The deal gives RIL access to Future Retail’s expansive network of hypermarket and supermarket stores, including the company’s flagship Big Bazaar outlets.Future Retail (FRL) on Friday posted a net loss of Rs 477.63 crore on a consolidated basis in the three months ended March 31 as the pandemic-induced nationwide lockdown impacted operations. The company had posted a net profit of Rs 199.31 crore in Q4FY19.
Revenue from its operations declined to Rs 4,492.36 crore in Q4FY20 from Rs 5,462.17 crore in the year-ago quarter. Last week, Reliance Industries (RIL) bought out the wholesale, retail, logistics and warehousing businesses of the debt-saddled Future Group in a slump sale transaction worth Rs 24,713 crore. Future Retail has a footprint spanning more than 1,500 stores in over 400 cities and towns across the country.
The deal gives RIL access to Future Retail’s expansive network of hypermarket and supermarket stores, including the company’s flagship Big Bazaar outlets. The retail business also covers the firm’s chain of electronics stores, besides its portfolio of lifestyle stores, Central and Brand Factory. Reportedly, Kishore Biyani and his family members cannot enter the retail space for the next 15 years under a non-compete clause as part of Reliance Retail’s terms of acquisition of Future Group’s assets.
According to ratings agency ICRA, debt for listed companies of Future Group increased to Rs 12,778 crore as on September 30, 2019 from Rs 10,951 crore as on March 31, 2019.
The stock price of Future Retail on Friday ended at Rs 112.45 apiece on the BSE, down 4.99%.
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