Geojit: Bata Q1 Review - Weak Performance To Continue In The Short-Term

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..Geojit Research Report.Bata India Ltd. is the largest retailer and leading manufacturer of footwear in India with approximately 1,550 retail stores as of June 2020.Q1 FY21 revenue de-grew sharply by 85% YoY owing to lockdown in April and May and with nil production due to Covid-19 pandemic.Despite significant lease waivers (approximately 50%), Bata reported net loss of Rs 101 crore versus net profit of crore YoY due to sharp decline in gross margin (40.4% versus 54.7%YoY), low sales and high fixed costs.With gradual relaxation in lockdown, 85% of Bata’s stores are now open, but prevailing uncertainties are impacting discretionary demand, (currently achieved approximately 35-40% of the pre-Covid-19 business levels).We have cut down revenue/ earnings estimates to factor the impact of Covid-19, expected to grow at 4%/7% compound annual growth rate over FY20-22E. We believe, Bata will be able to revive its revenue growth trajectory when the economy is back to normal..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.

Geojit: Bata Q1 Review - Weak Performance To Continue In The Short-Term

Geojit: Bata Q1 Review - Weak Performance To Continue In The Short-Term

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