Retailing · Founded 2007 · www.futureretail.co.in · BSE 540064 · NSE FRETAIL · ISIN INE752P01024
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Business
Future Retail Ltd. (FRL) was one of India's largest organized multi-format retailers. Its core business model involved operating a chain of hypermarkets, supermarkets, and fashion stores across India. Major formats included Big Bazaar (hypermarket and department stores), FBB (fashion destination), Easyday (neighborhood stores), and WH Smith (book and convenience stores). The company generated revenue by selling a wide range of products including food, fast-moving consumer goods (FMCG), fashion apparel, home furnishings, electronics, and general merchandise to customers.
Revenue Mix
Historically, FRL's revenue was primarily driven by:
Food & FMCG: A significant portion came from daily essentials, groceries, and packaged goods, primarily through Big Bazaar and Easyday formats.
Fashion & Apparel: FBB and fashion sections within Big Bazaar contributed substantially, focusing on affordable fashion.
Home & General Merchandise: Household goods, electronics, and other lifestyle products.
Specific percentage breakdowns are not meaningfully applicable currently due to the company's insolvency process and halted operations.
Industry
The Indian retail industry is characterized by a mix of traditional unorganized retail and rapidly growing organized retail, increasingly influenced by e-commerce. Historically, Future Retail was a pioneer and one of the largest players in organized retail, known for its extensive store network and popular brands like Big Bazaar. However, due to severe financial distress, accumulation of debt, and the failure of its proposed asset sale to Reliance Retail, Future Retail is currently undergoing a Corporate Insolvency Resolution Process (CIRP) under the NCLT. Its market position has been significantly eroded, and most of its operational assets have been taken over or are non-operational.
MOAT
Historically, Future Retail possessed some competitive advantages:
Scale & Reach: Extensive store network across India provided significant reach and procurement advantages.
Brand Recognition: "Big Bazaar" was a household name and a strong anchor brand, offering a value proposition to mass-market consumers.
Supply Chain: Established supply chain and logistics infrastructure.
However, these historical moats have been severely eroded due to the company's financial collapse, asset stripping, inability to replenish stock, and the ongoing insolvency proceedings. The company, in its current state, lacks any meaningful competitive advantage.
Growth Drivers
For a healthy retail company in India, typical growth drivers include:
Rising disposable incomes and increasing consumption.
Urbanization and demographic shifts.
Shift from unorganized to organized retail.
Digital adoption and omnichannel strategies.
Expansion into Tier 2/3 cities.
However, for Future Retail Ltd. in its current state of insolvency, these industry growth drivers are not applicable. The company's future "growth" is contingent upon the successful resolution of its insolvency, which could involve liquidation or acquisition by a new entity that revives some of its underlying assets or brands under a new structure.
Risks
Insolvency & Liquidation: The primary risk is the current Corporate Insolvency Resolution Process (CIRP) leading to liquidation of assets and minimal recovery for stakeholders.
Legal & Regulatory: Ongoing legal battles (e.g., with Amazon, various creditors) creating uncertainty and delays in the resolution process.
Operational Halt: Most of its stores have been shut down or taken over by other entities, leading to a complete cessation of active retail operations.
Creditor Recovery: Uncertainty regarding the extent of recovery for various classes of creditors (financial, operational).
Brand Erosion: Prolonged non-operation and negative publicity have severely damaged its brand equity.
Management & Ownership
Future Retail Ltd. was promoted by Kishore Biyani and the Future Group, who were instrumental in pioneering modern retail in India. However, the company faced significant financial mismanagement, excessive debt, and failed strategic initiatives in recent years, leading to its collapse. Currently, the company is under the purview of the National Company Law Tribunal (NCLT) as part of the CIRP, and its operations are overseen by a Resolution Professional. Ownership is effectively contested, with a consortium of lenders and other creditors having significant claims over the company's assets.
Outlook
The outlook for Future Retail Ltd. is highly uncertain and predominantly negative given its current state of corporate insolvency.
Bull Case (for assets/creditors): A successful and relatively swift resolution process under NCLT leading to the acquisition of some viable assets (e.g., specific store locations, brands) by a larger, financially stable entity. This might allow for some recovery for a portion of its creditors.
Bear Case (for company/shareholders): A prolonged and complex insolvency process, leading to the complete liquidation of remaining assets. This would likely result in minimal or no recovery for operational creditors and shareholders, with the brand name potentially fading away completely.
The most probable outcome involves the sale of its remaining assets to recover dues for lenders, with the current entity as a going concern being highly unlikely. The future hinges entirely on the NCLT proceedings and decisions by its creditors.
