PROJECT NAME - CORPORATE FIANCIAL

STATEMENT ANALYSIS

COMPAN NAME - RELIANCE INDUSTRIES

LIMITED

STUDENT NAME - KANCHAN MISHRA

UNIVERSITY ROLL NO. –2212042020020

INTERN ID – VL/SIT/FM/24
 INTRODUCTION
Reliance Industries Limited is an
Indian multinational conglomerate headquartered in Mumbai. Its businesses
include energy, petrochemicals, natural
gas, retail, entertainment, telecommunica
tions, mass media, and textiles. Reliance
is the largest public company in India
by market capitalization and revenue, and
the 100th largest company worldwide. It
is India's largest private tax payer and
largest exporter, accounting for 7% of
India's total merchandise exports The company has relatively little free cash
flow and high corporate debt.
Formerly Reliance Industries Ltd. (from 1973)

Type Public

Industry Conglomerate

Founded 1958

Founder Dhirubhai Ambani

Headquarter Mumbai , Maharashtra , India

Area served Worldwide

Key People Mukesh Ambani

Products Petroleum , Natural gas , Chemicals , Petrochemicals , Oil

, refining, telecommunication , Media , Entertainment .

Owner Mukesh Ambani (50.39%)

Number of Employees 389,414

 HISTORY

1958–1980

 Founding and Early Years: Reliance Commercial Corporation was

established in 1958 by Dushyant Corporation (part of the DC Group of
Companies) as a small venture trading commodities like spices and
polyester yarn.

 1960s Development: In 1965, the partnership ended, and Dhirubhai

Ambani continued the polyester business independently. In 1966,
Reliance Textiles Industries Pvt. Ltd. was incorporated in Maharashtra.

 Expansion into Textiles: Reliance established a synthetic fabrics mill

in Naroda, Gujarat, in 1966. By 1973, it became Reliance Textiles
Industries Limited. The company expanded into textiles, with "Vimal"
becoming a major brand.

 Public Offering and Growth: Reliance held its initial public offering (IPO) in 1977,
which was oversubscribed by seven times, indicating strong investor interest.

 Further Expansion: In 1979, Reliance amalgamated Sidhpur Mills into its operations. In
1980, it expanded its polyester yarn business by setting up a Polyester Filament Yarn Plant in
Patalganga, Maharashtra, in collaboration with E. I. du Pont de Nemours & Co., USA

1981–2000

.  Name Change and Capacity Expansion (1985-1992):

 In 1985, Reliance Textiles Industries Ltd. changed its name to Reliance Industries
Ltd.
 During 1985 to 1992, RIL expanded its
polyester yarn production capacity by over
145,000 tones per annum.

 Hazira Petrochemical Plant (1991-1992):

 The Hazira petrochemical plant was

commissioned during this period, marking
a significant milestone in RIL's
petrochemicals sector growth.

 Global Capital Markets and Credit Ratings

(1993-1996):
  In 1993, RIL raised funds through a global depository issue of Reliance Petroleum,
tapping into overseas capital markets.
 By 1996, RIL became the first private sector company in India to be rated by
international credit rating agencies. S&P rated RIL "BB+, stable outlook" and
Moody's rated "Baa3, Investment grade".

 Entry into Telecom (1995-1996):

 RIL entered the telecom industry in 1995/96 through a joint venture with NYNEX
(USA), leading to the formation of Reliance Telecom Private Limited in India.

 Acquisition and Diversification (1998):

 In 1998, RIL acquired Indian Petrochemicals Corporation Limited (IPCL) during the
privatization of public sector enterprises, further consolidating its position in the
petrochemical sector.

 Packaged LPG and Petrochemical Complex (1998-2000):

 In 1998/99, RIL introduced packaged LPG in 15 kg cylinders under the brand name
Reliance Gas.
 Between 1998 and 2000, RIL constructed the integrated petrochemical complex at
Jamnagar in Gujarat, which became the largest refinery in the world at that time

2001 onwards
In 2001, both Reliance Industries Ltd. and Reliance Petroleum Ltd. stood out as India's
leading companies based on all significant financial indicators. The following year, in 2001–
02, Reliance Petroleum merged with Reliance Industries, consolidating their operations and
strengthening their position in the Indian corporate sector.

In 2002, Reliance announced India's biggest gas discovery (at the Krishna Godavari Basin) in
nearly three decades and one of the largest gas discoveries in the world during 2002. The in-
place volume of natural gas was more than 7 trillion cubic feet, equivalent to about 120 crore
(1.2 billion) barrels of crude oil.

In 2002–03, RIL purchased a majority stake in Indian Petrochemicals Corporation Ltd.

(IPCL), India's second largest petrochemicals company, from the government of India

In 2006, Reliance entered the organised retail market in India with the launch of its retail
store format under the brand name of 'Reliance Fresh’ By the end of 2008, Reliance Retail
had close to 600 stores across 57 cities in India.

In 2017, RIL set up a joint venture with Russian Company Sibur for setting up a Butyl
rubber plant in Jamnagar, Gujarat, to be operational by 2018.

In August 2019, Reliance added Fynd primarily for its consumer businesses and mobile
phone services in the e-commerce space.
In December 2022, Reliance Industries Market cap stood at Rs.17,59,017.23 crore.

