RELIANCE IND. 2023-24 Annual Report Analysis

Thu, 8 Aug

RELIANCE IND. has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

RELIANCE IND. Income Statement Analysis

• Operating income during the year fell 36.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 47.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.0% in FY24 as against 18.0% in FY23.
• Depreciation charges decreased by 56.1% and finance costs decreased by 31.4% YoY, respectively.
• Other income declined by 7.0% YoY.
• Net profit for the year declined by 42.9% YoY.
• Net profit margins during the year declined from 9.4% in FY23 to 8.5% in FY24.

RELIANCE IND. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	7,808,060	4,941,120	-36.7%
Other income	Rs m	130,360	121,280	-7.0%
Total Revenues	Rs m	7,938,420	5,062,400	-36.2%
Gross profit	Rs m	1,408,840	742,650	-47.3%
Depreciation	Rs m	403,030	176,900	-56.1%
Interest	Rs m	195,710	134,300	-31.4%
Profit before tax	Rs m	940,460	552,730	-41.2%
Tax	Rs m	203,760	132,310	-35.1%
Profit after tax	Rs m	736,700	420,420	-42.9%
Gross profit margin	%	18.0	15.0
Effective tax rate	%	21.7	23.9
Net profit margin	%	9.4	8.5

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RELIANCE IND. Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2,400 billion as compared to Rs 3,957 billion in FY23, thereby witnessing an decrease of -39.4%.
• Long-term debt down at Rs 1,611 billion as compared to Rs 1,832 billion during FY23, a fall of 12.1%.
• Current assets fell 38% and stood at Rs 2,626 billion, while fixed assets fell 40% and stood at Rs 7,079 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 9,706 billion as against Rs 16,059 billion during FY23, thereby witnessing a fall of 40%.

RELIANCE IND. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,152,260	5,150,430	-28.0
Current Liabilities	Rs m	3,957,430	2,400,140	-39.4
Long-term Debt	Rs m	1,831,760	1,610,590	-12.1
Total Liabilities	Rs m	16,058,820	9,705,650	-39.6
Current assets	Rs m	4,252,960	2,626,250	-38.2
Fixed Assets	Rs m	11,805,860	7,079,400	-40.0
Total Assets	Rs m	16,058,820	9,705,650	-39.6

RELIANCE IND. Cash Flow Statement Analysis

• RELIANCE IND.'s cash flow from operating activities (CFO) during FY24 stood at Rs 740 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -383 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -275 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 82 billion from the Rs 325 billion net cash flows seen during FY23.

RELIANCE IND. Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	1,150,320	739,980	-35.7%
Cash Flow from Investing Activities	Rs m	-912,350	-382,920	-
Cash Flow from Financing Activities	Rs m	104,550	-274,650	-
Net Cash Flow	Rs m	324,860	82,410	-74.6%

Current Valuations for RELIANCE IND.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 62.1, an decline from the EPS of Rs 108.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,910.6, stands at 25.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 4.0 times.
• The company's price to cash flow (P/CF) ratio stood at 29.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	1,154.0	730.3
TTM Earnings per share	Rs	108.9	62.1
Diluted earnings per share	Rs	108.9	62.1
Price to Cash Flow	x	12.6	29.1
TTM P/E ratio	x	19.5	25.3
Price / Book Value ratio	x	2.2	3.4
Market Cap	Rs m	15,528,892	17,352,929
Dividends per share (Unadj.)	Rs	9.0	10.0

Ratio Analysis for RELIANCE IND.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY24, from 1.1x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 5.1x during FY24, from 5.8x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 8.2% during FY24, from 10.3% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 10.2% during FY24, from 12.6% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 5.7% during FY24, from 5.8% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.1	1.1
Debtors’ Days	Days	1	1
Interest coverage	x	5.8	5.1
Debt to equity ratio	x	0.3	0.3
Return on assets	%	5.8	5.7
Return on equity	%	10.3	8.2
Return on capital employed	%	12.6	10.2

To see how RELIANCE IND. has performed over the last 5 years, please visit here.

RELIANCE IND. Share Price Performance

Over the last one year, RELIANCE IND. share price has moved up from Rs 2,505.7 to Rs 2,910.6, registering a gain of Rs 405.0 or around 16.2%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 31,666.8 (down 1.0%). Over the last one year it has moved up from 18,929.5 to 31,666.8, a gain of 12,737 points (up 67.3%).

Overall, the S&P BSE SENSEX is up 20.0% over the year.

(To know more, check out historical annual results for RELIANCE IND. and quarterly results for RELIANCE IND.)