Dolat Capital: Bata India Q1 Revenue Hit By Covid-19 Led Lockdown; No Signs Of Normalisation

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Bata India Ltd.’s Q1 FY21 financial performance was significantly below our estimate. Nationwide lockdown not only impacted the revenue performance but also impaired margins significantly.Given that 25-30% of Bata stores are in malls, the company would take longer to witness revamp in footfalls, which would severely impact profitability.Bata witnessed strong revenue growth in past couple of years, mainly led by increase in average selling prices. We believe that the expected down trading would pressurize ASPs going ahead.Though significant negative impact is expected on sales; costs like rent, other operation related costs would not decline in the same proportion. Hence, Bata would take abnormally longer time to restore margins registered in pre-Covid-19 period..Click on the attachment to read the full report:.DISCLAIMERThis 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 brokerage 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.

Dolat Capital: Bata India Q1 Revenue Hit By Covid-19 Led Lockdown; No Signs Of Normalisation

Dolat Capital: Bata India Q1 Revenue Hit By Covid-19 Led Lockdown; No Signs Of Normalisation

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