Ratio Analysis

of
Reliance Industries
Limited
Agenda
▪ Introduction

▪ Balance Sheet

▪ Income Statement

▪ Liquidity Ratios

▪ Profitability Ratios

▪ Leverage Ratios

▪ Return Ratios

▪ Market Test Ratios

8/13/2023 Annual Review 2

About RIL
❑ Conglomerate holding company in India that has a wide
portfolio of business and is the highest taxpayer in the Indian
Private Sector

❑ Accounts for over 5% of the Indian Government's revenues

and almost 8% of the total merchandise exports from India

❑ First Indian company to breach $100 billion market

capitalization in 2007 and 2019 it has become the first Indian
firm to cross Rs 9 lakh crore market valuation marks

❑ Ranked 106th on the Fortune Global 500 list of the world's

biggest corporations as of 2019

❑ Its businesses include energy, petrochemicals, natural

gas, retail, mass media, telecommunications and textiles
8/13/2023 Annual Review 3
Balance Sheet
BALANCE SHEET OF RELIANCE MAR 23 MAR 22 MAR 21 MAR 20 MAR 19
INDUSTRIES (IN RS. CR.)

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 6,766.00 6,765.00 6,445.00 6,339.00 5,926.00

TOTAL SHARE CAPITAL 6,766.00 6,765.00 6,445.00 6,339.00 5,926.00

Reserves and Surplus 814,387.00 772,720.00 693,727.00 442,827.00 381,186.00

TOTAL RESERVES AND SURPLUS 814,387.00 772,720.00 693,727.00 442,827.00 381,186.00

TOTAL SHAREHOLDERS FUNDS 821,153.00 779,485.00 700,172.00 449,166.00 387,112.00

Minority Interest 113,009.00 109,499.00 99,260.00 12,181.00 8,280.00

NON-CURRENT LIABILITIES

Long Term Borrowings 183,176.00 187,699.00 163,683.00 197,631.00 207,506.00

Deferred Tax Liabilities [Net] 60,327.00 49,644.00 37,001.00 54,123.00 49,923.00

Other Long Term Liabilities 137,700.00 62,823.00 40,903.00 38,108.00 29,407.00

TOTAL NON-CURRENT LIABILITIES

8/13/2023 Annual Review 382,810.00 302,019.00 244,212.00 291,652.00 289,692.00
5
CURRENT LIABILITIES

Short Term Borrowings 131,532.00 78,606.00 60,081.00 93,786.00 64,436.00

Trade Payables 147,178.00 159,330.00 108,897.00 96,799.00 108,309.00

Other Current Liabilities 115,644.00 68,790.00 106,086.00 220,440.00 143,251.00

Short Term Provisions 2,180.00 1,936.00 2,504.00 1,890.00 1,326.00

TOTAL CURRENT LIABILITIES 396,534.00 308,662.00 277,568.00 412,915.00 317,322.00

TOTAL CAPITAL AND LIABILITIES 1,713,506.00 1,499,665.00 1,321,212.00 1,165,915.00 1,002,406.00

ASSETS

NON-CURRENT ASSETS

Tangible Assets 1,003,383.00 500,454.00 451,066.00 435,920.00 302,115.00

Intangible Assets 0.00 114,335.00 79,980.00 86,479.00 84,262.00

Capital Work-In-Progress 0.00 68,052.00 71,171.00 59,096.00 150,178.00

Long Term Provisions 1,607.00 1,853.00 2,625.00 1,790.00 2,856.00

FIXED ASSETS
8/13/2023 Annual Review 1,003,383.00 787,295.00 656,999.00 631,505.00 565,840.00
6
Non-Current Investments 207,914.00 286,146.00 212,382.00 203,852.00 164,612.00

