Bata India
This is a MNC, a 52.01% subsidiary of Bata Shoe Organisation (BSO) Group and India’s largest retailer and leading footwear manufacturer, selling footwear and related accessories through its 1,365 retail outlets. The 81-year old company follows calendar year for financial reporting and for second quarter ended 30th June 2013, it posted a very robust set of numbers with net profit at Rs.62 crore, up 17% (YoY) on a 14% rise in net sales at Rs.572 crore. This was despite an increase in its overall operating expenses, including employee expenses, raw material costs, depreciation and rent. What has indeed helped is its move towards store rationalization and greater focus on opening / renovating large format stores of over 3,000 square feet in area. Bata India will be opening approximately 100 such new format stores this year. This quarter, Bata has opened 15 new stores in prime shopping locations in markets like Mumbai, Delhi, Bangalore, Chennai, Hyderabad and Bangalore.
Like all MNCs, this company is debt free and has healthy reserves of Rs.607 crore. For H1CY13, the net profit came in at Rs.100 crore v/s Rs.172 crore for CY12. Clearly, it will end CY13 on a much higher note. It is expected to end the current year with a revenue of close Rs. 2,200 crore and net profit of about Rs. 200 crore, resulting in an EPS of approximately Rs. 31.