Future Consumer reduces net loss in Q3 but revenue drops

By

Isabelle Crossley

Published
Feb 14, 2023

Future Consumer reduced its net loss to Rs 41.23 crore in the third quarter of the 2023 financial year. The Future Group business saw its revenue from operations drop by 79.64% year on year during the quarter. 

The fast moving consumer goods business’ revenue from operations totalled Rs 91.73 crore in the third quarter of the 2023 financial year, down from Rs 450.73 crore in the third quarter of the 2022 financial year, ET Bureau reported. The business, however, managed to reduce its loss for the quarter from Rs 46.5 crore in the third quarter of the 2022 fiscal. The business attributed its losses in the recent quarter to lower volumes, exceptional items, and finance costs as well as depreciation. 
 
“Due to default in borrowings, non-current borrowings including interest accrued thereof aggregating to Rs 89.38 crore have been reclassified to current borrowings and other financial liabilities,” said Future Consumer Limited in a statement, the Press Trust of India reported. “These events/ conditions indicate the existence of material uncertainty on the group’s ability to continue as a going concern.”

The business expects to be able to raise Rs 368.5 crore through selling various assets including property, plants, and equipment and will use these funds to pay off its borrowings. “To address the liquidity crunch and to maintain the sufficient working capital, it has adopted several measures, including sales to other customers, cost optimisation, discussion with banks for restructuring/ one-time settlement of loans, other strategic initiatives for fresh investments, monetisation of identified assets, etc,” said Future Consumer Limited.