Future Enterprises Ltd (FEL) on Monday posted a consolidated net loss of Rs 394.77 crore for the quarter ended March 31, 2020 as against a net profit of Rs 66.58 crore in the year ago fiscal period.
Recently, the group board has approved amalgamation of the Future Group entities with the company 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.
As per a BSE filing, issued on Monday, company’s revenue from the operations dropped 50.01 per cent to Rs 783.28 crore during the quarter under review. The company had posted its revenue from operations at Rs 1,566.96 crore in the same period last fiscal.
Company witnessed a sharp decrease of 22.94 per cent in its total expenses during the quarter under review as it stood at Rs 1,174.77 crore against Rs 1,524.68 crore in the same period in 2018-19.
For fiscal 2019-20, FEL net loss was at Rs 369.51 crore. It had registered a net profit of Rs 175.44 crore in 2018-19.
Its revenue from operation in 2019-20 was down 10.32 per cent at Rs 5,365.66 crore. It was Rs 5,983.14 crore in the preceding fiscal.
FEL handles backend operations of the group’s retail business.
On August 29, 2020, Future group had announced to sell the retail and wholesale business to Reliance Retail.
It has announced to merger key group companies including Future Retail, Future Lifestyle Fashions, Future Consumer, Future Supply Chains and Future Market Networks into FEL.
“Future Enterprises will subsequently sell by way of a slump sale the retail and wholesale business that includes key formats such as Big Bazaar, fbb, Foodhall, Easyday, Nilgiris, Central and Brand Factory to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary of Reliance Retail Ventures Limited (RRVL),” a Future group statement had said in August.