Bata India (500043) Q4 98/99 earnings summary

Executive summary

• FY99 sales grew 4% and profit after tax rose 26% YoY, supported by focused cost controls, product launches and new economical footwear.

• Turnaround initiatives included mass-market product focus, flexible market operations, tighter cost controls and improved asset management.

Financial highlights

• Sales and other income were Rs 774.63 crore vs Rs 744.77 crore in FY98; sales alone were Rs 773.64 crore.

• Profit before tax, before the KVSS excise item and tax, was Rs 48.09 crore vs Rs 40.99 crore; PAT was Rs 30.46 crore vs Rs 24.26 crore.

• Interest expense fell to Rs 6.84 crore from Rs 7.79 crore; depreciation was Rs 13.58 crore vs Rs 12.36 crore.

• Exports were Rs 23.24 crore vs Rs 27.53 crore; net foreign-exchange inflow was Rs 10.32 crore vs Rs 16.97 crore.

Outlook and guidance

• Retail stores and wholesale depots continued to expand; distribution was positioned to serve smaller urban markets and benefit from future increases in consumer footwear spending.

• R&D priorities included lower-cost materials and processes, improved product performance, export footwear and cleaner production technologies.