Reliance Infrastructure is set to report its fourth-quarter earnings on Friday and analysts expect the company to report a near 50 percent drop in revenue.
- The revenue is likely to decline by about 50 percent, EBITDA is expected to decline by about 66 percent, margins will contract by 900 basis points (bps) and as a result, the profit will come in close to Rs 200 crore.
- Other than the numbers, the key thing to watch out for would be if the company takes any impairment or write-off on any of its assets because for Reliance Power as well, there were adjustments to the tune of around Rs 4,000 crore and they had taken an impairment as well. One needs to see if there is a similar story playing out at Reliance Infrastructure.
- The auditors’ comments will also be very important. Auditors have been pointing out the issue with respect to their metro business but other than that what is the situation of the entire business, whether the auditors raise questions and observe anything about the accounting policies etc is also something to watch out for.
- One should also see the company’s plan with respect to further sale of non-core assets because to deleverage the balance sheet, Reliance Infra has been monetising a lot of assets.