BATA INDIA 2018-19 Annual Report Analysis

Sun, 31 Mar

BATA INDIA has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

BATA INDIA Income Statement Analysis

• Operating income during the year rose 11.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 34.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.6% in FY19 as against 13.8% in FY18.
• Depreciation charges increased by 5.9% and finance costs decreased by 3.7% YoY, respectively.
• Other income grew by 35.6% YoY.
• Net profit for the year grew by 49.2% YoY.
• Net profit margins during the year grew from 8.4% in FY18 to 11.2% in FY19.

BATA INDIA Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	26,271	29,311	11.6%
Other income	Rs m	503	682	35.6%
Total Revenues	Rs m	26,774	29,993	12.0%
Gross profit	Rs m	3,620	4,878	34.8%
Depreciation	Rs m	605	640	5.9%
Interest	Rs m	148	143	-3.7%
Profit before tax	Rs m	3,370	4,777	41.7%
Tax	Rs m	1,165	1,487	27.6%
Profit after tax	Rs m	2,205	3,290	49.2%
Gross profit margin	%	13.8	16.6
Effective tax rate	%	34.6	31.1
Net profit margin	%	8.4	11.2

Must See: Do You Invest in Midcap Stocks? Here's a Great News for You

BATA INDIA Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 6 billion as compared to Rs 6 billion in FY18, thereby witnessing an increase of 12.3%.
• Current assets rose 18% and stood at Rs 18 billion, while fixed assets rose 9% and stood at Rs 5 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 24 billion as against Rs 20 billion during FY18, thereby witnessing a growth of 16%.

BATA INDIA Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	14,747	17,418	18.1
Current Liabilities	Rs m	5,608	6,297	12.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	20,359	23,642	16.1
Current assets	Rs m	15,549	18,405	18.4
Fixed Assets	Rs m	4,810	5,237	8.9
Total Assets	Rs m	20,359	23,642	16.1

BATA INDIA Cash Flow Statement Analysis

• BATA INDIA's cash flow from operating activities (CFO) during FY19 stood at Rs 3 billion, an improvement of 115.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -3 billion, an improvement of 148.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -631 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 41 million from the Rs -72 million net cash flows seen during FY18.

BATA INDIA Cash Flow Statement 2018-19

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-18	Mar-19
Cash Flow from Operating Activities	Rs m	1,603	3,449	115.2%
Cash Flow from Investing Activities	Rs m	-1,119	-2,776	-
Cash Flow from Financing Activities	Rs m	-556	-631	-
Net Cash Flow	Rs m	-72	41	-

Current Valuations for BATA INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.6, an improvement from the EPS of Rs 17.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,408.5, stands at 54.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.4 times, while the price to sales ratio stands at 6.2 times.
• The company's price to cash flow (P/CF) ratio stood at 35.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Sales per share (Unadj.)	Rs	204.4	228.0
TTM Earnings per share	Rs	17.2	25.6
Diluted earnings per share	Rs	17.2	25.6
Price to Cash Flow	x	33.4	35.3
TTM P/E ratio	x	42.0	54.9
Price / Book Value ratio	x	5.9	8.0
Market Cap	Rs m	86,338	138,668
Dividends per share (Unadj.)	Rs	4.0	6.3

Ratio Analysis for BATA INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.9x during FY19, from 2.8x during FY18. 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 34.5x during FY19, from 23.7x during FY18. 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 18.9% during FY19, from 15.0% during FY19. 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 28.2% during FY19, from 23.9% during FY18. 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 14.5% during FY19, from 11.6% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Current ratio	x	2.8	2.9
Debtors’ Days	Days	12	8
Interest coverage	x	23.7	34.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.6	14.5
Return on equity	%	15.0	18.9
Return on capital employed	%	23.9	28.2

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 730.0 to Rs 1,408.5, registering a gain of Rs 678.5 or around 92.9%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 11,741.5 (down 0.1%). Over the last one year it has moved up from 10,290.1 to 11,741.5, a gain of 1,451 points (up 14.1%).

Overall, the S&P BSE SENSEX is up 16.3% 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