RIL Q4FY21 numbers to disappoint markets?

Reliance Industries Ltd (RIL) having presented its Q4FY21 numbers on last Friday, is seen having lot of disappointments, while clearly indicates that the results are made to accept as good by vested interets and Media (which should not have been done by them) as, such view can only remain valid till market does not open, for about 60 hours or so.

1)    JIO had a big miss with ARPU falling by 8.5%, QoQ, to Rs. 138.20 in Q4, against Rs. 151 of Q3FY21. This has led to lower revenue of Rs. 22,628 cr in Q4 against Rs. 23,678 cr. In Q3, with EBIT falling to Rs. 5,600 cr in Q4 against Rs. 5,716 cr QoQ, of Digital Services segment.
2)    Q4 Retail EBITDA margin fell to 8.81% in Q4 from 9.3% QoQ, indicating incremental stores seen a drag on margins.
3)    O2C Q4 EBITDA margin fell to 11.3% in Q4 from11.6% QoQ, inspite of robust margin expansion shown by Petchem segment, across the board, by all other major manufacturers.
4)    Q4 Consolidated EBITDA was marginally higher at Rs. 26,602 cr against Rs. 26,094 cr in Q3, inspite of such huge cash flow of investment monetization and plough back of profits.
5)    Income tax provision of Rs. 2,205 for FY21 cr on PBT of Rs. 55,461 cr, being less than 4%, definitely raises eyebrows, though must be in confirmity.
6)    Even Deferred tax credit of Rs. 483 cr in FY 21, against expense of Rs. 5,096 cr in FY20, (though a non cash item) has reduced income tax burden in P&L Account by Rs. 5,579 cr for FY21.
7)    Consolidated Gross debt of Rs. 2,51,811 cr as at 31-3-21, is matched with cash and equivalents of Rs. 2,54,019 cr, by including share call money of Rs. 39,843 cr, to be received by November 2021, which shows an attempt to show RIL as net debt free, maybe, to support Chairman's old statement.
8)    Current Investments rose to Rs.1,52,446 cr as at 31-3-21, against Rs. 72,915 cr on 31-3-20, is an eye brow raiser. This is over and above Fixed Investments of Rs. 212,382 cr, as at 31-3-21, against Rs. 2,03,852 cr on 31-3-20.
9)    Dividend of Rs. 7 per share declared for FY21, against Rs. 6.50 of FY20, will also disappoint. However, PP shares will get pro rata dividend, in proportion to the face value paid up.

Hence, it is certain that cursory analysis made on last Friday, hides more than what it revealed, as stated with these 9 broader financial points.  

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