Assignment 2: A Study on Financial Performance of Reliance Industries Limited

 RELIANCE INDUSTRIES LTD.

 INTRODUCTION
Financial performance analysis is the process of identifying the financial strengths and
weaknesses of the firm by properly establishing the relationship between the items of
balance sheet and profit and loss account.
The financial analysis is done to find the firm’s current position with that of market
situation. This analysis is used by creditors, shareholders, board.

 OBJECTIVE
• To evaluate the financial position of Reliance Industries Ltd in terms of solvency, profitability,
turnover ratios for the years from 2014 to 2019.
• To identify any consistent results or trends by using trend analysis
• To analyze the financial changes over a period of five years.
• To suggest effective measures in the existing system of the company.

 RESEARCH METHODOLOGY
• The secondary data were collected from company’s annual reports and their websites.
 www.moneycontrol.com & www.equitymaster.com were used for collection of
resource data for assignment.
• The data collected on different aspects were analyzed.
• The period of study for the project is 5 years (2014 to 2019).

Reliance Industries
Standalone Balance Sheet ------------------- in Rs. Cr. -------------------
  Mar 19 Mar 18 Mar 17 Mar 16 Mar 15

  12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 6,339.00 6,335.00 3,251.00 3,240.00 3,236.00
Total Share Capital 6,339.00 6,335.00 3,251.00 3,240.00 3,236.00
Reserves and Surplus 398,983.00 308,297.00 285,058.00 236,936.00 212,923.00
Total Reserves and Surplus 398,983.00 308,297.00 285,058.00 236,936.00 212,923.00
Total Shareholders Funds 405,322.00 314,632.00 288,309.00 240,176.00 216,159.00
Equity Share Application Money 0.00 15.00 4.00 8.00 17.00
NON-CURRENT LIABILITIES
Long Term Borrowings 118,098.00 81,596.00 78,723.00 77,866.00 76,227.00
Deferred Tax Liabilities [Net] 47,317.00 27,926.00 24,766.00 13,159.00 12,677.00
Other Long Term Liabilities 504.00 504.00 0.00 0.00 0.00
Long Term Provisions 2,483.00 2,205.00 2,118.00 1,489.00 1,404.00
Total Non-Current Liabilities 168,402.00 112,231.00 105,607.00 92,514.00 90,308.00
CURRENT LIABILITIES
Short Term Borrowings 39,097.00 15,239.00 22,580.00 14,490.00 12,914.00
Trade Payables 88,241.00 88,675.00 68,161.00 54,521.00 54,470.00
Other Current Liabilities 73,900.00 85,815.00 60,817.00 54,841.00 19,063.00
Short Term Provisions 783.00 918.00 1,268.00 1,170.00 4,854.00
Total Current Liabilities 202,021.00 190,647.00 152,826.00 125,022.00 91,301.00
Total Capital And Liabilities 775,745.00 617,525.00 546,746.00 457,720.00 397,785.00
ASSETS
NON-CURRENT ASSETS
Tangible Assets 194,895.00 191,879.00 145,486.00 91,477.00 79,778.00
Intangible Assets 8,293.00 9,085.00 9,092.00 39,933.00 34,785.00
Capital Work-In-Progress 105,155.00 92,581.00 128,283.00 97,296.00 65,178.00
Intangible Assets Under Development 6,402.00 6,902.00 4,458.00 9,583.00 10,575.00
Fixed Assets 314,745.00 300,447.00 287,319.00 238,289.00 190,316.00
Non-Current Investments 271,980.00 171,945.00 140,544.00 112,630.00 62,058.00
Long Term Loans And Advances 31,806.00 17,699.00 10,418.00 16,237.00 29,259.00
Other Non-Current Assets 4,287.00 3,522.00 2,184.00 0.00 0.00
Total Non-Current Assets 622,818.00 493,613.00 440,465.00 367,156.00 281,633.00
CURRENT ASSETS
Current Investments 59,556.00 53,277.00 51,906.00 39,429.00 50,515.00
Inventories 44,144.00 39,568.00 34,018.00 28,034.00 36,551.00
Trade Receivables 12,110.00 10,460.00 5,472.00 3,495.00 4,661.00
Cash And Cash Equivalents 3,768.00 2,731.00 1,754.00 6,892.00 11,571.00
Short Term Loans And Advances 4,876.00 3,533.00 4,900.00 11,938.00 12,307.00
OtherCurrentAssets 28,473.00 14,343.00 8,231.00 776.00 547.00
Total Current Assets 152,927.00 123,912.00 106,281.00 90,564.00 116,152.00
Total Assets 775,745.00 617,525.00 546,746.00 457,720.00 397,785.00
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES, COMMITMENTS
Contingent Liabilities 111,869.00 66,970.00 73,386.00 79,905.00 80,641.00
CIF VALUE OF IMPORTS
Raw Materials 0.00 0.00 0.00 146,516.00 241,456.00
Stores, Spares And Loose Tools 0.00 0.00 0.00 4,142.00 3,217.00
Capital Goods 0.00 0.00 0.00 13,897.00 9,788.00
EXPENDITURE IN FOREIGN EXCHANGE
Expenditure In Foreign Currency 307,558.00 221,977.00 0.00 8,013.00 7,785.00
REMITTANCES IN FOREIGN CURRENCIES FOR
DIVIDENDS
Dividend Remittance In Foreign Currency - - - 1,311.00 622.00
EARNINGS IN FOREIGN EXCHANGE
FOB Value Of Goods - - - 137,634.00 209,169.00
Other Earnings 214,337.00 169,763.00 - 198.00 229.00
BONUS DETAILS
Bonus Equity Share Capital 5,188.89 5,188.89 2,108.56 2,108.56 2,108.56
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted Market
12,874.00 12,182.00 15,991.00 30,647.00 16,950.00
Value
Non-Current Investments Unquoted Book
259,314.00 160,045.00 124,851.00 83,583.00 45,920.00
Value
CURRENT INVESTMENTS
Current Investments Quoted Market Value 23,933.00 13,133.00 10,731.00 9,949.00 19,158.00
Current Investments Unquoted Book Value 35,623.00 40,144.00 41,175.00 29,870.00 32,165.00

