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BATA INDIA 2020-21 Annual Report Analysis
Wed, 31 Mar

BATA INDIA has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

BATA INDIA Income Statement Analysis

  • Operating income during the year fell 44.1% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 80.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.5% in FY21 as against 27.6% in FY20.
  • Depreciation charges decreased by 10.5% and finance costs decreased by 16.0% YoY, respectively.
  • Other income grew by 37.0% YoY.
  • Net profit for the year declined by 127.2% YoY.
  • Net profit margins during the year declined from 10.8% in FY20 to 5.2% in FY21.

BATA INDIA Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 30,561 17,085 -44.1%
Other income Rs m 687 941 37.0%
Total Revenues Rs m 31,248 18,026 -42.3%
Gross profit Rs m 8,431 1,622 -80.8%
Depreciation Rs m 2,958 2,648 -10.5%
Interest Rs m 1,287 1,081 -16.0%
Profit before tax Rs m 4,872 -1,166 -123.9%
Tax Rs m 1,583 -273 -117.3%
Profit after tax Rs m 3,290 -893 -127.2%
Gross profit margin % 27.6 9.5
Effective tax rate % 32.5 23.4
Net profit margin % 10.8 -5.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

BATA INDIA Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 7 billion as compared to Rs 8 billion in FY20, thereby witnessing an decrease of -11.0%.
  • Current assets fell 7% and stood at Rs 19 billion, while fixed assets fell 17% and stood at Rs 13 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 32 billion as against Rs 36 billion during FY20, thereby witnessing a fall of 12%.

BATA INDIA Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 18,939 17,581 -7.2
 
Current Liabilities Rs m 8,007 7,126 -11.0
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 36,215 31,941 -11.8
 
Current assets Rs m 20,032 18,578 -7.3
Fixed Assets Rs m 16,182 13,363 -17.4
Total Assets Rs m 36,215 31,941 -11.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



BATA INDIA Cash Flow Statement Analysis

  • BATA INDIA's cash flow from operating activities (CFO) during FY21 stood at Rs 5 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -527 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -4 billion, an improvement of 15% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 393 million from the Rs -434 million net cash flows seen during FY20.

BATA INDIA Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 5,817 4,611 -20.7%
Cash Flow from Investing Activities Rs m -1,890 -527 -
Cash Flow from Financing Activities Rs m -4,361 -3,691 -
Net Cash Flow Rs m -434 393 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for BATA INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -6.9, 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 1,404.7, stands at -202.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 10.3 times, while the price to sales ratio stands at 10.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 104.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 237.8 132.9
TTM Earnings per share Rs 25.6 -6.9
Diluted earnings per share Rs 25.6 -6.9
Price to Cash Flow x 25.3 104.5
TTM P/E ratio x 48.1 -202.1
Price / Book Value ratio x 9.9 10.4
Market Cap Rs m 187,277 183,280
Dividends per share (Unadj.) Rs 4.0 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for BATA INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.6x during FY21, from 2.5x during FY20. 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 -0.1x during FY21, from 4.8x during FY20. 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 -5.1% during FY21, from 17.4% during FY21. 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 declined and down at -0.5% during FY21, from 32.5% during FY20. 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 0.6% during FY21, from 12.6% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 2.5 2.6
Debtors’ Days Days 8 17
Interest coverage x 4.8 -0.1
Debt to equity ratio x 0.0 0.0
Return on assets % 12.6 0.6
Return on equity % 17.4 -5.1
Return on capital employed % 32.5 -0.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 1,231.2 to Rs 1,404.7, registering a gain of Rs 173.5 or around 14.1%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 12,875.4 (up 1.1%). Over the last one year it has moved up from 10,254.9 to 12,875.4, a gain of 2,621 points (up 25.6%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Annual Report FAQs

What is the current share price of BATA INDIA?

BATA INDIA currently trades at Rs 1,364.3 per share. You can check out the latest share price performance of BATA INDIA here...

What was the revenue of BATA INDIA in FY21? How does it compare to earlier years?

The revenues of BATA INDIA stood at Rs 18,026 m in FY21, which was down -42.3% compared to Rs 31,248 m reported in FY20.

BATA INDIA's revenue has fallen from Rs 24,902 m in FY17 to Rs 18,026 m in FY21.

Over the past 5 years, the revenue of BATA INDIA has grown at a CAGR of -7.8%.

What was the net profit of BATA INDIA in FY21? How does it compare to earlier years?

The net loss of BATA INDIA stood at Rs -893 m in FY21, which was down -127.2% compared to Rs 3,290 m reported in FY20.

This compares to a net profit of Rs 3,290 m in FY19 and a net profit of Rs 2,205 m in FY18.

Over the past 5 years, BATA INDIA net profit has grown at a CAGR of NaN%.

What does the cash flow statement of BATA INDIA reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of BATA INDIA reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 4,611 m as compared to Rs 5,817 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -527 m as compared to Rs -1,890 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -3,691 m as compared to Rs -4,361 m in FY20.

Here's the cash flow statement of BATA INDIA for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations2,5651,6033,4495,8174,611
From Investments-2,288-1,119-2,776-1,890-527
From Financial Activity-557-556-631-4,361-3,691
Net Cashflow-280-7241-434393

What does the Key Ratio analysis of BATA INDIA reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of BATA INDIA reveals:

  • Operating profit margins witnessed a fall and stood at 9.5% in FY21 as against 27.6% in FY20.
  • Net profit margins declined from 10.8% in FY20 to 5.2% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

Here's the ratio/financial analysis of BATA INDIA for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)11.013.816.627.69.5
Net Profit Margin (%)6.58.411.210.8-5.2
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of BATA INDIA

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