During the year to December 31, 1999, the company achieved sales of Rs 773.64 crore, a four per cent growth on the previous year's Rs 743.17 crore. The profit after tax also improved by 26 per cent to Rs 30.46 crore from Rs 24.26 crore.

The company's risk profile had deteriorated in the mid-1990s due to the limited success of its strategy of shifting focus towards premium segments. Since 1995, when it reported a loss of Rs 42 crore, the turnaround strategy focussing on `high-volume, value for money' segment has paid off.

Mudaliar attributed the financial success mainly to managing director WK Weston and his team who effected the turnaround of the company. Bata's share prices have, however, gone down significantly over the last three months. While in January 2000 the low was Rs 134, in February it touched Rs 120. But in March it fell to Rs 90 only. Mudaliar blamed it on the erratic behaviour of the investors and their preference for the new economy stocks."Also, the fact remains that we act merely as stock watchers, not as operators," said Mudaliar. He said around 37 per cent of the shares have already been dematerialised.Weston said Bata's plans include laying greater emphasis on the rural market.He said the threat posed to leather product exporters by the campaign of Peta, or People for Ethical Treatment of Animals, is a minor deterrent that has been blown out of proportion by the media.However, wholesale export under the open general licence is feeling some pressure.