Bata India, which reported its Q1 today net profit grew 2.5 per cent toRs. 39.4 crore as against Rs. 38.5 crore in the same quarter last year. In the December quarter, Bata's net profit stood at Rs. 52.75 crore.
Bata's revenue grew by 9 per cent y-o-y to Rs. 495 crore in the first quarter of calendar year 2014, but its net profit took a hit due to reduced ebitda (earnings before interest, tax and depreciation) margin. Its ebitda margin fell to 13.2 per cent from 13.8 per cent y-o-y in this quarter.
High rental and employee cost brought down its overall profit margin . Bata spent Rs. 4.5 crore in brand building in the March quarter, which impacted margins.