Bata India misses quarterly profit estimates on low footwear demand

Campus Activewear

10/02/2025 14:16

Feb 10 (Reuters) - Footwear maker Bata India  BATA.NS  posted a smaller-than-expected third-quarter profit on
Monday, hurt by sluggish consumer demand amid high inflation.
    The company's quarterly consolidated profit grew 1.2% from a year ago to 587 million rupees ($6.71 million), but fell
short of analysts' estimate of 737 million rupees, according to data compiled by LSEG.
    Bata, which also sells footwear brands such as Hush Puppies and North Star in India, said its revenue in the quarter
rose 1.7% to 9.19 billion rupees, lower than the 9.59 billion rupees expected by analysts.
    
    KEY CONTEXT
        The company has posted 
    weak earnings
     for the 
    past few quarters
     as high inflation prompts customers to cut discretionary spending. It also battles increased competition from rivals
such as Relaxo Footwears and Metro Brands. 
  
        Relaxo's  RLXO.NS  third-quarter profit fell 14%, hurt by weak consumer demand, while Campus Activewear  CAMU.NS 
is expected to post results on Tuesday.
        
    PEER COMPARISON
                                   Valuation (next    Estimates (next 12     Analysts' sentiment                 
                                     12 months)             months)                                              
                                                                                                                 
                        RIC        PE      EV/EBIT  Revenue       profit     Mean      # of      Stock to price  Div yield
                                           DA       growth(%)     growth(%)  rating*   analysts  target**        (%)
 Bata India Ltd          BATA.NS    49.36    19.58      9.84        15.93    HOLD             9       0.95            1.42
 Metro Brands Ltd        METB.NS    74.63    38.46     16.16        26.06    BUY             20       0.97            0.36
 Relaxo Footwears Ltd    RLXO.NS    61.27    29.51      8.19        19.41    HOLD             9       0.83            0.56
 Campus Activewear Ltd   CAMU.NS    53.44    28.41     14.07        28.85    BUY              8       0.89       NULL
    
 * 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
    
    OCTOBER-DECEMBER STOCK PERFORMANCE  

    -- All data from LSEG
    -- ($1 = 87.4390 Indian rupees)

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 (Reporting by Aleef Jahan; Editing by Sahal Muhammed)
 ((aleefjahan.cs@thomsonreuters.com))