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The stand-alone net profit of Kishore Biyani-led Future Retail dipped 90.8 per cent to touch Rs 6.1 crore during the April-June period quarter of 2015-16. The net profit in the corresponding period last year was much higher at Rs 66.5 crore. The sharp fall in profit, missing analysts’expectation, is being attributed to higher expenses, which include employee and rental costs.
In spite of the steep fall in profit, net sales grew 22.4 per cent at Rs 2,899.5 crore in the June quarter, up from Rs 2,368.3 crore in a year ago.
The company stock was down 1.13 per cent at Rs 127 on the BSE on Friday.
Future Retail’s 'other expenses' increased 31.1 per cent to Rs 259.2 crore, compared with Rs 197.7 crore during the same period last year, the company said.
Its rental expenses also increased to Rs 151.3 crore, up 13.3 per cent from Rs 133.5 crore in the same period a year ago. The company operates on a total area of 11.28 million sq ft, after it added 0.04 million sq ft during the June quarter. "The same-store sales growth for value business that primarily operates Big Bazaar is 10.3 per cent, while that for home business it is 3.8 per cent," Future Retail said. Same-store sales refer to income coming from outlets that have been open for at least one year.
