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Bata India sees drop in Q4 numbers

Bata, synonymous to Indian footware, has posted its Q4 results wherein the company has seen a drop in its revenues and third consecutive drop in the net profits. Overall FMCG companies have seen weakness due to weak macro growth, muted rural and urban demand and pricing bottlenecks amid competition.

The stock of Bata today stands flat to negative at Rs 568. The company also recommended a dividend of Rs 3.5 per equity share of Rs 5 each.

Bata India known for manufacturing adult and elderly footware is now penetrating into the youth brand to increase demand for its products. In Q4FY16 company has seen a drop in its standalone revenues by 11.7 per cent to Rs 544.73 crore as against Rs 617.23 crore in the last quarter. EBITDA too has dropped to Rs 55.34 crore from Rs 79.83 crore in the previous quarter. Net profits have declined nearly by half to Rs 27.87 crore from Rs 44.57 previously.

Year on year revenues show an increase of 10.9 per cent from Rs 491.01 crore during the corresponding quarter of last year. EBITDA too has reported a growth of 18 per cent from Rs 46.88 crore earlier. Net profits however, have dropped 52.3 per cent which was earlier quoted at Rs 58.44 crore. The drop in profits is amid nil exceptional items for Jan-Mar 2016.

Annually company’s revenues have dropped 9.9 per cent to Rs 2424.27 crore as against Rs 2692.09 crore for the year ended March 2015. EBITDA stands at Rs 270.63 crore noting 19.2 per cent drop. Net profit has dropped but with a lesser impact by 5.5 per cent to Rs 218.54 crore amid rise in exceptional items.

Bata India deals in the manufacturing and retailing of footwear and accessories for women, men and kids. It also operates a non-retail distribution network through its urban wholesale division. Bata India is the holding company of The Way Finders Brands Limited (WFBL).



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