Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Bata: 'labourious growth' - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Oct 15, 1999

    Bata: 'labourious growth'

    Bata India Limited has reported a 30% increase in net profit to Rs 36 m for the third quarter ending September 30, 1999, over the corresponding period in the previous year. Sales however, fell 4% to Rs 1,641 m during the same period.

    Bata India manufactures different types of footwear including rubber/canvas footwear, leather footwear and plastic footwear. Bata also markets apparel under the brand names of North Star, Power and Ambassador. It derives over 70% of its revenues from retail outlets while the balance comes from the wholesale segment.

    Labour unrest has kept Bata's largest manufacturing facility in Faridabad, Haryana, under a lockout since the end of February 1999. This has adversely affected the turnover of the company. This facility with a capacity of 43 million pairs per annum makes rubber and canvas footwear, which is one of the high-margins businesses for Bata. In addition, it is yet to sign the wage agreement with the unions at its Batanagar factory in Calcutta.

    Net profit for the nine months from January to September 30, 1999, was however, down 21% to Rs 210 m, owing to a three-fold increase in tax provision to Rs 128 m. Total sales for the first nine months in 1999 was up 4% to Rs 5702 m over the corresponding period in 1998. Operating profit was higher by 8% to Rs 492 m.

    (Rs m) 3QFY2000 3QFY1999 Change
    Sales 1,641.0 1,704.9 -3.7%
    Total Expenditure 1,526.0 1,622.0 -5.9%
    Interest 21.4 20.9 2.4%
    Profit before Tax 61.0 27.6 121.0%
    Tax 24.0 0.0 -
    Profit after Tax 36.4 28.0 30.0%

    The company's operating margins have improved in the third quarter, which had been under pressure during the first half. Operating margins in the third quarter are relatively buoyant improving from 7.99% 8.52%.

    Bata is trying to prune its workforce through a VRS. It is also retiring high cost debts to improve the profitability of the company. But until it settles issues with its workforce it may find it hard to sustain its growth.



    Equitymaster requests your view! Post a comment on "Bata: 'labourious growth'". Click here!


    More Views on News

    Securities & Intelligence Services Ltd. (IPO)

    Jul 31, 2017

    Should you subscribe to the IPO of Securities & Intelligence Services Ltd?

    Why Super Investors are Underperforming in This Market (The 5 Minute Wrapup)

    Jul 8, 2017

    If Super Investors can wait for the right pitch, so can you.

    Tejas Networks Ltd. (IPO)

    Jun 14, 2017

    Should you subscribe to the IPO of Tejas Networks Ltd?

    Discover the Secrets of Hidden Smallcaps From These AGMs (The 5 Minute Wrapup)

    May 26, 2017

    Don't be surprised to come across some Super Investors there!

    A Trader's Nightmare. A Business Owner's Delight. (The 5 Minute Wrapup)

    May 19, 2017

    Not all small-cap investors see themselves as traders. Some see themselves as business owners.

    More Views on News

    Most Popular

    This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process)(The 5 Minute Wrapup)

    Aug 17, 2017

    A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 23, 2017 09:51 AM


    • Track your investment in BATA INDIA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks


    Detailed Financial Information With Charts