BATA INDIA 2017-18 Annual Report Analysis

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BATA INDIA 2017-18 Annual Report Analysis
Wed, 19 Dec

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 6.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 26.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.3% in FY18 as against 11.3% in FY17.
  • Depreciation charges decreased by 7.1% and finance costs increased by 4.2% 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 6.3% in FY17 to 8.2% in FY18.

BATA INDIA Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 24,743 26,342 6.5%
Other income Rs m 460 503 9.4%
Total Revenues Rs m 25,203 26,845 6.5%
Gross profit Rs m 2,786 3,514 26.1%
Depreciation Rs m 650 605 -7.1%
Interest Rs m 40 42 4.2%
Profit before tax Rs m 2,555 3,370 31.9%
Tax Rs m 749 1,165 55.5%
Profit after tax Rs m 1,589 2,205 38.7%
Gross profit margin % 11.3 13.3
Effective tax rate % 29.3 34.6
Net profit margin % 6.3 8.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 6% and stood at Rs 3 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 21 billion as against Rs 19 billion during FY17, thereby witnessing a growth of 11%.

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 19,231 21,414 11.4
 
Current assets Rs m 13,619 15,549 14.2
Fixed Assets Rs m 2,908 3,070 5.6
Total Assets Rs m 19,231 21,414 11.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 1,123.0, stands at 55.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.9 times, while the price to sales ratio stands at 3.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 51.4 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 192.5 204.9
TTM Earnings per share Rs 12.4 17.2
Diluted earnings per share Rs 12.4 17.2
Price to Cash Flow x 64.4 51.4
TTM P/E ratio x 55.8 55.8
Price / Book Value ratio x 4.9 5.9
Market Cap Rs m 144,333 144,329
Dividends per share (Unadj.) Rs 3.5 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 deteriorated and stood at 81.2x during FY18, from 64.4x 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 23.1% during FY18, from 18.0% 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 10.5% during FY18, from 8.5% 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 64.4 81.2
Debt to equity ratio x 0.0 0.0
Return on assets % 8.5 10.5
Return on equity % 12.0 15.0
Return on capital employed % 18.0 23.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 734.0 to Rs 1,123.0, registering a gain of Rs 389.0 or around 53.0%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 11,989.8 (up 1.2%). Over the last one year it has moved up from 10,650.3 to 11,989.8, a gain of 1,340 points (up 12.6%).

Overall, the S&P BSE SENSEX is up 8.6% over the year.

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

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BATA INDIA Announces Quarterly Results (2QFY20); Net Profit Up 28.2% (Quarterly Result Update)

Nov 15, 2019 | Updated on Nov 15, 2019

For the quarter ended September 2019, BATA INDIA has posted a net profit of Rs 714 m (up 28.2% YoY). Sales on the other hand came in at Rs 7 bn (up 7.3% YoY). Read on for a complete analysis of BATA INDIA's quarterly results.

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Aug 5, 2019 | Updated on Aug 5, 2019

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BATA INDIA 2018-19 Annual Report Analysis (Annual Result Update)

Jul 18, 2019 | Updated on Jul 18, 2019

Here's an analysis of the annual report of BATA INDIA for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of BATA INDIA. Also includes updates on the valuation of BATA INDIA.

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