Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Research

| More

Reliance Industries 4QFY21 Results Review - Faring well! - HDFC Securities

Posted On: 2021-05-03 12:44:26 (Time Zone: UTC)


Mr. Harshad Katkar, Institutional Research Analyst, HDFC Securities and Mr. Nilesh Ghuge, Institutional Research Analyst, HDFC Securities

Our ADD rating on RIL with a price target of INR 2,285 /sh is premised on (1) induction of Facebook, Google, Intel and Qualcomm as partners in Jio Platforms, which should help the company accelerate the growth of digital connectivity and create value in the digital ecosystem through technology offerings; (2) recovery in refining and petchem businesses in FY22E; (3) the emergence of a clear path to a stronger balance sheet; and (4) stake sale in the retail business.

RIL reported standalone revenue/EBITDA of INR 807/102bn, +9/-10% YoY and +32/+17% QoQ (17/18% above than our estimates) in 4Q. Standalone APAT stood at INR 76bn, +195/-12% YoY/QoQ (HSIE est: INR 56bn).

Standalone Oil to Chemicals (O2C) segment: Revenue grew 27% QoQ to INR 896bn, primarily on account of higher volumes and higher realisation across product portfolios. Higher realisation was led by strong average Brent crude price, mainly due to weather-related supply disruption and continued supply cuts by OPEC plus countries. EBITDA for 4Q improved by 23% QoQ to INR 112bn, primarily due to improved cracks for transportation fuels and higher deltas for polymers and integrated polyester chain. Crude throughput declined 7% YoY and grew 2% QoQ to 17.1mmt. In 4Q, high operating rate of plants were witnessed across manufacturing facilities with crackers operating at full throughput.

RJio: Revenue declined by ~6% QoQ to INR 183bn due to transition from Interconnect Usage Charges (IUC) to Bill & Keep regime and lower number of working days during the quarter. ARPU was reported at INR 138 (+6/-8% YoY/QoQ), while the gross/net subscriber addition was ~31/15mn with improved traction across mobility and homes.

Reliance Retail (RR): Core performance in-line: Reliance Retail's net revenue grew 20% YoY to INR 413bn (HSIE: 432bn). Core Retail performed largely in line with expectations (grew 47.6% YoY to INR 288.3bn; HSIE: INR 286.5bn). Grocery (incl. e-comm)/CE/F&L are estimated to have grown at 27/15/88/34% respectively. Adj. EBITDAM remained largely stable at 7.5% YoY (HSIE: 7.1%).

Valuation: We use EV/EBITDA to value downstream at March-23E EV/e, Retail on peer benchmarked EV/e and E&P, Jio on DCF. The stock is currently trading at 9.6x March-23E EV/EBITDA and 19.1x March-23E EPS. Maintain ADD.

Shares of RELIANCE INDUSTRIES LTD. was last trading in BSE at Rs.1959.25 as compared to the previous close of Rs. 1994.45. The total number of shares traded during the day was 693942 in over 32471 trades.

The stock hit an intraday high of Rs. 1979 and intraday low of 1943.7. The net turnover during the day was Rs. 1357543995.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.


Other Headlines:

Maintain BUY on CreditAccess Grameen - Accelerated write-offs dents earnings - HDFC Securities

Sundram Fasteners Q4 Results Review - HDFC Securities

SRF - Specialty Chemicals continues to shine! - HDFC Securities

Realtors welcome RBI latest stance, expect relief initiatives in next announcement

CreditAccess Grameen - Q4FY21 Result Update - ICICI Securities

JM Financial - Exits FY21 with well contained stress pool; sequential AUM uptick encouraging - ICICI Securities

Hero MotoCorp - Margins remain resilient - ICICI Securities

CEAT - Margin pressures likely to intensify - ICICI Securities

SRF Limited - FY22E growth capped on higher plants utilisation - ICICI Securities

I-direct Instinct - Automotive Axles - ICICI Direct

Quant Pick - Axis Bank - ICICI Direct

Gladiator Stocks - Caplin Point Laboratories - ICICI Direct

Q4FY21 Result Update - Coforge Ltd - ICICI Direct

Tata Consumer Products - Q4FY21 First Cut - ICICI Direct

Coforge Ltd - Q4FY21 Result Update - YES Securities

CreditAccess Grameen - Q4FY21 Result Update - YES Securities

Blue Star - Q4 FY21 first cut - Inline performance - YES Securities

Tata Consumer - 4QFY21 results first cut - YES Securities

Tata Consumer 4QFY21 results first cut - YES Securities

Maintain BUY on CDSL - Strong growth momentum - HDFC Securities

Maintain ADD on L&T Infotech - Steady progression - HDFC Securities

Blue Dart Express - Q4FY21 - The bulge continues - ICICI Securities

Tata Steel - FY22E Net Debt/EBITDA at <1x - ICICI Securities

Larsen & Toubro Infotech - Consistency continues! - ICICI Securities

CEAT - Decent quarter; new capex likely to curtail FCF - ICICI Securities

Q4FY21 Result Update - Alembic Pharma - ICICI Direct

Gladiator Stocks - Cadila Healthcare - ICICI Direct

Q4FY21 Result Update - Larsen & Toubro Infotech - ICICI Direct

RBI Action Update - May 2021 - ICICI Direct

Quant Pick - Aurobindo Pharma - ICICI Direct

Q4FY21 Result Update - Greaves Cotton - ICICI Direct

Adani Total Gas Ltd - Q4FY21 Result Update - YES Securities

L&T Infotech - Q4FY21 Result Update - YES Securities

Bluedart Express - Q4 FY21 first cut - Miss on topline; Profitability improves - YES Securities

Views on the announcement by RBI Governor - Ms. Bekxy Kuriakose, Head - Fixed Income, Principal Asset Management

Views from experts on RBI announcement - May 5, 2021

Maintain REDUCE on RBL Bank - Elevated retail slippages continue - HDFC Securities

Resolution 2.0 measure by RBI to provide relief to real estate linked SME stakeholders

Godrej Properties - Robust quarter; positives fairly priced in - HDFC Securities

RBI Relief 2.0 - May 2021 - Acuité Ratings & Research

MDF Industry - Countervailing duty on MDF recommended; imports may get hit structurally - ICICI Securities

Home First Finance Company - Core earnings steady; profitability buoyed by securitisation income - ICICI Securities

RBL Bank - Modest return profile in the interim; transitioning underway - ICICI Securities

Alembic Pharmaceuticals - US continues to be under pressure - ICICI Securities

Q4FY21 Result Update - SBI Life Insurance - ICICI Direct

Q1CY21 Result Update - Varun Beverages - ICICI Direct

RBL Bank: Views from leading research houses on Q4FY21 results

Q4FY21 Result Update - Supreme Industries - ICICI Direct

Q4FY21 Result Update - Tata Chemicals - ICICI Direct

Larsen & Toubro Infotech - Q4FY21 First Cut - ICICI Direct


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020