BENGALURU (Reuters) – Footwear maker Bata India reported a nearly 63% rise in first-quarter profit on Tuesday, after four quarters of profit slump, aided by a one-time gain from sale of property.
The company, which sells brands such as Hush Puppies and North Star in India, said its consolidated profit rose to 1.74 billion rupees ($20.7 million) in the three months ended June 30 from 1.07 billion rupees a year ago.
Revenue from operations fell marginally to 9.45 billion rupees, while total expenses rose about 6% to 8.78 billion rupees.
Bata India had a one-time gain of 1.34 billion rupees from sale of property in the June quarter.
The company declared an interim dividend of 10 rupees per share.
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KEY CONTEXT
Analysts said the footwear industry had to begin end-of-season sales early due to heatwaves and election-related disruption in the quarter.
Peer Relaxo Footwears reported a 2.3% fall in its first-quarter profit in late July, while Metro Brands has yet to report results.
PEER COMPARISON
Valuation Estimates (next 12 Analysts’ sentiment
(next 12 months)
months)
RIC PE EV/EBI Revenue Profit Mean # of Stock to Div
TDA growth growth rating* analyst price yield
s target** (%)
Bata India 51.85 21.82 9.83 32.97 Hold 12 1.08 0.77
Metro Brands 76.73 39.37 17.46 12.05 Hold 17 1.10 0.42
Relaxo Footwears 70.12 36.81 10.56 23.65 Hold 12 1.00 0.37
Campus Activewear 57.26 28.90 14.17 39.88 Hold 7 1.04 –
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
APRIL-JUNE STOCK PERFORMANCE
— All data from LSEG IBES
— $1 = 83.8910 Indian rupees
($1 = 83.8910 Indian rupees)
(Reporting by Meenakshi Maidas and Yagnoseni Das in Bengaluru; Editing by Mrigank Dhaniwala)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.