Reliance Industries

15 June 2015
Update | Sector: Oil & Gas
Reliance Industries
BSE Sensex
26,425
S&P CNX
7,983
CMP: INR889
TP: INR965 (+9%)
Neutral
AGM: Core capex on track; telecom launch in Dec-15
Refining a near term support; E&P turnaround and traction in telecom
critical to support RoE improvement
Stock Info
Bloomberg
RIL’s AGM (Annual General Meeting) did not see any new announcements, but was
largely an update on ongoing USD32b core/non-core capex. Barring a 6-month cracker
delay, core projects are largely on track. Telecom launch in Dec-15 and its first ever
detailed disclosure gave glimpse of Reliance Jio’s network, content
creation/affordable handset efforts and likely pricing. While voice strategy remains
uncertain, we believe 4G subscriber conversion would be key. Large non-core
investments even if accretive over long-term; any gains will be back-ended, diluting
overall return ratio in the interim.
RIL IN
Equity Shares (m)
3,236.4
52-Week Range (INR)
1,113/797
1, 6, 12 Rel. Per (%)
4/0/22
M.Cap. (INR b)
2,877.7
M.Cap. (USD b)
44.9
Avg Val(INRm)/Vol ‘000 3632/3822
Free float (%)
54.8
Core capex monetization from FY17; except cracker, projects on track
Financial Snapshot (INR Billion)
Y/E Mar
2015 2016E 2017E
3,573 2,848 3,429
Net Sales
316.0 350.4 454.4
EBITDA


227.2 250.0 308.1
Adj PAT
77.5
Adj. EPS (INR)
3.4
Gr (%)
BV/Sh (INR)
85.3 103.8
10.0
23.2

737.9 810.3 890.1
RoE (%)
11.0
11.0
12.3
RoCE (%)
10.5
10.6
12.4
Adj. P/E (x)
11.5
10.4
8.6
P/BV (x)
1.2
1.1
1.0
EV/EBITDA (x)
9.8
9.0
6.8
Div. Yield (%)
1.1
1.2
1.5
JIO: 4G subscriber conversion would be key; voice strategy uncertain

Shareholding pattern (%)
As on
Mar-15 Dec-14 Mar-14
Promoter
45.2
45.3
45.3
DII
12.6
12.0
11.3
FII
Others
22.0
20.2
22.2
20.5
22.1
21.4
Of the core projects, petcoke gasification and phased polyester
commissioning is largely on track, while off-gases cracker is delayed by 6
months with now scheduled commissioning in 3QFY17.
On the domestic E&P, RIL acknowledged that domestic E&P business
shareholder returns are below cost of capital, but its portfolio is still
promising with yet to be monetized 5-6tcf discovered gas resources.
Organized retail: To increase its presence from 200 cities (2,600 stores)
currently to 900 cities by next year. To roll out e-commerce initiative by earend and together with physical stores expect 30% to 50% yoy growth.

FII Includes depository receipts

Stock Performance (1-year)
Reliance Inds.
Sensex - Rebased
1,350
1,200
1,050
900
While Reliance JIO commercial launch is delayed to Dec-15 (vs expected
phased launch in CY15), a combination of (a) significant expected decline in
the 4G handset price to INR4,000 by Dec-15 (vs INR8,000-10,000 now) and
(b) significant capacity/scale of JIO planned at launch date (~100m wireless
subscribers) would lead to increased activity in the telecom data market.
Reliance JIO’s voice strategy remains uncertain as no particular details were
shared about how it would be providing voice services which currently
constitute ~80% of the Indian wireless market revenue. We expect potential
tie-up with existing operators for circuit-switched-fall-back (CSFB).
Large-scale population coverage planned by JIO combined with low 4G
handset prices can enable mass adoption of 4G services. However, rate of
subscriber up-take would be the key as JIO would be largely targeting churn
from existing subscribers with the proposition of a cheaper and better data
offering.
Valuation and view
750
Jun-15
Mar-15
Dec-14
Sep-14
Jun-14

1
A six month delay in cracker and low shale gas returns could be offset by
better GRM’s in FY17. On FY17E basis (standalone), the stock trades at 9x
adj. EPS of INR104 and EV/EBITDA of 6.8x. SOTP-based target price stands
at INR965/sh. Neutral.