Deferred Tax Assets [Net] 1,543.00 1,043.00 1,147.00 2,900.00 4,776.00

Long Term Loans And Advances 1,525.00 1,588.00 2,484.00 21,732.00 5,452.00

Other Non-Current Assets 43,501.00 63,565.00 64,977.00 37,407.00 17,676.00

TOTAL NON-CURRENT ASSETS 1,271,528.00 1,152,646.00 948,201.00 907,655.00 770,353.00

CURRENT ASSETS

Current Investments 128,719.00 108,118.00 152,446.00 72,915.00 71,023.00

Inventories 140,008.00 107,778.00 81,672.00 73,903.00 67,561.00

Trade Receivables 28,451.00 23,640.00 19,014.00 19,656.00 30,089.00

Cash And Cash Equivalents 74,708.00 36,178.00 17,397.00 30,920.00 11,081.00

Short Term Loans And Advances 217.00 130.00 65.00 669.00 545.00

Other Current Assets 69,875.00 71,175.00 102,417.00 60,197.00 51,754.00

TOTAL CURRENT ASSETS 441,978.00 347,019.00 373,011.00 258,260.00 232,053.00

TOTAL ASSETS
8/13/2023 Annual Review 1,713,506.00 1,499,665.00 1,321,212.00 1,165,915.00 1,002,406.00
7
Income Statement
PROFIT & LOSS ACCOUNT OF MAR 23 MAR 22 MAR 21 MAR 20 MAR 19
RELIANCE INDUSTRIES (IN RS. CR.)

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME

REVENUE FROM OPERATIONS 892,944.00 792,756.00 539,238.00 659,997.00 625,212.00

[GROSS]

Less: Excise/Sevice Tax/Other Levies 13,476.00 92,794.00 72,314.00 62,462.00 56,003.00

REVENUE FROM OPERATIONS [NET] 879,468.00 699,962.00 466,924.00 597,535.00 569,209.00

TOTAL OPERATING REVENUES 879,468.00 699,962.00 466,924.00 597,535.00 569,209.00

Other Income 11,826.00 14,947.00 16,327.00 13,164.00 8,386.00

TOTAL REVENUE 891,294.00 714,909.00 483,251.00 610,699.00 577,595.00

8/13/2023 Annual Review 9

EXPENSES

Cost Of Materials Consumed 450,241.00 360,784.00 199,915.00 260,621.00 275,237.00

Purchase Of Stock-In Trade 169,302.00 135,585.00 101,850.00 149,667.00 123,930.00

Operating And Direct Expenses 0.00 29,126.00 19,978.00 24,155.00 28,360.00

Changes In Inventories Of FGWIP And -30,263.00 -21,457.00 -9,064.00 -5,048.00 -4,680.00

Stock In Trade

Employee Benefit Expenses 24,894.00 18,775.00 14,817.00 14,075.00 12,488.00

Finance Costs 19,571.00 14,584.00 21,189.00 22,027.00 16,495.00

Depreciation And Amortisation Expenses 40,319.00 29,797.00 26,572.00 22,203.00 20,934.00

Other Expenses 122,386.00 67,418.00 59,680.00 67,459.00 49,707.00

TOTAL EXPENSES 796,450.00 633,883.00 433,948.00 552,756.00 522,471.00

PROFIT/LOSS BEFORE EXCEPTIONAL, 94,844.00 81,026.00 49,303.00 57,943.00 55,124.00

EXTRAORDINARY ITEMS AND TAX

Exceptional Items 0.00 2,836.00 5,642.00 -4,444.00 0.00

PROFIT/LOSS BEFORE TAX

8/13/2023 Annual Review
94,844.00 83,862.00 54,945.00 53,499.00 55,124.00
10
TAX EXPENSES-CONTINUED
OPERATIONS

Current Tax 20,713.00 3,161.00 2,205.00 8,630.00 11,683.00

Less: MAT Credit Entitlement 0.00 0.00 0.00 0.00 0.00

Deferred Tax 0.00 13,136.00 -483.00 5,096.00 3,707.00

Other Direct Taxes 0.00 0.00 0.00 0.00 0.00

TOTAL TAX EXPENSES 20,713.00 16,297.00 1,722.00 13,726.00 15,390.00

PROFIT/LOSS AFTER TAX AND BEFORE 74,131.00 67,565.00 53,223.00 39,773.00 39,734.00
EXTRAORDINARY ITEMS

PROFIT/LOSS FROM CONTINUING 74,131.00 67,565.00 53,223.00 39,773.00 39,734.00

OPERATIONS

PROFIT/LOSS FOR THE PERIOD 74,131.00 67,565.00 53,223.00 39,773.00 39,734.00

8/13/2023 Annual Review 11

Liquidity Ratios
Liquidity Ratios
Mar 2023 Mar 2022 Mar 2021 Mar 2020 Mar 2019

Current Ratio 1.11 1.12 1.34 0.63 0.73

Quick Ratio 0.76 0.78 1.05 0.45 0.52

Interpretation
• Over the years, the company's current ratio has shown a positive trend, improving from 0.73 in 2019 to 1.34 in
2020. While there was a slight dip to 1.12 in 2022 and 1.11 in 2023, it still suggests the company can manage
short-term obligations effectively