Source: Dion Global Solutions Limited

 COMMENT: -
The above Statically Comparative 5-year Balance Sheet have collected from
www.moneycontrol.com .
This Data hold complete 5-year Balance Sheet of Reliance Industries Ltd. As per
Traditional Balance sheet it includes all Current and Non-current Assets and liabilities.
The above data even hold the investment (Current & Non-Current) in Depth.

 THE FOLLOWING DATA HAVE BEEN EXPLAINED IN DETAILS IN

YEAR WISE MANNER FOR BETTER UNDERSTANDING &
ANALYSIS OF COMPANY FINANCIAL PROFILE AND SITUATION
DURING THE LAST 5-FY (2014-19).

 RELIANCE IND. 2018-19 Annual Report

Analysis
Reliance Ind. has announced its results for the year ended March 2019. Let us have a
look at the detailed performance review of the company during FY18-19.

 RELIANCE IND. Income Statement Analysis

 Operating income during the year rose 44.9% on a year-on-year (YoY) basis.
 The company's operating profit increased by 1.4% YoY during the fiscal.
Operating profit margins witnessed a fall and stood at 9.7% in FY19 as against
13.8% in FY18.
 Depreciation charges increased by 25.3% and finance costs increased by
104.9% YoY, respectively.
 Other income grew by 89.9% YoY.
 Net profit for the year grew by 10.4% YoY.
 Net profit margins during the year declined from 8.7% in FY18 to 6.5% in
FY19.

