Shares of footwear manufacturer Bata India Ltd surged as much as 7.2% to hit an intraday high of ₹1,636.05 apiece on the BSE on Thursday after reports emerged that the company is seeking partnership with international footwear maker Adidas for the Indian market.

The share price of the retailer opened lower at ₹1,636.05, down 0.63%, as against the closing price of the previous session at ₹1,646.55. The scrip closed higher by 5.42% at ₹1,735.8. In contrast to this, the broader BSE Sensex closed 0.59% down or 388.40 lower at 65,151.02.

At present, the share price of the footwear manufacturer is trading 12.8% lower than the 52-high of ₹1,988.85, which the company touched exactly a year ago. The share price of the footwear retailer is trading 25.1% higher than the 52-week low of ₹1,380.85, which the company touched on March 20 this year. During the session, the company’s market capitalisation stood at ₹22,309.81 crore as 54,864 shares exchanged hands on the BSE as against the two-week average of 0.12 lakh shares.

As per CNBCTV 18, Bata India, which is a subsidiary of Bata Shoe Organization, is expanding its portfolio with premium brands. Through the partnership, the company is reportedly looking forward to catering to a wide range of customers ranging from budget-conscious consumers to premium consumers. The company already has premium brands such as Hush Puppies, Comfit and Floatz under its portfolio.

In the April to June quarter of FY24, the company’s standalone net profit declined by 10% year-on-year to ₹107.8 crore, as against ₹119.3 crore in the same period last year. The company’s revenue from operations stood at ₹958.1 crore, witnessing a growth of 1.6% year-on-year as against ₹943 crore in the same period last year.

The company's earnings before interest, tax, depreciation and amortisation (EBITDA) stood at ₹239.3 crore, during the quarter under review. The company’s EBITDA margin declined by 100 basis points in the June quarter.

"With our strategy of casualization and premiumization, expansion in Retail Network and accelerated investment towards core technologies (ERP, Merchandising, etc.,), we believe the template is set up for future profitable growth. Digital footprint through our omnichannel e-commerce revenue streams gained significant momentum in the quarter going by," said Gunjan Shah, MD and CEO - Bata India Limited.

"We continue to flesh out new opportunities across our value chain. We remain focused on cost efficiency across all operations and optimizing our resources. We are optimistic on the demand resurgence going ahead and continue to expand in Tier 3-5 towns, digital channels and make investments in elevating customer experience & brand marketing," he added.

The company expects demand recovery and acceleration during the festive season.

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Bata rises 7% on possible partnership with Adidas