IDLCInvestmentsCompanyInsight

BATAShoeCompany(Bangladesh)Limited
July11,2013

CompanyProfile
BATAShoeCompany(Bangladesh)Limited(DSE:BATASHOE)
CurrentPrice(July11,2012) 572.00 BataShoeCompany(Bangladesh)LimitedwasincorporatedinBangladeshin
TotalNumberofShares(mn) 13.68 1972. The company is one of the operating companies of worldwide Bata
FreeFloat(%) 30% Shoe Organization (BSO). 70% of the company is owned by Baffin
ForwardPEBATA 13.34x (Netherlands)B.V.
TrailingPEBATA 11.25x The company is a manufacturer and marketer of leather, rubber, plastic,
ForwardPETannerySector 15.35x canvasfootwear,hosieryandaccessoriesitemsaswellasfinishedleather.

Q1,2013
Particulars(BDTmn) 2011 2012 KeyRevenueDrivers&CompanyInsight
(unaudited)
NetRevenues 6,648 7,385 1,819 Sale of footwear is the key revenue driver. The company has brought
GrossProfit 2,361 2,666 653 international brands such as Hush Puppies, Scholl and Nike in Bangladesh,
Operatingprofit 849 1,006 220 alongwithexistingbrandslikePower,MarieClaireandBubblegummers.The
NetProfitaftertax 579 672 147 company also launched a few more brands like North Star, Bata Comfit, B.
TotalAssets 3,543 3,980 4,072 firstasapartofitscontinuouseffortofProductDevelopment.
Totalequity 1,558 1,854 2,001 Currently,itoperates2manufacturingplantssituatedatTongiandDhamrai,
Source:AnnualReportsofBataShoeCompany(Bangladesh)Limited producingaround110,000pairsofshoesdaily.Italsohasamoderntannery

Q1,2013 with the latest technological facilities to process 5 million square feet of
Pershare(BDT) 2011 2012 leathereveryyear.Currently,Batasalesmorethan30millionpairsofshoes
(unaudited)
Restated(EPS) 42.34 49.12 10.72 generatingaturnoverofmorethanBDT7billion.Theproductsaredelivered
BookValueperShare 113.91 135.53 146.25 tothecustomersthroughthecompanysstrongdeliverychainconsistingof
242retailoutletsand13wholesaledepots.
Q1,2013
Others 2011 2012
(unaudited) FinancialPerformance
Operatingprofitmargin 13% 14% 11% Net Revenue grew 11% in 2012 compared to a 17% growth in 2011.
Netprofitmargin 9% 9% 7%
However,NetProfitgrowthimprovedto16%asagainst7%,inthepreceding
ROA 18% 18% 3%
year.Thebusinessperformedwellowingtofavorablebusinessconditionin
ROE 40% 39% 7%
2012.Although,profitmarginsremainedrelativelystableduringtheperiods,
StockDividend - thosedeterioratedinQ1,2013.Thedeclineismainlyduetothecontractions
CashDividend 250% 250% - inotherincomeandfinancialincome.
Source:Research,IDLCInvestmentsLimited

Recently, the company has reported net profit after tax of BDT 146.69
million with EPS of BDT 10.72 for the period of three months (Jan' 13 to
March'13)asagainstBDT123.34millionandBDT9.02respectivelyforthe
sameperiodofthepreviousyear.
Terminologies
FreeFloat : % of total shares not owned by Sponsors/
Directors,andGovt. DGEN BATASHOE
Forward PE: Based on Annualized Earnings of the latest 115
declaredquarter 105
95
TrailingPE:BasedonLatest12MonthsEarnings 85
RebasedPrice

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