Bata India (500043) Q4 96/97 earnings summary

Executive summary

• 1997 returned to profitability, with sales growth of 13% and reported profitability improvement of 323%; turnover reached Rs 670.64 crore.

• Growth was supported by competitively priced new products, retail-store upgrades, expanded wholesale distribution and tighter cost controls.

Financial highlights

• Sales and other income rose to Rs 672.41 crore from Rs 593.41 crore in 1996; sales alone were Rs 670.64 crore.

• PBT was Rs 17.56 crore versus Rs 4.15 crore; PAT was Rs 16.64 crore versus Rs 4.15 crore.

• Interest expense declined to Rs 14.43 crore from Rs 19.30 crore; depreciation was Rs 10.40 crore versus Rs 10.17 crore.

Outlook and guidance

• The Board recommended retaining profits in the business to support growth and strengthen liquidity; no dividend was recommended for 1997.

• Capital spending was directed toward store modernization, balancing equipment, moulds and lasts, and management information systems, with the stated aim of improving profitability.