Shares in the footwear maker Bata India Ltd tumbled by 4.26% last Wednesday after the company announced that profits in 2000 were nearly 50% down on the year before to Rs156 million ($3.4m).

Share prices bottomed out at Rs42.70 before rallying later in the day to Rs44.78. Bata India sales were also down in 2000, from Rs 7.7 billion ($165.5m) to Rs7.6 billion ($163.3m).

In a statement, the company said retail sales grew 5% both in value and volume terms. However, wholesale sales were deliberately restricted to ensure the recovery of outstanding debts – a move which resulted in the under-recovery of fixed costs in manufacturing units.

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