Bata India (500043) Q4 99/00 earnings summary

Executive summary

• FY2000 sales and other income were Rs 761.29 crore; PBT fell to Rs 25.30 crore from Rs 48.09 crore and PAT to Rs 15.60 crore from Rs 30.46 crore.

• Recession, sluggish footwear demand, lower wholesale turnover, price resistance, clearance discounts and underused factory capacity weighed on results.

Financial highlights

• Sales were Rs 760.15 crore versus Rs 773.64 crore in 1999; sales and other income were Rs 761.29 crore versus Rs 774.63 crore.

• PBT was Rs 25.30 crore versus Rs 48.09 crore; PAT was Rs 15.60 crore versus Rs 30.46 crore.

• Interest expense rose to Rs 8.91 crore from Rs 6.84 crore; depreciation charged to the P&L was Rs 14.05 crore versus Rs 13.58 crore.

• Export sales were Rs 21.03 crore versus Rs 23.24 crore; net foreign-exchange inflow was Rs 1.52 crore versus Rs 10.32 crore.

Outlook and guidance

• Cost reduction, improved distribution logistics and new-product launches were identified as priorities to improve performance.

• Strategy continued to emphasize high-volume, low-price and core low-to-medium-priced footwear, with retail and wholesale distribution expansion.

• Budget 2001-02 tax changes were expected to save Rs 1.06 crore in corporate income tax and Rs 0.91 crore in dividend tax; estimated additional excise of Rs 7.28 crore was offset by selected MRP increases.

• Actual results could vary with demand and supply, raw-material prices, regulation and tax changes, economic conditions, litigation and labour negotiations.