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Report Date 4th March 2010

Company Name Bata India Ltd.


Price / Recommendation CMP 206.4 Hold (Result Update)

Rs in cr Q4CY08 Q4CY09 %y-o-y Q3CY09 %q-o-q CY08 CY09 CY10E CY11E


Net sales 255 288 12.90% 260 10.60% 984 1090 1221 1332
Other income 6 4 -24.50% 2 182.30% 15 11 13 13
Total income 261 293 12.00% 262 11.70% 998 1102 1234 1345
PBDIT 30 40 30.60% 25 56.00% 97 100 122 133
APAT 21 25 20.30% 13 93.20% 61 63 68 73
Equity 64 64 0.00% 64 0.00% 64 64 64 64
EPS (Rs) 3.29 3.95 20.30% 2.05 93.20% 9.45 9.74 10.61 11.36
CMP(Rs) 206.4 206.4 206.4 206.4 206.4 206.4 206.4
P/E(x) 21.84 21.2 19.45 18.17
PBDITM% 11.87% 13.74% 9.74% 9.90% 9.15% 9.96% 9.97%
PATM% 8.27% 8.82% 5.05% 6.18% 5.74% 5.59% 5.48%

*Financial year ending is December 31st.

Result Highlights
• Footwear major Bata India has announced its year end results and has stepped up the dividend to 30% for 2009
which is highest in more than last ten years.
• It has posted 20.3% y-o-y and 93.17% q-o-q rise in net profit to Rs 25.40 cr in Q4CY09. The full year net profit
increased marginally by 3.03% in FY09.
• The company has generated cash profit of Rs35.04 cr in Q4CY09 which is 33% rise y-o-y basis justifying its better
fundamentals.
• Its top line grew by 12.8%y-o-y to Rs 288.09 cr as against Rs 255.22cr in Q4FY08 where as its full year net
turnover grew by 10.8% to Rs 1090.18 cr.
• PBDITM and PATM increased to 13.74% and 8.82% in Q4FY09 compared to 11.87 % and 8.27% in Q4FY08
respectively but its full year PBDITM and PATM declined to 9.15% and 5.74% in FY09 as against 9.90% and
6.18% in FY08 respectively
• During FY09 year Bata India has opened 76 new retail stores and renovates some of its existing stores adding
value and volume to its business. Its venture into safety shoe market in 2008 received a grate response with
volumes doubling in this category in 2009 expected to contribute to its top line further.
• It has also expanding its retail offering through chain of Hush puppies stores in partnership with lifestyle stores in
metros to popularize this premium brand.
• Besides it has strengthened its ladies shoe segment with new trendier and youthful designs to beat out the
competition and increase consumer base.

 Bonanza Research Team |1 
 
 

Recommendation
Bata India ltd reported a considerable growth in its bottom lines in q-o-q as well as y-o-y basis. The restructuring
process it has undergone for last few years started showing results which are reflected in its financials. At CMP Rs
206.4 the share is trading at forward earnings multiple of 18.17 x (CY11E). Investor can continue to hold the scrip.

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                                                                                                                                                         Bonanza Research Team |2