BATA INDIA 2023-24 Annual Report Analysis

Wed, 17 Jul

BATA INDIA has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

BATA INDIA Income Statement Analysis

• Operating income during the year rose 0.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 6.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.7% in FY24 as against 23.3% in FY23.
• Depreciation charges increased by 15.0% and finance costs increased by 6.6% YoY, respectively.
• Other income grew by 59.5% YoY.
• Net profit for the year declined by 18.7% YoY.
• Net profit margins during the year declined from 9.4% in FY23 to 7.5% in FY24.

BATA INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	34,516	34,786	0.8%
Other income	Rs m	387	617	59.5%
Total Revenues	Rs m	34,903	35,403	1.4%
Gross profit	Rs m	8,042	7,541	-6.2%
Depreciation	Rs m	2,948	3,391	15.0%
Interest	Rs m	1,182	1,261	6.6%
Profit before tax	Rs m	4,298	3,506	-18.4%
Tax	Rs m	1,068	881	-17.5%
Profit after tax	Rs m	3,230	2,625	-18.7%
Gross profit margin	%	23.3	21.7
Effective tax rate	%	24.9	25.1
Net profit margin	%	9.4	7.5

Don't Miss: Key Information for Long-term Investors

BATA INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 8 billion as compared to Rs 10 billion in FY23, thereby witnessing an decrease of -12.2%.
• Current assets fell 6% and stood at Rs 16 billion, while fixed assets rose 8% and stood at Rs 17 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 33 billion as against Rs 33 billion during FY23, thereby witnessing a growth of 1%.

BATA INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	14,382	15,269	6.2
Current Liabilities	Rs m	9,545	8,378	-12.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	32,904	33,256	1.1
Current assets	Rs m	17,456	16,335	-6.4
Fixed Assets	Rs m	15,448	16,726	8.3
Total Assets	Rs m	32,904	33,256	1.1

BATA INDIA Cash Flow Statement Analysis

• BATA INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 404 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -5 billion, an improvement of 49% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -245 million from the Rs 568 million net cash flows seen during FY23.

BATA INDIA Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	6,288	4,531	-27.9%
Cash Flow from Investing Activities	Rs m	4,385	404	-90.8%
Cash Flow from Financing Activities	Rs m	-10,105	-5,179	-
Net Cash Flow	Rs m	568	-245	-

Current Valuations for BATA INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.4, an decline from the EPS of Rs 25.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,530.2, stands at 74.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.9 times, while the price to sales ratio stands at 5.7 times.
• The company's price to cash flow (P/CF) ratio stood at 33.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	268.5	270.6
TTM Earnings per share	Rs	25.1	20.4
Diluted earnings per share	Rs	25.1	20.4
Price to Cash Flow	x	29.5	33.3
TTM P/E ratio	x	56.5	74.9
Price / Book Value ratio	x	15.3	13.1
Market Cap	Rs m	219,837	200,419
Dividends per share (Unadj.)	Rs	13.5	12.0

Ratio Analysis for BATA INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY24, from 1.8x during FY23. 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 deteriorated and stood at 3.8x during FY24, from 4.6x during FY23. 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 declined and down at 17.2% during FY24, from 22.5% during FY24. 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 declined and down at 31.2% during FY24, from 38.1% during FY23. 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 declined and down at 11.7% during FY24, from 13.4% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.8	1.9
Debtors’ Days	Days	9	8
Interest coverage	x	4.6	3.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.4	11.7
Return on equity	%	22.5	17.2
Return on capital employed	%	38.1	31.2

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 1,692.2 to Rs 1,530.2, registering a loss of Rs 162.0 or around 9.6%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 21,944.6 (up 0.9%). Over the last one year it has moved up from 19,183.3 to 21,944.6, a gain of 2,761 points (up 14.4%).

Overall, the S&P BSE SENSEX is up 21.2% over the year.

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