Bata India Q2 Results Review - Resilient Performance Amid Challenging Times: Axis Securities

Axis Securities Report

Bata India Ltd.'s Q2 FY23 topline was in line with our estimates with revenue of Rs 830 crore, registering a growth of 35% YoY. The growth was driven by improved consumer sentiments on account of regional campaigns planned for the festive season and higher realisations due to faster sneaker growth.

Bata India's Gross margins improved to 55% (up 209 basis points YoY), but gdown 163 bps QoQ on account of raw material inflation. The company’s Ebitda margins remained flattish YoY at 19.4% due to gross margin pressure and higher opex, partly offset by cost rationalisation measures undertaken by the company.

Ebitda stood at Rs 161 crore (23% below our estimates) on account of higher operating expenses. Recurring profit after tax stood at Rs 55 crore. Overall demand improved as schools, colleges, and offices operated at pre-Covid levels while Sneakers continue to lead the growth recovery.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime 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 BQ Prime.

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