RELIANCE IND. Income Statement 2018-19

 No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 3,945,170 5,716,550 44.9%
Other income Rs m 196,260 372,690 89.9%
Total Revenues Rs m 4,141,430 6,089,240 47.0%
Gross profit Rs m 544,990 552,840 1.4%
Depreciation Rs m 167,060 209,340 25.3%
Interest Rs m 80,520 164,950 104.9%
Profit before tax Rs m 493,670 551,240 11.7%
Tax Rs m 133,460 153,900 15.3%
Profit after tax Rs m 360,800 398,370 10.4%
Gross profit margin % 13.8 9.7
Effective tax rate % 27.0 27.9
Net profit margin % 8.7 6.5

 RELIANCE IND. Balance Sheet Analysis

 The company's current liabilities during FY19 stood at Rs 3,140 billion as
compared to Rs 3,139 billion in FY18, thereby witnessing an increase of 0.1%.
 Long-term debt stood at Rs 2,075 billion as compared to Rs 1,442 billion
during FY18, a growth of 43.9%.
 Current assets rose 23% and stood at Rs 2,261 billion, while fixed assets fell
2% and stood at Rs 5,778 billion in FY19.
 Overall, the total assets and liabilities for FY19 stood at Rs 10,024 billion as
against Rs 8,163 billion during FY18, thereby witnessing a growth of 23%.

RELIANCE IND. Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net worth Rs m 2,935,060 3,871,120 31.9
 
Current Liabilities Rs m 3,138,520 3,140,230 0.1
Long-term Debt Rs m 1,441,750 2,075,060 43.9
 Total Liabilities Rs m 8,163,480 10,024,060 22.8
 
Current assets Rs m 1,837,860 2,260,880 23.0
Fixed Assets Rs m 5,909,070 5,778,370 -2.2
Total Assets Rs m 8,163,480 10,024,060 22.8

 RELIANCE IND. Cash Flow Statement Analysis

 RELIANCE IND.'s cash flow from operating activities (CFO) during FY19
stood at Rs 457 billion on a YoY basis.
 Cash flow from investing activities (CFI) during FY19 stood at Rs -990 billion,
an improvement of 45.0% on a YoY basis.
 Cash flow from financial activities (CFF) during FY19 stood at Rs 559 billion,
an improvement of 2,894% on a YoY basis.
 Overall, net cash flows for the company during FY19 stood at Rs 33 billion
from the Rs 13 billion net cash flows seen during FY18.

RELIANCE IND. Cash Flow Statement 2018-19

No. of
12 12 %
Particulars months
Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating
Rs m 714,590 457,360 -36.0%
Activities
Cash Flow from Investing - -
Rs m -
Activities 682,900 990,060
Cash Flow from Financing
Rs m -20,010 559,060 -
Activities
Net Cash Flow Rs m 12,660 32,570 157.3%
 
 Current Valuations for RELIANCE IND.

The trailing twelve-month earnings per share (EPS) of the company stands at
Rs 62.8, an improvement from the EPS of Rs 57.0 recorded last year.
 The price to earnings (P/E) ratio, at the current price of Rs 1,254.1, stands at
20.2 times its trailing twelve months earnings.
 The price to book value (P/BV) ratio at current price levels stands at 1.9 times,
while the price to sales ratio stands at 1.3 times.
 The company's price to cash flow (P/CF) ratio stood at 13.4 times its end-of-
year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 622.8 901.9
TTM Earnings per share Rs 57.0 62.8
Diluted earnings per share Rs 55.5 61.3
Price to Cash Flow x 15.1 13.4
TTM P/E ratio x 19.7 20.2
Price / Book Value ratio x 2.6 1.9
Market Cap Rs m 7,944,285 8,155,575
Dividends per share (Unadj.) Rs 6.0 6.5


 Solvency Ratios
Ratio Analysis for RELIANCE IND.

Current Ratio: The company's current ratio improved and stood at 0.7x during FY19,
from 0.6x during FY18. 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 deteriorated and stood
at 4.3x during FY19, from 7.1x during FY18. 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 declined and down at 10.3% during
FY19, from 12.3% during FY19. 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 declined and down at
12.1% during FY19, from 13.1% during FY18. 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 improved and stood at 5.6% during
FY19, from 5.4% during FY18. The ROA measures how efficiently the company uses its
assets to generate earnings.
Key Ratio Analysis
No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 0.6 0.7
Debtors’ Days Days 16 19
Interest coverage x 7.1 4.3
Debt to equity ratio x 0.5 0.5
Return on assets % 5.4 5.6
Return on equity % 12.3 10.3
Return on capital employed % 13.1 12.1
To see how RELIANCE IND. has performed over the last 5 year.
RELIANCE IND. Share Price Performance

