Result Analysis: Reliance Industries Limited (CMP: Rs.2349) Result Update: Q4FY23

Reliance Industries Limited (RIL) is an Indian multinational conglomerate company headquartered in Mumbai, Maharashtra, India. It operates in multiple industries, including refining and petrochemicals, oil and gas exploration and production, retail, telecommunications, and media. The company is a diversified conglomerate with a significant presence in India and a growing global footprint. Its focus on innovation, customer satisfaction, and sustainability has helped the company become a leader in multiple industries and continues to drive its growth and success.


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    Stock Details
    Market Cap. (Cr.) 1589169.63
    Equity (Cr.) 6765.59
    Face Value 10
    52 Wk. high/low 2855 / 2180
    BSE Code 500325
    Book Value (Rs) 1167.75
    Sector Refineries


    Key Ratios
    Debt-Equity: 0.40
    ROCE (%): 9.36
    ROE (%): 9.17
    TTM EPS: 94.01
    P/BV: 2.01
    TTM P/E: 24.99

    Result Highlights:

    • Reliance Industries reported marginal increase of 2% YoY in the Revenue majorly on account of a sharp decrease in the crude oil prices and lower realization from the petrochemicals. It reported highest ever quarterly profit of Rs.21,327 cr. in the Q4FY23 driven by strong performance in the Reliance Retail and Jio.
    • The company reported a record EBITDA of Rs.38,440 cr., indicating a 22% rise from the corresponding quarter of the previous year. EBITDA margin increased by 300 bps on YoY basis.
    • Among segments, Oil and Gas grew with huge 127% on YoY basis; Retail and Digital services (Jio) also showed strong growth of 19% and 15% on YoY basis respectively. Oil to Chemicals business, which is the highest revenue generating segment for the company slumped by ~12% YoY. The financial services segment plunged by ~75% YoY.
    • During Q4, Reliance Retail opened 966 new stores, bringing the total store count to 18,040. Additionally, it witnessed a 41.29% year-on-year surge in footfall, with a total of 21.9 crore visitors to its stores.
    • Reliance Jio reported strong set of numbers; with an annual increase of 6.7% in ARPU, which currently stands at Rs.178.8. The total customer base also grew by 7.09% YoY to 43.93 crore.

    Financial Performance:

    Shareholding Pattern:

    Particulars (In %) Q4FY23 Q4FY22
    Promoters Group 49.11 49.11
    FIIs 22.45 27.07
    DIIs 15.72 13.79
    Public 12.06 9.26
    Others 0.66 0.77

    Management Commentary:

    Commenting on the March quarter results, Mukesh D Ambani, CEO and MD said, this year we have proposed to demerge our financial services arm and list the new entity “Jio Financial Services Ltd.”. This gives our shareholders an opportunity to participate in an exciting new growth platform from inception. Implementation of our New Energy Giga factories at Jamnagar is making significant progress. This puts us on track to achieve our goals of transitioning to cleaner energy and enabling sustainable growth.


    Reliance Industries has beaten the broader estimated results in the March’23 quarter with 2% YoY increase in the revenue and 18% YoY increase in the Net profits. All businesses showed better performance other than oil to chemicals and financial services. The present softness in refining margins may be reversed with the reopening of China and a strong demand from the US. The profitability outlook remains stable for O2C,  upstream and retail, while the Jio Financial Services listing (expected by October 23), commissioning of battery-PV gigafactories (in 1-2 years), and 5G deployment across country are some key positive triggers for the company. We remain positive on the Reliance Industries for the target price of Rs.3100 for longer term.


    Particulars (In Rs. Cr.) Q4FY23 Q3FY23 Q4FY22 QoQ% YoY% FY23 FY22 YoY%
    Revenue from Operations 2,16,376 2,20,592 2,11,887 -2% 2% 8,92,944 7,21,634 24%
    Other Income 2,918 3,147 2,457 -7% 19% 11,826 14,947 -21%
    Total Income 2,19,294 2,23,739 2,14,344 -2% 2% 9,04,770 7,36,581 23%
    Employee Benefit Expenses 6,471 6,267 5,278 3% 23% 24,894 18,775 33%
    Cost of Materials Consumed 1,04,031 98,730 1,12,899 5% -8% 4,50,241 3,60,784 25%
    Purchase of Stock-in Trade 37,778 47,755 38,151 -21% -1% 1,69,302 1,35,585 25%
    Changes in Inventories -4,706 -748 -6,041 529% -22% -30,263 -21,457 41%
    Excise Duty 3,431 3,428 4,512 0% -24% 13,476 21,672 -38%
    Other Expense 30,931 29,913 25,722 3% 20% 1,22,386 95,815 28%
    Share of Profit/Loss of Associates & J.V. 31 66 145 -53% -79% -43 280 -115%
    EBITDA 41,389 38,460 33,968 8% 22% 1,54,691 1,25,687 23%
    EBITDA Margin (%) 19% 17% 16% 200 bps 300 bps 17% 17%
    Depreciation & Amortisation Expense 11,456 10,187 8,001 12% 43% 40,319 29,797 35%
    Finance Costs 5,819 5,201 3,556 12% 64% 19,571 14,584 34%
    Exceptional Item 2,836
    Profit Before Tax (PBT) 24,114 23,072 22,411 5% 8% 94,801 84,142 13%
    Tax Expense 2,787 5,266 4,390 -47% -37% 20,713 16,297 27%
    Profit After Tax (PAT) 21,327 17,806 18,021 20% 18% 74,088 67,845 9%
    PAT Margin (%) 10% 8% 9% 200 bps 100 bps 8% 9% -100 bps
    EPS (in Rs.) 28.5 23.3 24.0 22% 19% 98.6 87.7 12%
    Segment Revenue (In Rs. Cr.) Q4FY23 Q3FY23 Q4FY22 QoQ% YoY% FY23 FY22 YoY%
    Oil to Chemicals (O2C) 1,28,633 1,44,630 1,45,786 -11.1% -11.8% 5,94,649 5,00,900 18.7%
    Oil and Gas 4,556 4,474 2,008 1.8% 126.9% 16,508 7,492 120.3%
    Retail 69,288 67,634 58,019 2.4% 19.4% 2,60,427 1,99,749 30.4%
    Digital Services 31,373 30,343 27,196 3.4% 15.4% 1,19,785 1,00,161 19.6%
    Financial Services 134 280 525 -52.1% -74.5% 898 2,127 -57.8%
    Others 33,039 19,530 23,774 69.2% 39.0% 89,521 71,360 25.4%
    Segment Revenue % Q4FY23 Q3FY23 Q4FY22 QoQ YoY FY23 FY22 YoY
    Oil to Chemicals (O2C) 48% 54% 57% -600 bps -850 bps 55% 57% -180 bps
    Oil and Gas 2% 2% 1% 90 bps 2% 1% 70 bps
    Retail 26% 25% 23% 60 bps 340 bps 24% 23% 140 bps
    Digital Services 12% 11% 11% 40 bps 120 bps 11% 11% -30 bps
    Financial Services 0.05% 0.10% 0.20% -10 bps -20 bps 0.08% 0.24% -20 bps
    Others 12% 7% 9% 510 bps 310 bps 8% 8% 20 bps
    Source: Company website, EWL Research

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