Reliance Industries Ltd

Reliance Industries has acquired 100% stake in Reliance Chemicals and Materials (RCML) from Reliance Projects & Property Management Services (RPPMSL) for an aggregate consideration of Rs 314.48 crore.

RCML was incorporated in India on 02 November 2022 to undertake business of manufacturing of petrochemicals, Vinyls, Hydrogen & its derivatives, Rare & Industrial gases, Bio energy products & carbon fibre.

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The key equity indices pared some gains and traded with limited gains in afternoon trade. The Nifty traded below the 22,400 level. Realty, FMCG and IT shares advanced while Healthcare, pharma and oil & gas stocks declined.

At 13:27 IST, the barometer index, the S&P BSE Sensex, was up 142.60 points or 0.19% to 73,791.22. The Nifty 50 index added 46.15 points or 0.21% to 22,382.55.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.54% and the S&P BSE Small-Cap index added 0.89%.

The market breadth was strong. On the BSE, 2,354 shares rose and 1,369 shares fell. A total of 138 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tumbled 20.57% to 10.09. Volatility zoomed as traders roll over their positions in the F&O segment from the near month April series to May series. The April 2024 F&O contracts will expire on Thursday, 25 April 2024.

Economy:

Rising from 61.8 in March to 62.2 in April, the headline HSBC Flash India Composite PMI Output Index – a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors – indicated the fastest rate of increase in aggregate business activity since mid-2010. Survey participants overwhelmingly attributed the expansion to buoyant demand from domestic and external clients.

Growth in India remained broad-based across the manufacturing and service sectors. The former saw the sharper rate of increase, albeit one that was softer than in March. In the service economy, business activity rose to the greatest extent in three months.

Gainers & Losers:

Grasim Industries (up 3.11%), Bharti Airtel (up 3.09%), HCL Technologies (up 2.13%), Nestle India (up 1.35%) and Hero Motocorp (up 1.29%) were major Nifty gainers.

Sun Pharmaceutical Industries (down 2.79%), Bharat Petroleum Corporation (BPCL) (down 1.23%), Reliance Industries (down 0.90%), Mahindra & Mahindra (down 0.90%) and HDFC Life Insurance Company (down 0.87%) were major Nifty losers.

Reliance Industries fell 0.90%. The company’s consolidated net profit stood at Rs 21,243 crore in Q4 FY24, marginally higher from Rs 21,227 crore posted in corresponding quarter last year. Gross revenue jumped 10.8% to Rs 264,834 crore in Q4 FY24 as compared with Rs 238,957 crore in Q4 FY23. The revenue growth was supported by double-digit growth in O2C and consumer business.

Stocks in Spotlight:

Mahindra & Mahindra Financial Services tumbled 4.64% after the NBFC announced deferment of board meeting for considering quarterly results due to detection of fraud at one of company’s branches in the North East.

Aditya Birla Money was locked in an upper circuit of 5% after the company reported 123.34% surge in net profit to Rs 16.46 crore in Q4 FY24 as compared with Rs 7.37 crore posted in Q4 FY23. Revenue from operations soared 73.05% year on year to Rs 114.06 crore in the quarter ended 31 March 2024.

Tejas Networks was locked in upper circuit of 20% after the company reported consolidated net profit of Rs 146.78 crore in Q4 FY24 as against Rs 11.47 crore posted in Q4 FY23. Revenue from operations zoomed to Rs 1,326.88 crore in March 2024 quarter as compared with Rs 299.32 crore recorded in same quarter last year.

Hatsun Agro Product rallied 11.20% after the company reported net profit stood at Rs 52.15 crore in Q4 FY24, steeply higher than Rs 24.98 crore in Q4 FY23. Revenue from operations jumped 14.38% to Rs 2046.87 crore during the quarter as compared with Rs 1,789.46 crore posted in corresponding quarter last year.

Global Markets:

European stocks advanced while Asian stocks traded mixed on Tuesday as tech shares rebounded on Wall Street and investors look toward flash business activity figures from Australia, Japan and India. Investors remained on edge ahead of earnings from some of the world’s biggest companies this week, while more cues on U.S. interest rates were also in focus.

Wall Street stocks ended higher on Monday following a market sell-off in previous sessions as investors eyed a busy week for quarterly results from key companies that would provide a glimpse of the US economy's health. Markets were now awaiting earnings reports from some of the biggest companies on Wall Street

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Gross revenue jumped 10.8% to Rs 264,834 crore in Q4 FY24 as compared with Rs 238,957 crore in Q4 FY23. The revenue growth was supported by double-digit growth in O2C and consumer business.

