Bata India Ltd. share price target

Revenue decreased by 6.81% to Rs. 591.43 Cr in Q4FY17 when compared to the previous quarter

Sales grew 8.7% YoY despite consumer fatigue in Mar17 after an extended End of Season Sale (EoSS).Gross margin declined 220bps YoY on higher EoSS contribution, but EBITDA margin decline eased to 76bps on positive operating leverage (staff, rent, and other expenses down 40bps, 30bps, and 80bps YoY..

Bata reported decent revenue growth of 8.7% YoY to | 591.4 crore, marginally below our estimate of | 615.9 crore. Q4FY17 witnessed the commencement of a new range in men & ladies' contemporary collection along with new range targeted towards youth On account of extension of the end of season sales period (EOSS), gross margins declined 220 bps YoY to 54.1% vs. estimated 53.5% while EBITDA margins contracted 76 bps YoY to 9.6% (I-direct estimate: 10.8%). The decline in EBITDA margins was stemmed by...

We believe that effective implementation of these initiatives coupled with improving macro environment in a category dominated by unorganized will improve the sales growth.We estimate 20% EPS CAGR over FY17-20E. Maintain BUY with TP of Rs 580 based on fwd P/E of 29x.

Store Expansion, Improved Promotion, Youth Focus to TakeBata Forward: Demonetization slowed the business but Leadership position cushioned the impact well: Bata's revenue for the quarter came in at Rs. 6408 Mn, registeringa 9.8% QoQ and 3.8% YoY increase even with the demonetization creating a pressure on the footwear industry. But EBITDA for the quarter fell by 1.3% YoY toRs. 595 Mn with EBITDA margin for the quarter stood at 9.3% falling by 47 bps YoY. This margin contraction was led by 60.8% and 55.1% YoY increase in cost ofmaterial consumed and purchase of stock in trade respectively. PAT for the quarter came in at Rs. 377 Mn, YoY decline of 15.4%.

Bata India Ltd. (BIL) reported 3QFY17 result with revenue growth of 2.5% YoY to Rs 6.4 bn and EBITDA degrew by 3.1% YoY to Rs.757 mn on account of higher rent cost and other expenses. Reported PAT decreased by ~15.9% YoY to Rs. 377 mn vs Rs.448 mn. Revenue grew by 2.5% YoY: BIL's topline increased by 2.5% YoY to Rs.6.4 bn vs 6.1 bn due to weaker consumer sentiments. We expect the company to grow at a CAGR of ~6% over FY16-19e backed by better realization of premium brands like Hush Puppies, volume growth, strengthening e-commerce business...

Sales grew 2.4% YoY as greater presence in direct retail channel helped mitigate the impact of demonetization on the wholesale channel.Gross margin improved 120bps but EBITDA margin declined 70bps as negative operating leverage kicked in. EBITDA declined 3% YoY. Adjusted PAT grew 17% due to lower de..

Revenue grew by 9.73% to Rs. 640.19 Cr in Q3FY17 when compared to the previous quarter. Also, it grew by 2.42% when compared with Q3FY16.

Bata India's Q3FY17 results were above our estimates on the revenue and EBITDA front. However, on account of exceptional item (VRS expense), PAT came in below our estimate. Revenues witnessed decent growth of 2.5% YoY to | 640.8 crore marginally above our estimate of | 630.1 crore Higher employee expense, up 8% YoY to | 65.8 crore, and higher rent expense, up 5.5% YoY to | 89.9 crore, led to a decline in operating margins by 70 bps YoY to 11.8% vs. estimated 11.6%....

For Q2FY17, Bata India reported a ~ 36.1% fall in net profit to ~ Rs. 345Mn as against a net profit of ~ Rs. 540 Mn in the year-ago period before exceptional items. However, its revenues increased by ~ 1.5% to Rs. 5837 Mn from Rs. 5753 Mn YoY. Nevertheless, better operating profit performance, robust other income growth and a decline in depreciation costs boosted pre-tax and one-time earnings. On half year basis, revenues have seen flat growth by 0.2% YoY to reach ~ Rs. 12584 Mn. EBITDA margins for half year have shown an increase of ~ 610 bps YoY due to better product mix.