Future Retail posts Rs 692 cr net loss in Jul-Sep

Kishore Biyani’s flagship company Future Retail Ltd (FRL) on Friday reported a consolidated net loss of Rs 692.36 crore for the September quarter, as the disruption from the coronavirus pandemic took its toll. The company had posted a net profit of Rs 165.08 crore in the same quarter last fiscal.

Revenue from operations fell 73.86% at Rs 1,424.21 against Rs 5,449.06 crore in the corresponding quarter last fiscal. The company saw its total expenses during the quarter drop 58.8% to Rs 2,181.85 crore against Rs 5,304.80 crore in July-September 2019 quarter.

“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 September 30, 2020,” the company said in a regulatory filing.

FRL operates retail store chains such as Big Bazaar, fbb, Foodhall, Easyday and Nilgiris.

Biyani who agreed to sell Future Retail to Reliance Retail for Rs 24,713 crore this August, is currently 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 October 25 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 Singapore International Arbitration Centre (SIAC) and the arbitral award passed is valid and legal.

Biyani had said on October 14 that the retailer lost nearly Rs 7,000 crore revenue in first three-four months of the pandemic due to closing of stores, which forced him to sell his business to RIL.

Shares of FRL closed flat at Rs 68 on the BSE

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