Reliance Industries Ltd

About

Reliance Industries Limited is a Fortune 500 company and the largest private sector corporation in India. It has evolved from being a textiles and polyester company to an integrated player across energy, materials, retail, entertainment and digital services. Reliance's products and services portfolio touches almost all Indians on a daily basis, across economic and social spectrums. [1]

Reliance was founded by Dhirubhai Ambani and is now promoted and managed by his elder son, Mukesh Dhirubhai Ambani. Ambani's family have about 50% shareholding in the conglomerate.

Key Points

Retail Business (21% of revenue)
Company's subsidiary, Reliance Retail Ltd (RRL) is India's largest retailer by revenue and profitability. It operates about 11,800 stores across India and caters to the demand of over 125 million registered customers. Reliance Retail’s store concepts span across all major consumption baskets which accounts for over 80% of consumption needs of Indian households. It also operates the largest portfolio of esteemed international partner brands such as Emporio Armani, Diesel, Tiffany & Co and many more.[1] [2]
Till November 2020, reliance has raised about 47,250 crores from selling 10.1% stake in Reliance Retail Ventures Ltd.[3]

See full details
  • Market Cap 1,651,640 Cr.
  • Current Price 2,483
  • High / Low 2,505 / 1,830
  • Stock P/E 34.7
  • Book Value 1,042
  • Dividend Yield 0.28 %
  • ROCE 8.19 %
  • ROE 7.97 %
  • Face Value 10.0

Pros

  • Company has reduced debt.

Cons

  • The company has delivered a poor sales growth of 11.34% over past five years.
  • Tax rate seems low
  • Company has a low return on equity of 9.65% for last 3 years.
  • Dividend payout has been low at 9.79% of profits over last 3 years

Peer comparison

Sector: Refineries Industry: Refineries

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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
143,323 156,898 139,590 157,980 149,302 153,302 136,492 88,253 111,236 117,860 149,575 139,949
122,215 135,581 118,437 136,365 127,150 130,553 114,487 71,378 92,291 96,294 126,224 116,618
Operating Profit 21,108 21,317 21,153 21,615 22,152 22,749 22,005 16,875 18,945 21,566 23,351 23,331
OPM % 15% 14% 15% 14% 15% 15% 16% 19% 17% 18% 16% 17%
Other Income 1,251 2,484 2,894 2,871 3,668 3,162 -386 9,676 4,354 4,407 4,048 4,219
Interest 3,932 4,119 4,894 5,109 5,450 5,404 6,064 6,735 6,084 4,326 4,044 3,397
Depreciation 5,229 5,237 5,295 5,011 5,315 5,545 6,332 6,308 6,626 6,665 6,973 6,883
Profit before tax 13,198 14,445 13,858 14,366 15,055 14,962 9,223 13,508 10,589 14,982 16,382 17,270
Tax % 28% 28% 25% 29% 25% 21% 29% 2% -0% 1% 8% 20%
Net Profit 9,516 10,251 10,362 10,104 11,262 11,640 6,348 13,233 9,567 13,101 13,227 12,273
EPS in Rs 14.07 15.16 15.33 14.94 16.66 17.21 9.39 20.87 15.09 20.67 20.86 19.36

