14 February 2020 Future Retails revenue declined marginally in 3QFY20 due to closure of small-format stores and exit from select product categories. We cut our revenue estimate by 11% for FY21 to factor in store closures, lesser store adds and slower SSSG. We also cut our EBITDA estimate by a lesser 7% for FY21 due to loss of revenue from store closure. Revenue fell 3% YoY to INR51.3b (7% miss), but the gross margin improved remarkably by 270bp YoY to 28.7%. Thus, pre-Ind AS 116 EBITDA grew 12% YoY to INR3.1b (16% beat) with the margin improving by 80bp YoY to 6%. FRL closed three Big Bazar stores and 157 small-format Easyday and Heritage stores at net level. At gross level, it closed six Big Bazaar, 157 Easyday, and two E-zone stores. PBT came in at INR1.9b (30% beat, -3% YoY), aided by higher other income (3x YoY to INR148m).