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RELIANCE IND. 2021-22 Annual Report Analysis
Sat, 20 Aug

RELIANCE IND. has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

RELIANCE IND. Income Statement Analysis

  • Operating income during the year rose 53.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 32.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.7% in FY22 as against 21.7% in FY21.
  • Depreciation charges increased by 12.1% and finance costs decreased by 31.2% YoY, respectively.
  • Other income declined by 12.8% YoY.
  • Net profit for the year grew by 26.9% YoY.
  • Net profit margins during the year declined from 13.5% in FY21 to 11.1% in FY22.

RELIANCE IND. Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 3,946,100 6,071,680 53.9%
Other income Rs m 171,420 149,470 -12.8%
Total Revenues Rs m 4,117,520 6,221,150 51.1%
Gross profit Rs m 855,640 1,132,960 32.4%
Depreciation Rs m 265,720 297,970 12.1%
Interest Rs m 211,890 145,840 -31.2%
Profit before tax Rs m 549,450 838,620 52.6%
Tax Rs m 17,220 162,970 846.4%
Profit after tax Rs m 532,230 675,650 26.9%
Gross profit margin % 21.7 18.7
Effective tax rate % 3.1 19.4
Net profit margin % 13.5 11.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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RELIANCE IND. Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 3,087 billion as compared to Rs 2,776 billion in FY21, thereby witnessing an increase of 11.2%.
  • Long-term debt stood at Rs 1,877 billion as compared to Rs 1,637 billion during FY21, a growth of 14.7%.
  • Current assets fell 7% and stood at Rs 3,470 billion, while fixed assets rose 22% and stood at Rs 11,516 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 14,986 billion as against Rs 13,201 billion during FY21, thereby witnessing a growth of 14%.

RELIANCE IND. Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 6,595,920 7,790,510 18.1
 
Current Liabilities Rs m 2,775,680 3,086,620 11.2
Long-term Debt Rs m 1,636,830 1,876,990 14.7
Total Liabilities Rs m 13,200,650 14,986,220 13.5
 
Current assets Rs m 3,730,110 3,470,190 -7.0
Fixed Assets Rs m 9,470,540 11,516,030 21.6
Total Assets Rs m 13,200,650 14,986,220 13.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



RELIANCE IND. Cash Flow Statement Analysis

  • RELIANCE IND.'s cash flow from operating activities (CFO) during FY22 stood at Rs 1,107 billion, an improvement of 310.5% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -1,101 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs 173 billion on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 188 billion from the Rs -135 billion net cash flows seen during FY21.

RELIANCE IND. Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 269,580 1,106,540 310.5%
Cash Flow from Investing Activities Rs m -1,424,090 -1,101,030 -
Cash Flow from Financing Activities Rs m 1,019,040 172,890 -83.0%
Net Cash Flow Rs m -135,230 187,810 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for RELIANCE IND.

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 99.9, an improvement from the EPS of Rs 78.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,613.6, stands at 24.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 2.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 16.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 583.6 897.4
TTM Earnings per share Rs 78.7 99.9
Diluted earnings per share Rs 78.7 99.9
Price to Cash Flow x 17.0 16.1
TTM P/E ratio x 25.5 24.1
Price / Book Value ratio x 1.7 2.0
Market Cap Rs m 11,541,330 15,655,157
Dividends per share (Unadj.) Rs 7.0 8.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for RELIANCE IND.

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY22, from 1.3x during FY21. 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 improved and stood at 6.8x during FY22, from 3.6x during FY21. 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 improved and stood at 8.7% during FY22, from 8.1% during FY22. 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 improved and stood at 10.2% during FY22, from 9.2% during FY21. 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 5.5% during FY22, from 5.6% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 1.3 1.1
Debtors’ Days Days 2 1
Interest coverage x 3.6 6.8
Debt to equity ratio x 0.2 0.2
Return on assets % 5.6 5.5
Return on equity % 8.1 8.7
Return on capital employed % 9.2 10.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 2,146.2 to Rs 2,613.6, registering a gain of Rs 467.4 or around 21.8%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 19,682.9 (down 1.6%). Over the last one year it has moved up from 15,750.3 to 19,682.9, a gain of 3,933 points (up 25.0%).

Overall, the S&P BSE SENSEX is up 7.2% over the year.

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

Annual Report FAQs

What is the current share price of RELIANCE IND.?

RELIANCE IND. currently trades at Rs 0.0 per share. You can check out the latest share price performance of RELIANCE IND. here...

What was the revenue of RELIANCE IND. in FY22? How does it compare to earlier years?

The revenues of RELIANCE IND. stood at Rs 6,221,150 m in FY22, which was up 51.1% compared to Rs 4,117,520 m reported in FY21.

RELIANCE IND.'s revenue has grown from Rs 3,625,720 m in FY18 to Rs 6,221,150 m in FY22.

Over the past 5 years, the revenue of RELIANCE IND. has grown at a CAGR of 14.5%.

What was the net profit of RELIANCE IND. in FY22? How does it compare to earlier years?

The net profit of RELIANCE IND. stood at Rs 675,650 m in FY22, which was up 26.9% compared to Rs 532,230 m reported in FY21.

This compares to a net profit of Rs 397,730 m in FY20 and a net profit of Rs 397,340 m in FY19.

Over the past 5 years, RELIANCE IND. net profit has grown at a CAGR of 17.0%.

What does the cash flow statement of RELIANCE IND. reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of RELIANCE IND. reveals:

  • Cash flow from operations increased in FY22 and stood at Rs 1,106,540 m as compared to Rs 269,580 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs -1,101,030 m as compared to Rs -1,424,090 m in FY21.
  • Cash flow from financial activity decreased in FY22 and stood at Rs 172,890 m as compared to Rs 1,019,040 m in FY21.

Here's the cash flow statement of RELIANCE IND. for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations714,590423,460948,770269,5801,106,540
From Investments-682,900-951,280-725,200-1,424,090-1,101,030
From Financial Activity-20,010559,060-25,4101,019,040172,890
Net Cashflow12,66037,450198,390-135,230187,810

What does the Key Ratio analysis of RELIANCE IND. reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of RELIANCE IND. reveals:

  • Operating profit margins witnessed a fall and stood at 18.7% in FY22 as against 21.7% in FY21.
  • Net profit margins declined from 13.5% in FY21 to 11.1% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.2 as compared to 0.2 in FY21.

Here's the ratio/financial analysis of RELIANCE IND. for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)18.216.415.821.718.7
Net Profit Margin (%)10.27.77.413.511.1
Debt to Equity Ratio (x)0.50.50.40.20.2

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