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ICICI Securities Report
Bata India Ltd.'s weak performance continued in Q1 (revenue declined 55% QoQ) due to operating restrictions.
Portfolio-specific headwinds (higher formal and fashion salience) continued to hurt; some of the peers have been less impacted though.
We note several initiatives by Bata to accelerate recovery-
ramping up sales from new channels (ChatShop, Home Delivery, Store on Wheels),
capturing semi-urban / rural demand through franchisee stores, and
restarting promotional campaigns and new launches.
That said, the company is likely to be a key beneficiary of improved mobility as things normalise.
Inferior product mix (away from formals and fashion and more towards open style footwear), is likely to put further pressure on profitability till then.
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