Bata India on Wednesday announced a 38% drop in profit in the second quarter, caused by outstanding costs and inflationary pressures that slowed presence at its shoe sales outlets.
The shoemaker said its consolidated profit fell to 339.9 million rupees ($4.1 million) in the July-September quarter from 548.2 million rupees in the previous quarter.
Last quarter’s results included a charge of Rs 409 million related to a voluntary retirement plan at one of its manufacturing units.
Bata India’s revenue fell 1.3% during the quarter.
Businesses in India faced a decline in visitor numbers this quarter as rising inflation pushed consumers to tighten their spending, especially on non-essential spending.
Although retail inflation in India has declined recently, it is still at an uncomfortable level.
However, Relaxo Footwear recorded a 97.3% increase in profit in early November, thanks to strong demand. Khadim India and Campus Activewear will announce the results later this month.
Shares of Bata, a unit of its Netherlands-based parent company, closed up 1.2% before results were released.
($1 = 83.2673 Indian rupees)
