Bata India (500043) Q4 97/98 earnings summary

Executive summary

• FY1998 turnover reached Rs. 743.17 crore; sales growth was 11% and profit before KVSS and tax rose 133% to Rs. 40.99 crore.

• Profit after tax was Rs. 24.26 crore, while a proposed dividend of Re. 0.85 per share reflected the improved performance.

Financial highlights

• Sales and other income rose to Rs. 744.77 crore from Rs. 672.41 crore in 1997; sales alone were Rs. 743.17 crore.

• Profit before KVSS, depreciation and tax was Rs. 53.35 crore; after depreciation, pre-KVSS profit before tax was Rs. 40.99 crore.

• Reported profit after tax was Rs. 24.26 crore versus Rs. 16.69 crore in 1997; the result included a Rs. 14.01 crore KVSS excise charge.

• Interest expense declined to Rs. 7.79 crore from Rs. 14.43 crore; depreciation increased to Rs. 12.36 crore from Rs. 10.35 crore.

Outlook and guidance

• Hosur’s conversion from a 100% export-oriented unit to a domestic tariff area unit was expected to improve flexibility and viability after operating losses since inception.

• Y2K compliance was prioritized, with an external agency engaged to ensure completion by June 1999.

• R&D plans included lower-density TPR/PVC soles, improved adhesion, cost-effective processes and more environmentally friendly production methods.