Price goes above X
Price falls below X
PE goes above X
PE falls below X
| #(Fig in Cr.) | Sep 2019 | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2020 | Mar 2021 | Jun 2021 | Sep 2021 | Dec 2021 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 5449 | 5193 | 4492 | 1358 | 1424 | 1507 | 2015 | 1416 | 2369 | 2816 |
| Other Income | 21 | 16 | 40 | 111 | 65 | 38 | 42 | 16 | 15 | 11 |
| Total Income | 5470 | 5209 | 4533 | 1470 | 1489 | 1545 | 2057 | 1431 | 2384 | 2827 |
| Total Expenditure | 4753 | 4480 | 4493 | 1508 | 1443 | 1620 | 2304 | 1810 | 2723 | 3137 |
| Operating Profit | 717 | 729 | 40 | -39 | 47 | -76 | -247 | -379 | -339 | -310 |
| Interest | 273 | 276 | 231 | 278 | 362 | 403 | 428 | 354 | 365 | 344 |
| Depreciation | 279 | 286 | 282 | 245 | 378 | 368 | 392 | 414 | 413 | 409 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 166 | 166 | -474 | -562 | -692 | -847 | -1067 | -1147 | -1117 | -1063 |
| Provision for Tax | 0 | 0 | 3 | 0 | 0 | 0 | 21 | 0 | 0 | 0 |
| Profit After Tax | 166 | 166 | -477 | -562 | -692 | -847 | -1088 | -1147 | -1117 | -1063 |
| Adjustments | 0 | -1 | -3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | 166 | 165 | -479 | -562 | -692 | -847 | -1088 | -1147 | -1117 | -1063 |
| Adjusted Earnings Per Share | 3.3 | 3.3 | -9.1 | -10.4 | -12.8 | -15.6 | -20.1 | -21.2 | -20.6 | -19.6 |
| #(Fig in Cr.) | Mar 2019 | Mar 2020 | Mar 2021 | TTM |
|---|---|---|---|---|
| Net Sales | 20333 | 20332 | 6304 | 8616 |
| Other Income | 23 | 87 | 261 | 84 |
| Total Income | 20356 | 20418 | 6565 | 8699 |
| Total Expenditure | 19296 | 18276 | 6879 | 9974 |
| Operating Profit | 1060 | 2142 | -315 | -1275 |
| Interest | 228 | 1026 | 1471 | 1491 |
| Depreciation | 104 | 1099 | 1383 | 1628 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 |
| Profit Before Tax | 727 | 18 | -3168 | -4394 |
| Provision for Tax | 0 | 3 | 21 | 21 |
| Profit After Tax | 727 | 15 | -3190 | -4415 |
| Adjustments | -0 | -3 | 0 | 0 |
| Profit After Adjustments | 727 | 12 | -3190 | -4415 |
| Adjusted Earnings Per Share | 14.5 | 0.2 | -58.8 | -81.5 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -69% | 0% | 0% | 0% |
| Operating Profit CAGR | -115% | 0% | 0% | 0% |
| PAT CAGR | -21367% | 0% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | 0% | -1% | -46% | NA% |
| ROE Average | -143% | -41% | -41% | -41% |
| ROCE Average | -13% | 4% | 4% | 4% |
| #(Fig in Cr.) | Mar 2019 | Mar 2020 | Mar 2021 |
|---|---|---|---|
| Shareholder's Funds | 3847 | 4183 | 1094 |
| Minority's Interest | 0 | 0 | 0 |
| Borrowings | 375 | 4363 | 4385 |
| Other Non-Current Liabilities | 206 | 2014 | 1090 |
| Total Current Liabilities | 6159 | 10977 | 12456 |
| Total Liabilities | 10587 | 21538 | 19025 |
| Fixed Assets | 1525 | 3646 | 7026 |
| Other Non-Current Assets | 894 | 6174 | 1976 |
| Total Current Assets | 8168 | 11718 | 10023 |
| Total Assets | 10587 | 21538 | 19025 |
| #(Fig in Cr.) | Mar 2019 | Mar 2020 | Mar 2021 |
|---|---|---|---|
| Opening Cash & Cash Equivalents | 144 | 208 | 91 |
| Cash Flow from Operating Activities | -340 | -1755 | -113 |
| Cash Flow from Investing Activities | -760 | -4405 | -62 |
| Cash Flow from Financing Activities | 1165 | 6043 | 122 |
| Net Cash Inflow / Outflow | 64 | -117 | -53 |
| Closing Cash & Cash Equivalent | 208 | 91 | 37 |
| # | Mar 2019 | Mar 2020 | Mar 2021 |
|---|---|---|---|
| Earnings Per Share (Rs) | 14.47 | 0.22 | -58.81 |
| CEPS(Rs) | 16.54 | 21.12 | -33.32 |
| DPS(Rs) | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 76.21 | 64.58 | 19.62 |
