The Q4 results are in, and they’ve exceeded all expectations. RIL reports strong financial results, driven by robust growth in key segments
Reliance Industries Limited, India’s largest conglomerates, has reported its financial results for the quarter and fiscal year ended March 31, 2023. The company’s financial performance is impressive, and the numbers reflect the company’s consistent growth momentum across all businesses. In this article, we will take a closer look at the company’s financial results and the factors behind its success.
Reliance Industries Record Break Results
First of all let’s have a look on some records which are broken by the company and achieved a new milestone in case of Revenue and profits:
| Sr. | Particulars |
| 1 | Annual Consolidated EBITDA (Earning Before Interest Tax Depreciation and Amortization) crossed a benchmark of ₹1,50,000 crore for the first time. Stood at ₹1,54,691 crore which is 23.08% higher over previous year |
| 2 | Annual Consolidated PAT (Profit After Tax) at ₹74,088 crore 13.97% higher over previous year |
| 3 | Quarterly Consolidated EBITDA at ₹41,389 crore up 21.85% |
| 4 | Q4 2023 Gross Revenue of Jio Platforms Ltd. at ₹29,871 crore increased by 14.28% over Q4 2022 which was ₹26,139 crore |
| 5 | Q4 2023 EBITDA of Jio Platforms Ltd. at ₹12,767 crore increased by 16.94% over Q4 2022 which was ₹10,918 crore |
| 6 | Q4 2023 Gross Revenue of Reliance Retail at ₹69,267 crore increased by 19.39% over Q4 2022 which was ₹58,017 crore |
| 7 | Q4 2023 EBITDA of Reliance Retail at ₹4,914 crore increased by 32.63% over Q4 2022 which was ₹3,705 crore |
Key highlights of Reliance Industries’ financial results
Consolidated Financial Highlights
Reliance Industries Annual Performance: FY 2023 vs. FY 2022
| Particulars | FY 2023 (Amt ₹ in Crore) | FY 2022 (Amt ₹ in Crore) | Change (Amt ₹ in Crore) | % Change |
| Gross Revenue | 9,76,524 | 7,92,756 | 1,83,768 | 23.18% |
| EBITDA | 1,54,691 | 1,25,687 | 29,004 | 23.08% |
| Depreciation | 40,319 | 29,797 | 10,522 | 35.31% |
| Finance Costs | 19,571 | 14,584 | 4,987 | 34.20% |
| Profit Before Tax | 94,801 | 81,306 | 13,495 | 16.60% |
| Tax Expenses | 20,713 | 16,297 | 4,416 | 27.10% |
| Profit After Tax | 74,088 | 65,009 | 9,079 | 13.97% |
| Capital Expenditure | 1,41,809 | 99,472 | 42,337 | 42.56% |
| Outstanding Debt | 3,14,708 | 2,66,305 | 48,403 | 18.18% |
| Cash & Cash Equivalents | 2,04,490 | 2,31,490 | -27,000 | -11.66% |
Reliance Industries Quarterly Performance: Q4 FY 2023 vs. Q4 FY 2022
| Particulars | Q4 FY 2023 (Amt ₹ in Crore) | Q4 FY 2022 (Amt ₹ in Crore) | Change (Amt ₹ in Crore) | % Change |
| Gross Revenue | 2,39,082 | 2,32,539 | 6,543 | 2.81% |
| EBITDA | 41,389 | 33,968 | 7,421 | 21.85% |
| Depreciation | 11,456 | 8,001 | 3,455 | 43.18% |
| Finance Costs | 5,819 | 3,556 | 2,263 | 63.64% |
| Profit Before Tax | 24,114 | 22,411 | 1,703 | 7.60% |
| Tax Expenses | 2,787 | 4,390 | -1,603 | -36.51% |
| Profit After Tax | 21,327 | 18,021 | 3,306 | 18.35% |
| Capital Expenditure | 44,413 | 32,460 | 11,953 | 36.82% |
| Outstanding Debt | 3,14,708 | 2,66,305 | 48,403 | 18.18% |
| Cash & Cash Equivalents | 2,04,490 | 2,31,490 | -27,000 | -11.66% |
Reliance Industries Revenue Growth
Reliance Industries revenue increased by 23.18% to ₹9,76,524 crore for the financial year 2023 as compared to ₹7,92,756 crore in the previous year. Company’s quarterly revenue also rose by 2.81% to ₹2,39,082 crore for the quarter ending March, 2023 as compared to ₹2,32,539 crore in the quarter ending March, 2022.
Reliance Industries EBITDA Growth
The company’s EBITDA (Earning Before Interest Tax Depreciation and Amortization) for the financial year ended March, 2023 stood at ₹1,54,691 increased by 23.08% which was ₹1,25,687 crore for the financial year ended on March, 2022. Also Company’s quarterly EBITDS rose by 21.85% to ₹41,389 crore for the quarter ending March, 2023 as compared to ₹33,968 crore in the quarter ending March, 2022.
