Footwear and fashion accessory manufacturer Bata India witnessed a sharp fall in December quarter profit and lower revenue, impacted by the COVID-19 pandemic. The company is now focusing on the online channel to increase its reach to customers, while expects earnings to recover with the opening up schools.
Speaking to CNBC-TV18, RK Gupta, Director-Finance at Bata India said that the company was awaiting schools to reopen.
“In some states, schools are already open and in others, there is a plan to open in Q1 of the next financial year. Therefore, with this, we are expecting a reasonable increase in our turnover and volume numbers towards positive. Till that time we are increasing our reach to our customers through online channel.”
According to him, low-value merchandise are in demand when compared to high-value products.
“Till the last quarter we have seen that low-value merchandise are in demand as compared to high-value products. However, in the coming quarters we are expecting that these numbers will go up,” said Gupta.
On the expansion front, he said that the company plans to open 55-60 new franchise stores in tier-III, tier-IV and tier-V regions.
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