Reliance's 2023/24: A Year of Growth and Diversification
Thursday, Nov 28, 2024 5:11 am ET
4min read Reliance Industries Limited (RIL) has released its Annual Report for 2023/24, highlighting a year of robust growth and strategic diversification. The report provides valuable insights into the company's performance across key sectors and its commitment to sustainable development.
RIL's consolidated revenue for the year grew by 2.6% to ₹10,00,122 crore (US$ 119.9 billion), with all segments contributing positively to earnings growth. Notably, the Retail segment witnessed a 17.8% increase in revenue, driven by improved operating leverage, higher footfalls, and growth in digital channels. The Digital Services segment also performed well, with an 11.0% increase in revenue, supported by a higher subscriber base and customer engagement.
The company's Oil & Gas E&P segment registered a 48.6% increase in EBITDA, supported by a 56.8% increase in gas production from the KG-D6 block. Meanwhile, the Media & Entertainment vertical scaled up significantly, with a 49.0% increase in revenue and an 86.0% increase in EBITDA.
RIL's strong performance in core sectors led to a 16.1% increase in consolidated EBITDA and a 7.3% rise in Profit After Tax. The company's net capital turnover ratio improved to 25.43, return on investment increased to 8.5%, and the inventory turnover ratio decreased to 7.31.
In addition to its operational success, RIL is committed to sustainable development and has set ambitious targets for its New Energy business. The company aims to become Net Carbon Zero by 2035, with a focus on small modular reactors (SMRs) for nuclear power generation. This strategic investment positions RIL to capitalize on the burgeoning market for clean energy solutions, addressing the tech industry's growing energy needs while mitigating environmental impact.
The company's Annual Report 2023/24 underscores RIL's resilience and adaptability in navigating global economic conditions and geopolitical dynamics. By diversifying its portfolio and investing in strategic sectors, RIL is well-positioned to maintain its competitive advantage and drive long-term growth.
As investors look to the future, they should consider the insights and trends revealed in RIL's Annual Report. The company's strong performance, commitment to sustainability, and strategic investments in digital services, retail, and new energy present compelling opportunities for growth and diversification. By staying informed and adaptive, investors can capitalize on the ongoing market growth and maintain a balanced, analytical perspective on market trends and investor behavior.
RIL's consolidated revenue for the year grew by 2.6% to ₹10,00,122 crore (US$ 119.9 billion), with all segments contributing positively to earnings growth. Notably, the Retail segment witnessed a 17.8% increase in revenue, driven by improved operating leverage, higher footfalls, and growth in digital channels. The Digital Services segment also performed well, with an 11.0% increase in revenue, supported by a higher subscriber base and customer engagement.
The company's Oil & Gas E&P segment registered a 48.6% increase in EBITDA, supported by a 56.8% increase in gas production from the KG-D6 block. Meanwhile, the Media & Entertainment vertical scaled up significantly, with a 49.0% increase in revenue and an 86.0% increase in EBITDA.
RIL's strong performance in core sectors led to a 16.1% increase in consolidated EBITDA and a 7.3% rise in Profit After Tax. The company's net capital turnover ratio improved to 25.43, return on investment increased to 8.5%, and the inventory turnover ratio decreased to 7.31.
In addition to its operational success, RIL is committed to sustainable development and has set ambitious targets for its New Energy business. The company aims to become Net Carbon Zero by 2035, with a focus on small modular reactors (SMRs) for nuclear power generation. This strategic investment positions RIL to capitalize on the burgeoning market for clean energy solutions, addressing the tech industry's growing energy needs while mitigating environmental impact.
The company's Annual Report 2023/24 underscores RIL's resilience and adaptability in navigating global economic conditions and geopolitical dynamics. By diversifying its portfolio and investing in strategic sectors, RIL is well-positioned to maintain its competitive advantage and drive long-term growth.
As investors look to the future, they should consider the insights and trends revealed in RIL's Annual Report. The company's strong performance, commitment to sustainability, and strategic investments in digital services, retail, and new energy present compelling opportunities for growth and diversification. By staying informed and adaptive, investors can capitalize on the ongoing market growth and maintain a balanced, analytical perspective on market trends and investor behavior.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.