You can view the Bata latest quarter earnings report here.
Bata- Q4 FY20 (Audited –Cons)
CMP: 1,275
Total revenue from operations 621 Cr
680 Cr (-8.68%) YoY | 831 Cr (-25.25%) QoQ
Year ending revenue: 3,056 Cr Vs. 2,931 Cr (4.21%)
Net Profit of 38.4 Cr
88.6 Cr (-56.68%) YoY 118.2 Cr (-67.74%) QoQ
Year ending Net profit: 328.9 Cr Vs. 328.9 Cr (0.01%)
EPS (in Rs.) 2.99
6.90 YoY | 9.20 QoQ
Year ending EPS: 25.59 Vs. 25.60
View: The result is below expectations. YoY and QoQ revenue declined and profit significantly down in YoY and QoQ. Business Updates & Highlights:
EBITDA in Q4 FY20 stood at Rs. 156.6 crores, as compared to Rs. 122.7 crore in the corresponding quarter of last year up by 27.8%. The EBITDA margin is at 25.1% in Q4 FY 20 as compared to 18.04% in Q4 FY 19.
Gross Margin up by 140 bps in FY20 Vs. FY19.
Board of Directors of 'the Company at its meeting held on May 25, 2020, inter alia, has recommended a Dividend of Rs. 4/- (i.e., 80%) per equity share of Rs. 5/- each fully paid-up of the Company for the financial year ended March 31, 2020
Financial
ROE and ROCE is around INR 30% and 21% respectively and book value per share is around INR 135 and share is currently trading at 9.5x of its book value. Company is currently trading at annualized PE of around 50 which is high as per industry benchmark. Promoter holding is around 52.9% in the company which is good and stable. FIIs and mutual fund hold around 9.2% and 15.4% in the company. Cash and cash equivalent from operating activities as of March 2020 is around INR 581.7 Cr Vs. 344.8 Cr as of March 2019. Company has very good liquidity position and debtor realized on almost less than 10 days.
Position: Share strong support price is INR 1190. Long term investor should continue with the company with a target price of INR 1350/1480.
Share View: Share price high 1,897 (52 weeks) and now 1,265. Bata India is the largest retailer and leading manufacturer of footwear in India and is a part of the Bata Shoe Organization.
Opportunities: Company has a long track record and under the brand "Bata" is too strong and reach to every small city as well. The Company also bolstered its omnichannel home delivery offerings in 900+ stores, increasing its pan-India footprint. Bata is continuously focusing on E-commerce sale via online market place model during the COVID – 19 outbreak. Bata had good growth of 8% (Jan & Feb 2020) before the pandemic forced closure of stores in Mid March resulting in a decline for the quarter.
Risk: Due to COVID – 19 impact Q1 and Q2 will also be challengeable for Bata due to closure of stores in April and some stores in May month as well.
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