Future Retail, which operates retail stores such as Big Bazaar, FBB, Foodhall, Easyday and Nilgiris, saw its net loss widening to Rs 846.92 crore during December quarter of 2020, as business operations continued to face the impact of COVID-19 pandemic. The Kishore Biyani-led company had posted consolidated net loss of Rs 692.36 crore in the September quarter of the current fiscal and a net profit of Rs 164.56 crore in the year ago period.
The consolidated revenue from operations plunged by 71 per cent to Rs 1,506.87 crore during Q3 FY21 as against Rs 5,193.19 crore of the corresponding quarter last fiscal, the Future Group company said in a filing to the Bombay Stock Exchange. The company's revenue from operations stood at Rs 1,424.11 crore in September quarter of 2020.
The total expenses of the company, whose board in August last year approved the amalgamation of Future Retail along with other group companies with Future Enterprises Limited to facilitate Rs 24,713 crore deal to sell the retail and wholesale businesses to Reliance Retail, declined more than half to Rs 2,391.43 crore in Q3 FY21, from Rs 5,042.46 crore in Q3 FY20.
On COVID 19 pandemic, the company said it has assessed its impact on business operations and has considered all relevant internal and external information available up to the date of approval of these financial results, in determination of the recoverability and carrying value of financial assets and non-financial assets.
"The company will continue to closely monitor any material changes to future economic conditions. The company continues to take various precautionary measures to ensure health and safety of its customers, employees and their families from COVID-19 pandemic," it added.
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On legal battle with Amazon over proposed deal with Reliance Retail, Future Retail said it has filed a suit before Delhi High Court to injunct Amazon.com Investment Holdings LLC. (Amazon) from interfering with the scheme. "Hon'ble Single Judge has passed an interim order in which it was prima facie held that the company resolution dated August 29, 2020, approving the scheme, the company-Reliance transaction and Future Coupon consent for the scheme and Reliance transaction are valid," it said.
"The said judgement further prima facie held that Amazon interference on the basis of incorrect representation is civil wrong against the company and Reliance, however no injunction was granted. The court also prima facie held that conflation of the two shareholders agreements will be in violation of FDI regulation and also directed statutory authorities to decide on the application in accordance with the law," it added.
In a respite to Future Retail, the Delhi High Court on Monday stayed the implementation of a single-judge order to the company and various statutory authorities to maintain status quo regarding the Rs 24,713 crore deal with Reliance Retail. On February 2, the single-bench court of Justice JR Midha had blocked Future Group's deal with Reliance Industries after Amazon raised objections.
The court also turned down Amazon's request to keep its order in abeyance for a week so that it can explore appropriate remedies. The court also issued notice to Amazon and sought its stand on FRL's appeal by February 26 when it will commence day-to-day hearing of the matter.
Boosted by the Delhi High Court order, shares of Future Retail ended trade 9.97 per cent higher at Rs 80.50 apiece on the BSE on Tuesday.