Future Lifestyle Fashions Ltd (FLFL) on Saturday said its consolidated net loss narrowed to Rs 135.96 crore in the April-June quarter of FY23. The company had posted a net loss of Rs 348.08 crore in the corresponding quarter a year ago, said FLFL, the fashion and apparel retailer arm of the Future group, in a BSE filing.
Its revenue from operations was down 8.42 per cent to Rs 272.88 crore during the period under review as against Rs 297.99 crore in the corresponding period last fiscal, the company said.
FLFL’s total expenses stood at Rs 436.56 crore, down 33.45 per cent in Q1/FY23 against Rs 656.07 crore a year ago.
“The company has incurred loss before tax during the quarter ended June 30, 2022 amounting to Rs 142.40 crore primarily owing to lower sales volumes, finance costs and depreciation,” said FLFL in its earnings statement.
FLFL has in-house retail chains Central and Brand Factory, exclusive brand outlets (EBOs) and other multi-brand outlets (nearly a dozen apparel labels, including Lee Copper, Champion, aLL, Indigo Nation, Giovani, John Miller, Scullers, Converse and Urbana) in its portfolio.
According to the company, under the One Time Restructuring (OTR) plan with the lenders, it has debt servicing obligations aggregating to Rs 422.11 crore within the next 12 months, which comprises repayment of the principal amount of long-term debts of Rs 277.04 crore and short-term borrowings of Rs 145.07 crore.
FLFL further said its “current liabilities exceeded its current assets (including asset held for sale) by Rs 1,180.66 crore as on March 31, 2022.
Also, it has already defaulted on repayment of Rs 335.08 crore of principal amount on loans from banks as on June 30, 2022.
“The lead bank and State Bank of India have classified the accounts of the company in the system as Non- Performing Assets (NPAs) on May 31, 2022, followed by other banks during the month of June 2022,” it said.
Since classification as NPA, the company has already repaid the principal amount of debt amounting to Rs 76.67 crore, FLFL added.
“Further, the Company has initiated the process for the monetisation of some of the assets to repay the debts and to manage the working capital requirements as part of the same plan,” said FLFL.
The company further added that the management is confident that they will be able to arrange sufficient liquidity through monetisation of its assets, increase in operations and other strategic initiatives.
FLFL was part of the 19 group companies operating in retail, wholesale, logistics and warehousing segments, which were supposed to be transferred to Reliance Retail as part of a Rs 24,713-crore deal announced in August 2020.
The deal was called off by billionaire Mukesh Ambani-led Reliance Industries Ltd in April after it failed to get lenders’ support of the respective companies.
Following this, the Kishore Biyani-led retail empire is in deep financial trouble.