A
Harshad Borawake (HarshadBorawake@MotilalOswal.com); +91 22 3982 5432
Shobhit Khare (Shobhit.Khare@MotilalOswal.com); +91 22 3982 5428
Investors are advised to refer through disclosures made at the end of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Reliance Industries
Exhibit 1: Similar to FY14, RIL’s AGM focused on update of ongoing core and mom-core capex implementation and no new
announcements were made
AGM
Year
Announcements
Current Status
FY06 (1) Reliance Retail would entail an equity investment of INR100b
RIL has invested INR146b in Reliance Retail till date with
and total investment of INR250b covering 1,500 cities and towns presence in 200 cities (2,600stores)
FY07 (1) Announced PX expansion at Jamnagar from current 1.9 to
Expected to commission by 4QFY16 / 1QFY17
4.5mmtpa in two phases. Post expansion will be 15% of global PX
capacity.
(2) Announced to build 2mmtpa petchem complex
(3) Announced as a new 6mmtpa World's largest Integrated
RIL expects completion of Petcoke Gasification Project by
Combined Cycled Coke Gasification plant at Jamnagar by 2012. 4QFY16 / 1QFY17
The feed will be Petcoke from two refineries , adding to
complexity and further value addition from bottom of the barrel
FY08 (1) Indicated avenues for future growth over longer term
Though no formal announcements have been made, media has
1. Fostering rural prosperity - will create rural business hubs.
reported some forays in agri-related businesses and in todays
2. Alternative energy - as a natural extension of conventional
AGM speech reiterated its intentions of investing in alternative
energy portfolio - no details given.
energy.
FY09 (1) No new project announcement, however will now focus on
earlier announced 2mmtpa petchem complex
RIL is commissioning 1.5mmtpa of off-gas cracker by 3QFY17 (v/s
earlier guidance of 4QFY16 / 1QFY17)
FY10 (1) N-paraffin capacity: To set up a plant to convert kerosene into
normal paraffin.
(2) Will focus on accelerated development in KG-D6, NEC-25
(Mahanadi basin), CB-10 in Cambay basin and CBM block in
Sohagpur, Madhya Pradesh.
(3) To increase the retail business revenues 10x from current Rs45b
to Rs450b in next 5 years.
(4) It will invest ~Rs200b in the broadband space through its 95%
subsidiary, Infotel.
FY11 (1) Along with BP, RIL undertaking extensive KG-D6 study to sustain
and augment production
No update since the announcement
While KG-D6 production has dropped to ~11.5mmscmd from the
peak of 64mmscmd, production in CBM block is expected by
FY16
Revenues from Retail business in FY15 wre INR176b, and RIL
now expects Retail business to double in every 3-4 years.
RIL estimated total investment in Telecom business to be
INR700b but now already crossed INR850b
Domestic E&P portfolio has 5-6 tcf of yet to be developed
discovered resource, indicated in FY15 AGM
FY12 (1) Expects 30-40% GRM improvement through petcoke gasification RIL now expects Petcoke Gasification Project by 4QFY16 /
project in next 3 years.
1QFY17; expects USD1.5b savings
(2) targeting a growth of 5x to 6x in existing revenues and achieve
INR400b to INR500b crore over the next 3-4 years.
(3) Commissioning of 1.8mmtpa PX Plant in Jamnagar, 2.3mmtpa
PTA expansion in Dahej to be in 12-36months
FY13 (1) RIL re-iterates organized retail revenue target of INR400-500b in
3-4 years v/s INR100b now
FY14
RIL has given a roadmap on the launch of telecom business
launch – To do a phased launch in 2015. RIL has spelled out
Telecom business investment of INR700b v/s INR350b till endFY14 (was estimated but company announced for the first time).
FY15 (1) Reliance Jio commercial operations to start in Dec-15, network
capacity to reach 80% of India's population
Revenues from Retail business in FY15 wre INR176b, and RIL
now expects Retail business to to grow by 30-50%
RIL now expects commissioning of PX Plant in 4QFY16 / 1QFY17,
and PTA commissioned
RIL now expects Retail business to double in every 3-4 years
(CAGR of 20-25%)
TILL DATE RIL HAS COMMITTED CAPEX OF INR850 billion,
PLANNED COMMERCIAL SSTART IN December 2015
(2) To expand organized retail presence from current 200 cities to
900 cities in next one year
(3) No new project announcements
Source: Company, MOSL
15 June 2015
2
Reliance Industries
Telecom venture update
As on March 31, 2015, telecom business spend by RIL stood at INR850b including
spectrum payables. RIL’s spend towards spectrum is INR340b.