 Over the last one year, RELIANCE IND. share price has moved up from Rs
1,114.1 to Rs 1,254.1, registering a gain of Rs 140.1 or around 12.6%.
 Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 13,776.4 (down
0.1%). Over the last one year it has moved down from 14,566.4 to 13,776.4, a
loss of 790 points (down 5.4%).
 Overall, the S&P BSE SENSEX is up 3.2% over the year.
  RELIANCE IND. 2017-18 Annual Report

Analysis
RELIANCE IND. has announced its results for the year ended March 2018. Let us have
a look at the detailed performance review of the company during FY17-18.

 RELIANCE IND. Income Statement Analysis

 Operating income during the year rose 34.2% on a year-on-year (YoY) basis.
 The company's operating profit increased by 23.3% YoY during the fiscal.
Operating profit margins witnessed a fall and stood at 13.8% in FY18 as against
15.0% in FY17.
 Depreciation charges increased by 43.4% and finance costs increased by
109.2% YoY, respectively.
 Other income grew by 71.7% YoY.
 Net profit for the year grew by 20.9% YoY.
 Net profit margins during the year declined from 9.8% in FY17 to 8.7% in
FY18.

RELIANCE IND. Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 2,939,510 3,945,170 34.2%
Other income Rs m 114,310 196,260 71.7%
Total Revenues Rs m 3,053,820 4,141,430 35.6%
Gross profit Rs m 442,060 544,990 23.3%
Depreciation Rs m 116,460 167,060 43.4%
 Interest Rs m 38,490 80,520 109.2%
Profit before tax Rs m 401,420 493,670 23.0%
Tax Rs m 102,010 133,460 30.8%
Profit after tax Rs m 298,330 360,800 20.9%
Gross profit margin % 15.0 13.8
Effective tax rate % 25.4 27.0
Net profit margin % 9.8 8.7


 RELIANCE IND. Balance Sheet Analysis

The company's current liabilities during FY18 stood at Rs 3,139 billion as

compared to Rs 2,353 billion in FY17, thereby witnessing an increase of 33.4%.
 Long-term debt down at Rs 1,442 billion as compared to Rs 1,521 billion
during FY17, a fall of 5.2%.
 Current assets rose 25% and stood at Rs 1,838 billion, while fixed assets rose
30% and stood at Rs 5,909 billion in FY18.
 Overall, the total assets and liabilities for FY18 stood at Rs 8,163 billion as
against Rs 7,123 billion during FY17, thereby witnessing a growth of 15%.

RELIANCE IND. Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 2,637,090 2,935,060 11.3
 
Current Liabilities Rs m 2,353,170 3,138,520 33.4
Long-term Debt Rs m 1,521,480 1,441,750 -5.2
Total Liabilities Rs m 7,123,390 8,163,480 14.6
 
Current assets Rs m 1,468,130 1,837,860 25.2
Fixed Assets Rs m 4,550,458 5,909,070 29.9
Total Assets Rs m 7,123,390 8,163,480 14.6

 RELIANCE IND. Cash Flow Statement Analysis

RELIANCE IND.'s cash flow from operating activities (CFO) during FY18
stood at Rs 715 billion, an improvement of 44.2% on a YoY basis.
 Cash flow from investing activities (CFI) during FY18 stood at Rs -683 billion,
an improvement of 3.0% on a YoY basis.
 Cash flow from financial activities (CFF) during FY18 stood at Rs -20 billion on
a YoY basis.
 Overall, net cash flows for the company during FY18 stood at Rs 13 billion
from the Rs -80 billion net cash flows seen during FY17.

RELIANCE IND. Cash Flow Statement 2017-18

No. of
12 12 %
Particulars months
Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating
Rs m 495,500 714,590 44.2%
Activities
Cash Flow from Investing - -
Rs m -
Activities 662,920 682,900
Cash Flow from Financing
Rs m 86,170 -20,010 -
Activities
Net Cash Flow Rs m -80,340 12,660 -


 Current Valuations for RELIANCE IND.

