Bata India’s (Bata) Q1FY17 revenues were below our estimate and remained flattish with a marginal decline of 1% to | 674.7 crore (Idirect estimate: | 734.7 crore). The revenue growth has been impacted owing to high level of competition and discounting by online players in the footwear segment • On the EBITDA front, the company reported a decline of 5% YoY to | 82.1 crore (I-direct estimate: | 98 crore), on account of a 50 bps decline in EBITDA margin to 12.2% (I-direct estimate 13.3%). Though gross margins have improved 170 bps YoY to 50.1%, EBITDA margins declined on account of other expense to sales ratio increasing from 13.6% in Q1FY16 to 15.75% in Q1FY17 • PAT declined 45% YoY to | 50.5 crore(I-direct estimate: | 57 crore). PAT was lower due to exceptional income of | 43 crore in Q1FY16. Excluding it, YoY PAT growth was 2%.ICICI Securities Limited maintain our HOLD recommendation on the stock with a target price of | 575 (based on 30.0x FY18E EPS of | 19.2).Trendlyne has 8 reports on BATAINDIA updated in the last year from 4 brokers with an average target of Rs 619.5. Brokers have a rating for BATAINDIA with 1 downgrade,2 price downgrades and 1 price upgrade in past 6 months.