BATA INDIA 2019-20 Annual Report Analysis

Tue, 31 Mar

BATA INDIA has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

BATA INDIA Income Statement Analysis

• Operating income during the year rose 4.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 72.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.6% in FY20 as against 16.6% in FY19.
• Depreciation charges increased by 361.8% and finance costs increased by 801.7% YoY, respectively.
• Other income grew by 0.7% YoY.
• Net profit for the year declined by 0.0% YoY.
• Net profit margins during the year declined from 11.2% in FY19 to 10.8% in FY20.

BATA INDIA Income Statement 2019-20

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Net Sales	Rs m	29,311	30,561	4.3%
Other income	Rs m	682	687	0.7%
Total Revenues	Rs m	29,993	31,248	4.2%
Gross profit	Rs m	4,878	8,431	72.8%
Depreciation	Rs m	640	2,958	361.8%
Interest	Rs m	143	1,287	801.7%
Profit before tax	Rs m	4,777	4,872	2.0%
Tax	Rs m	1,487	1,583	6.4%
Profit after tax	Rs m	3,290	3,290	0.0%
Gross profit margin	%	16.6	27.6
Effective tax rate	%	31.1	32.5
Net profit margin	%	11.2	10.8

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BATA INDIA Balance Sheet Analysis

• The company's current liabilities during FY20 stood at Rs 8 billion as compared to Rs 6 billion in FY19, thereby witnessing an increase of 27.1%.
• Current assets rose 9% and stood at Rs 20 billion, while fixed assets rose 209% and stood at Rs 16 billion in FY20.
• Overall, the total assets and liabilities for FY20 stood at Rs 36 billion as against Rs 24 billion during FY19, thereby witnessing a growth of 53%.

BATA INDIA Balance Sheet as on March 2020

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Networth	Rs m	17,418	18,939	8.7
Current Liabilities	Rs m	6,297	8,007	27.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	23,642	36,215	53.2
Current assets	Rs m	18,405	20,032	8.8
Fixed Assets	Rs m	5,237	16,182	209.0
Total Assets	Rs m	23,642	36,215	53.2

BATA INDIA Cash Flow Statement Analysis

• BATA INDIA's cash flow from operating activities (CFO) during FY20 stood at Rs 6 billion, an improvement of 68.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY20 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY20 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY20 stood at Rs -434 million from the Rs 41 million net cash flows seen during FY19.

BATA INDIA Cash Flow Statement 2019-20

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-19	Mar-20
Cash Flow from Operating Activities	Rs m	3,449	5,817	68.7%
Cash Flow from Investing Activities	Rs m	-2,776	-1,890	-
Cash Flow from Financing Activities	Rs m	-631	-4,361	-
Net Cash Flow	Rs m	41	-434	-

Current Valuations for BATA INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.6, an decline from the EPS of Rs 25.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,231.2, stands at 48.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.4 times, while the price to sales ratio stands at 5.2 times.
• The company's price to cash flow (P/CF) ratio stood at 30.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Sales per share (Unadj.)	Rs	228.0	237.8
TTM Earnings per share	Rs	25.6	25.6
Diluted earnings per share	Rs	25.6	25.6
Price to Cash Flow	x	46.1	30.0
TTM P/E ratio	x	54.9	48.1
Price / Book Value ratio	x	8.0	9.9
Market Cap	Rs m	138,668	187,277
Dividends per share (Unadj.)	Rs	6.3	4.0

Ratio Analysis for BATA INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.5x during FY20, from 2.9x during FY19. 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 4.8x during FY20, from 34.5x during FY19. 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 declined and down at 17.4% during FY20, from 18.9% during FY20. 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 32.5% during FY20, from 28.2% during FY19. 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 declined and down at 12.6% during FY20, from 14.5% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Current ratio	x	2.9	2.5
Debtors’ Days	Days	8	8
Interest coverage	x	34.5	4.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.5	12.6
Return on equity	%	18.9	17.4
Return on capital employed	%	28.2	32.5

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 down from Rs 1,408.5 to Rs 1,231.2, registering a loss of Rs 177.4 or around 12.6%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 10,254.9 (up 5.8%). Over the last one year it has moved down from 11,741.5 to 10,254.9, a loss of 1,487 points (down 12.7%).

Overall, the S&P BSE SENSEX is down 24.2% 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