The trailing twelve-month earnings per share (EPS) of the company stands at
Rs 60.9, an decline from the EPS of Rs 100.8 recorded last year.
 The price to earnings (P/E) ratio, at the current price of Rs 1,133.0, stands at
19.4 times its trailing twelve months earnings.
 The price to book value (P/BV) ratio at current price levels stands at 2.5 times,
while the price to sales ratio stands at 1.8 times.
  The company's price to cash flow (P/CF) ratio stood at 14.0 times its end-of-
year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 993.4 666.2
TTM Earnings per share Rs 100.8 60.9
Diluted earnings per share Rs 45.9 55.5
Price to Cash Flow x 8.1 14.0
TTM P/E ratio x 8.8 19.4
Price / Book Value ratio x 1.3 2.5
Market Cap Rs m 3,352,456 7,368,046
Dividends per share (Unadj.) Rs 11.0 6.0


 Solvency Ratios
Ratio Analysis for RELIANCE IND.

Current Ratio: The company's current ratio improved and stood at 0.6x during FY18,
from 0.6x during FY17. 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 deteriorated and stood
at 7.1x during FY18, from 11.4x during FY17. 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 12.3%
during FY18, from 11.3% during FY18. 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 13.1% during FY18, from 10.6% during FY17. 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 improved and stood at 5.4% during
FY18, from 4.7% during FY17. The ROA measures how efficiently the company uses its
assets to generate earnings.
Key Ratio Analysis
No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 0.6 0.6
Debtors’ Days Days 10 16
Interest coverage x 11.4 7.1
Debt to equity ratio x 0.6 0.5
Return on assets % 4.7 5.4
Return on equity % 11.3 12.3
Return on capital employed % 10.6 13.1
To see how RELIANCE IND. has performed over the last 5 years.
RELIANCE IND. Share Price Performance

 Over the last one year, RELIANCE IND. share price has moved up from Rs
943.0 to Rs 1,133.0, registering a gain of Rs 190.1 or around 20.2%.
 Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 13,485.9 (down
0.2%). Over the last one year it has moved down from 16,050.4 to 13,485.9, a
loss of 2,565 points (down 16.0%).
 Overall, the S&P BSE SENSEX is up 5.8% over the year.

 RELIANCE IND. 2014-17 Annual Report

Analysis

 A COMPARATIVE DETAILED REPORT ANALYSIS HAVE BEEN

MADE ON THE LAST 3 YEAR i.e. 2017, 2016 & 2015.
  THE REPORT CONTAINS ALL THE MAJOR STATICICAL
FINANCIAL DATA, THE RELIANCE IND. LTD HAVE REPORTED.

 Analysis and Interpretation:

Debt Equity Ratio:

Year Outsiders Fund Shareholders Fund Debt Equity Ratio

2014-2015 43012 180020 0.24

2015-2016 62708 197091 0.32

2017-2018 76227 216176 0.35

The debt-equity ratio for the year 13-14 shows 0.29 & 14-15-0.24 & 16-17-0.35.

Hence it shows a fluctuating trend. The low debt equity ratio is considered
a favorable from the long-term creditors point of view. A high debt equity
ratio indicates that the claims of outsides are greater than owner is not
considered by creditor because of lesser margin of safety.

 Proprietary or Equity Ratio:

Year Shareholders Fund Total Asset Ratio

 2014-2015 180020 318511 0.57

2015-2016 197091 367583 0.54

2016-2017 216176 397785 0.54

 The proprietary ratio or equity ratio for the year 13-14-0.57 and 14-15-0.54 and
15-16-0.54.

 Hence it shows a fluctuating trend.

 A higher the ratio better is the long-term solvency position of the company.

 Fixed Assets to Net Worth:

Year Shareholders Fund Total Asset Ratio

2014-2015 109406 197091 0.56
2015-2016 114563 216176 0.53
2016-2017 131410 240184 0.55

 The fixed assets net worth ratio during the study period ratio showed higher in
2014-15-0.56 and lower in 2015-16-0.53.