• The quick ratio trend shows fluctuating liquidity: a low point in March 2020 at 0.45, an improvement in March
2021 at 1.05, followed by slight declines to 0.78 in 2022 and 0.76 in 2023. This pattern suggests varying levels
of ability to cover immediate obligations with liquid assets

8/13/2023 Annual Review 13

Profitability Ratios
Profitability Ratios
Mar 2023 Mar 2022 Mar 2021 Mar 2020 Mar 2019

Gross Profit Ratio 17.59 17.91 20.78 17.09 16.25

Net Profit Ratio 8.42 9.25 11.39 6.65 6.98

Interpretation
• The company's gross profit ratio has seen fluctuations over the years: a slight increase from 16.25% in 2019 to
17.91% in 2022, followed by a decrease to 17.59% in 2023. This pattern suggests variations in the company's
ability to control production costs and generate gross profit

• The net profit margin has been gradually declining over the past few years: from 11.39% in March 2021 to
8.42% in March 2023. This indicates a potential reduction in profitability, although a comprehensive analysis
of expenses, revenue, and market conditions is needed to fully assess the situation.

8/13/2023 Annual Review 15

Leverage Ratios
Leverage Ratios
Mar 2023 Mar 2022 Mar 2021 Mar 2020 Mar 2019

Debt to Equity 0.38 0.34 0.32 0.65 0.70

Interest Coverage
7.91 8.60 3.33 3.63 4.34
Ratio

Interpretation
• The debt-to-equity ratio has shown a decreasing trend, indicating the company's reduced reliance on debt for
funding. It went from 0.70 in March 2019 to 0.38 in March 2023. This suggests improved financial stability

• The interest coverage ratio has shown fluctuations, indicating the company's varying ability to cover interest
expenses with earnings. It improved from 3.33 in March 2021 to 8.60 in March 2022 but declined to 7.91 in
March 2023

8/13/2023 Annual Review 17

Return Ratios
Return Ratios
Mar 2023 Mar 2022 Mar 2021 Mar 2020 Mar 2019

Return on Investment 8.68 8.02 6.75 10.62 10.45

Return on Assets 3.89 4.04 3.71 3.37 3.94
Return on Net worth 8.12 7.78 7.01 8.76 10.22

Interpretation
• The company's ROCE ratios have varied: they initially improved from 10.45% (2019) to 10.62% (2020), but then
dropped to 6.75% (2021). Thereafter, there was a recovery to 8.02% (2022) and further improvement to 8.68%
(2023)

• The company's ROA ratios have shown fluctuation: there was a slight dip from 3.94% (2019) to 3.71% (2021),
followed by an increase to 4.04% (2022), and a subsequent decrease to 3.89% (2023). These variations suggest
changing effectiveness in earning profits from its total assets

• The Return on Net Worth (RONW) ratios have fluctuated: decreasing from 10.22% (2019) to 7.01% (2021),
followed by an increase to 7.78% (2022), and further improvement to 8.12% (2023). These changes reflect
variations in the company's ability to generate returns for shareholders' equity over the years.
8/13/2023 Annual Review 19
Market Test Ratios
Market Test Ratios
Mar 2023 Mar 2022 Mar 2021 Mar 2020 Mar 2019

P/E 23.64 28.64 26.23 17.49 20.21

EPS 98.59 92.00 76.37 63.07 66.82
Dividend Yield 0.39 0.30 0.35 0.58 0.48

Interpretation
• The Price to Earnings (P/E) ratios have varied: starting from 20.21 (2019) and dropping to 17.49 (2020), then
rising to 26.23 (2021) and 28.64 (2022), followed by a decrease to 23.64 (2023). These shifts reflect changing
market perceptions of the company's earnings attractiveness over the years

• The Earnings Per Share (EPS) ratios have displayed a consistent rise: increasing from 66.82 (2019) to 98.59
(2023) with gradual growth in between. This pattern signifies improving per-share profitability over the years,
potentially indicating positive investor sentiment and growth prospects

• The company's dividend yield ratio has fluctuated over the past five years: it increased in 2020, decreased in 2021
and 2022, and slightly improved in 2023. These changes reflect variations in dividend distribution, potentially
influenced by the company's financial performance and priorities
8/13/2023 Annual Review 21
Thank You

8/13/2023 Annual Review 22