Future Enterprises posts Q4 net loss of Rs 2,296 crore

By

Maverick Martins

Published
Sep 15, 2022

Future Enterprises Limited (FEL) reported a consolidated net loss of Rs 2,296 crore ($288.7 million) in the fourth quarter ended March 2022, as against net loss of Rs 282 crore it posted in the year-ago period.

The company’s revenue for the quarter were down by 13 percent to Rs 474 crore, as against Rs 546 crore it posted in the corresponding period of the previous fiscal year.

During the quarter, total expenses of FEL rose by 36 percent to Rs 1,131 crore from Rs 829 crore in the year-ago period.

The company attributed the widening of its losses and drop in revenue to factors including failure of the deal with Reliance, attrition of employees, and litigations.

“With the company's financial condition itself taking serious downturn due to events such as cancellation of the scheme of amalgamation, huge attrition of employees, financial instability, litigations faced by related party, non-functioning of production units which coupled with Covid impacted the company severely,” FEL said in a statement.

FEL was part of 19 group companies operating in the retail, wholesale, logistics and warehousing segments, which were supposed to be transferred to Reliance Retail as part of a Rs 24,713 crore deal announced in August 2020. The deal was called off by Reliance Industries in April after it failed to get lenders' support.