 This ratio 60-65 percent is considered to be satisfactory ratio in case of industrial

undertakings.

 Ratio of Current Assets to Proprietors Funds:

Year Current Assets Shareholder’s Fund Ratio
2014-2015 135333 197091 1.87
2015-2016 116152 216176 1.84
2016-2017 90564 240184 1.91

 The above table shows ratio of current asset to proprietor fund.

 During the study period ratio showed higher in 2016-17-1.91 and lower in the
2015-16-1.84.
 This ratio indicates the extent to which proprietors’ funds are invested in
current asset.

 Interest Coverage Ratio:

Year Net Profit Fixed Interest Ratio

2014-15 30766 3206 9.6
2015-16 31602 2367 13.4
2016-17 40139 2454 16.2

 The above table shows interest coverage ratio.

 During the study period ratio showed higher in 2016-17- 16.2 and lower in
the year 14-15-9.6.

 It shows a fluctuating trend. Higher the ratio safer are the long-term
creditors
  Return on Shareholder Investment:

Year Net Profit Shareholders Fund Ratio

2014-15 21984 197091 0.11

2015-16 22719 216176 0.11

2016-17 27417 240184 0.11

 The Return on shareholders’ investment, shows a decreasing trend.

 During the study period the company showed the lower ratio of 0.11 in the
year 2014-2016.
 Lower ratio shows lower return on investment.
 Earnings per Share:
Year Net Profit No of Equity Share Ratio

2014-2015 21984 29395.47 0.74

2015-2016 22719 29433.34 0.77

2016-2017 27417 29480.22 0.93

 The earning per share of the company shows a increasing trend.

  During the study the company showed a higher ratio of 0.93 in the year 2017-
2018.

 And lower ratio of the year 2012-2013.the earning per share is a good measure
of profitability.

 Return on Net Capital Employed:

Year Net Profit Net Capital Employed Ratio

2014-15 21984 272017 0.080

2015-16 22719 306484 0.074

2016-17 27417 332698 0.082

 The return on net capital employed shows a fluctuating trend.

 During the study period the company showed a higher ratio of

0.089 in the year 2013-2014.and the lower ratio of 0.09 in the year
2012-2013.
 it shows the total asset used in a business less its current
liabilities.

 Capital Turnover Ratio:

Year Sales Net Capital Ratio

Employed
2014-15 390117 272017 1.43

2015-16 329076 306484 1.07

2016-17 233158 332698 0.70

 The capital turnover ratio shows a fluctuating trend and

decreasing trend.

 During the study period a company showed a higher ratio

of 1.52 in the year 2012-2013.and lower ratio of 0.70 in the year

2017-2018.it is used to measure the efficiency which a firm utilizes
its resources.

 concern.
This ratio is a good indicator of overall profitable of the
  Fixed Assets Turnover Ratio:

Year Sales Fixed Assets Ratio

2014-15 390117 109406 3.56

2015-16 329076 114563 2.87

2016-17 233158 131410 1.77

 The total investment to long term liabilities shows a fluctuating

trend.

 During the study period the company showed a higher ratio of 4.26
in the year 2013-2014.and the lower ratio of 3.40 in the year 2016- 2017.

 it helps to find the capital structure of the company and its long-term
liabilities.

 Ratio of Fixed Assets to Funded Debt:

Year Fixed Assets Funded Debt Ratio

2014-15 109406 62708 1.74

2015-16 114563 76227 1.50

2016-17 131410 76766 1.71

 Ratio of Current Liabilities to Proprietors Fund:

Year Current Liabilities Shareholders Fund Ratio

2014-15 95566 197091 0.48

2015-16 91301 216176 0.42

2016-17 125022 240184 0.52

 The current liabilities to proprietors’ funds show an increasing

trend.

 During the study period the company showed a higher ratio of

0.52 in the year 2017-2018.and the lower ratio of 0.41 in the
year2012-2013.

