bata india results

bata india results

• bata india results The financial results for the fiscal year 2023–2024 (FY24) and the second quarter of FY24 were recently issued by Bata India,
• a well-known footwear manufacturer and retailer.
• These results offer insights into the company’s success in the face of a difficult economic climate.

FY24 Annual Performance:

• Bata India reported a slight gain in operating income in FY24,
• going from ₹34,516 million in the previous fiscal year to ₹34,786 million, a 0.8% YoY increase.
  EQUITY MASTER
• Operating profit margins dropped to 21.7% from 23.3% in FY23, and the company’s
• operating profit fell 6.2% year over year despite this revenue gain.
• This reduction suggests that pricing pressures or higher operating costs have affected profitability.
• The year’s net profit also decreased, going down 18.7% year over year.
• As a result, net profit margins dropped from 9.4% in the prior fiscal year to 7.5%.
• The company may have struggled to maintain its bottom line as a result of growing
• costs or competitive market conditions, as indicated by the decline in net profit margins.

Quarterly Results (Q2 of FY24):

• Bata India recorded a 53% increase in overall net profit at ₹51.97 crore in the second quarter of FY24.
  RETAIL IN ECONOMIC TIMES
  Considering the small revenue growth of 2.2% YoY to ₹837.14 crore during the same time,
• this considerable increase in profit is quite impressive.
  MONEY CONTROL
• Nonetheless, the business saw an 11.38% drop in revenue and a 70.14% drop in profit from the prior quarter.
  LIVEMINT
  These quarterly drops draw attention to possible seasonal or market-related issues that have an impact on sales and profitability.

Margin and Operational Costs:

• Higher operational costs were indicated by the company’s selling, general, and administrative expenses, which rose 7.55% YoY in Q2 FY24. Nevertheless, these costs were reduced by 5.79% from the prior quarter, indicating better cost control techniques.
• Despite a 13.67% decline from the prior quarter, operating income increased 42.91% year over year, indicating fluctuations in revenue creation and operational efficiency.

Market Performance and Earnings Per Share (EPS):

• In comparison to the same period previous year, the profits per share (EPS) for Q2 FY24 decreased by 18.91% to ₹4.04. Given that it indicates lower profitability on a per-share basis, this drop in EPS could have an impact on investor sentiment.
• In terms of stock performance, Bata India has returned -2.66% in the last week, a small 0.38% in the last six months, and a significant -19.07% return so far this year. This inconsistent performance reflects shifting market view of the company’s prospects and investor confidence.

Analyst Suggestions:

• According to 19 experts keeping an eye on Bata India as of November 5, 2024, the general view is to Hold.” One analyst gave it a “Strong Sell, seven gave it a Sell, seven gave it a “Hold, two gave it a “Buy, and two gave it a Strong Buy.”

In summary:

The financial results for Bata India in FY24 and Q2 of FY24 show a complicated picture of modest sales growth and diminishing profit margins. The business struggles to control operating costs and maintain profit margins in the face of market volatility and competitive pressures. The stock performance and conflicting expert recommendations point to a cautious investor mindset. Bata India may need to concentrate on strategic efforts targeted at cost optimization, product innovation, and market expansion in order to improve financial performance and successfully traverse the changing economic landscape.