Future Retail Ltd.

NSE: FRETAIL | BSE: 540064 | ISIN: INE752P01024 |Industry: Department Stores
|Weak Stock
74.40 -3.40 (-4.37%)
NSE Oct 26, 2020 12:54 PM
Volume: 3.9M

Future Retail Ltd.    
14 Feb 2020
Motilal Oswal
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).
Promoters pledge reduced to 69.07% of holdings in Sep 2020 qtr.
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