Bata profit falls by 56.68 per cent

Bata India Limited (BIL) announced financial results for the quarter ending March 31, 2020. On a year-on-year consolidated basis, the revenue from operations decreased by nine per cent to Rs 620.5 crore in Q4FY20 as against Rs 680.23 crore in the same quarter last year. As per the company’s BSE filing, this was primarily due to the lockdown of the company's stores as per the government directives for COVID-19. Employee benefit expense for Q4FY20 surprisingly saw an increase of 8.27 per cent to Rs 91.90 crore, as against Rs 84.88 crore last year. The total expense for Q4FY20 stood at Rs 579.4 crore as against Rs 602.4 crore last year, decreasing by 3.81 per cent. Profit for the period reduced 56.68 per cent to Rs 38.4 crore as against Rs 88.66 crore last year.

India still has lower footwear consumption per head i.e. 1.7 in comparison to around 3 in China. Moreover, per pair spent is also on the lower side. The organised part of this industry is approximately 40 per cent. Of the organised part, BIL commands a share of 15 per cent. Bata has the largest range of footwear in Indian market. The parent company-Bata is the world’s leading shoemaker by volumes.

The stock on May 26 closed at 1286.05, up by 0.79 per cent or Rs 10.10 per share. Over the last one year period i.e. (May 24, 2019 to May 26, 2020), the stock has given an absolute return of -4.04 per cent, comparing the closing prices of the two dates.