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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (4033)	4/9/1999 2:09:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

StockWatch- BATA (India) Ltd. bataindia.com BATA INDIA (Last traded on BSE: 09/04/99, % change over previous close:-1.1%) Exg. Code Open High Low Close Vol Value (Rs) B 43 251.4 257.0 250.0 252.3 22,115.0 5,592,515.0 N 67 253.0 257.9 250.1 253.0 54,900.0 13,892,862.0 BATA (India) Ltd. Bata India registered a 77.4 per cent rise in net profit to Rs 29.52 crore for year ended December 1998. Gross profit increased 87 per cent to Rs 52.36 crore, while the total income increased 11 per cent to Rs 744.76 crore. However, its margins still continue to remain under pressure. Operating margins improved marginally to 7.87 per cent from 6.06 per cent last year. Meanwhile, depreciation grew 18.84 per cent to Rs 12.36 crore and interest dipped 46 per cent to Rs 7.78 crore. In the fourth quarter ended December 1998, the company posted net sales of Rs 194 crore and its net profit nearly halved to Rs 3.06 crore. Under the provisions of the Kar Vivad Samadhan Scheme, Bata has settled Rs 5.83 crore towards pending excise cases for all its manufacturing units except for Batanagar. It is also in the process of settling another Rs 7.88 crore for excise cases under the KVSS pertaining to Batanagar. If the case is accepted by the excise department, Bata will have to settle another Rs 7.88 crore towards excise dues in December 1998. In the event of this settlement, its net profit will reduce. On the other hand if the settlement is not accepted then the estimated liability will be a contingent liability and net profit will not be affected. As a strategy, Bata has focused on introducing new competitively priced products. These products are sourced from its own factories and contractors in the small sector. This has led to a countrywide acceptance and has resulted in growth. Bata is the market leader in the organised footwear market in the country with a market share of around 46 per cent. The company has no real national level competitor. Though there are other players like Action, Liberty, Woodland, Paragon and foreign brands like Nike, Reebok and Adidas to contend with, none have the product range spread across all price segments to compete with Bata. Most of the competitors have been relegated to operate in niches either geographical or based on price. Bata's success can be attributed to its investment in intellectual property. It has more than 1,000 shoe designs for all age groups for men, women and children. Last year, with a launch of 100 new models, Bata achieved its largest annual launch ever. These new designs were targeted largely at ladies and children segments, which had not been given much attention earlier. For Bata, the women's segment is a potential growth area. This segment currently accounts for about 15 per cent of its total footwear range and the company proposes to increase this gradually to 40 per cent over the next few years. At Rs 270, investors can hold. (Source:Smart Investor/Business Standard-April 5-11,99)