| Core EBITDA Margin(%) | 4.66 | 9.24 | -8.38 |
| EBIT Margin(%) | 4.3 | 4.69 | -24.73 |
| Pre Tax Margin(%) | 3.27 | 0.08 | -46.16 |
| PAT Margin (%) | 3.27 | 0.07 | -46.46 |
| Cash Profit Margin (%) | 3.74 | 5.01 | -26.32 |
| ROA(%) | 6.87 | 0.09 | -15.73 |
| ROE(%) | 18.99 | 0.42 | -142.71 |
| ROCE(%) | 14.69 | 10.66 | -13.39 |
| Receivable days | 5.3 | 8.35 | 29.39 |
| Inventory Days | 83.51 | 84.77 | 245.88 |
| Payable days | 89.19 | 111.35 | 351.97 |
| PER(x) | 31.36 | 359.92 | 0 |
| Price/Book(x) | 5.95 | 1.22 | 2.18 |
| Dividend Yield(%) | 0 | 0 | 0 |
| EV/Net Sales(x) | 1.24 | 0.63 | 2.13 |
| EV/Core EBITDA(x) | 23.78 | 6.02 | -42.71 |
| Net Sales Growth(%) | 0 | -0 | -68.99 |
| EBIT Growth(%) | 0 | 9.22 | -262.65 |
| PAT Growth(%) | 0 | -97.94 | 0 |
| EPS Growth(%) | 0 | -98.49 | 0 |
| Debt/Equity(x) | 0.69 | 2.61 | 10.52 |
| Current Ratio(x) | 1.33 | 1.07 | 0.8 |
| Quick Ratio(x) | 0.5 | 0.59 | 0.48 |
| Interest Cover(x) | 4.19 | 1.02 | -1.15 |
| Total Debt/Mcap(x) | 0.12 | 2.14 | 4.83 |
| # | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2020 | Mar 2021 | Jun 2021 | Sep 2021 | Dec 2021 | Mar 2022 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 47.02 | 40.31 | 41.73 | 33.86 | 28 | 20.56 | 19.86 | 19.86 | 18.24 | 14.31 |
| FII | 12.6 | 12 | 10.98 | 4.39 | 2.91 | 2.6 | 2.91 | 2.97 | 2.85 | 2.6 |
| DII | 14.14 | 12.91 | 11.09 | 6.46 | 6.06 | 6.07 | 6.07 | 6.07 | 7.22 | 6.61 |
| Public | 26.24 | 34.78 | 36.2 | 55.29 | 63.03 | 70.76 | 71.16 | 71.1 | 71.7 | 76.48 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2020 | Mar 2021 | Jun 2021 | Sep 2021 | Dec 2021 | Mar 2022 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 23.63 | 21.26 | 22.63 | 18.36 | 15.18 | 11.15 | 10.77 | 10.77 | 9.89 | 7.76 |
| FII | 6.33 | 6.33 | 5.95 | 2.38 | 1.58 | 1.41 | 1.58 | 1.61 | 1.54 | 1.41 |
| DII | 7.11 | 6.81 | 6.01 | 3.5 | 3.29 | 3.29 | 3.29 | 3.29 | 3.91 | 3.58 |
| Public | 13.19 | 18.34 | 19.63 | 29.98 | 34.18 | 38.37 | 38.59 | 38.55 | 38.88 | 41.47 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 50.26 | 52.74 | 54.22 | 54.23 | 54.23 | 54.23 | 54.23 | 54.23 | 54.23 | 54.23 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -69% | — | — | — |
| Operating Profit CAGR | -115% | — | — | — |
| PAT CAGR | -21367% | — | — | — |
| Share Price CAGR | 0% | -1% | -46% | — |
| ROE Average | -143% | -41% | -41% | -41% |
| ROCE Average | -13% | +4% | +4% | +4% |
| # | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2020 | Mar 2021 | Jun 2021 | Sep 2021 | Dec 2021 | Mar 2022 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 47.02 | 40.31 | 41.73 | 33.86 | 28 | 20.56 | 19.86 | 19.86 | 18.24 | 14.31 |
| FII | 12.6 | 12 | 10.98 | 4.39 | 2.91 | 2.6 | 2.91 | 2.97 | 2.85 | 2.6 |
| DII | 14.14 | 12.91 | 11.09 | 6.46 | 6.06 | 6.07 | 6.07 | 6.07 | 7.22 | 6.61 |
| Public | 52.98 | 59.69 | 58.27 | 66.14 | 72 | 79.44 | 80.14 | 80.14 | 81.76 | 85.69 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2020 | Mar 2021 | Jun 2021 | Sep 2021 | Dec 2021 | Mar 2022 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 23.63 | 21.26 | 22.63 | 18.36 | 15.18 | 11.15 | 10.77 | 10.77 | 9.89 | 7.76 |
| FII | 6.33 | 6.33 | 5.95 | 2.38 | 1.58 | 1.41 | 1.58 | 1.61 | 1.54 | 1.41 |
| DII | 7.11 | 6.81 | 6.01 | 3.5 | 3.29 | 3.29 | 3.29 | 3.29 | 3.91 | 3.58 |
| Public | 26.63 | 31.48 | 31.59 | 35.87 | 39.05 | 43.08 | 43.46 | 43.46 | 44.34 | 46.47 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 50.26 | 52.74 | 54.22 | 54.23 | 54.23 | 54.23 | 54.23 | 54.23 | 54.23 | 54.23 |
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