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Marks and Spencer India reports sharp decline in revenue in FY 2020-21


British multinational retailer Marks and Spencer India Pvt Ltd reported a sharp fall in revenue in the financial year 2020-21. In its filing to the Registrar of Companies (RoC), Ministry of Corporate Affairs, the company said that its revenues were down by 77% since the last financial year at ₹91 crore. The numbers are based on standalone financials filed by the company. 

In the fiscal year 2019-20, the company had reported a total revenue of ₹402.27 crore. The company further, in its filings, accessed via business intelligence platform Tofler, reported a net profit of ₹30.4 crore during FY 20-21. This is a 17% decrease from the previous financial year at ₹36.53 crore. While the company lost out on revenue, it also said that its total expenses for the fiscal fell from ₹352.38 crore in FY19-20 to ₹50 crore in 2020-2021. 

The company said in its filing that it has appointed Nitin Verma as an additional director and wholetime director of the company with effect from January 2020.  

India’s retail sector had a stormy year since the covid-19 pandemic hit, with several cities under lockdown for several months both in 2020 and 2021. Work from home mandates, social distancing and restricted mobility impacted sales of apparel in a big way. 

With restricted operational guidelines in many cities during the second wave and weak consumer sentiment, the impact on retailers, specifically apparel, was quite severe. The Shopping Centres Association of India estimated that overall retail lost about ₹25,000 crore in annual sales and malls about ₹3,000 crore during the second wave of the pandemic.  

The Confederation of All India Traders (CAIT) added that localised lockdowns imposed by various states during the second Covid-19 wave also led to a business loss of approximately Rs.15 lakh crore in the two months of April and May.   

In 2019, Marks & Spencer India managing director James Munson had told the media that outside of the UK, India was the largest market for the company.  

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