Revenue from operations fell 74% to ₹1,424.21 crore against ₹5,449.06 crore in the corresponding quarter last fiscal
Kishore Biyani’s flagship Future Retail Ltd (FRL) on Friday reported a consolidated loss of ₹692.36 crore for the September quarter, as the pandemic-induced disruption took a toll. The firm had posted a profit of ₹165.08 crore in the year earlier.
Revenue from operations fell 74% to ₹1,424.21 crore against ₹5,449.06 crore in the corresponding quarter last fiscal. The company saw its total expenses during the September quarter drop by 58.8% to ₹2,181.85 crore from ₹5,304.80 crore in the year earlier.
“The covid-19 pandemic has had a significant impact on the business operations and the financial results of the company for the quarter and six months ended 30 September," the company said in a regulatory filing.
FRL operates retail chains such as Big Bazaar, fbb, Foodhall, Easyday and Nilgiris.
Biyani, who agreed to sell Future Retail to Reliance Retail for ₹24,713 crore this August, is embroiled in a legal tangle with Amazon.com Inc, which has objected to the deal. Amazon and Future Retail have both filed pleas before the Delhi high court.
While FRL has filed a lawsuit against Amazon in the Delhi high court to stop it from interfering in the RIL-Future deal, the US retail giant has urged immediate intervention by regulators Securities and Exchange Board of India (Sebi) and Competition Commission of India (CCI) to halt the deal.
Amazon has accused FRL of breaching takeover norms, misleading investors, disregarding the award of the Singapore International Arbitration Centre (SIAC) and acting against the small shareholders of debt-laden Future Group.
Amazon had on 25 October won an injunction from the Singapore arbitrator to bar FRL from selling its retail assets to RIL. Amazon had contended that all the parties had agreed to arbitration before the SIAC and the arbitral award is valid and legal.
Biyani had said on 14 October that the retailer lost nearly ₹7,000 crore revenue in the first three-four months of the pandemic due to closing of stores, which forced him to sell his business to RIL. “We got into a trap to be very honest," Biyani had said at the Phygital Retail Convention.
According to a company official, FRL, which was facing a challenge to pay its vendors and replenish its stores, has been able to do it for the festival season by signing purchase orders from Reliance Retail.
For the first half (April-September), FRL reported a net loss of ₹1,254.31 crore against a net profit of ₹324.32 crore in the year-ago period.
Shares of FRL closed flat at ₹68 on the BSE.
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Never miss a story! Stay connected and informed with Mint.
our App Now!!