Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    

| More

Bata India - Q1FY21 First Cut - ICICI Securities

Posted On: 2020-08-08 22:19:51

(CMP: Rs. 1258; MCap: Rs. 16173 crore)

Results for the quarter were materially impacted owing to temporary store closures for ~45 days and closure of schools (Q1 is the strongest quarter for Bata owing to sale of school shoes). Results came in below our estimates across all parameters.

Q1FY21 Earnings Summary

- Bata reported revenue de-growth of 85% YoY to Rs. 135 crore (vs. estimated de-growth of 75% YoY). Post lockdown relaxations, stores re-opened gradually, however operations were impacted owing to frequent lockdowns and restrictions mandated by local administrations

- Company undertook rationalization of fixed overheads with employee and other expenses declining by 14% and 57% YoY to Rs. 85 crore and Rs. 56.0 crore, respectively. Further, company secured significant lease rental waivers (~50%) leading to cost saving of Rs. 50.1 crore. Despite sharp reduction in operating overheads, EBITDA losses came in higher than our estimates owing to significant contraction in gross margins (down 1430 bps YoY to 40.4%). Subsequently, EBITDA loss came in at Rs. 86.1 crore (I-direct estimate: loss of Rs. 56.2 crore)

- Loss at PBT level came in at Rs. 135.0 crore (I-direct estimate: loss of Rs. 112.6 crore), however tax write back (Rs. 34.0 crore) led to company reporting PAT loss of Rs. 101.1 crore

Around 85% of the stores are currently operational, with Bata achieving ~40% of pre-Covid sales level. Apart from strengthening its e-commerce channel, company has rolled out two new hyper local channels: a) 'Bata ChatShop' (allowing customers to shop remotely from neighbourhood stores by interacting with store managers via WhatsApp) and b) 'store on wheels' (temporary stores are set-up in association with RWAs in residential localities). Given the current demand scenario, Bata has also launched various new products, in categories such as fitness-at-home, Easy-wash & Work-from-Home. Franchise store rollout continues with a plan to open 500 stores by 2023. We believe that with its strong brand patronage and pan-India retail reach, Bata India should be able to revive its revenue growth trajectory as and when the impact of the Covid-19 is phased out.

Shares of BATA INDIA LTD. was last trading in BSE at Rs.1258.4 as compared to the previous close of Rs. 1263.8. The total number of shares traded during the day was 69283 in over 4495 trades.

The stock hit an intraday high of Rs. 1271.4 and intraday low of 1252.15. The net turnover during the day was Rs. 87268957.

We will soon be coming out with a detailed report.

Source: Equity Bulls

Click here to send ur comments or to

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only., its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.

Other Headlines:

Mazagon Dock IPO fully subscribed on Day 1 - Angel Broking

Pharma - Sector Thematic - Cardiac: the heartbeat of domestic market - HDFC Securities Institutional Research Desk

Walmart-Tata Retail Deal - Mr. Himanshu Nayyar, YES SECURITIES

HDFC Securities Institutional Research Desk: Chemical Conference Report

Lupin - Launch of Fosaprepitant - Angel Broking

Infosys - Key beneficiary of increased IT spending - Angel Broking

Gateway Distriparks - Holding structure simplified; prepared for next phase of growth - ICICI Securities

Visaka Industries - Demand and pricing tailwinds sustain; maintain a compelling BUY - ICICI Securities

GSK Pharmaceuticals - Analyst call highlights - Sep 28, 2020 - ICICI Securities

HeidelbergCement India - Play on better priced Central India; initiate with BUY - ICICI Securities

Healthcare - Diagnostics: Multiple tailwinds likely to emerge - ICICI Securities

Mazagon Dock Shipbuilders Ltd - IPO Review - ICICI Securities

Persistent Systems - 28th September 2020 - Angel Broking

Canara Bank - 28th September 2020 - Angel Broking

Subscribe to UTI Asset Management Company Limited - IPO Note - Angel Broking

Multiplex Sector - Mr. Jyoti Roy - DVP - Equity Strategist, Angel Broking Ltd

Sale of Sequent stake to Strides Pharma - Angel Broking

Subscribe to Mazagon Dock Shipbuilders Ltd - IPO Note - Angel Broking

JSW Energy - First big renewable step - ICICI Securities

V-MART Retail - Best play in value fashion segment; initiating with BUY - ICICI Securities

Gas sector - New winners and losers likely on policy changes in gas sector - ICICI Securities

Mazagon Dock Shipbuilders Limited - IPO Note - Geojit

UTI Asset Management Company Limited - IPO Note - Geojit

Preview on RBI Monetary Policy - Oct 2020 - Shanti Ekambaram

Rollover Report for September 2020 - October 2020: Angel Broking

Covid Recovery Pulse - Sep 25, 2020 - ICICI Securities

Quick Comment - Suven Pharmaceuticals - ICICI Securities

Derivatives Strategy - Sep 25, 2020 - Positional Option - ICICI Securities

Gladiator Stocks - Ramco Cement - ICICI Securities

IPO Review - UTI Asset Management Company - ICICI Securities

Stock of the Day - Zensar Technologies - Sep 25, 2020 - Angel Broking

Accenture Q4FY2020 Result - Angel Broking

Granules India receives ANDA approval - Angel Broking

Zydus Cadila receives US FDA approval - Angel Broking

Cipla - ANDA approval - Mr. Yash Gupta - Equity Research Associate, Angel Broking Ltd

Mindspace REIT - Mr. Yash Gupta - Equity Research Associate, Angel Broking Ltd

UTI AMC - IPO - Mr. Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking Ltd

Balkrishna Industries - Growth momentum continues - ICICI Securities

Rollover Analysis (September 25): Nifty starts October series with low OI amid high volatility

Derivatives View (September 25): Sell Bank Nifty in range of 20650-20750 - ICICI Securities

Rollover Analysis - Sept 20: Selling climax on expiry as markets crumble - YES Securities

Zydus Wellness - Leadership in niche categories; initiate at BUY - ICICI Securities

Power - Setting the stage - ICICI Securities

Company Update - Elgi Equipments - ICICI Securities

Nano Nivesh - The Anup Engineering - ICICI Securities

RBI OMO announcement of Rs. 10000 crore - Angel Broking

TCS deal win - Sep 24, 2020 - Angel Broking

View on Pre-Monetary Policy by Upasna Bhardwaj, Senior Economist at Kotak Mahindra Bank

US FDA approval to Zydus Cadila - Angel Broking

HDFC Securities Institutional Research Desk: Cement Sector Thematic - Spotting the sweet spot

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019