Future Retail Ltd (FRL) reported a consolidated net loss of Rs 477.63 crore for the quarter ended March 2020.
Mukesh Ambani’s Reliance Industries recently acquired Future Group’s retail, wholesale, logistics and warehousing businesses for Rs 24,713 crore.
FRL’s revenue from operations was down 17.75 percent to Rs 4,492.36 crore during the three-month period under review as against Rs 5,462.17 crore in the corresponding quarter a year ago.
Total expenses were at Rs 5,006.54 crore as against Rs 5,270.05 crore, down 5 percent.
For the fiscal year 2019-20, FRL’s net profit was down 98.44 percent to Rs 11.29 crore. It was Rs 727.19 crore in the previous year.
Its revenue from operation in 2019-20 was flat at Rs 20,331.72 crore. It was Rs 20,332.58 crore in 2018-19.
In FY 2019-20, total equity and liabilities had increased to Rs 21,537.82 crore from Rs 10,586.80 crore in 2018-19.
According to FRL, the nationwide lockdown has “significantly impacted the company”s operational capabilities” as its most of the stores were closed except selling only essential commodities.
“The company is closely monitoring the developments and possible effects that may result from the current pandemic on its financial condition, liquidity and operations and is actively working to minimise the impact of this unprecedented situation,” it said.
On August 29, 2020, FRL board had approved the amalgamation of FRL along with other group companies with Future Enterprises Limited to facilitate Rs 24,713 crore deal to sell the retail and wholesale business to Reliance Retail, owned by oil-to-chemical conglomerate Reliance Industries Ltd.