EBITDA stood at Rs 47,150 crore in Q4 FY24, registering the growth of 14.3% as compared with Rs 41,252 crore posted in same quarter last year. EBITDA margin expanded by 50 bps to 17.8% in Q4 FY24 as against 17.3% in Q4 FY23.

Capital expenditure for the quarter ended 31 March 2024, was Rs 23,207 crore.

Mukesh D. Ambani, chairman and managing director, Reliance Industries said: “I am happy to share that this year, Reliance became the first Indian company to cross the ₹ 100,000-crore threshold in pre-tax profits.

Performance of the digital services segment has been boosted by accelerated expansion of subscriber base, supported by both mobility and fixed wireless services. From upgrading the hitherto 2G users to smartphones, to leading the effort of producing AI-driven solutions, Jio has proved its capability in strengthening the nation’s digital infrastructure.

Reliance Retail continued to provide customers endless choices through its robust omni-channel presence. We continue to offer product differentiation and superior offline experience through stores remodelling and revamping of layouts. Our digital commerce platforms also provide newer solutions to users with a broad brand catalogue. Reliance Retail also works towards strengthening millions of merchants through its unique initiatives in new commerce space.

Strong demand for fuels globally, and limited flexibility in refining system worldwide, supported margins and profitability of the O2C segment. Downstream chemical industry experienced increasingly challenging market conditions through the year. Despite headwinds, maintaining leading product positions and feedstock flexibility through our operating model that prioritises cost management, we delivered a resilient performance. The KG-D6 block has achieved 30 MMSCMD of production and now accounts for 30% of India’s domestic gas production.

Jio Platforms :

Jio Platform’s consolidated net profit jumped 12% to Rs 5,583 crore in Q4 FY24 as compared with Rs 4,984 crore in Q4 FY23. Revenue from operations increased 13.4% YoY to Rs 28,871 crore in Q4 FY24. The growth continued to be driven by robust subscriber growth across mobility and homes, and the benefit of mix improvement in ARPU.

In Q4 FY24, EBITDA stood at Rs 14,360 crore, up 13.4% from Rs 12,767 crore posted in same quarter last year, primarily led by healthy revenue growth and operating leverage.

During the quarter, average revenue per user (ARPU) rose 1.6% YoY to 181.7 with better subscriber mix partially offset by increasing mix of promotional 5G traffic, offered unlimited to subscribers and not yet charged separately.

Total customer base increased 9.7% to 481.8 million in Q4 FY24 as compared with 439.3 million in Q4 FY23. Total data traffic was 40.9 billion GB during the quarter, registering a growth of 35.2% on YoY basis. Total voice traffic was 1.44 trillion minutes during the quarter; 9.7% growth YoY.

Akash M Ambani, chairman of Reliance Jio Infocomm, said, “Jio continues to maintain its network leadership and offer innovative digital solutions to multiple customer cohorts. This is driving consistent outperformance in terms of subscriber additions and engagement levels. Continued acceleration in growth of JioAirFiber subscriber base and ramp-up of digital services will sustain industry-leading growth for Jio.”

Reliance Retail:

Consolidated Reliance Retail net profit jumped 11.7% to Rs 2,698 crore on 9.8% increase in Revenue from operations to Rs 67,610 crore in Q4 FY24 over Q4 FY23. The said growth in revenue was led by growth in consumer electronics and fashion & lifestyle.

EBITDA stood at Rs 5,823 crore in Q4 FY24, registering the growth of 18.5% as compared with Rs 4,914 crore in Q4 FY23.

The business expanded its store network with 562 new store openings with gross area addition of 7.8 million sq. ft.

The quarter recorded footfalls of over 272 million across formats, a growth of 24.2% YoY.

Consumer Electronics business sustained growth momentum led by ABV growth & improved conversions. New commerce business through JioMart Digital (JMD) continued its growth journey and expanded its merchant partner base by 20% Y-o-Y.

Under Fashion & Lifestyle business, AJIO continued to improve its value proposition as it strengthens its catalogue further. The platform added several new brands and launched new app features to enhance customer experience. Premium brands continued to lead premium and luxury segment with widest portfolio of brands with 20.0% Y-o-Y growth. Ajio Luxe delivered steady performance during the period with options growing by 44.0% Y-o-Y.

Jewels business delivered steady performance despite increase in gold prices. The business continued its focus on strengthening product offering through launches on key occasions during the quarter.