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
203,174 265,050 357,677 395,957 433,521 374,372 272,583 303,954 390,823 568,337 596,679 466,307 518,620
181,131 226,427 324,501 362,802 398,586 336,923 230,802 257,647 326,508 484,087 507,413 385,517 431,427
Operating Profit 22,042 38,623 33,176 33,155 34,935 37,449 41,781 46,307 64,315 84,250 89,266 80,790 87,193
OPM % 11% 15% 9% 8% 8% 10% 15% 15% 16% 15% 15% 17% 17%
Other Income 19,643 1,964 7,526 7,757 8,865 8,528 12,212 9,222 9,869 8,406 8,570 22,432 17,028
Interest 2,060 2,411 2,893 3,463 3,836 3,316 3,691 3,849 8,052 16,495 22,027 21,189 17,851
Depreciation 10,946 14,121 12,401 11,232 11,201 11,547 11,565 11,646 16,706 20,934 22,203 26,572 27,147
Profit before tax 28,680 24,055 25,408 26,217 28,763 31,114 38,737 40,034 49,426 55,227 53,606 55,461 59,223
Tax % 15% 20% 22% 20% 22% 24% 23% 25% 27% 28% 26% 3%
Net Profit 24,503 19,294 19,724 20,879 22,493 23,566 29,745 29,901 36,075 39,588 39,354 49,128 48,168
EPS in Rs 35.12 27.63 28.27 30.31 32.62 34.14 43.03 43.11 53.39 58.55 58.20 77.50 75.98
Dividend Payout % 9% 12% 13% 13% 12% 12% 10% 11% 10% 10% 10% 9%
Compounded Sales Growth
10 Years:6%
5 Years:11%
3 Years:6%
TTM:-2%
Compounded Profit Growth
10 Years:9%
5 Years:8%
3 Years:7%
TTM:16%
Stock Price CAGR
10 Years:20%
5 Years:36%
3 Years:26%
1 Year:13%
Return on Equity
10 Years:11%
5 Years:10%
3 Years:10%
Last Year:8%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
2,978 2,981 2,979 2,936 2,940 2,943 2,948 2,959 5,922 5,926 6,339 6,445
Reserves 138,025 151,112 166,466 179,094 195,730 215,539 228,600 260,746 287,569 381,184 442,826 653,884
Borrowings 64,606 84,152 92,447 107,219 138,761 168,251 194,714 217,475 239,843 307,714 355,133 270,648
53,837 69,274 65,299 73,108 91,412 117,753 172,735 225,622 277,939 302,806 358,717 389,088
Total Liabilities 259,445 307,519 327,191 362,357 428,843 504,486 598,997 706,802 811,273 997,630 1,163,015 1,320,065
160,191 158,100 138,814 133,487 141,417 156,458 184,910 198,526 403,885 398,374 532,658 541,258
CWIP 17,034 28,174 25,363 49,952 91,494 166,462 228,697 324,837 187,022 179,463 109,106 125,953
Investments 13,112 21,596 38,596 42,848 60,602 76,451 84,015 82,899 82,862 235,635 276,767 364,828
69,108 99,649 124,418 136,070 135,330 105,115 101,375 100,540 137,504 184,158 244,484 288,026
Total Assets 259,445 307,519 327,191 362,357 428,843 504,486 598,997 706,802 811,273 997,630 1,163,015 1,320,065

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
20,494 33,338 24,483 36,918 43,261 34,374 38,134 49,550 71,459 42,346 94,877 26,185
-18,212 -32,040 -6,301 -27,601 -73,070 -64,706 -36,186 -66,201 -68,192 -94,507 -72,497 -141,610
-11,134 14,950 -7,590 408 13,713 8,444 -3,210 8,617 -2,001 55,906 -2,541 101,902
Net Cash Flow -8,851 16,248 10,592 9,725 -16,096 -21,888 -1,262 -8,034 1,266 3,745 19,839 -13,523

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 18 22 17 9 8 5 6 10 16 19 12 15
Inventory Days 81 69 57 60 57 66 90 84 83 63 67 102
Days Payable 69 64 49 55 61 74 117 132 146 100 87 136
Cash Conversion Cycle 30 26 25 14 4 -2 -21 -38 -46 -18 -9 -19
Working Capital Days 23 8 25 15 2 -25 -95 -124 -109 -56 -73 11
ROCE % 11% 12% 11% 10% 10% 9% 10% 10% 11% 12% 11% 8%

Shareholding Pattern

Numbers in percentages

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
47.27 47.19 47.27 47.29 50.05 50.03 50.07 50.37 50.49 50.54 50.58 50.59
24.41 24.02 24.39 24.40 23.76 24.54 24.08 24.75 25.23 25.18 25.66 25.11
11.74 12.30 11.86 11.72 14.36 13.75 13.78 13.58 13.15 12.90 12.62 13.09
0.17 0.17 0.18 0.18 0.19 0.19 0.20 0.21 0.20 0.20 0.20 0.18
16.41 16.31 16.29 16.42 11.65 11.49 11.87 11.10 10.93 11.19 10.94 11.03

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