Future Lifestyle Fashions Ltd (FLFL) said on Saturday that its consolidated net loss narrowed to Rs 135.96 crore in the April to June quarter of FY23.
The company had posted a net loss of Rs 348.08 crore in the corresponding quarter a year ago, FLFL, the fashion and apparel retail arm of Future Group, said in an ESB filing.
Its operating income fell by 8.42 percent to Rs 272.88 crore in the reporting period from Rs 297.99 crore in the corresponding period of the previous fiscal year, the company said.
FLFL’s total expenditure amounted to Rs 436.56 crore, down 33.45% in Q1/FY23 from Rs 656.07 crore a year ago.
“The company incurred a pre-tax loss during the quarter ended June 30, 2022 amounting to Rs 142.40 crore, mainly due to lower sales volumes, finance charges and depreciation,” FLFL said in its income statement.
FLFL has in-house Central and Brand Factory retail chains, exclusive outlets (EBOs), and other multi-brand outlets (nearly a dozen apparel brands, 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 service obligations totaling Rs 422.11 crore over the next 12 months which includes repayment of the principal amount. long-term debts of Rs 277.04 crore. and short-term borrowings of Rs 145.07 crore.
FLFL further stated that its “current liabilities exceeded its current assets (including assets held for sale) by Rs 1,180.66 crore as of March 31, 2022.
Furthermore, it has already defaulted on the repayment of Rs 335.08 crore of principal amount on loans from banks as of June 30, 2022.
“The main bank and State Bank of India classified the company’s accounts in the system as non-performing assets (NPA) on May 31, 2022, followed by other banks during the month of June 2022,” it said. -he declares.
Since classification as an NPA, the company has already repaid the principal amount of debt amounting to Rs 76.67 crore, FLFL added.
“In addition, the company has started the process of monetizing some of the assets to pay down debts and manage working capital requirements under the same plan,” FLFL said.
The company further added that management is confident that it will be able to organize sufficient liquidity through the monetization of its assets, increased operations and other strategic initiatives.
FLFL was among 19 group companies operating in the retail, wholesale, logistics and warehousing segments, which were to be transferred to Reliance Retail in a Rs 24,713 deal crore announced in August 2020.
The deal was canceled by billionaire Mukesh Ambani, Reliance Industries Ltd, in April after it failed to secure support from the respective companies’ lenders.
As a result, the retail empire run by Kishore Biyani is in serious financial trouble.
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