In AGM, many significant details of the Telecom project were publicly shared for the
first time:
 End-to-end initial capacity to serve ~100m wireless broadband customers (vs
~84m total wireless broadband subscribers in India as of March 2015) and ~20m
Fibre-To-The-Home (FTTH) customers,
 Extensive beta launch over the next few months with upgrade to commercial
operations by December 2015,
 Expectation of ~INR4,000 price 4GLTE smart phone by December 2015 vs
INR8,000-10,000 currently,
 Expected ARPU of INR300-INR500 per month vs 3G data ARPU of ~INR200
currently,
 Target ~80% population coverage by December 2015 with plan to reach 100%
within next three years (vs ~87% currently for Bharti Airtel),
 250,000 route km of fiber optics (vs 197,000 Rkms for Bharti Airtel) with plan to
double in next three years,
 Plan to connect 1m homes in top-50 cities through FTTH by April 2016, and
 Several applications which are a part of the integrated strategy like Jio Chat
(Communication), Switch-and-Walk (Data transfer), Jio Drive (Cloud capabilities),
Jio Play (Video on demand), Jio Beats (digital music), and Jio Mags (online
Magazines).
Detailed Project-wise core capex update
RIL is executing three large core projects in its core businesses (1) Petcoke
gasification, (2) off gases cracker and (3) Polyester expansion. Recently it has also
announced ~USD1.5b ethane sourcing project. As on March 2015, RIL had
cumulatively spent ~65% of the USD16b core refining and petchem project capex.





15 June 2015
Polyester: Commissioned 400KT polyester plant at Silvassa and 1.15mmt PTA
capacity at Dahej. To commission another 1.15mmtpa PTA capacity by Oct-15
and also double PX capacity to 4.3mmt by end-FY16.
Polymers: 1.5mmt ethylene cracker (refinery off-gases based) to start by
3QFY17 (a 6-month delay). Ethane sourcing capability from US for its
Nagothane, Hazira and Dahej crackers will be ready by Dec-16.
Elastomers: Commissioned 150KT SBR plant, apart from earlier 115KT expansion
of PBR capacity.
Refining and marketing: Petcoke gasification to start phased commissioning
from early 2016 (on track) and expects savings of USD1.5b. To start all its
petroleum retail outlets (~1,400) by end-FY16 as diesel stands deregulated now,
currently 400 operational.
E&P: While, acknowledging that domestic E&P business shareholder returns are
below cost of capital, RIL Chairman indicated that its domestic E&P portfolio still
3
Reliance Industries
has 5-6tcf gas resource that can be monetized. In response of falling oil/gas
prices, RIL’s US shale business has managed to reduce opex by 25-30%.
Exhibit 2: New projects to drive RIL’s next growth phase
Project
Off-gases cracker
Capex (USD b)
~4.5
Integrated gasification combined
cycle (IGCC)
~4.5
Polyester expansion
Ethane sourcing
Total
~4.5
1.5
~16.0
Feedstock’s
Refinery off-gases
(From CDU, FCC etc.)
Petcoke
(From delayed coker unit)
Key products
Petrochemicals (mainly ethylene chain)
Petrochemicals, Power, Steam, Chemicals
PX, PFY, PSF, PET
Replacing domestic gas and high cost propane/naphtha
Exhibit 3: Status update of ongoing core business capex plans
In KTPA
Refinery Off-gas Cracker
Ethylene
Propylene
LDPE
LLDPE
Benzene
PP
Polyesters
PFY
PTY
PSF
PET
Polyester Intermediates
Paraxylene
PTA
MEG
Rubber Division
PBR
SBR
Butyl Rubber
HPIB
Current Capacity Planned Expansion
Total
Status / Likely production start
1,883
759
190
928
419
2,100
1,365
154
400
550
453
135
3,248
913
590
1,478
872
2,235
Delayed to 3QFY17 (v/s 4QFY16 expected earlier)
Delayed to 3QFY17 (v/s 4QFY16 expected earlier)
Delayed to 3QFY17 (v/s 4QFY16 expected earlier)
Delayed to 3QFY17 (v/s 4QFY16 expected earlier)
Along with PX line
Delayed to 3QFY17 (v/s 4QFY16 expected earlier)
670
153
692
290
395
140
346
648
1,065
293
1,038
938
Commissioned
Commissioned
1,830
2,050
733
1,890
2,296
730
3,720
4,346
1,463
Phase 1 in 2H2015 and Phase 2 after 4QFY16
Phase 1 commissioned; Phase 2 after 6 months
4QFY16, in interim could purchase feedstock
74
40
150
100
105
114
150
100
105
Phase 1 commissioned; Phase 2 in Dec 2015
Commissioned in 4QFY14
July-Sept 2014 (2QFY15)
Commissioning by 2016
Source: Company, MOSL
15 June 2015
4
Reliance Industries
Valuation and view





RIL is in the midst of executing its largest ever capex plans in core and non-core
businesses. Large non-core investments though could be accretive from a longterm perspective; the gains will be backended, diluting RIL’s overall return ratio
profile in the interim.