Reliance Industries Profit After Tax (PAT) Growth
The company’s PAT for the financial year ended March, 2023 stood at ₹74,088 increased by 13.97% which was ₹65,009 crore for the financial year ended on March, 2022. Also Company’s quarterly PAT rose by 18.35% to ₹21,327 crore for the quarter ending March, 2023 as compared to ₹18,021 crore in the quarter ending March, 2022
Reliance Industries Growth in Key Segments
The company achieved growth in its key segments as per given table:
Reliance Industries Annual Performance: FY 2023 vs. FY 2022
| Segment /Company | Particulars | FY 2023 (Amt ₹ in Crore) | FY 2022 (Amt ₹ in Crore) | Change (Amt ₹ in Crore) | % Change |
| Jio Platforms Ltd. | Gross Revenue | 1,15,099 | 95,804 | 19,295 | 20.14% |
| EBITDA | 78,721 | 39,112 | 9,609 | 24.57% | |
| Net Profit | 19,124 | 15,487 | 3,637 | 23.48% | |
| Reliance Retail | Gross Revenue | 2,60,364 | 1,99,704 | 60,660 | 30.37% |
| EBITDA | 17,928 | 12,381 | 5,547 | 44.80% | |
| Net Profit | 9,181 | 7,055 | 2,126 | 30.13% | |
| O2C (Oil to Chemical) | Gross Revenue | 5,94,649 | 5,00,900 | 93,749 | 18.72% |
| EBITDA | 62,075 | 52,722 | 9,353 | 17.74% | |
| Oil and Gas | Gross Revenue | 16,508 | 7,492 | 9,016 | 120.34% |
| EBITDA | 2,656 | 2,578 | 78 | 3.03% | |
| Media Business | Gross Revenue | 7,266 | 6,831 | 435 | 6.37% |
| EBITDA | 236 | 1,131 | -895 | -79.13% | |
| Net Profit | -16 | 838 | -854 | -101.91% |
Reliance Industries Quarterly Performance: Q4 FY 2023 vs. Q4 FY 2022
| Segment /Company | Particulars | Q4 FY 2023 (Amt ₹ in Crore) | Q4 FY 2022 (Amt ₹ in Crore) | Change (Amt ₹ in Crore) | % Change |
| Jio Platforms Ltd. | Gross Revenue | 29,871 | 26,139 | 3,732 | 14.28% |
| EBITDA | 12,767 | 10,918 | 1,849 | 16.94% | |
| Net Profit | 4,984 | 4,313 | 671 | 15.56% | |
| Reliance Retail | Gross Revenue | 69,267 | 58,017 | 11,250 | 19.39% |
| EBITDA | 4,914 | 3,705 | 1,209 | 32.63% | |
| Net Profit | 2,415 | 2139 | 276 | 12.90% | |
| O2C (Oil to Chemical) | Gross Revenue | 1,28,633 | 1,45,786 | -17,153 | -11.77% |
| EBITDA | 16,293 | 14,241 | 2,052 | 14.41% | |
| Oil and Gas | Gross Revenue | 4,556 | 2,008 | 2,548 | 126.89% |
| EBITDA | 674 | 610 | 64 | 10.49% | |
| Media Business | Gross Revenue | 1,731 | 1,886 | -155 | -8.22% |
| EBITDA | 80 | 277 | -197 | -71.12% | |
| Net Profit | -35 | 210 | -245 | -116.67% |
Why Reliance Industries result has grown
The full impact of tariff hike, ramp-up of wire line services, and continued subscriber addition for mobility services led to growth in revenue from operations.
Higher average crude oil prices and improved price realization for transportation fuels
Reliance Industries Depreciation
Increased by 35.31% YoY to ₹40,319 crore for the financial year 2023 as compared to ₹29,797 crore in the previous year. Company’s quarterly depreciation also rose by 43.18% to ₹11,456 crore for the quarter ending March, 2023 as compared to ₹8001 crore in the quarter ending March, 2022.
Why Depreciation Increased: This is because of Incremental addition to new stores and supply chain infrastructure.
Reliance Industries Finance Cost
The company’s Finance Cost for the financial year ended March, 2023 stood at ₹19,571 increased by 34.20% which was ₹14,584 crore for the financial year ended on March, 2022. Also Company’s quarterly Finance Cost rose by 63.64% to ₹5,819 crore for the quarter ending March, 2023 as compared to ₹3,556 crore in the quarter ending March, 2022.
Why Finance Cost Increased: Due to the prepayment of high-cost deferred payment liabilities in FY22, finance cost remains stable, despite a partial offset from the rise in interest rates. Also it is increased for the reason in increase in borrowings for business expansion
Reliance Industries Tax Expense
Due to reduced tax credits and incentives, tax expenses surged to ₹20,713 crore in the financial year 2023 which was ₹16,297 for the previous financial year. The increase is 27.10%.