 Financial Leverage:
Year EBIT EBT Financial Leverage

2014-15 30766 27818 1.10

2015-16 31602 29468 1.07

2016-17 40139 35701 1.12

 The financial leverage shows a fluctuating trend.

 The company showed a higher ratio of 1.30 in the year 2012-2013 and
lower ratio of 1.07 in the year 2016-2017.
 A lower ratio indicates a low rate of interest and consequently lower
borrowings.
 Ratio Analysis:

 The debt equity ratio was highest in the year 2016-2017 at 0.35 times and was
lowest in the year 2014- 2015 at 0.24 times.
 The lower ratio implies smaller claims from creditors because of low debt during
the year.
 The proprietary ratio doesn’t show any difference over the years. The ratio was
highest in the year 2014-2015 at 0.56 times and was lowest in the year 2017-
2018 at 0.52 times. Thus, if the ratio is high the firm can be more concerned.
 The fixed assets net worth ratio was highest in the year 2014-2015 at 0.68 times
and was lowest in the year 2016-2017 at 0.53 times.
 The current asset to proprietor fund was highest in 2017-2018 at 1.91 and was
lowest in the 2014-15 at 1.77.
 This ratio indicates the extent to which proprietors’ funds are invested in current
assets. There is no “rule of thumb” for this ratio.
 Reliance Ind. Share performance between
Year 2015-2017.

Price History
Price Rs 1,363.4   % ch % 10.3
No. of
Mkt Cap Rs m 8,866,042   shares m 6,503.13
Vol '000 2,629.6   % ch week % 18.5
P/E X 20.4   % ch 1-mth % 54.3
P/CF X 14.6   % ch 12-mth % 1.4
EPS (TTM) Rs 67.0   52 week H/L Rs 1,617.8/875.7

 ANALYSIS:

 The above Data represent the 5-Year Change and Trend in Stock and Shares
of Reliance Industries Ltd.
 With the passage of 5 year there is pivotal change of 10.3 % in the stock price
of Reliance. With current Stock priced @ Rs. 1363.4.
 Market Cap has reached to Rs. 8,866,042 in millions.

 SHARE HOLDING

Indian Promoters 45.2%

 Foreign collaborators 0.0%

Indian inst/Mut Fund 12.6%

FIIs 18.8%

ADR/GDR 3.2%

Free float 20.2%

Shareholders 2,790,842

Pledged promoter(s) holding 0.0%

 Coronavirus impact on RIL's stock

pricing.

 EXPLANATION
Not long ago, Reliance Industries (RIL) was the most fancied stock among investors. It was
the first Indian company to touch a market value of Rs 10 trillion on November 28, 2019.
But a chain of recent events, many of which impacted the broader markets as well, led to a
sharp correction of 40 per cent in the stock from February highs.
Analysts at Emkay Global on Thursday cut their FY21/22 estimated EPS by 25 per cent and
14 per cent, respectively, to building in lower earnings in petrochemical and refining.
Despite the cuts, earnings are expected to grow about 10 per cent each in FY21 and FY22.
While they also reduced their target price by 25 per cent to Rs 1,310, they have maintained
‘buy’ on the stock. “RIL remains well-poised to outperform a market recovery and we remain
overweight,”.

Mukesh Ambani loses $5.6 billion in a

day

Mukesh Ambani posted a $5.6 billion decline in wealth in a day as global

markets continued to fall over coronavirus fears and Reliance Industries'
shares took a hit due to recent developments.

 RECENT RELIACNE INDUSTRIES STOCK

DEVELOPMENT.
  Facebook buys 9.99% stake in Reliance Jio for Rs 43,574 crore.

US social media giant Facebook will invest Rs 43,574 crore into Jio Platforms, a unit of Reliance
Industries NSE 10.20 %, for a 9.99% stake, a development which on Wednesday.
The investment will value Jio Platforms - a digital apps platform at Rs 4.62 lakh crore. The deal
with help Mukesh Ambani-owned RIL reduce debt further and allow the Mark Zuckerberg-led
company get a stronger foothold in what is the US major's largest market.

 This is the Stock Development of Reliance Industries

Ltd. As its Stands Today.