Footwear company Bata India is set to announce its first-quarter results today. Bata is one of the expensive stocks in terms of valuations. While the stock has corrected 12 percent from its record high of close to Rs 1,500, it still trades at a hefty premium to this sector, close to around 53 times FY20 mark.

In terms of numbers, the revenue is seen at around Rs 893 crore. The margins are likely to expand by about 50 basis points as the company’s premiumisation drive continues. As a result, the net profit is expected to jump to around Rs 97 crore.

EBITDA, as well as the net profit, would be massively impacted by the IND-AS 116 norms. Bata has over 1,500 stores in the country, most of them rented and as a result of that, a jump in EBITDA is expected. A decline is expected in the profit after tax (PAT) owing to high depreciation and finance costs.

The Street will also be watching out for the same-store-sales growth and whether it has been in-line with the previous quarters.