Lower input costs, higher share of premium products to improve profitability
Footwear major Bata India is expected to see higher volume growth going ahead, driven by the cut in goods and services tax (GST) as well as higher footfalls. For Footwear priced up to Rs 1,000 a pair, the government had cut GST from 18 per cent to 5 per cent.
From the end of July this year, when the cuts were announced, the stock has gained about 18 per cent, outperforming peer index BSE FMCG that clocked gains of 1.5 per cent, in the process. Analysts had upgraded the stock as they had expected the company to report better numbers starting from the December.
Source- Business Standard.