Future Retail shares tank 5% on Q1 loss of Rs 562 crore

Shares of Future Retail tanked 5 percent in the first half of the trading session on BSE on September 15, a day after the company reported its June quarter scorecard.

In Q1FY21, the company incurred a net loss of Rs 561.95 crore against a profit of Rs 159.24 crore in the corresponding quarter a year ago.

Revenue from operations for the June quarter stood at Rs 1,358.11 crore against Rs 5,197.11 crore year-on-year (YoY).

The company said the COVID-19 pandemic and consequent lockdown imposed throughout the country had a significant adverse impact on the business operations and the financial results of the company for the quarter ended June 30, 2020.

Reliance Industries (RIL) on August 29 said it was acquiring the retail and wholesale business and the logistics and warehousing business of rival Future Group for a cash consideration of Rs 24,713 crore in a deal which is likely to give the oil and telecom conglomerate a stronghold in grocery and apparel segments.

The deal is being seen as the coming together of a future digital giant and a retail goliath popularly known to be the veteran of the consumer story in India.

Read more: Reliance Retail-Future Group deal

The retail market is still primarily served by the conventional brick-and-mortar stores which account for over 88 percent of the total market. The organised retail is pegged at $60 billion which is expected to witness a rise of 22-25 percent with market size of $140-160 billion by 2021, according to recent industry reports.