Bata said that the reason behind this massive deviation is the company’s revenue witnessing a 426% increase
After a massive loss in its Q1 (January-March) earnings for the first time in its business history, Bata came back strongly with positive earnings in Q2 (April-June) of 2021.
In a filing with Dhaka Stock Exchange on Sunday, Bata said its earnings per share (EPS) was Tk1.15 for the Q2 of 2021, a 102.14% increase from Tk53.74 in the negative for the Q2 of 2020.
During the first six months of 2021, its EPS was Tk2.44 in the negative against Tk51.67 for the first six months of 2019.
Meanwhile, its net asset value (NAV) per share was Tk265.50 as of June 30, 2021 and Tk267.94 as of December 31, 2020.
The reasons behind Bata’s great comeback
Bata said that the reason behind this massive deviation is the company’s revenue witnessing a 426% increase.
Bata achieved this revenue by clearing products by offering bulk discounts, which boosted sales on a massive scale.
Besides increasing sales, the EPS also increased because the company maintained its expenses in proportion to turnover.