I will want to focus on a few levers that we are trying to focus on to drive growth largely and some amount of efficiency/simplicity in the system, which will also result in better effectiveness of the business. I did talk about some of them in the last quarter also and I will show you progress update against that and what are our plans wherever I can comment on it. The rest of the appendix has been uploaded. You can have a look at it at your leisure. Moving into the key growth levers, therefore, I am on Slide #6, which is basically talking about six items that I will be talking to you, the

On the portfolio front

Two large initiatives continue. I have been talking about it for some time. There is a lot of exciting work happening on it, some progress update as well as what we want to do going forward on Floatz and Power. And last, but not least, as I mentioned, simplicity and agility, I will talk about two large areas, inventory, I talked about it last time, and complexity reduction. Okay. So, moving further into the store growth levers, store at the center of whatever we do, on the zero-based merchandising for enhancing consumer experience and therefore resulting in obviously both financial as well as non-financial metric improvement in the stores. The last quarter, as seen, now we have exited at 17, but it's been a fast pace towards the lag end of the quarter and that has now spread across three towns. This quarter, we should be ramping it up even faster now with having the learning spread across regions, the template set in terms of the playbook of how we want to roll it. The gains continue,

Amit Aggarwal

Good afternoon, everyone. Revenue from operations stood at Rs. 918.5 crores, which represents 1.7% value growth. Gross margin at Rs. 515.6 crores, which is improvement by 17 bps over the last year gross margin. EBITDA margin at 22.7%, which also expanded by 141 bps, and while the reported PAT is about Rs. 582 million, which is flat.

Gunjan Shah

Before exceptional, I forgot to mention, we did incorporate in the quarter that went by one-time exceptional item, which was on VRS related to one of our south factories. So, while I think four quarters back, if I remember right, we had taken in the closure of the Bangalore factory. This one was, partial VRS for a certain section of workers, which was amounting to about roughly Rs. 11 crores, yes. So, that we had taken incorporated. So, the PAT obviously is after that. Thank you.