Future Retail Ltd's Q1FY19 standalone net profit rises 3.56% yoy to Rs153.12cr: Misses Estimates

The company’s standalone revenue in the period stood at Rs4,538.71cr, down 3.53% yoy and 0.79% qoq.

Aug 09, 2018 12:08 IST India Infoline Research Team

Future Retail Ltd Q1FY19

Standalone Results Q1FY19: (in Rs cr)

Q1FY19 YoY (%)
Revenue 4,538.71 [3.5]
EBITDA 220.84 5.4
EBITDA Margin (%) 4.87 42
Net Profit (adjusted) 153.12 3.6
***EBITDA margin change is bps

Future Retail Ltd’s revenue in Q1FY19 declined 3.5% yoy and 0.8% qoq to Rs4,539cr. EBITDA came in at Rs221cr, up 5.4% yoy and 9.6% qoq. EBITDA margin expanded 42bps yoy and 46bps qoq to 4.87%. Adjusted PAT stood at Rs153cr, a growth of 3.6% yoy against adjusted loss of Rs464cr qoq. Revenue and adjusted PAT came lower than our estimates of Rs4,987cr and Rs211cr, respectively.

• Revenue from operations for Q1FY18 was reported inclusive of excise duty, hence, revenue from operations for the current quarter is not comparable with these numbers.
• The company has added 6 FBB stores and 83 Easyday stores during Q1FY19, taking the total count to 67 and 749 stores, respectively. Further, the store count of Big Bazaar remained unchanged at 285 stores.
• Big Bazaar SSG stood at 10.1% and 3.6% for entire Future Retail Ltd.
• The company has added 1mn Future Pay users taking the total count to 6mn users in Q1FY19.
• Count of Easyday Club Members stood at 0.6mn in Q1FY19 compared to 0.5mn in Q4FY18.
• Acquired 38 stores of Foodworld aggregating to ~0.1mn sq ft w.e.f. June 1, 2018. Total retail area in Q1FY19 stood at 14.8mn sq ft.  
• Cost of goods sold stood at 72.6% of sales vs 75% yoy aiding in EBITDA margin expansion.
• Employee benefit expenses stood at 5.5% of sales vs 4.7% yoy.
• Other expenses stood at 9% of the revenue vs 8% yoy.
• Finance cost declined 4.5% yoy to Rs52cr leading to profitability expansion.
• Acquisition of demerged retail business undertaking of Hypercity Retail (India) Ltd completed w.e.f December 1, 2017.
• Consequent to the demerger of Home Retail Business undertaking to Praxis Home Retail Ltd and vesting of demerged Retail undertaking of Heritage Foods Retail Ltd and Retail business undertaking of Hypercity Retail (India) Ltd with the company, the financial results for the three months ended March 31, 2018, are not comparable with the corresponding period of previous year.

Technical View:

Future Retail Ltd is currently trading at Rs515.05, down 5.5 points, or 1.06%, from its previous close of Rs520.55 on the BSE.
The scrip opened at Rs521 and has touched a high and low of Rs525 and Rs515, respectively. A total of 1,56,457 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 100 DMA.

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