Grocery business delivered another quarter of steady performance led by Smart & Smart Bazaar. The business is expanding its portfolio by offering premium products and evolving categories like international food, body mist, serums etc to serve discerning customers.

JioMart delivered steady performance during the quarter with expansion of seller base, up 94% Yo-Y and live selection up 32% Y-o-Y. The platform witnessed growth in sessions and GMV led by sales events like ‘Holi Ready’ & ‘Republic Day’.

Consumer Brands business continues to scale-up, growing 3x Y-o-Y in general trade. Strong traction on Campa and Independence brands driving growth of beverage and staples categories. Acquired Ravalgaon IP rights including trademarks, recipe etc. relating to sugar boiled confectionery and partnered with Sri Lanka based beverage maker Elephant House, to manufacture and sell beverages under the ‘Elephant House’ brand across India with reciprocal rights to sell Campa in Sri Lanka.

Isha M. Ambani, executive director, Reliance Retail Ventures, said, “Reliance Retail continues to deliver steady performance led by growth across consumption baskets. We continue to invest and innovate across formats and products to improve our customer value proposition and serve evolving consumer needs. Robust expansion and growth of our retail business signifies our commitment to customer centricity and confidence in India’s consumption story.”

Oil to Chemical (O2C):

Revenue for Q4 FY24 increased by 10.9% YoY to Rs 142,634 crore ($17.1 billion) primarily on account of improved realization for transportation fuels segment and higher volumes.

Segment EBITDA for Q4 FY24 marginally increased by 3.0% Y-o-Y to Rs 16,777 crore ($2.0 billion) supported by advantageous feedstock sourcing, ethane cracking and higher domestic product placement.

During the quarter, total throughput was flat to 19.8 MT as compared with Q4 FY23.

Oil & Gas (EXPLORATION & PRODUCTION):

4Q FY24 revenue is higher by 42.0% as compared to 4Q FY23 mainly on account of higher volumes partly offset by lower price realisation from KG D6 Field.

EBITDA increased to Rs 5,606 crore which is up by 47.5% on Y-o-Y basis. EBITDA margin was at 86.7% for 4Q FY24.

The average price realised for KG D6 gas was $ 9.53/MMBTU in 4Q FY24 as against $11.39/MMBTU in 4Q FY23. The average price realised for CBM gas was $ 14.34/MMBTU in 4Q FY24 as against $ 19.57/MMBTU in 4Q FY23.

Media Business:

Media business recorded a strong operating and financial performance across verticals during the quarter. Revenue from operations was up by 63.0% Y-o-Y to ₹ 2,419 crore, driven by Sports, Movies and News verticals.

Consolidated EBITDA of the Group was impacted by continued investments in Sports and Digital verticals of Viacom18, the leading drivers of revenue growth for the foreseeable future.

News business revenue was up 25% Y-o-Y, driven by the strong growth in advertising revenue of both TV and Digital Platform

Viacom18 revenue grew 83% Y-o-Y led by sports and movies segments. Sports revenue growth was primarily driven by 13 IPL matches held during the quarter, as the tournament kicked off earlier this year.

On financial year basis, the company’s net profit increased 6.66% to Rs 79,020 crore in FY24 as compared with Rs 74,088 crore in FY23. Gross revenue was Rs 1,000,122 crore, up 2.6% YoY, supported by continued growth momentum in consumer businesses and upstream business.

Meanwhile, the company has declared a dividend of Rs 10 per equity share for FY 2024.

Reliance Industries (RIL) is India's largest private sector company. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, renewables (solar and hydrogen), retail and digital services.

The scrip fell 0.07% to Rs 2,958.50 on the BSE.

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The key equity benchmarks traded with moderate gains in early trade. The Nifty traded above 22,400 level. Realty, IT and consumer durables stocks advanced while metal and PSU bank shares declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, was up 242.18 points or 0.33% to 73,889.80. The Nifty 50 index added 66.15 points or 0.30% to 22,402.55.

In the broader market, the S&P BSE Mid-Cap index rose 0.26% and the S&P BSE Small-Cap index added 1.64%.

The market breadth was strong. On the BSE, 2,037 shares rose and 769 shares fell. A total of 93 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,915.23 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 3,542.93 crore in the Indian equity market on 22 April, provisional data showed.

Volatility may zoom as traders roll over positions in the F&O segment from the near month April series to May series. The April 2024 F&O contracts will expire on Thursday, 25 April 2024.

