BENGALURU (Reuters) – Bata India reported a 38% fall in second-quarter profit on Wednesday, hurt by a one-time charge and as inflationary pressures kept footfalls at its shoe outlets in check.
The footwear maker 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 year-ago quarter.
The latest quarter’s results included a 409 million rupees charge related to a voluntary retirement scheme at one of its manufacturing units.
Bata India’s revenue slipped 1.3% during the quarter.
Indian businesses grappled with lower footfall in the quarter as higher inflation pushed consumers to tighten their belts, particularly on non-essential spending.
While India’s retail inflation has eased of late, it still remains uncomfortably high.
However Relaxo Footwear posted a 97.3% surge in profit earlier in November, backed by strong demand. Khadim India and Campus Activewear will announce their results later this month.
Shares in Bata, a unit of its Netherlands-based namesake parent, closed up 1.2% ahead of its results.
($1 = 83.2673 Indian rupees)
(Reporting by Ashna Teresa Britto and Indranil Sarkar in Bengaluru; Editing by Savio D’Souza)