Bata India, which had closed yesterday at Rs.1666.15, opened much lower today at Rs.1650 and from there, it jumped up to hit a new high at Rs.1754.80. It has come off the highs now and is meandering between red and black.
The company’s revenue from operations almost rose 100% or doubled up to Rs.267 crore (YoY). Total expenses, led mainly by raw material costs were at Rs.372 crore.
But for a deferred tax of Rs.22, the net loss for the quarter would have been much higher than Rs.70 crore which came in. The market has reacted positively because the loss is lower than that of Q1FY21 at Rs.101 crore though QoQ, it’s a loss v/s net profit of Rs.29 crore.
Clearly, the lockdown on account of the second wave impacted the performance as QoQ, revenue from operations declined 55%. YoY, the picture looks good only on account of the lower base effect.
It is online sales which is helping as they contributed almost 15% to total sales in current Q1.
The market is probably looking ahead of the re-opening scenario- at that time, it expects all the suppressed demand to take over. With malls scheduled to open in Maharashtra from 15th Aug and many other states already open, the punters are banking on better second half.