Footwear maker Bata India posts fourth straight quarterly profit drop as expenses surge

Bata India

29/05/2024 15:09

BENGALURU, May 29 (Reuters) - Footwear maker Bata India  BATA.NS  reported a 3% fall in its
fourth-quarter profit on Wednesday, its fourth straight quarterly profit drop, on higher expenses and soft
demand.
    The company, which also sells brands such as Hush Puppies and North Star in India, said its consolidated
profit fell to 636.5 million rupees ($7.6 million)in the three months ended March 31 from 656.2 million rupees
a year ago.
    Revenue from operations rose 2.5% to 7.98 billion rupees.
    Its total expenses rose over 5% to 7.37 billion rupees.
    For further highlights, click: (Full story)
    
    KEY CONTEXT
    
    In response to sluggish volume growth, Indian footwear retailers have been offering substantial discounts,
which have weighed on their revenue.
    Nevertheless, premium products aimed at affluent consumers have been seeing steady demand.
    Rival Metro Brands had reported a bigger-than-expected rise in fourth-quarter profit last week, driven by
sales of high-end footwear.
    
    
    PEER COMPARISON

    
                                    Valuation     Estimates (next 12        Analysts' sentiment            
                                    (next 12           months)                                         
                                     months)                                                           
                         RIC       PE    EV/EBI   Revenue     Profit    Mean     # of      Stock to      Div
                                          TDA      growth     growth   rating*  analyst     price       yield
                                                                                   s       target**      (%)
     Bata India        BATA.NS    46.90  19.39     10.13      30.74     Hold      12         0.90        1.00
    Metro Brands       METB.NS    69.37  36.43     18.23       8.13     Hold      17         0.97        0.95
  Relaxo Footwears     RLXO.NS    70.56  37.30     14.90      35.84     Hold      12         0.98        0.31
  Campus Activewear    CAMU.NS    54.51  26.44     15.26        --       Buy       7         0.89         --
 
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading
above the PT
    
    
     JANUARY-MARCH STOCK PERFORMANCE
  
  
 
 
    -- All data from LSEG 
    -- $1 = 83.3627 rupees
    
    

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January-March stock performance_Bata India    https://tmsnrt.rs/452OaeH
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 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by Tasim Zahid)
 ((AshnaTeresa.Britto@thomsonreuters.com;))