Future Lifestyle Fashions' loss at Rs136 crore in June quarter

29 Aug 2022 , 07:50 AM

Future Lifestyle Fashions Ltd. (FLFL) reported on Saturday that its combined net loss for the April-June quarter of FY23 reduced to Rs135.96 crore.

According to FLFL, the Future group’s fashion and apparel retailer, the firm recorded a net loss of Rs348.08 crore in the same quarter a year prior, according to a BSE filing.

According to the company, its operating revenue decreased by 8.42% to Rs272.88 crore during the reviewed period from Rs297.99 crore during the same time last year.

In Q1/FY23, FLFL’s total expenses were Rs436.56 crore, down 33.45% from Rs656.07 crore in the same period last year.

According to FLFL’s results statement, “The company has incurred a loss before tax during the quarter ended June 30, 2022, amounts to Rs142.40 crore principally owing to decreasing sales volumes, borrowing expenses, and depreciation.”

Among FLFL’s portfolio of brands are nearly a dozen apparel brands, including Lee Copper, Champion, aLL, Indigo Nation, Giovani, John Miller, Scullers, Converse, and Urbana. FLFL also owns internal retail chains Central and Brand Factory, exclusive brand outlets (EBOs), and other multi-brand outlets.

According to the company, it has debt servicing obligations totalling Rs422.11 crore within the next 12 months under the One Time Restructuring (OTR) plan with the lenders, which include repayment of the principal amount of long-term debts of Rs277.04 crore and short-term borrowings of Rs145.07 crore.

Further, FLFL stated that as of March 31, 2022, its “current liabilities surpassed its current assets (including asset held for sale) by Rs1,180.66 crore.

Additionally, as of June 30, 2022, it had already missed payments on principle for bank loans totalling Rs335.08 crore.

The company has already paid back the main amount of the debt totalling Rs76.67 crore since it was classified as an NPA, FLFL added.

The business went on to say that the management is certain they can secure enough liquidity through asset monetization, increased operations, and other strategic initiatives.

As part of the Rs24,713-crore agreement announced in August 2020, FLFL was one of the 19 group firms active in the retail, wholesale, logistics, and warehousing industries that were slated to be transferred to Reliance Retail.

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