We expect the next earnings growth in RIL in FY17, when its large projects
commission and gas volumes increase. Till then, RoE will hover at ~12%.
Key things to watchout for RIL: (1) E&P arbitration case outcome for domestic
E&P clarity, (2) Update on core capex plan of ~USD14b and (3) Update on
telecom foray.
For FY16/FY17, we model a) GRM at USD8.5/10/bbl, b) KG-D6 gas price at
USD4.2/5.4/mmbtu (only MA) and c) KG-D6 volumes at ~11.5mmscmd,
respectively. Every USD1/bbl change in GRM impacts RIL’s EPS by ~10%.
A six month delay in cracker and low shale gas returns could be offset by better
GRM’s in FY17. On FY17E basis (standalone), the stock trades at 9x adj. EPS of
INR104 and EV/EBITDA of 6.8x. SOTP-based target price stands at INR965/sh.
Neutral.
Exhibit 4: RIL: Key assumptions
Key Metrics
Exchange Rate (INR/USD)
Refining
Capacity (mmt)
Production (mmt)
Capacity Utilization (%)
GRM (USD/bbl)
Blended GRM
Singapore GRM
Premium to Singapore
E&P
Gas Production (mmscmd)
Oil Production (kbd)
Pricing
Brent Oil (USD/bbl)
Wellhead Gas Price (USD/mmbtu)
FY09
45.8
FY10
47.6
FY11
45.6
FY12
47.9
FY13
54.5
FY14
60.5
FY15E
61.2
FY16E
63.0
FY17E
64.0
33.0
32.0
97%
62.0
60.6
98%
62.0
66.5
107%
62.0
67.6
109%
62.0
69.1
111%
62.0
68.0
110%
62.0
68.8
111%
62.0
68.0
110%
62.0
68.0
110%
12.3
5.8
6.5
6.9
3.6
3.3
8.4
5.2
3.2
8.6
8.3
0.3
9.2
7.9
1.4
8.2
5.6
2.6
8.6
6.4
2.3
8.5
6.5
2.0
10.0
6.5
3.5
39.8
10.7
56.2
18.9
42.6
10.9
26.5
9.1
13.8
6.4
12.2
6.6
11.5
6.1
11.5
6.1
69.7
4.2
86.5
4.2
114.5
4.2
110.6
4.2
108.5
4.2
FY09
96
69
23
188
FY10
60
86
55
200
FY11
92
93
67
252
FY12
97
90
53
239
FY13
128
73
29
230
FY14
132
86
20
239
FY15E
160
86
15
261
51%
37%
12%
100%
30%
43%
27%
100%
36%
37%
27%
100%
40%
38%
22%
100%
56%
32%
13%
100%
55%
36%
9%
100%
61%
54%
54%
33%
42%
43%
6%
3%
3%
100%
100%
100%
Source: Company, MOSL
84.8
86.0
60.0
70.0
4.5
4.6
4.7
Source: Company, MOSL
Exhibit 5: RIL: Segmental EBIT break-up (INRb)
Segmental EBIT (INRb)
Refining
Petchem
E&P
Total
Segmental EBIT share (%)
Refining
Petchem
E&P
Total
15 June 2015
FY16E
159
124
9
291
FY17E
203
160
12
375
5
Reliance Industries
Exhibit 6: RIL: Sum of the parts valuation
Business
Core business
Refining
Petchem
E&P Initiatives
KG - D6 Gas (KG Basin)
KG - D6 MA1 Oil (KG Basin)
NEC - 25 (Mahanadi basin)
Sohagpur East & West (CBM)
PMT
Investment in Shale Gas
Investments
Investments in RGTIL, RIIL
Investments in fuel Retailing
Investments in BWA
Investment in SEZ
Reliance Retail
Less: Net Debt/ (Cash)
Total Base Value
15 June 2015
USD b
INR b
43.1
22.3
20.8
3.5
1.4
0.1
0.2
0.3
2,584
1,337
1,247
211
84
4
13
16
Adj.
