Bata India Ltd is putting its best foot forward during the pandemic. His performance for the final quarter of March (P4) shows that the company has been effectively capable of controlling costs despite a tibial sales growth. This has impressed the street, with the action winning more than 5% on Thursday.
The Q4 revenues of Bata were marginally behind the street estimates, falling around 5% year over year. Sales were also lower sequentially, since the second wave of the Coronavirus pandemic played Spoilsport. But the observation of Q3 sales was trapped by the sales of the festival season. In that context, the sales of Q4 of Bata India were not so bad.
In addition, more than compensated for clearance in sales with some acute cost controls. Savings in scores and discretionary expenses helped reduce other expenses by 18% Y-O-Y. Much this can be sustainable and could play a huge factor when recovery starts on the next few rooms.
“While income / EBITDA was 6% / 15% below our estimate, we would not read too much in% of the high-volatility failure in the underlying retail demand in the current environment and the consequent operating impact given high costs Fixed Bata’s business “Analysts indicated in the Axis capital on a customer note.
Indian robe has also continued to expand its network of branches and brand building by designating new distributors. The addition of the last quarter of 10 new franchise partners in smaller towns is a good step forward despite the blockages. In addition, the firm plans to expand its presence online through its own channels, as well as other online markets. A new CEO has been appointed in the space of fast-moving consumer goods.
While the stock has done well on the recent past, there is still about 13% distance from the pre-covid maximums last year. The second wave could affect income in fiscal year21, but driven by some of its premium products and new releases, the street is in a good recovery in the fiscal year. However, investors probably pay a high price for now. The values negotiate to 65 times the FY20 profits, which reflect the stable performance of the State before pandemic.