Bata India reports flat performance for Q1, PAT sees significant growth

Bata India, a leading consumer durables company, has recently announced its financial results for the quarter ending June 2024. The company has reported a flat performance for the quarter, with a score of 4, which is an improvement from the previous quarter's score of -7.

One of the key highlights of the financial results is the significant growth in Profit After Tax (PAT) for the quarter. The company's PAT has grown by 137.9% to Rs 174.06 crore, compared to the average PAT of the previous four quarters which was Rs 73.17 crore. This positive trend in PAT is expected to continue in the near term.

Bata India has also shown a strong performance in terms of its Debtors Turnover Ratio, which is at its highest in the last five half-yearly periods. This indicates that the company has been able to settle its debtors faster, which is a positive sign for its financial health.

However, there are some areas that need improvement for Bata India. The Profit Before Tax (PBT) has fallen by -18.8% to Rs 66.93 crore, compared to the average PBT of the previous four quarters which was Rs 82.45 crore. This negative trend in PBT is a cause for concern in the near term.

Another area of concern is the company's high Non-Operating Income, which is 69.17% of the PBT. This indicates that a significant portion of the company's income is coming from non-business activities, which may not be sustainable in the long run.

Overall, Bata India's financial results for the quarter ending June 2024 show a mixed performance. While there are some positive trends, there are also areas that need improvement. MarketsMOJO has given a 'Hold' call for the company's stock, indicating a neutral stance for investors.