Bata India - Well Placed To Benefit From Demand Normalisation: ICICI Direct

A customer looks at a Bata shoe inside a newly opened Bata India Ltd. store in Ghaziabad, India. (Photographer: Prashanth Vishwanathan/Bloomberg).

Bata India - Well Placed To Benefit From Demand Normalisation: ICICI Direct

Bookmark

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Direct Report

Bata India Ltd. witnessed a revenue recovery rate (adjusted) reaching 80% in Q4 FY21 versus 74% in Q3 FY21.

Lower revenues from formal and fashion footwear continued to impact gross margin YoY though QoQ gross margins witnessed an improvement.

Revenue fell 5% YoY to Rs 589.9 crore in Q4 FY21.

Aligning with the current demand scenario, the company tweaked its product portfolio from formals and fashion categories to casuals, fitness and essential categories.

Gross margins contracted ~570 basis points YoY to 53.1% mainly owing to unfavourable product mix.

Cost control measures led to lower other expenses.

Click on the attachment to read the full report:

ICICI Direct Bata Company Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.