Net loss at Rs 1,879 cr, revenue down to Rs 607 cr

Future Lifestyle Fashions Ltd announced a widening of its consolidated net loss to Rs 1,879.91 crore in the fourth quarter ended March 2022 due to store closures and higher expenses. The company had posted a net loss close to Rs 149 crore in the January to March quarter a year ago, Future Lifestyle Fashions Ltd (FLFL) said in a regulatory filing.

Its operating revenue in the quarter under review fell by 27.04% to Rs 607.42 crore. This was at Rs 831.62 crore in the March quarter of FY21.

During the quarter, total expenditure was higher at Rs 1,438.35 crore compared to Rs 984.05 crore a year ago. The company said it suffered losses mainly due to “a provision for decrease in investments, a doubtful provision for receivables, lower sales volumes, financial charges and amortization”.

Exceptional items for the quarter and year ended March 2022 include a provision for decrease in investments totaling Rs 480.64 crore and a provision for impairment of intercompany deposits and interest receivable totaling Rs 282.51 crore.

Its current liabilities “exceeded its current assets (including assets held for sale)” by Rs 1,180.66 crore as of the year-end date. As of March 31, 2022, the company said 34 central stores and 78 Brand Factory stores were not operational.

These stores contributed approximately 64% of the company’s total operations revenue for fiscal year 2021,“It said.

The outcome of FLFL and other listed entities in the debt-ridden Future Retail was delayed due to vacancies on their respective boards. On May 25, FLFL and these companies expressed their inability to call a board meeting by May 30 to approve their financial results for the March quarter and fiscal year 22 due to vacancies on its boards. administration.

As a result, FLFL has informed that it has not been able to honor the repayment obligations of the principal amount of the loans/working capital facilities that the company has benefited from with the banks, as agreed under the plans. OTR (One-Time Restructuring).

“On the same basis, the principal bank and State Bank of India classified the company’s accounts in the system as non-performing assets (NPA) on May 31, 2022,” he said.

Under the OTR arrangements, FLFL has debt service obligations totaling Rs. crore rupees and short term borrowings of 145.07 crore rupees.

The company would take the necessary steps to further restructure its debts and meet other commitments as agreed with the lenders under the OTR. In the meantime, the lenders have authorized the company to continue its day-to-day operations under the Holding on account operations, including monitoring and releasing operational payments under said agreement,“It said.

FLFL has Central and Brand Factory in-house retail chains, exclusive outlets (EBOs) and other multi-brand outlets (MBOs of nearly a dozen apparel brands, including – Lee Copper, Champion, aLL, Indigo Nation, Giovani, John Miller, Scullers, Converse and Urbana in its portfolio.

For the financial year ended March 2022, FLFL’s operating revenue was Rs 2,993.93 crore. FLFL was among 19 group companies operating in the retail, wholesale, logistics and warehousing segments, which were to be transferred by Future Group led by Kishore Biyani to Reliance Retail as part of of a 24,713 crore deal announced in August 2020.

The deal was canceled by billionaire Mukesh Ambani, Reliance Industries Ltd, in April after it failed to secure support from the respective companies’ lenders. As a result, the retail empire run by Kishore Biyani is in serious financial trouble. Its flagship company Future Retail Ltd is already facing an insolvency petition from a lender, filed a petition in the Mumbai bench of the National Company Law Tribunal.

Ann J. Cox