Q1 future consumer net loss widens to Rs 95.14 cr, revenue down 65%
Future Consumer Ltd (FCL) on Friday announced a widening of its consolidated net loss to Rs 95.14 crore for the first quarter ended June 30, 2022.
The company had recorded a net loss of Rs 31.54 crore in the April-June quarter a year ago, FCL, the FMCG arm of Future Group, said in a BSE filing.
Its total revenue fell by 65.12 percent to Rs 109.77 crore in the reporting period from Rs 314.73 crore in the corresponding period of the prior fiscal year, the company said.
FCL’s total expenditure was Rs 167.74 crore, down 50.71% in the first quarter of FY 2022-23 from Rs 340.36 crore.
According to the company, this was “mainly due to lower volumes, financial costs and depreciation”.
The Group has debt service obligations amounting to Rs 341.07 crore over the next 12 months, which include current long-term debt maturities amounting to Rs 128.21 crore and short term borrowings of Rs 212.86 crore.
“The group’s current liabilities exceeded its current assets by Rs 458.16 million as of the end date of the period. loans from banks/financial institutions and unlisted debt securities as of Jun. 30, 2022, amounting to Rs 52.04 crore of which Rs 1.07 crore has been paid thereafter till date,” he said. -he adds.
In addition, NCLT has also initiated insolvency proceedings against Future Retail, the Group’s main customer.
“The Group has a significant amount of receivables from the Customer and recorded an expected credit loss on all amounts of said customer during the prior year ended March 31, 2022. These events/conditions indicate the existence of ‘significant uncertainty about the group’s ability to continue as a going concern,’ he said.
To cope with the cash shortage and maintain sufficient working capital, the Group has adopted several measures including sales to other customers and cost optimization.
“In addition, the holding company’s board of directors has approved the plan to monetize some of the assets, including investments, to repay debts and manage working capital requirements,” he said, adding that the management is convinced that it will be able to have sufficient liquidity by monetizing its assets.
Shares of Future Consumer Ltd settled at Rs 1.64 on BSE on Friday, up 0.61% from its previous close.
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