In March 2024, Reliance Industries partnered with Disney to introduce Reliance-Disney OTT
platform.

In February 2024, Reliance Industries Ltd. and The BharatGPT group announced that it will
launch large language model (LLM), Hanuman's AI system in March 2024. The model will
work in 11 local languages in four major areas: health, governance, financial
services and education.

RELIANCE INDUSTRIES LIMITED FOR

ANNUAL REPORT OF FINANCIAL
REPORT , YEAR (2022-23)

Reliance Industries Limited revenue for

financial year 2022-23 was 5,65,347 crore
($68.8 billion) , an increase of 21.6% as
compared to 4,65,045 crore in the previous
year . revenue growth was led by increase in
crude and product prices.
 FINANCIAL MATRICS :-

1)REVENUE TRENDS :-

1200000

1000000

800000

600000

400000

200000

0
2020-2021 2021-2022 2022-2023

REVENUE

YEAR REVENUE(₹in crores)

2020-2021 539238
2021-2022 788743
2022-2023 974864

GROWTH % BETWEEN FY 22-23 = 974864 - 788743 / 788743 *100

= 23.6%
2)PROFIT AFTER TAX TRENDS :-

80000

70000

60000

50000

40000

30000

20000

10000

0
2020-2021 2021-2022 2022-2023

PROFIT AFTER TAX

YEAR PROFIT AFTER TAX (₹ in crores)

2020-2021 53739
2021-2022 66184
2022-2023 73670

GROWTH % BETWEEN FY 22-23 = 73760 - 66184 / 66184 * 100

= 11.5 %
3)NET WORTH TRENDS :-

800000

700000

600000

500000

400000

300000

200000

100000

0
2020-2021 2021-2022 2022-2023

NET WORTH

YEAR NET WORTH (₹ in crores)

2020-2021 548156
2021-2022 645127
2022-2023 668880

GROWTH % BETWEEN FY 22-23 = 668880 - 645127 / 645127 * 100

= 3.7 %
STOCK MARKET PRICE
 PROFIT % LOSS
MAR MAR 2024 TTM
2023

Sales 876396 901064 925289

Expenses 734078 738831 762384

Operating Profit 42318 162233 162905

OPM % 16 % 18 % 18 %

Other income 12020 16057 16438

Interest 19571 23118 23199

Depreciation 40303 50832 52653

Profit Before Tax 94464 103340 103491

Tax % 22 % 25 %

Net Profit 74088 79020 78207

EPS in Rs 98.59 102.90 101.61

Dividend Payout % 9% 10%

Balance sheet
March March
Particulars
2023 2024

Equity Capital 6766 6766

Reserves 709106 786715

Borrowings 451664 346142

Other Liabilities 438346 616363

Total Liabilities 1605882 1755986

Fixed Assets 724805 966458

CWIP 293752 152382

Investment 235560 225672

Other Assets 351765 411474

Total Assets 351765 1755986

CASH FLOW STATEMENT
 SWOT ANALYSIS

Strength of RIL
Versatile Portfolio
Technical Upgradation
Competitive market position

Weakness of RIL
Excessive dependency on
petrochemicals
Regulatory and compliance Issues
Geopolitical risk

Threats of RIL
Competition
Cyber security Issues
Volatile Global Market

Opportunities of RIL
Entry into Renewal Energy
International Expansion
Digital Evolution
 CONCLUSION
Reliance Industries Limited (RIL) had a successful financial year 2023-24
as a result of its diverse business model and strategic moves made.

Revenue: RIL experienced an increase in revenue compared to the

previous fiscal year. This growth was driven by strong performance in their
refining and petrochemicals segments, robust retail sales, and continued
expansion of Jio Platforms.

Operating Profit: The profit margins recorded by the company remained

high due to better core business performance and strategic cost control
measures

Capital Expenditure: Reliance Industries Limited invested heavily on

capital expenditure mainly targeting infrastructure upgrade, increasing
capacity and new technology growth opportunities which are also
environmentally friendly.

Debt and Financial Health: The Company’s debt levels are manageable
as the efforts to optimize the capital structure continues. The balance sheet
showed financial strength with sufficient liquidity.

For instance, across each of its major sectors, Reliance Industries

Limited (RIL) has numerous ambitious plans for its future.

Green Hydrogen: RIL is investing intensively in green hydrogen projects

so as to become a key player in global green hydrogen market. Some
examples of these include large-scale facilities to produce green hydrogen
using renewable sources that also align with sustainable goals aimed at
reducing carbon emissions.

Renewable Energy: Also, it is expanding its renewable energy footprint

through solar projects wind power investments among others.

New Store Openings: Apart from these developments, Reliance Retail

aims to expand further via addition of stores dealing with different
commodities such as clothes electronics or groceries among other things.

Digital Retail: These enhancements include companies’ concentration on

e-commerce platforms primarily linking online and offline shopping
experiences allowing effective customer service delivery
5G Network Rollout: Therefore, Reliance Jio plans to aggressively roll-out
5G services throughout India as part of their drive for high-speed
connectivity and customer base expansion initiatives across the country

International Ventures: This means that Reliance Industries is looking at

options for establishing its presence in the global markets both in the
traditional industries and the emerging ones to diversify its income streams.