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Reliance Research Project CompleteIntroProfile

The document presents a financial statement analysis of Reliance Industries Limited (RIL) for the fiscal year ending March 31, 2024, focusing on liquidity, solvency, profitability, and operational efficiency. It includes a company profile, industry analysis, and macroeconomic factors affecting RIL, highlighting its growth in various sectors such as petrochemicals, retail, and digital services. The research utilizes RIL's Integrated Annual Report and quarterly disclosures, while acknowledging limitations due to accounting policy changes.

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30 views11 pages

Reliance Research Project CompleteIntroProfile

The document presents a financial statement analysis of Reliance Industries Limited (RIL) for the fiscal year ending March 31, 2024, focusing on liquidity, solvency, profitability, and operational efficiency. It includes a company profile, industry analysis, and macroeconomic factors affecting RIL, highlighting its growth in various sectors such as petrochemicals, retail, and digital services. The research utilizes RIL's Integrated Annual Report and quarterly disclosures, while acknowledging limitations due to accounting policy changes.

Uploaded by

carc4680
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Financial Statement Analysis

of Reliance Industries Limited

A Research Project
Table of Contents
1. Introduction ................................... 3
2. Company Profile ................................ 6
3. Industry & Macro Environment Analysis ......... 9
4. Literature Review ................................ 12
5. Research Methodology .......................... 15
6. Financial Statement Analysis ................... 23
7. Conclusions & Suggestions ..................... 33
8. Recommendations & Strategic Implications ....... 36
9. Bibliography .................................. 38
10. Annexure ...................................... 42
1. Introduction
Financial statement analysis is an essential practice that enables stakeholders to evaluate a
company's financial performance and health over time. By analyzing the balance sheet,
income statement, and cash flow statement, analysts can discern trends in liquidity, solvency,
profitability, and efficiency. This research focuses on Reliance Industries Limited (RIL),
examining its consolidated financial statements for the fiscal year ending March 31, 2024.
The objectives of this study include assessing RIL's liquidity position through current and quick
ratios; evaluating solvency using debt-to-equity and interest coverage ratios; measuring
profitability with indicators such as return on equity (ROE) and net profit margin; and analyzing
operational efficiency via turnover ratios. Additionally, segment-wise performance—comprising
oil-to-chemicals, retail, and digital services—is examined to understand the impact of
diversification.
The scope of the research covers RIL's Integrated Annual Report 2023-24, supplemented by
quarterly disclosures from Q1 to Q4. Data sources include regulatory filings, financial
databases such as Bloomberg, Moneycontrol, and Investing.com. Limitations involve
accounting policy changes and one-time items that may affect year-on-year comparability.
2. Company Profile
Reliance Industries Limited (RIL), founded by Dhirubhai Ambani in 1966, has grown from a
small textile trading firm into India's largest private sector enterprise by market capitalization,
surpassing $200 billion as of March 2024.[1] Headquartered in Mumbai, RIL operates across
petrochemicals, refining, oil & gas exploration, retail, and digital services.
The Jamnagar complex in Gujarat is the world’s largest refining facility, with a combined
capacity of 1.24 million barrels per day.[2] RIL’s petrochemical segment produces polymers,
fibers, intermediates, and elastomers, leveraging integrated operations for cost efficiency.
Reliance Retail is India’s largest retailer by revenue, operating supermarkets, hypermarkets,
specialty stores, and digital commerce platforms.[3] Jio Platforms disrupted the Indian telecom
market in 2016 by offering affordable 4G data, amassing over 400 million subscribers within
five years.[4] RIL’s strategic investments also span renewable energy, e-commerce, and
technology ventures warranting future growth.
3. Industry & Macro Environment Analysis
The global oil-to-chemicals industry faces volatility from crude oil price fluctuations and
evolving environmental regulations. India’s petrochemical sector benefits from proximity to
feedstock and a large domestic market, yet faces competition from Middle Eastern
producers.[5]
India’s retail industry is expanding at a CAGR of 10%, driven by rising income levels and
digital penetration.[6] The telecom sector’s shift towards 5G presents opportunities for network
operators like Jio, although capital intensity and regulatory scrutiny are key considerations.
Macroeconomic factors impacting RIL include GDP growth, forex rates, and government
policies. India's GDP grew at 6.1% in FY2023-24, supporting consumer demand.[7] Currency
depreciation can inflate import costs for crude, while favorable tax regimes can enhance
profitability.

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