Bata India will declare its second quarter (April-June) numbers today. Analysts expect a modestly healthy quarter for Bata as growth is likely to pick up due to early arrival of monsoons.
They expect the shoe maker's profit after tax to grow by 15.5 percent year-on-year to Rs 60.8 crore, according to a CNBC-TV18 poll.
Total income is seen going up by 15.4 percent to Rs 584 crore in June quarter from Rs 507 crore in a year ago period, driven by higher sales of monsoon related products and new store openings.
Due to early monsoons, demand for monsoon-related products would shift from September quarter to June quarter, but Maharashtra focused sales could get impacted due to LBT (local body tax) problem.
Earnings before interest, tax, depreciation and amortisation (EBITDA) may rise 12.3 percent Y-o-Y to Rs 96.5 crore, but operating profit margin is likely to fall 50 bps Y-o-Y to 16.5 percent on account of higher lease rent expenses and some consumer down-trading.
Analysts expect rent expenses as a percentage of sales to show a material increase of around 200 bps on a Y-o-Y basis. This key metric is expected to stabilize post Q2CY13 as sales growth gains momentum in second half and management shifts focus to growing topline versus stores addition, according to a CNBC-TV18 poll.
Same-store-sales growth is expected to recover to 9-10 percent.
Investors should watch out for improvement in gross margin due to lower rubber prices and stable leather prices, and rent as a percentage of sales.
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