INSUBCONTINENT EXCLUSIVE:
the quarter was better than the Bloomberg consensus estimate, but the quality of earnings may weigh on investor sentiment as it was driven
invest in Reliance Jio Infocomm, its digital business unit, and Reliance Retail, its organised retail venture
The share of these businesses in total operating profit widened to 26.7% from 10.12% a year earlier.
The operating profit of the oil
refining business fell 25.5% to Rs 4,176 crore from a year earlier due to weaker global refining margins and lower refinery throughput after
a refinery maintenance shutdown
due to the full impact of its pet coke gasification project and higher diesel realisation as new rules for lower sulphur in the fuel may be
lower polyester chain spread
The average revenue per user stood at Rs 126.2 per month.
The trajectory of the Reliance stock in the near to medium term will largely hinge
on how subscriber additions pan out over the current financial year
The market expects a subscriber base of 420 million in FY20 and 468 million in FY21 and ARPU to improve with a richer product mix
valuation.
Reliance Retail continues to surprise
Revenue increased 52% and operating profit grew 81% from a year earlier
The operating margin improved 50 basis points to 4.7% sequentially
For the full year, retail revenue grew 88.7% to Rs 1,30,566 crore, the highest for any retailer in India
The magnitude of revenue growth makes the retail segment most likely to better valuation multiple.