Stocks in Spotlight:

Reliance Industries (RIL) rose 0.25%. The company’s consolidated net profit rose 0.1% to Rs 21,243 crore on 10.8% increase in gross revenue to Rs 264,834 crore in Q4 FY24 over Q4 FY23.

Rallis India slipped 2.87% after the company reported a net loss of Rs 21 crore in Q4 FY24, lower than net loss of Rs 69 crore posted in Q4 FY23. Total income dropped to Rs 442 crore from Rs 527 crore.

IndusInd Bank rose 0.35%. IndusInd Bank announced successful execution of RBI’s programmable CBDC pilot. As a part of this pilot, IndusInd Bank initiated the programmable CBDC disbursement to 50 farmers in Ratnagiri district of Maharashtra and will cover around 1000 farmers going ahead, marking a significant milestone in the adoption of innovative financial solutions for the agriculture sector.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.29% to 7.171 as compared with previous close 7.192.

MCX Gold futures for 5 June 2024 settlement fell 1.08% to Rs 70,430.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.08% to 106.11.

The United States 10-year bond yield declined 0.28% to 4.610.

In the commodities market, Brent crude for June 2024 settlement rose 35 cents or 0.40% to $ 87.35 a barrel.

Global Markets:

Asian stocks advanced on Tuesday as tech shares rebounded on Wall Street and investors look toward flash business activity figures from Australia, Japan and India. Investors remained on edge ahead of earnings from some of the world’s biggest companies this week, while more cues on U.S. interest rates were also in focus.

Wall Street stocks ended higher on Monday following a market sell-off in previous sessions as investors eyed a busy week for quarterly results from key companies that would provide a glimpse of the US economy's health. Markets were now awaiting earnings reports from some of the biggest companies on Wall Street

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Net profit of Reliance Industries declined 1.80% to Rs 18951.00 crore in the quarter ended March 2024 as against Rs 19299.00 crore during the previous quarter ended March 2023. Sales rose 11.13% to Rs 236533.00 crore in the quarter ended March 2024 as against Rs 212834.00 crore during the previous quarter ended March 2023.

For the full year,net profit rose 4.38% to Rs 69621.00 crore in the year ended March 2024 as against Rs 66702.00 crore during the previous year ended March 2023. Sales rose 2.65% to Rs 901064.00 crore in the year ended March 2024 as against Rs 877835.00 crore during the previous year ended March 2023.

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Reliance Industries announced that the Board of Directors of the Company at its meeting held on 22 April 2024, inter alia, have recommended the final dividend of Rs 10 per equity Share (i.e. 100%) , subject to the approval of the shareholders.

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Reliance Industries will hold a meeting of the Board of Directors of the Company on 22 April 2024.

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Reliance Industries announced the cessation of Adil Zainulbhai (DIN: 06646490), Independent Director of the Company with effect from 31 March 2024 on completion of his second term.

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Reliance Industries announced that an investment agreement has been signed on 27 March 2024 between Mahan Energen (MEL), wholly owned subsidiary of Adani Power (APL), the Company and APL, in terms of which the Company has agreed to subscribe and MEL has agreed to allot 5,00,00,000 (five crore) equity shares of face value of Rs. 10/- each of MEL to the Company at par.

The proposed investment by the Company is in compliance with the provisions of Electricity Rules, 2005 in terms of which the Company, as a captive user, is required to own 26% proportionate ownership in one unit of MEL of 600 MW capacity, with RIL being the captive user of 500 MW generation capacity.The Company and MEL have entered into a 20 year long term power purchase agreement for this purpose.

MEL, a company engaged in generation and supply of power, was incorporated on 19 October 2005. The turnover of MEL, as per its audited standalone financial statement, for financial years 2022-23, 2021-22 and 2020-21 was Rs. 2,730.68 crore, Rs.1,393.59 croreand Rs. 692.03 crore, respectively.

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Reliance Industries announced that binding agreement has been entered into on 14 March 2024 between the Company and two subsidiaries of Paramount Global for the Company to acquire 13.01% equity stake (on a fully diluted basis) of Viacom 18 Media (Viacom18) held by Paramount Global through its two subsidiaries for an aggregate consideration of Rs. 4,286 crore.

Viacom18 is a material subsidiary of TV18 Broadcast. The Company currently holds Compulsorily Convertible Preference Shares of Viacom18 representing 57.48% equity stake (on a fully diluted basis). Post the completion of this transaction, the Company's equity stake in Viacom18 will increase to 70.49% (on a fully diluted basis).

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