Reliance Industries Limited (RIL) has reported robust financial results for the fiscal year 2022, demonstrating significant growth across its various business segments. The company has also announced several key developments across its business portfolio, including a major bonus issue.

Financial Highlights

Dividend and Bonus Issue

• The Board of Directors has recommended a dividend of ₹8.00 per equity share for FY22.
• RIL's board approved a 1:1 bonus issue, described as the largest bonus issue in Indian equity markets.
• The board recommended issuing one new fully paid-up equity share of ₹10 for every existing fully paid-up equity share, subject to shareholder approval through postal ballot.

Segment-wise Performance

Oil to Chemicals (O2C)

• Revenue: ₹500,900.00 crore

Digital Services

• Revenue: ₹100,161.00 crore

Retail

• Revenue: ₹199,749.00 crore

Corporate Actions and Strategic Developments

• The company approved increasing authorized share capital from ₹15,000 crore to ₹50,000 crore.
• Forfeiture of partly paid-up equity shares if call money remains unpaid by September 20, 2024.
• Jio Financial Services Limited allotted 635.32 crore equity shares to RIL shareholders as part of a scheme of arrangement.
• The company received CRISIL AAA/Stable rating for ₹20,000 crore non-convertible debentures.
• Three new non-executive directors were appointed: Isha M. Ambani, Akash M. Ambani, and Anant M. Ambani.
• Reliance Brands formed a joint venture with Mothercare plc for South Asian operations, acquiring 51% stake for £16 million.
• ICRA Limited reaffirmed credit ratings of '[ICRA]AAA (Stable)' for Non-convertible Debentures and '[ICRA]A1+' for Commercial Paper.
• L Catterton invested ₹1,894.50 crore in Jio Platforms for a 0.39% equity stake, valuing the platform at ₹4.91 lakh crore equity value.
• General Atlantic invested ₹3,675 crore in Reliance Retail Ventures for a 0.84% stake at a pre-money valuation of ₹4.285 lakh crore.
• Reliance Digital Health Limited acquired a 45% equity stake in Health Alliance Group Inc. for USD 10 million.
• Jio announced its 5G rollout across 50 cities in 17 states, bringing total coverage to 184 cities.
• The company dissolved Reliance Eagleford Upstream LLC, with Reliance Marcellus LLC becoming a direct wholly owned subsidiary.
• Reliance allotted 30,000 equity shares under its Employee Stock Option Scheme.
• Reliance Strategic Business Ventures increased its shareholding in SkyTran Inc. to 26.31%.
• Reliance partnered with ADNOC for chemical projects at TA'ZIZ in Ruwais, Abu Dhabi.
• Reliance Industries completed the transfer of its gasification undertaking to Reliance Syngas Limited for ₹30,490.00 crore.

Reliance Industries' strong financial performance, bonus issue announcement, and strategic developments across its diverse business portfolio underscore the company's resilience and growth strategy in the Indian market.

Reliance Industries Limited (RIL), India's largest private sector company by market capitalization, has reported a mixed bag of results for the second quarter. The conglomerate's performance showcases resilience in its digital services segment while facing challenges in its traditional oil-to-chemicals (O2C) business.

Financial Highlights

RIL posted consolidated revenues of ₹2,58,027.00 crores for Q2, marking a modest increase of 0.8% year-on-year. However, the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a slight dip of 2.0% year-on-year, settling at ₹43,934.00 crores.

Here's a breakdown of key financial metrics for Q2:

Segment Performance

Digital Services: A Bright Spot

The digital services segment emerged as a strong performer, with an impressive 18% revenue growth. This growth was primarily driven by:

1. Substantial subscriber gains
2. Partial impact of tariff hikes
3. Rapid adoption of Jio True5G, with 148 million subscribers migrating to the new technology

Retail: Steady Growth Continues

RIL's retail business maintained its growth trajectory, focusing on:

• Enhancing customer propositions
• Streamlining operations for improved efficiency

Oil-to-Chemicals (O2C): Facing Headwinds

The O2C segment encountered challenges due to:

• Sharp decline in fuel cracks (approximately 50% year-on-year)
• Weaker downstream chemical margins

However, RIL's operational flexibility helped mitigate some of the impact on this segment.

Oil & Gas: Positive Momentum

The oil and gas segment benefited from sustained volume growth in KGD6 production, contributing positively to the overall results.

5G Rollout Progress

Reliance Jio, RIL's telecom arm, continues its aggressive 5G rollout across India. The company has set an ambitious target to complete pan-India coverage by December 2023, showcasing its commitment to leading India's digital transformation.

Financial Position

While the company faced some headwinds, its financial position remains robust:

The slight decline in net profit can be attributed to higher finance costs and increased depreciation charges, reflecting the company's ongoing investments in infrastructure and technology.

Outlook

Despite the mixed results, Reliance Industries continues to demonstrate its ability to navigate challenging market conditions. The strong performance in digital services and the steady growth in retail provide a counterbalance to the pressures faced by the O2C segment.

As the company progresses with its 5G rollout and continues to optimize its diverse business portfolio, investors and market watchers will be keen to see how RIL leverages its strengths to drive growth in the coming quarters.

The management's focus on enhancing customer propositions, operational efficiencies, and technological advancements positions Reliance Industries to capitalize on emerging opportunities across its business segments.