BATA INDIA 2022-23 Annual Report Analysis

Fri, 21 Jul

BATA INDIA has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

BATA INDIA Income Statement Analysis

• Operating income during the year rose 44.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 89.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.3% in FY23 as against 17.8% in FY22.
• Depreciation charges increased by 21.8% and finance costs increased by 18.9% YoY, respectively.
• Other income declined by 30.9% YoY.
• Net profit for the year grew by 213.6% YoY.
• Net profit margins during the year grew from 4.3% in FY22 to 9.4% in FY23.

BATA INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	23,877	34,516	44.6%
Other income	Rs m	560	387	-30.9%
Total Revenues	Rs m	24,437	34,903	42.8%
Gross profit	Rs m	4,251	8,042	89.2%
Depreciation	Rs m	2,420	2,948	21.8%
Interest	Rs m	994	1,182	18.9%
Profit before tax	Rs m	1,397	4,298	207.7%
Tax	Rs m	367	1,068	191.0%
Profit after tax	Rs m	1,030	3,230	213.6%
Gross profit margin	%	17.8	23.3
Effective tax rate	%	26.3	24.9
Net profit margin	%	4.3	9.4

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BATA INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 8 billion as compared to Rs 8 billion in FY22, thereby witnessing an increase of 0.6%.
• Current assets fell 19% and stood at Rs 16 billion, while fixed assets rose 9% and stood at Rs 15 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 32 billion as against Rs 34 billion during FY22, thereby witnessing a fall of 8%.

BATA INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	18,147	14,382	-20.7
Current Liabilities	Rs m	8,172	8,224	0.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	34,210	31,583	-7.7
Current assets	Rs m	20,000	16,135	-19.3
Fixed Assets	Rs m	14,209	15,448	8.7
Total Assets	Rs m	34,210	31,583	-7.7

BATA INDIA Cash Flow Statement Analysis

• BATA INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 6 billion, an improvement of 197.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 4 billion, an improvement of 372.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -10 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 568 million from the Rs -367 million net cash flows seen during FY22.

BATA INDIA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	2,115	6,288	197.3%
Cash Flow from Investing Activities	Rs m	928	4,385	372.5%
Cash Flow from Financing Activities	Rs m	-3,410	-10,105	-
Net Cash Flow	Rs m	-367	568	-

Current Valuations for BATA INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.1, an improvement from the EPS of Rs 8.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,684.1, stands at 67.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 15.1 times, while the price to sales ratio stands at 6.3 times.
• The company's price to cash flow (P/CF) ratio stood at 35.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	185.8	268.5
TTM Earnings per share	Rs	8.0	25.1
Diluted earnings per share	Rs	8.0	25.1
Price to Cash Flow	x	73.1	35.6
TTM P/E ratio	x	244.8	67.0
Price / Book Value ratio	x	12.5	15.3
Market Cap	Rs m	226,636	219,837
Dividends per share (Unadj.)	Rs	54.5	13.5

Ratio Analysis for BATA INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY23, from 2.4x during FY22. 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 4.6x during FY23, from 2.4x during FY22. 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 22.5% during FY23, from 5.7% during FY23. 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 38.1% during FY23, from 13.2% during FY22. 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 14.0% during FY23, from 5.9% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	2.4	2.0
Debtors’ Days	Days	11	9
Interest coverage	x	2.4	4.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.9	14.0
Return on equity	%	5.7	22.5
Return on capital employed	%	13.2	38.1

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 1,825.3 to Rs 1,684.1, registering a loss of Rs 141.2 or around 7.7%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 19,335.8 (down 0.9%). Over the last one year it has moved up from 15,378.4 to 19,335.8, a gain of 3,957 points (up 25.7%).

Overall, the S&P BSE SENSEX is up 20.4% over the year.

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