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Future Retail net profit nosedives 98% in FY20 to Rs 477.63 crore

For the quarter ended March 31, 2020, Future Retail reported a consolidated net loss of Rs 477.63 crore. The company had posted a profit of Rs 199.31 crore in the corresponding quarter of the previous year

twitter-logoBusinessToday.In | September 4, 2020 | Updated 21:41 IST
Future Retail net profit nosedives 98% in FY20 to Rs 477.63 crore

Future Retail posted a consolidated net profit of Rs 11.29 crore in the financial year 2019-20. The company saw its profit decline 98.44 per cent compared to Rs 727.19 crore in the corresponding quarter of the previous fiscal.

During the fiscal under review, Future Retail's revenue from operations stayed flat at 20,331.72 crore as opposed to Rs 20,332.58 crore. Its total expenses during FY20 increased almost 4 per cent to Rs 20,400.56 crore from Rs 19,628.28 crore in the previous fiscal.

For the quarter ended March 31, 2020, Future Retail reported a consolidated net loss of Rs 477.63 crore. The company had posted a profit of Rs 199.31 crore in the corresponding quarter of the previous year.

The company's revenue from operations went down 17.75 per cent to Rs 4,492.36 crore from Rs 5,462.17 crore in the year-ago period. The total expenses during the quarter ended March 31, 2020, stood at Rs 5,006.54 crore, 5 per cent less as compared to 5,270.05 crore in the same quarter of FY19.

The total equities and liabilities of Future Retail more than doubled in FY20 to Rs 21,537.82 crore from Rs 10,586.80 crore in FY19.

Future Retail said that the coronavirus pandemic and subsequent lockdown affected its operational capabilities as its stores were largely closed, except selling essential and grocery items. The company further stated that it has worked intensively on reopening its businesses.

"The impact of COVID-19 pandemic on the overall economic environment being uncertain may affect the underlying assumptions and estimates used to prepare the company's financial statements. During the lockdown, the company has intensively worked towards the reopening of business and carrying out operation post lockdown as "New Normal" criteria with newer initiatives to minimise the impacts and to mitigate related risks," Future Retail said in an exchange filing.

"The company has laid down the roadmap for New Normal with a strong focus on safeguarding the health and safety of its employees, customers and communities it serves. Various initiatives and SOPs have been rolled out by the company to safeguard its assets. The Company has since gradually started restoration of store operations in permitted locations post May, 2020," it further added.

Future Retail said it is closely monitoring the developments and possible effects of the COVID-19 pandemic on its financial condition, liquidity and operations and is actively working to minimise the impact of this situation.

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