For the full financial year, Future Lifestyle's EBITDA declined 9.4 per cent YoY to Rs 511 crore, down from Rs 564 crore in FY19
Future Lifestyle shares were locked in the 5 per cent lower circuit band, at Rs 109.25 apiece, on the BSE on Monday after the company reported a consolidated loss of Rs 148.65 crore for the quarter ended on March 2020. The company had posted a profit after tax of Rs 74.67 crore during the January-March quarter a year ago.
While its total income rose 4.47 per cent year-on-year (YoY) to Rs 1,442.96 crore during the quarter under review, from Rs 1,381.19 crore in the year-ago quarter, itss total expenses jumped 17.14 per cent YoY to Rs 1,579.55 crore in Q4FY20 as compared to Rs 1,348.39 crore.
For the full financial year, Future Lifestyle's EBITDA declined 9.4 per cent YoY to Rs 511 crore, down from Rs 564 crore in FY19. Similarly, loss for FY20 stood at Rs 34 crore, down from profit of Rs 189 crore in FY19.
"The fashion retail business would be more impacted due to drop in footfalls, de-growth of revenue, lack of disposable income and discretionary spending by the customer. Considering the impact on revenue, it was imperative that the company reviews and quickly addresses each and every cost and reduce or optimise it as far as possible," the management said, highlighting the impact of Covid-19.
It added that the company, along with the experts, has formulated a strategy for "renegotiation of rental cost and identified key drivers for rigorous reduction of operating cost, personnel cost and other major cost, to optimize the cost commensurate with the operations, post Covid-19".
So far in the financial year 2021, the stock price has advanced only 2 per cent till July 31, as against 28 per cent rise in the S&P BSE Sensex.