Bata India's Q4FY16 standalone net profit declines 52.33% yoy to Rs.27.86 crore : Beats Estimates

The company’s standalone revenue stood at Rs. 544.72 crore, up 10.87% yoy but down 11.8% qoq.

May 30, 2016 6:09 IST | India Infoline News Service
Bata India, global footwear company, reported standalone net profit of Rs.27.86 crore for the quarter ended March 31, 2016, registering decline of 52.33% yoy and 37.49% qoq. The company’s revenue stood at Rs. 544.72 crore, up 10.87% yoy but down 11.8% qoq.

Its standalone core operating profit of Rs. 55.33 crore for the quarter, clocked growth of 18.08% yoy but decline of 30.69% qoq. Operating profit margin for the current quarter at 10.16% expanded by 62 bps yoy but contracted by 277 bps qoq.

For the year ended March 31, 2016, the company reported standalone net profit of Rs. 218.74 crore, growing by 14.06% yoy. Its standalone revenue for the period stood at Rs. 2,418.11 crore, registering growth of 9.99% yoy.

Bata India's core operating profit stood at Rs. 270.59 crore, recording growth of 0.56% yoy. Operating margin for the current period at 11% contracted by 124 bps yoy.

Bata India - Q4FY16 - Strong gross margin off-set by higher other expenses:

Bata India ‘s net sales increased by 10.9% to Rs545cr, 4.4%/1% lower than IIFL estimate of Rs. 570 crore respectively.  The company’s gross margin expanded by 147bps to 56.1% during the quarter.  However, the increase in other expenses by 172bps restricted EBITDA margin expansion for the company. EBITDA margin increased by 62 bps to 10.2%, 265bps/36bps lower than IIFL estimates. Hence, EBITDA grew by 18.1% to Rs 55cr, 24.1% lower than IIFL estimate of Rs73 crore. The increase in depreciation cost by 27.8% led a decline in PBT by 38.6% to Rs 45 crore.  During the quarter, effective tax rate increased to 37.7% as against 19.8% in Q4FY15 and 33.5% in Q3FY16, led a decline in PAT by 52.3% to Rs. 28 crore, 35.6%/13.7% lower than IIFL estimate of Rs. 43 crore.

Result Highlights: (Rs. in crore)

Reported Results IIFL Estimates Variance (%)
Standalone Revenue 544.72 569.91 [4.42]
Standalone Net Profit 27.86 43.28 [35.63]

Standalone EPS for the quarter stood at Rs. 2.17.

Bloomberg estimated the company’s standalone net profit at Rs. 33.23 crore.

Stock Commentary:

Bata India Ltd is currently trading at Rs. 576, up by 4.6 points or 0.81% from its previous closing of Rs. 571.4 on the BSE.

The scrip opened at Rs. 579.9 and has touched a high and low of Rs. 580 and Rs. 571.15 respectively. So far 225768(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 7344.06 crore.

The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 622.05 on 05-Aug-2015 and a 52 week low of Rs. 438.05 on 21-Jan-2016. Last one week high and low of the scrip stood at Rs. 577.4 and Rs. 532.3 respectively.

The promoters holding in the company stood at 52.96 % while Institutions and Non-Institutions held 27.63 % and 19.42 % respectively.

The stock is currently trading below its 50 DMA.

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