INR/sh
885
458
427
72
29
1
5
6
0.6
0.9
37
57
13
19
Currently producing; EV @2x EBITDA
JV with Atlas, Pioneer & Carrizo; valued at 1x equity investment
7.0
0.4
0.5
1.8
0.2
4.1
6.6
47.0
417
24
30
105
13
245
394
2,819
143
8
10
36
4
84
135
965
Includes Reliance Retail, RGTIL, RIIL and SEZ
At book value
25% discount to investments
25% discount to license value adjusted for elapsed time
Valued at 0.3x equity investment
100% subsidiary of RIL; 1x sales
Remarks/Methodology
EV @5.5x EBITDA, implied USD1168/complexity bpd
Core business EV @6x EBITDA
Includes KG-D6, NEC-25, CBM, KG-III-6 and Yemen block
DCF; 60% stake; 6tcf cumulative; model 4tcf yet to recover
DCF; 60% stake; 43mmbbls recovery; (LT Brent – USD80/bbl)
DCF; 60% stake; OGIP of 3tcf
DCF; 100% stake; OGIP of 3.65 TCF, assumed 50% recovery
Based on fully diluted equity sh. of 2,921m (excl 309m treasury sh.)
Source: MOSL
6
Reliance Industries
Reliance Industries: Story in charts
Exhibit 7: RIL’s earnings growth momentum has slowed
down
Exhibit 8: Also return ratio’s declined significantly
Rolling 3 Yr PAT CAGR (%)
PAT (INRb)
RoE (%)
400
45%
24
320
33%
18
21%
12
80
9%
6
0
-3%
0
240
FY01
FY02
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15E
FY16E
FY17E
FY01
FY02
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15E
FY16E
FY17E
160
RoCE (%)
Source: Company, MOSL
Source: Company, MOSL
Exhibit 9: FY14 Cons. Capital Employed: Higher share of non-core long gestation capex impacting RIL’s pverall return ratios
Cons. CE Break-up (%)
3
8
5
2
8610
45
45
39
FY06
7
5
5
218
42
4
12
4
222
8
10
4
223
35
35
1
18
4
2
5
2
22
26
7
7
28
25
4
2
6
4
10
29
4
2
6
7
9
27
22
3
2
12
12
6
19
23
314
13
7
19
8
9
6
20
316
6
18
316
13
8
18
13
10
Unalloc.
Cash & Equiv.
Retail
SEZ
Telecom
E&P (Shale)
E&P (Domestic)
Refining
Petchem
17
29
22
22
18
16
13
14
14
15
16
17
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15E
FY16E
FY17E
Source: Company, MOSL
Exhibit 10: While core business RoCE would be healthy, subdues/nil returns in non-core businesses would drag overall
profitability (%)
RIL Cons RoIC
ROIC (%)
30
Petchem
Refining
E&P (Domestic)
E&P (Shale)
Retail
20
10
0
-10
FY07
15 June 2015
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15E
FY16E
FY17E
7
Reliance Industries
Reliance Industries: Story in charts
Exhibit 11: E&P has been a dampener - despite cyclical
downturn Refining & Petchem benefited by INR depreciation
Refining
100%
Petchem
E&P
Exhibit 12: Expect E&P production revival when its new
