Future Retail sees nearly 110% rise in Q1 net profit; shares touch new high

Key Highlights: 

• Future Retail reports net profit of Rs 147.85 crore in Q1
• Revenue at Rs 4,704.93 crore
• Demerger of home retail business subject to NCLT approval

Future Retail clocked over two-folds jumps in its net profit on year-on-year basis for the quarter ended June 30, 2017 (Q1FY18).

The company posted net profit of Rs 147.85 crore, rising by 109.56% compared to Rs 70.55 crore in the corresponding period of the previous year.

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Q1 net profit also increased by 20.15% from Rs 123.05 crore of the preceding quarter.

Revenue from operations stood at Rs 4,704.93 crore, growing by 18.22% year-on-year (YoY) and 4.93% quarter-on-quarter (QoQ) basis.

The company said, "The board in its meeting held on April 20, 2017 approved a scheme of arrangement for demerger of home retail business undertaking to Praxis Home Retail Limited (PHRL). The company has received observation letter/approval from Sebi through stock exchanges and has submitted application before NCLT, Mumbai for approval of the scheme.'

After the Q1 announcement, share price of Future Retail touched a 52-week high of Rs 460 per piece on BSE. At 1326 hours, the stock was trading at Rs 452.35 per piece up Rs 21.65 or 5.03%.