While most companies of the country have recovered from the outbreak of the Corona virus epidemic, the footwear industry is yet to record a rapid recovery. The effect of this is clearly visible in the December quarter results of Bata India. Bata India’s net profit declined 77.7% in the third quarter of FY 2020-21. Shares of Bata India broke up 7% in the stock market today due to this weak performance in the December quarter.
Shares of Bata opened nearly 4% down at Rs 1508.95 today due to weak December quarter prices, while the shares of the company opened at Rs 1567.10 on Wednesday. In the early trade itself, the shares of the company further fell to Rs 1461. That is, the company’s stocks fell by about 7%. However, as the day went on, the stock managed to pick itself up and today its shares fell 2.62% to close at Rs 1528.
Here are the results of the company
Bata India’s net profit declined 77.7% in the December quarter of FY 2020-21 and the company’s net profit fell to Rs 26.4 crore. Whereas the company had a profit of Rs 118.3 crore in the same period of the last financial year. However, the company’s performance has improved compared to the September quarter. The company had a loss of Rs 44.3 crore in the September quarter. Company sales growth has also increased for the December quarter, but is only 74% of the pre-covid level. The company’s revenue fell 26% year-on-year to Rs 614.70 crore, while profit before tax (EBITDA) fell by 55% to Rs 117 crore.
What to do investor
Brokerage firm Sharekhan said that Bata India is exiting Corona’s influence and has seen a recovery in the company’s revenue. The company’s revenue reached 74% of the pre-covid level. The company’s set has grown through the digital platform and accounts for 15% of total revenue. The brokerage firm has given a buy rating to Bata stocks and a target price of Rs 1765. That is, despite the decline today, investing in the company can prove beneficial. At the same time, brokerage firm ICICI Securities said that the company’s strong brand image and its reach across the country will benefit investors in the coming days.