development projects commission (mmscmd)
60
75%
45
50%
30
25%
15
FY17E
FY16E
FY15E
FY14
FY13
FY12
FY11
FY10
FY09
0%
0
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Source: Company, MOSL
Exhibit 13: RIL refining margins have been largely flat in
recent years (USD/bbl)
Singapore GRM
Premium/(disc)
Source: Company, MOSL
Exhibit 14: While, recent petchem EBIT margins are low, we
expect some recovery led by polymer chain (%)
RIL GRM
15%
20
16% 15%
13% 13% 13%
12%
11%
15
15%
10%
9% 9%
10
10%
5
FY17E
FY16E
FY15E
FY14
FY13
FY12
FY11
FY10
FY09
FY08
FY07
FY06
FY05
FY04
FY03
FY02
0
FY04
FY06
FY08
FY10
FY12
Exhibit 16: RIL 1Yr Fwd P/E Chart (last 15 years)
22%
32
20%
24
P/E (x)
15 Yrs Avg(x)
5 Yrs Avg(x)
10 Yrs Avg(x)
13.3
11.9
16
17%
10.7
8
15%
FY16E
Source: Company, MOSL
Source: Company, MOSL
Exhibit 15: Dividend Payout continues to remain low (%)
FY14
10.0
Source: Company, MOSL
15 June 2015
Jun-15
Apr-14
Feb-13
Dec-11
Nov-10
Sep-09
Jul-08
FY14
May-07
FY12
Mar-06
FY10
Feb-05
FY08
Dec-03
FY06
Oct-02
FY04
Aug-01
FY02
Jun-00
0
12%
Source: Company, MOSL
8
Reliance Industries
Financials and valuations
RIL – Key Assumptions
Y/E March
Exchange rate (INR/USD)
KG-D6 Gas (USD/mmbtu)
RIL GRM
Singapore GRM
Premium/(disc)
2010
47.6
4.3
6.5
3.6
3.0
2011
45.6
4.3
8.4
5.2
3.2
2012
47.9
4.3
8.6
8.3
0.3
2013
54.5
4.3
9.2
7.9
1.4
2014
60.5
4.3
8.2
5.6
2.6
2015E
61.2
4.5
8.6
6.4
2.3
2016E
63.0
4.6
8.5
6.5
2.0
2017E
64.0
4.7
10.0
6.5
3.5
RIL - Income Statement (INR Billion)
Y/E March
Net Sales
Change (%)
RM Cons & Purchases
Employee Costs
Other Expenditure
Change in Stocks
2010
1,925
35.7
1,509
24
126
-39
2011
2,482
28.9
1,947
26
160
-32
2012
3,299
32.9
2,763
29
180
-9
2013
3,603
9.2
3,066
34
228
-33
2014
3,901
8.3
3,298
34
256
4
2015
3,573
-8.4
2,631
36
571
19
2016E
2,848
-20.3
2,135
37
325
0
2017E
3,429
20.4
2,458
40
477
0
306
15.9
105
20
25
205
43
21.0
162
162
4.0
381
15.4
136
23
31
252
50
19.6
203
203
24.9
336
10.2
114
27
62
258
57
22.2
200
200
-1.2
308
8.5
95
30
80
263
53
20.1
210
210
4.8
309
7.9
88
32
89
278
58
21.0
220
220
4.7
316
8.8
85
24
87
295
67
22.9
227
227
3.4
350
12.3
79
23
71
320
70
22.0
250
250
10.0
454
13.3
105
25
82
407
98
24.2
308
308
23.2
6.9
39.8
8.4
56.2
8.6
42.6
9.2
26.5
8.2
13.8
8.6
12.2
8.5
11.5
10.0
11.5
EBITDA
% of Net Sales
Depreciation
Interest
Other Income
PBT
Tax
Rate* (%)
PAT
Adj. PAT
Change (%)
Key Operating Metrics
GRM (USD/bbl)
KG-D6 production (mmscmd)
15 June 2015
9
Reliance Industries
RIL – Balance Sheet (INR Billion)
Y/E March
Share Cap. (incl sh. Susp.)
