Future Retail Losses Rs 692 Crore, Company Earnings Down
Future Retail Losses Rs 692 Crore, Company Earnings Down 74 Percent To Rs 1,424.21 Crore.
Kishore Biyani-controlled Future Retail Limited (FRL) has a consolidated net loss of Rs 692.36 crore for the quarter ended September this year.
In the information given to the stock markets, the company said that the losses were caused by the problems caused by the Kovid-19 epidemic.
This earned the company a net profit of Rs 165.08 crore in the same quarter of the previous financial year.
Operating income of the company declined by 73.86 per cent to Rs 1,424.21 crore in the quarter under review, from Rs 5,449.06 crore in the same quarter of the previous fiscal.
FRL, which operates retail chains such as Big Bazaar, FBB, Foodhall, Easyday and Nilgiri, is currently fighting a legal battle with Amazon over its deal with Reliance Industries.
FRL told the stock exchanges that its expenditure had come down to Rs 2,181.85 crore in the quarter under review, from Rs 5,304.80 crore in the same quarter of the previous fiscal.
At the same time, it has a net loss of Rs 1,254.31 crore in the first half of the current financial year (April-September 2020).
The company had posted a net profit of Rs 324.32 crore in the same period of the previous financial year.
The FRL told the Delhi High Court on Thursday that the decision made in favor of Amazon by the Singapore-based International Arbitration Center made no sense.
According to Future Retail, Amazon is not its shareholder, so it has no say in the affairs of the company.
It may be noted that FRL had sold most of its business to Reliance Retail Ventures Ltd (RRVL), the retail arm of Reliance Industries.
On the same deal, American online retail giant Amazon dragged Future Retail to Singapore’s arbitration committee.
Amazon bought a 49 percent stake in Future Coupons last year with the stipulation that it would get the right to buy more shares within three years to 10 years of the deal.
Future Coupons holds a 7.3 percent stake in Future Retail.
Amazon says that before that Future Retail deal with Reliance Industries is illegal. At the same time, Future Retail argues that Amazon’s deal is not with him, but with its promoter.
In such a situation, Amazon does not have the right to create any legal interference with this deal. The next hearing of this case is to be held on 19 November in Delhi High Court.
