Bata India shares slumped over 3 per cent in the noon trade on Thursday after the footwear major posted weak Q2 results on Wednesday post market hours. (Express Photo)
Bata India shares slumped over 3 per cent in the noon trade on Thursday after the footwear major posted weak Q2 results on Wednesday post market hours. For the second quarter ended September 30 2015, Bata India posted net sales of Rs 575.15 crore, up 5.02 per cent, against Rs 547.64 crore in the same quarter last year.
At 12.11 pm, the share price of Bata India was down 2.92 per cent at Rs 471.75. The scrip opened at Rs 468 and had touched a high and low of Rs 473.80 and Rs 464.50, respectively, in trade so far.
Religare in a research report said, “Bata India reported a poor set of Q2 numbers as net sales edged up 5 per cent year-on-year (YOY) on a muted same store sales growth (SSSg) of 2 per cent YoY (est) amid weak demand conditions.”
The company reported a 38.74 per cent rise in net profit at Rs 54.11 crore for the quarter under review. It posted net profit of Rs 39 crore during the same period of previous fiscal.
“Despite economic slowdown and a lower consumer sentiment, our second quarter performance for the period July-Sept 2015 has seen a growth of 5 per cent compared to the same period last year,” Bata India, group managing director, South Asia, Rajeev Gopalakrishnan said.
The company will be expanding its product offering, focusing on the same-store growth and strengthening e-commerce business to reach out to a larger consumer base, he added.
Post the announcement of Q2 results, Relgare said, “We pare our FY15-FY18 EPS by 6-8 per cent to build in the slower-than-expected recovery in demand. Valuations however at 32.2x/24.0x FY16/FY17 earnings look sustainable. We maintain ‘buy’ on Bata India shares with revised September 2016 target price of Rs 680 (Rs 725 earlier).”
(With inputs from PTI)
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