Reliance Industries Capital Expenditure
The Expenditure for the financial year ended March, 2023 stood at ₹1,41,809 increased by 42.56% which was ₹99,472 crore for the financial year ended on March, 2022.
Reliance Industries Net Debt
There was an outstanding debt of ₹3,14,708 crore while having a Cash & Cash Equivalent of ₹2,04,490 crore. Hence total net debt outstanding for the financial year 2023 stood at ₹1,10,218 crore
Reliance Industries Financial Ratios
| Ratio | Year Ended 31st March, 2023 | Year Ended 31st March, 2022 |
| Debt Service Coverage Ratio | 2.37 | 1.74 |
| Interest Service Coverage Ratio | 5.84 | 6.58 |
| Debt Equity Ratio | 0.38 | 0.34 |
| Current Ratio | 1.11 | 1.12 |
| Long Term Debt to Working Capital | 2.47 | 3.28 |
| Debtors Turnover Ratio | 37.49 | 37.17 |
| Inventory Turnover Ratio | 6.98 | 7.86 |
| Operating Margin % | 10.50 | 10.20 |
| Net Profit Margin % | 7.59 | 8.60 |
Reliance Industries Credit Ratings
Reliance Industries has once again impressed investors and analysts with its strong financial performance in the fourth quarter of the fiscal year 2023. In addition to reporting impressive revenue and profit growth, the company has also received several positive credit ratings from top agencies, highlighting its strong financial position and creditworthiness.
S&P has given Reliance Industries a BBB+ rating, which is two notches above India’s sovereign rating. This indicates that the company has a strong ability to meet its financial commitments, and is less likely to be affected by adverse economic conditions. Moody’s has given the company a Baa2 rating, which is one notch above India’s sovereign rating, although with a negative outlook. This reflects the challenging economic environment in India, but also recognizes Reliance’s strong financial position.
In addition to these international ratings, Reliance has also received the highest possible ratings from top domestic rating agencies. CRISIL, India Rating, CARE, and ICRA have all given the company their AAA ratings, indicating that Reliance has a strong capacity to meet its financial obligations and is at a low risk of defaulting.
These ratings are a testament to Reliance’s strong financial management, strategic investments, and diversified business portfolio. They also reflect the confidence that investors and stakeholders have in the company’s ability to weather economic uncertainties and emerge stronger. With a stable outlook and high credit ratings from top agencies, Reliance Industries is well-positioned for continued growth and success in the years to come.
Conclusion
Reliance Industries has delivered a strong financial performance, driven by robust growth in its key segments. The company’s focus on investing in new businesses, and driving innovation has positioned it well for future growth. With its strong financial position and diversified business portfolio, Reliance Industries is likely to continue its growth trajectory in the years to come.
However, we do not intend to suggest or encourage anyone to invest in RIL. It is important to note that investing in the stock market can carry significant risks and market fluctuations can have a major impact on investments. Please consider all factors before making any investment decisions.
Reliance Industries FAQ (Frequently Asked Questions)
Q: Is Reliance in Profit or Loss?
Answer: Reliance Industries is currently profitable, with their Q4 results showing a significant increase in revenue and net profit compared to the previous year. They continue to be one of the largest companies in India, with diverse interests in various industries.
Q: What is the success of Reliance?
Answer: Since its inception, Reliance Industries has been led by the visionary entrepreneur Late Shri Dhirubhai Ambani. The company’s success lies in its ability to not only think big, but also to make it a part of its regular strategy, which has enabled it to surpass key competitors.
Q: Who is CEO of Reliance?
Answer: The CEO of Reliance Industries Limited is Mukesh D. Ambani.
Q: What is Reliance Main Business?
Answer: Reliance’s main business is in the energy and petrochemicals industries, with operations spanning oil and gas exploration, refining, petrochemicals, and retail. The company also has interests in telecommunications, media, and entertainment through its subsidiaries.
Q: What is the share price of Reliance?
Answer: As of the closing price on April 21, 2023, the stock price of Reliance Industries Limited (RIL) was 2349. This information can be found on various financial news websites or stock market data platforms. It’s important to note that stock prices can fluctuate on a daily basis based on various market factors and investor sentiment.
Q: What is the yearly growth of Reliance Industries?
Answer: Reliance Industries has shown a solid yearly growth in its Consolidated Annual PAT. The latest figures indicate a 13.97% increase, which demonstrates the company’s ability to continue to expand its business and generate higher profits. This growth reflects the company’s strategic investments in key sectors and its focus on innovation and customer satisfaction
Relevant figures and details are taken from the companies official website. Please visit Reliance Industries Ltd. (RIL) official website at https://www.ril.com for more detail.
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