Bata India did not really end Q4FY21 on a good note. Its consolidated net profit actually fell 23% (YoY) to Rs.29 crore and its revenue from operations also dropped 5% to Rs.590 crore.
But these numbers were much better than expectations and cyclically too, Q4 is always the weaker one. Given the onset of monsoon and unlocking happening, Q1 is expected to be better and that is probably what the market is banking on – the future and not the past. That alone explains its current place as the top gainer on the BSE.
The stock opened over 1% lower at Rs.1540 but bargain hunters at this price got in and pushed the price to Rs.1657, up almost 6.5%. Volumes on the counter are up over 3.5 times. Its 52-week high is at Rs.1705.
The company ended FY21 with a net loss of Rs.89 crore v/s profit of Rs.33 crore in FY20. The Board declared a dividend of 80%, which is Rs.4/share (FV of Rs.5) for FY21.