Bata India Faces Financial Strain Amid Declining Profit and Rising Interest Expenses

Bata India, a prominent player in the footwear industry, has recently undergone a financial trend adjustment reflecting a challenging quarter ending March 2025. The company's performance metrics indicate a notable decline, with a significant drop in profit after tax (PAT) to Rs 45.92 crore, marking a 26.3% decrease compared to the previous four-quarter average. Additionally, the operating profit to interest ratio has reached its lowest point at 5.13 times, while net sales have also dipped to Rs 788.21 crore.
The company's interest expenses have surged to Rs 34.76 crore, contributing to a lower profit before tax (PBT) of Rs 39.88 crore. Furthermore, non-operating income now constitutes 35.86% of PBT, highlighting reliance on non-core activities. The earnings per share (EPS) have also fallen to Rs 3.57, reflecting the overall financial strain.

In terms of market performance, Bata India's stock has shown a mixed return profile. Over the past week, it has slightly underperformed compared to the Sensex, while year-to-date returns reveal a decline of 8.36%, contrasting with the Sensex's gain of 4.47%. Over a longer horizon, the stock has struggled significantly, particularly over three and five years, where it has lagged behind the broader market index.