Future Lifestyle Fashions slips into profit in Q4FY15
Driven by massive reduction in expenses, Future Lifestyle Fashions Ltd (FSFL) slipped in to profits in the fourth fiscal quarter ended March 31, 2015 as against a steep loss in the same quarter of previous fiscal.
In a BSE filing, the fashion division of the Future Group said its net profit amounted to Rs 6.14 crore in the fourth quarter of fiscal 2015 compared to a loss of Rs 186.66 crore in the quarter ended March 31, 2104.
Net profit at the Kishore Biyani led company was driven by huge reductions in depreciation and amortisation expenses as well as stock in trade and inventories.
In the reporting quarter, depreciation and amortisation expense slid 88.39 per cent to Rs 35.08 crore from Rs 302.24 crore in the corresponding quarter of last fiscal.
Change in inventories of finished goods and stock in trade too slipped 76 per cent to Rs 48.17 crore as against Rs 119.80 crore in the prior fiscal fourth quarter.
Rent expense however rose 18.16 per cent year over year to Rs 92.32 crore. Correspondingly, overall expenses dipped to Rs 767.61 crore from Rs 953.99 crore, down 19.53 per cent.
According to the filing, net sales at FSFL grew at 11.72 per cent to Rs 782.95 crore in the quarter under review compared to Rs 700.80 crore in the fourth quarter of fiscal 2014.
With operating income being nearly flat at 18.26 crore, total income from operations ascended to Rs 801.21 crore for the fourth quarter of fiscal 2015 as against Rs 719.52 crore in the same quarter of last fiscal.
Profit from operations before other income, finance costs and exceptional items touched Rs 33.60 crore compared to a loss of Rs 234.47 crore.
In the fourth quarter of fiscal 2015, FSFL reported an exponential hike in other income at Rs 7.77 crore as against just Rs 36 lakhs in the same period of previous fiscal.
Consequently, profit from operations before finance costs and exceptional items in the reporting quarter expanded to Rs 41.37 crore in the fourth quarter of fiscal 2015 as against a loss of Rs 234.11 crore.
The apparel retailer also saw its finance costs decline by 6.19 per cent year over year to Rs 36.69 crore in the quarter ended March 31, 2015.
Resultantly, profit from ordinary activities after finance cost but before exceptional items touched Rs 4.68 crore compared to a loss of Rs 273.15 crore.
Although in the quarter under review, FSFL did not report any expense under exceptional items; in the fourth quarter of fiscal 2014, it posted exceptional items at Rs 5.68 crore.
For the fourth quarter of fiscal 2015, FSFL recorded a tax credit of Rs 1.46 crore, which too was steeply down from a tax credit of Rs 92.17 crore in the quarter from the earlier fiscal.
FSFL has within its portfolio brands like Celio, Indigi Nation, Scullers, Lee Cooper, Bare Casuals, Urban Denim, Jealous 21, etc and retail formats like Brand Factory, Planet Sports and Central. (AR)
Fibre2fashion News Desk - India