Views on Reliance Industries Q1FY21 Results: Mr. Deepak Jasani, Head Retail Research, HDFC Securities

Reliance Industries reported revenues that were short of estimates mainly led by poor topline performance by refining segment. Adjusted PAT came in marginally higher than estimates helped in part by higher other Income and lower tax during the quarter. Both refining and Petrochemicals business performed well at the operating profit level due to optimized crude procurement, relatively higher utilization, cost management and agile product placement. Reliance Retail's topline performance was resilient considering the adverse operating environment. Reliance Jio's performance was broadly in line but the ARPU at Rs. 140 surprised positively.

Reliance's reported bottomline growth was helped by low tax rates due to new rates & deferred tax credit due to planned O2C restructuring and exceptional income of Rs. 4,966 crore (net of taxes of Rs. 1,508 crore) due to profit on divestment of stake in domestic fuel retailing business. The impact of revision of useful life of assets in O2C business to 50 years on the profits for the year was not separately disclosed.

Shares of RELIANCE INDUSTRIES LTD. was last trading in BSE at Rs.2066.95 as compared to the previous close of Rs. 2108.65. The total number of shares traded during the day was 1283236 in over 54240 trades.

The stock hit an intraday high of Rs. 2129.85 and intraday low of 2053.3. The net turnover during the day was Rs. 2666831012.

Source : Equity Bulls

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