BATA INDIA 2017-18 Annual Report Analysis

Sat, 31 Mar

BATA INDIA has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

BATA INDIA Income Statement Analysis

• Operating income during the year rose 7.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 35.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.8% in FY18 as against 11.0% in FY17.
• Depreciation charges decreased by 7.0% and finance costs decreased by 1.1% YoY, respectively.
• Other income grew by 9.4% YoY.
• Net profit for the year grew by 38.7% YoY.
• Net profit margins during the year grew from 6.5% in FY17 to 8.4% in FY18.

BATA INDIA Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	24,442	26,271	7.5%
Other income	Rs m	460	503	9.4%
Total Revenues	Rs m	24,902	26,774	7.5%
Gross profit	Rs m	2,679	3,620	35.1%
Depreciation	Rs m	650	605	-7.0%
Interest	Rs m	150	148	-1.1%
Profit before tax	Rs m	2,339	3,370	44.1%
Tax	Rs m	749	1,165	55.5%
Profit after tax	Rs m	1,590	2,205	38.7%
Gross profit margin	%	11.0	13.8
Effective tax rate	%	32.0	34.6
Net profit margin	%	6.5	8.4

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BATA INDIA Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 6 billion as compared to Rs 5 billion in FY17, thereby witnessing an increase of 13.3%.
• Current assets rose 14% and stood at Rs 16 billion, while fixed assets rose 4% and stood at Rs 5 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 20 billion as against Rs 18 billion during FY17, thereby witnessing a growth of 12%.

BATA INDIA Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	13,243	14,747	11.4
Current Liabilities	Rs m	4,948	5,608	13.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	18,226	20,359	11.7
Current assets	Rs m	13,619	15,549	14.2
Fixed Assets	Rs m	4,607	4,810	4.4
Total Assets	Rs m	18,226	20,359	11.7

BATA INDIA Cash Flow Statement Analysis

• BATA INDIA's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -556 million, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -72 million from the Rs -280 million net cash flows seen during FY17.

BATA INDIA Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	2,565	1,603	-37.5%
Cash Flow from Investing Activities	Rs m	-2,288	-1,119	-
Cash Flow from Financing Activities	Rs m	-557	-556	-
Net Cash Flow	Rs m	-280	-72	-

Current Valuations for BATA INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.2, an improvement from the EPS of Rs 12.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 730.0, stands at 42.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.4 times, while the price to sales ratio stands at 3.6 times.
• The company's price to cash flow (P/CF) ratio stood at 30.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	190.2	204.4
TTM Earnings per share	Rs	12.4	17.2
Diluted earnings per share	Rs	12.4	17.2
Price to Cash Flow	x	32.6	30.7
TTM P/E ratio	x	45.9	42.0
Price / Book Value ratio	x	4.9	5.9
Market Cap	Rs m	65,138	86,338
Dividends per share (Unadj.)	Rs	3.5	4.0

Ratio Analysis for BATA INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.8x during FY18, from 2.8x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 23.7x during FY18, from 16.6x during FY17. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 15.0% during FY18, from 12.0% during FY18. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 23.9% during FY18, from 18.8% during FY17. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 11.6% during FY18, from 9.5% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	2.8	2.8
Debtors’ Days	Days	10	12
Interest coverage	x	16.6	23.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.5	11.6
Return on equity	%	12.0	15.0
Return on capital employed	%	18.8	23.9

To see how BATA INDIA has performed over the last 5 years, please visit here.

BATA INDIA Share Price Performance

Over the last one year, BATA INDIA share price has moved up from Rs 567.5 to Rs 730.0, registering a gain of Rs 162.6 or around 28.6%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 10,290.1 (down 0.4%). Over the last one year it has moved up from 9,270.3 to 10,290.1, a gain of 1,020 points (up 11.0%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for BATA INDIA and quarterly results for BATA INDIA)

Read: Latest Annual Report Analysis of BATA INDIA