Bata India sees 9% drop in total workforce, trims salary hikes in FY25
Bata India's Managing Director and Chief Executive Officer, Gunjan Shah, also saw a reduction in his annual remuneration in fiscal year 2025. Shah's FY25 compensation fell to Rs 4.68 crore
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Footwear major Bata India reduced its permanent employee headcount by 2.74% year-on-year in fiscal year 2025, bringing the number down to 3,961. In the previous two fiscal years, the company's permanent workforce stood at 4,073 (fiscal year 2023-2024) and 4,421 (fiscal year 2022-203).
As of 31 March 2025, the total employee count, including workers and other staff, was 9,005--a 9.06% decline year-on-year from 9,903 in FY24.
The company has also implemented a major cut in average salary hikes for staff in FY25 compared to the previous fiscal year.
According to Bata India's annual report, the average salary increase for employees other than managerial personnel was at 4% in FY25, down from 9% in FY24.
Despite this, the standalone employee benefits expenses increased by 10.3% YoY to Rs 461.6 crore in FY25 compared to Rs 418.2 crore in FY24.
Notably, salaries, wages, bonuses, and gratuity expenses accounted for the rise in employee benefits expenses in FY25. Salaries, wages, and bonus expenses surged to Rs 423.3 crore in FY25 from Rs 382.4 crore in FY24. Bata India's gratuity expenses increased from Rs 5.53 crore in FY24 to Rs 9.21 crore in FY25.
However, when it comes to overall expenses, Bata India slashed it by 2.56% YoY in FY25. The consolidated expenses of the company stood at Rs 764.5 crore in FY25, down from Rs 780.5 crore in FY24. The advertising and sales promotion expenses fell by 10% YoY, dropping from Rs 91.6 crore in FY24 to Rs 82.35 crore in FY25.
Moreover, Bata India's Managing Director and Chief Executive Officer, Gunjan Shah, also saw a reduction in his annual remuneration in fiscal year 2025. Shah's FY25 compensation fell to Rs 4.68 crore, including basic salary of Rs 3.48 crore, compared to Rs 5.53 in FY24, as per the company's document.
With cost rationalization, Bata India's revenue from operation rose marginally to Rs 3,488 crore in FY25 compared to Rs 3,478.41 crore in FY24. The company's net profit surged to Rs 328 crore in FY25 from Rs 260 crore in previous fiscal year.
"Despite the market headwinds, we witnessed volume-led growth in the last two quarters. Premium products saw bouts of healthy demand, driven by festive, wedding, and winter season sales," Shah said.
On the company's future strategies, he emphasized the investment in new-age digitization initiatives and constant improvement of operational and production efficiencies.
"Inventory tightening, both in terms of quantity and quality, was a key focus area, and we will continue to improve stock turns and forecast accuracy to achieve an optimal level of inventory and reduce clutter at stores," Shah added.
