Future Lifestyle Q1 profit slides to Rs 3.6 cr

Future Lifestyle Fashions has reported that its first-quarter net profit decreased less than half from a year earlier,

as the company accounted for sharply higher depreciation cost. Depreciation rose to Rs 42 crores in the past quarter from Rs 27 crores a year earlier. Net profit for the April to June quarter fell to Rs 3.6 crore down from Rs 7.7 crore, last year. However, sales increased 12 percent from a year earlier to Rs 683 crores, owing to higher sales through company-owned stores and better merchandise planning.

Recently, Future Lifestyle announced its plans to raise Rs 300 crores on a preferential basis to carry out its expansion plans. The funds would also be utilized to bring down debt. The company informed the Bombay Stock Exchange that its board will meet and approve issue of equity shares or debentures to one or more persons on preferential basis.

Over a year ago, Future Retail tried to simplify its business structure by creating three different entities—Future Retail which houses its value retail (hypermarkets and supermarkets), Future Lifestyle Fashions for fashion and lifestyle retail, and Future Ventures India for the consumer products businesses.