Shares of Future Retail (FRL) tanked 5% after it reported net loss in fiscal first quarter (Q1FY21), reflecting the impact of Covid-19 induced lockdown on its operations.
The Kishore Biyani owned group company incurred a net loss of Rs 561.95 crore during April-June quarter against a profit of Rs 159.24 crore in the corresponding quarter a year ago.
Revenue from operations fell 73.86% to Rs 1,358.11 crore in Q1FY21 from Rs 5,197.11 crore in corresponding period last year.
FRL, which operates retail stores as Big Bazaar, fbb, Foodhall, Easyday and Nilgiris, logged a fall in total expenses to Rs 2,031.54 crore as against Rs 5,046.79 crore, a drop of 59.74%.
On August 31, 2020, the share hit upper circuit of 20% after Reliance Industries (RIL) announced the acquisition of the retail, wholesale, logistics and warehousing businesses of the Future Group for Rs 24,713 crore through its subsidiary, Reliance Retail Ventures. After August 31, the stock has been falling on profitbooking. The share has lost 6.49% in the last 2 days.
On August 29, 2020, FRL board had approved the amalgamation of FRL along with other group companies with Future Enterprises to facilitate Rs 24,713-crore deal to sell the retail and wholesale business to Reliance Retail owned by oil-to-chemical conglomerate RIL.
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