Future Lifestyle’s Q1 net profit stands at 42.33 per cent

Future Lifestyle Fashion (FLFL), which is part of Kishore Biyani-led Future Group, reported a 42.33 per cent increase in quarterly net profit. For the quarter ended June, net profit stood at Rs 3.53 crore while net sales grew 14.85 per cent to Rs 785.97 crore. This was helped by double-digit growth in same-store sales. The contribution from owned brands increased to 40 per cent from 38 per cent on the back of strong performance of labels Lee Cooper and Indigo Nation.

However, EBIDTA margins expanded 68 bps to 9.7 per cent, driven by a decline in rental and employee expenses and higher sales productivity. The company had posted a net profit of Rs 2.48 crore for the corresponding period a year ago.

The company is also firming up plans to raise Rs 500 crore from the domestic or overseas market on a private placement basis so as to bankroll its fashion retail business growth. It will pass a special resolution at its annual general meeting on August 29 to raise the amount by issuing non-convertible debentures. The need for raising the funds have risen because of the growth of fashion retail business and the requirement of funds for operations. So, the company needs to raise additional funds in one or more tranches by issuing NCDs, bonds and/or debt instruments. The dividend will be paid within 30 days from the date of the announcement.