Future Retail Posts A Loss In March Quarter On One-Time Charge Due To Hypercity Deal
Kishore Biyani’s Future Retail Ltd. posted a loss in the January-March quarter on account of a one-time charge related to the Hypercity deal.
Net loss stood at Rs 463.6 crore in the March ended quarter, compared to an estimated profit of Rs 197 crore, according to an exchange filing. The company reported a profit of Rs 123.1 crore in the same quarter last year.
The retailer’s bottom line took a hit due to an exceptional loss of Rs 603.9 crore on account of a charge related to sale of retail business of unit Hypercity Retail India. In October last year, Future Retail acquired the loss-making hypermarket chain from Shoppers Stop Ltd. for Rs 655 crore.
Revenue of the retailer rose 2.02 percent to Rs 4,574.7 crore, falling short of the Bloomberg consensus estimate of Rs 4,860 crore.
Earnings before interest, tax, depreciation and amortisation rose 11.6 percent to Rs 201.5 crore, while margin expanded 40 basis points to 4.4 percent.