Quarterly Results: Bata India Ltd

Technical View:

Bata India Ltd., is currently trading at Rs. 413.8, up by 10 points or 2.48% from its earlier closing of Rs. 403.8 on the BSE.

The scrip has touched a high and low of Rs. 418.35 and Rs. 400 respectively, after opening at 404.2. Altogether 1159764(NSE+BSE) shares have been traded on the counter so far; and the stock is currently trading above its 200 DMA.

Standalone Results Q2FY17:

Bata India’s standalone Q2FY17 results have come in as a mixed bag vs Bloomberg estimates. Revenue has come in 6.1% lesser than the estimate of Rs 621.4 cr. EBITDA too has depleted 9.3% from the estimated figure of Rs 59 cr. However, net profit is 2% greater than the estimated figure of Rs 34 cr.

The quarter's revenue stands at Rs 583.75 cr, which is more or less in conjunction with the same quarter of last year. During the quarter company launched Bata European collection and entered into women’s festive segment.

Bata's EBITDA has surged by 11.4% yoy to Rs 53.52 cr and EBITDA margins have improved by 81 bps to 9.2%, triggered by 20% yoy drop in raw material costs.

Company's adjusted net profit however, eroded by 23.2% yoy to Rs 34.59 cr, partially driven by upsurge in company’s finance costs by 125% yoy.