Future Retail on Monday posted a consolidated loss before tax of nearly Rs 562 crore for the quarter ended June 30, 2020, as stores remained shut on account of the lockdown. Revenue from operations fell 74 per cent to Rs 1,358.11 crore for the period under review, with the company saying that it was slowly getting operations on track. The company had reported profit before tax of Rs 159.24 crore a year ago.
The weak results come amid the sale of retail assets of the Future group to Reliance in a nearly Rs 25,000-crore transaction, which was announced last month. The acquisition by Reliance Retail has made it even bigger, with the company now getting a third of the organised retail market.
Future Retail and Future Lifestyle Fashions are the core retail companies of the Future group. The acquisition also involves the Future group's logistics and wholesale ventures.
Last week, Future Lifestyle Fashions had reported a consolidated loss before tax of Rs 352.76 crore for the June quarter on account of lower income. The company had reported a profit before tax of Rs 40.19 crore in the year-ago period.
While Future group founder Kishore Biyani will exit all forms of retail including apparel, grocery and lifestyle, he retains control of home retailing venture Praxis Home Retail. It will run as an independent entity, group sources said last week.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.