Future Consumer's net loss surges to Rs 346 crore in Q4
Future Group’s fast moving consumer goods business Future Consumer Limited saw its net loss increase to Rs 346.23 crore in the fourth quarter of the 2022 financial year as revenue dropped and expenses rose.
The business had reported a net loss of Rs 155.12 crore in the fourth quarter of the 2021 financial year and cited challenges caused by Covid-19 and ongoing insolvency proceedings against its main customer Future Retail Limited as reasons for its continued loss, the Press Trust of India reported. Orra’s revenue from operations also dropped 32.03% in the fourth quarter of the 2022 fiscal to total Rs 262.54 crore and expenses were up at Rs 533.43 crore.
“While the group continues to work closely with all the stakeholders, the situation continues to be still evolving,” Future Consumer Limited said in a statement, the Press Trust of India reported. “The group has adopted several cost reduction measures to address the liquidity crunch to maintain sufficient operational cash flows.”
The business is in an uncertain situation as lenders to Future Retail Ltd, its main customer of goods, have taken the company to the National Company Law Tribunal after defaulting on its loans. “The management is confident that they will be able to arrange sufficient liquidity by monetisation of its assets, increase operations and other strategic initiatives,” said the business.
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