Below is the Quote On 1QFY21 results of Reliance Industries Ltd -By Jyoti Roy, DVP- Equity Strategist, Angel Broking Ltd
Reliance Industries Ltd. (RIL) reported Q1FY21 numbers which were a mixed bag. While the O2C and retail business came under pressure, the Digital business surprised positively. Consolidated revenues for the quarter was down by 43.8% YoY to ₹91,238 crore. EBIT for the quarter was down by 26.8% YoY to ₹12,678 crore while EBIT margins expanded by 322 bps YoY to 13.9%. However net profit for the quarter was up by 30.6% YoY to ₹13,248 crore due to onetime exceptional gains of ₹4,966 crore and lower tax expenses.
The Petchem, refining and retail businesses were under pressure during the quarter. Petchem EBIT was down by 56.8% YoY to ₹3,392 crore while refining EBIT was down by 45.6% YoY to ₹2,892 crore. GRM for the quarter came in below street estimates at USD 6.3/bbl. Retail business was under pressure during the quarter as revenues declined by 17.2% YoY to ₹31,633 crore while segment EBIT was down by 59.4% YoY to ₹722 crore.
However the digital business posted a strong set of numbers with segment EBIT up by 55.2% YoY to ₹4,708 crore due to strong performance by Jio. Reliance Jio reported revenue growth of 11.6% QoQ to ₹16,557 crore while EBIT increased by 6.5% qoq to ₹4,267 crore. Net profit for the quarter was up by 8.1% QoQ to ₹2,520 crore. Net customer addition for the quarter stood at 9.9mn while ARPU increased by 7.4% QoQ to ₹140.3. We continue to remain positive on Reliance Industries despite the Q1FY21 numbers as we expect the O2C business and the retail business to stabilize in the second half of FY21 while the digital business is expected to maintain its strong growth.
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