InvestorQ : Why did Future Retail report such a big loss for the March-20 quarter?
Rashi Mehra made post

Why did Future Retail report such a big loss for the March-20 quarter?

Archita Jajjoo answered.
2 years ago

Future Retail reported a net loss of Rs.477.63 crore for the Mar-20 quarter. This is in contrast to a profit of Rs.199.31 crore in the previous year corresponding quarter. It owns some popular brands like Big Bazaar, FBB, Easyday and Nilgiris.

Just a week back, Future group signed a deal with Reliance Retail wherein Future Retail wil part of the package that will be consolidated and sold to the Reliance group. Additionally, Reliance Retail also takes over the wholesale, logistics and warehousing businesses.

Overall revenues of Future Retail were down 17.75% at Rs.4492 crore even as the total expenses also fell by 5% at Rs.5006 crore. For the full fiscal year 2019-20 net profit of Future Retail was down by 98% at Rs.11.29 crore. Total revenues were flat at Rs.20,332 crore.

Clearly, the nationwide lockdown had significantly impacted the operational performance of the company as most of its stores had to be mandatorily closed due to the lock-in. Only shops selling essentials were allowed to operate.

Future Retail board has already approved its amalgamation along with four other group companies into Future Enterprises Limited or FEL to eventually facilitate the Rs.24,713 crore deal with Reliance Industries, which could come as a saviour line for the company.