Reserves
Net Worth
Total Loans
Deferred Tax
Capital Employed
2010
33
1339
1,372
625
109
2,106
2011
33
1483
1,515
674
116
2,305
2012
33
1628
1,661
684
121
2,466
2013
32
1768
1,800
724
122
2,646
2014
32
1,939
1,971
855
122
2,948
2015E
32
2,130
2,162
851
128
3,142
2016E
32
2,342
2,374
848
132
3,354
2017E
33
2,608
2,641
845
136
3,621
Gross Fixed Assets
Less: Depreciation
Net Fixed Assets
Capital WIP
Investments
2159
626
1,533
121
232
2213
785
1,427
128
377
2055
918
1,137
78
540
2132
1034
1,097
191
525
2,226
1,132
1,094
417
861
2,333
1,216
1,117
629
907
2,462
1,295
1,167
810
937
3,168
1,400
1,768
336
967
270
117
135
103
298
174
271
171
360
184
396
257
427
119
495
330
429
107
366
402
357
103
176
416
305
82
131
431
341
99
241
447
368
36
220
2,106
497
46
373
2,305
442
43
712
2,466
495
43
832
2,646
686
42
576
2,948
516
48
490
3,142
457
52
440
3,354
515
62
550
3,621
2010
2011
2012
2013
2014
2015E
2016E
2017E
49.6
54.8
81.7
463.2
7.0
15.0
62.0
68.4
103.5
511.2
8.0
13.7
61.3
67.7
96.1
560.7
8.5
14.7
65.0
71.9
94.4
616.5
9.0
14.6
68.0
75.2
95.2
674.2
9.5
16.4
70.1
77.5
96.4
737.9
10.0
16.7
77.2
85.3
101.5
810.3
11.0
16.7
94.0
103.8
126.0
890.1
13.4
16.7
17.9
16.2
10.9
10.8
1.7
1.9
0.8
14.3
13.0
8.6
8.3
1.3
1.7
0.9
14.5
13.1
9.3
8.6
0.9
1.6
1.0
13.7
12.4
9.4
9.0
0.8
1.4
1.0
13.1
11.8
9.3
9.4
0.7
1.3
1.1
12.7
11.5
9.2
9.8
0.9
1.2
1.1
11.5
10.4
8.8
9.0
1.1
1.1
1.2
9.5
8.6
7.1
6.8
0.9
1.0
1.5
13.4
11.3
14.8
12.9
13.0
12.1
12.3
11.6
11.7
11.1
11.0
10.5
11.0
10.6
12.3
12.4
15
1.1
21
1.1
20
1.5
15
1.7
11
1.8
11
1.6
12
1.2
10
1.2
0.3
0.2
0.0
-0.1
0.0
0.1
0.1
0.1
Curr. Assets, L & Adv.
Inventory
Debtors
Cash & Bank Balance
Loans&Adv.and Other CA
Current Liab. & Prov.
Liabilities
Provisions
Net Current Assets
Application of Funds
RIL – Key Financial and Valuation Ratios
Y/E March
Basic (INR)
EPS
Adj. EPS (ex Treasury)
Cash EPS
Adj. Book Value
DPS
Payout (incl. Div. Tax.)
Valuation (x)
P/E
Adj. P/E
Cash P/E
EV / EBITDA
EV / Sales
Adj. Price / Book Value
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
Turnover Ratios
Debtors (No. of Days)
Fixed Asset Turnover (x)
Leverage Ratio
Net Debt / Equity (x)
15 June 2015
10
Reliance Industries
RIL – Cash Flow Statement (INR Billion)
Y/E March
OP/(Loss) before Tax
Depreciation (excl. revaluation)
Interest expense
Direct Taxes Paid
(Inc)/Dec in Wkg. Capital
Interest/other income
Other op activities
CF from Op. Activity
2010
205
105
20
-31
-53
-21
-21
205
2011
252
136
23
-42
1
-26
-11
333
2012
258
114
27
-48
-28
-44
-8
270
2013E
263
95
30
-47
58
-62
-7
330
2014
278
88
32
-61
145
-65
4
422
2015
295
85
24
-61
-104
-69
0
169
2016E
320
79
23
-67
4
-50
0
308
2017E
407
105
25
-94
0
-55
0
387
(Inc)/Dec in FA & CWIP
Free Cash Flow
(Pur)/Sale of Investments
Interest/other income
Other In activities
CF from Inv. Activity
-218
-13
-12
22
26
-182
-121
212
-141
23
35
-203
-80
190
62
19
-31
-30
-159
171
22
65
-75
-148
-325
97
-312
68
-38
-607
-319
-150
-46
69
0
-296
-310
-1
-30
50
0
-290
-232
156
-31
55
0
-208
1
-88
-22
2
30
-24
-2
-85
-28
-31
-23
-29
2
84
-31
0
-27
-36
0
-26
-38
0
-28
-42
-110
7
-115
-83
55
-63
-64
-70
-87
222
135
137
135
271
125
271
396
99
396
495
-130
495
365
-190
365
175
-46
175
130
110
130
240
Change in Equity
Inc / (Dec) in Debt
Dividends Paid
CF from Fin. Activity
Inc / ( Dec) in Cash
Add: Opening Balance
Closing Balance
15 June 2015
11
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