Future Retail board approves demerger of home retail business

Scheme subject to regulatory approvals

by RASHMI RAWAT

The Board of Directors of Future Retail (FRL) approved to consolidate the company’s online and offline home retail businesses into a single entity. According to a NSE filing by the company on 20 April 2017, its home retail business operated through HomeTown stores and its e-commerce store FabFurnish.com will be demerged into a company called Praxis Home Retail (PHRPL). PHRPL will be listed prior to the completion of the scheme. The scheme is subject to approval from National Company Law Tribunal, stock exchanges and SEBI.

As consideration for the demerger, for every 20 shares of face value Rs.2 of FRL, the shareholders will receive one share of face value Rs.5 of PHRPL. There would be no change in the shareholding pattern of Future Retail post the demerger. According to the company, the purpose of the demerger is to spin off its specialty business and focus on its large and small format pure retail businesses. It would also result in greater visibility of performance of the offline and online home retail businesses.

References
1. http://www.livemint.com/Industry/yKtdc6E2kqpgDOR7zmK1bM/Future-Retail-to-demerge-home-retail-business.html
CMIE STATISTICS
Unemployment Rate
Per cent
5.3 -0.1
Consumer Sentiments Index
Base September-December 2015
95.8 0.0
Consumer Expectations Index
Base September-December 2015
93.9 0.0
Current Economic Conditions Index
Base September-December 2015
98.7 0.0
Quarterly CapeEx Aggregates
(Rs.trillion) Dec 16 Mar 17 Jun 17 Sep 17
New projects 2.33 3.80 2.06 1.02
Completed projects 1.01 1.94 1.14 0.99
Stalled projects 1.13 0.70 2.66 0.64
Revived projects 0.18 0.67 0.30 0.23
Implementation stalled projects 0.82 0.33 0.68 0.61
Updated on: 22 Nov 2017 9:20AM
Quarterly Financials of Listed Companies
(% change) Dec 16 Mar 17 Jun 17 Sep 17
All listed Companies
 Income 6.2 10.2 9.8 8.6
 Expenses 6.3 11.9 10.0 9.9
 Net profit 40.3 15.8 -19.7 -18.1
 PAT margin (%) 6.1 6.0 5.3 5.9
 Count of Cos. 4,507 4,438 4,290 2,783
Non-financial Companies
 Income 5.9 11.8 10.4 8.6
 Expenses 7.2 15.6 10.7 8.6
 Net profit 24.5 -2.5 -25.1 -5.3
 PAT margin (%) 6.2 6.2 5.2 6.8
 Net fixed assets 6.9 10.0
 Current assets 2.6 2.2
 Current liabilities 8.8 10.0
 Borrowings 4.8 4.1
 Reserves & surplus 6.3 8.1
 Count of Cos. 3,488 3,439 3,342 2,037
Numbers are net of P&E
Updated on: 22 Nov 2017 9:30AM
Annual Financials of All Companies
(% change) FY14 FY15 FY16 FY17
All Companies
 Income 10.0 5.2 1.1 6.6
 Expenses 9.9 5.2 1.2 6.8
 Net profit -2.2 1.6 -12.9 20.2
 PAT margin (%) 3.2 3.2 2.9 6.5
 Assets 12.3 9.4 9.6 8.8
 Net worth 9.6 8.7 10.3 8.5
 RONW (%) 6.2 6.1 5.1 9.6
 Count of Cos. 23,895 23,579 20,184 3,629
Non-financial Companies
 Income 9.7 4.3 0.1 6.5
 Expenses 9.3 4.5 -0.6 7.4
 Net profit -2.7 -5.5 11.5 14.3
 PAT margin (%) 2.2 2.1 2.6 6.5
 Net fixed assets 11.6 13.4 15.1 7.3
 Net worth 8.2 7.1 10.6 7.2
 RONW (%) 5.1 4.9 5.4 11.0
 Debt / Equity (times) 1.1 1.1 1.1 0.6
 Interest cover (times) 2.0 1.9 2.0 3.7
 Net working capital cycle (days) 69 67 66 50
 Count of Cos. 19,154 19,053 16,707 2,782
Numbers are net of P&E
Updated on: 15 Nov 2017 2:29PM

Data added for HPI at Assessment prices and HPI at Market prices