 "Future Group")
Future Consumer Ltd (FCL) on Friday reported a widening of its consolidated net loss to Rs 95.14 crore for the first quarter ended June 30, 2022.
The company had posted a net loss of Rs 31.54 crore in the April-June quarter a year ago, said FCL, the FMCG arm of the Future group, in a BSE filing.
Its total income was down 65.12 per cent to Rs 109.77 crore during the period under review as against Rs 314.73 crore in the corresponding period last fiscal, the company said.
FCL's total expenses were at Rs 167.74 crore, down 50.71 per cent in Q1/FY 2022-23, as against Rs 340.36 crore.
According to the company, this was "primarily owing to the lower volumes, finance costs and depreciation".
The Group has debt servicing obligations aggregating to Rs 341.07 crore within the next 12 months, which comprises a Current Maturities of Long-Term debt amounting to Rs 128.21 crore and Rs 212.86 crore short-term borrowings.
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"Group's current liabilities exceeded its current assets by Rs 458.16 crore as at the period end date. Also, the Holding Company has defaulted on payment of interest/repayment of principal amount on loans from banks/ financial institution and unlisted debts securities as on June 30, 2022, amounting to Rs 52.04 crore out of which Rs 1.07 crore has been paid subsequently till date," it added.
Moreover, NCLT has also initiated insolvency proceedings against Future Retail, the major customer, of the Group.
"The Group has significant amount of receivables from the Customer and has recorded an expected credit loss on the entirety of the amounts from the said customer during the previous year ended March 31, 2022. These events/conditions indicate the existence of material uncertainty on the Group's ability to continue as going concern," it said.
To address the liquidity crunch and to maintain sufficient working capital, the Group has adopted several measures including sales to other customers, cost optimisation.
"Further, the Board of directors of the Holding Company has approved the plan for monetization of some of the assets including investments, to repay the debts and manage the working capital requirements," it said adding the management is confident that they will be able to arrange sufficient liquidity by monetization of its assets.
Shares of Future Consumer Ltd on Friday settled at Rs 1.64 on BSE, up 0.61 per cent from its previous close.
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