Reliance Industries Ltd, incorporated in the year 1973, is a Large Cap company with a market cap of Rs 13,48,694.62 Crore, operating in Diversified sector.
Reliance Industries Ltd’s key Products/Revenue Segments include Refinery, Petrochemicals, Other Services, Oil & Gas, Income From Financial Services, Others for the year ending 31-Mar-2020.
Investment Rationale
Emkay Research said, there was an exceptional income of Rs 8 billion from US shale divestment. Retail revenue jumped 25 per cent QoQ, driven by electronics (including JioPhone), grocery and F&L. Jio revenue declined 6 per cent QoQ, while EBITDA margin expanded 388 bps to 52 per cent. Net access charges fell 88 per cent to Rs 1.8 billion. For FY21, consolidated EBITDA/core PBT was Rs 807 billion/493 billion, down 9 per cent/15 per cent YoY due to weaker O2C and retail, partially offset by Jio growth. Capex was up 3 per cent to Rs 797 billion, with Rs 150 billion paid upfront for spectrum in Q4. The board recommended Rs 7/share dividend.
Emkay’s FY23E EBITDA is unchanged as it builds in Jio tariff hikes from H2FY22. Its 31x retail multiple is based on 35x on core and 5x on connectivity. Emkay estimates a net cash of Rs 185 billion in FY22E with ~Rs 550 billion capex ex-spectrum, while adjusted for deferred spectrum; minority interest adjusted net debt is Rs 249 billion.
According to Emkay, key risks include adverse commodity prices-margins/currency, competition and corporate events.
Financials
For the quarter ended 31-03-2021, the company has reported a Consolidated Total Income of Rs 158133 Crore, up 23.11 per cent from last quarter’s Total Income of Rs 128450 Crore and up 12.65 per cent from last year same quarter’s Total Income of Rs 140373 Crore. Company has reported net profit after tax of Rs 14981 Crore in the latest quarter.
