Investors demonstrated their confidence in Reliance Industries Ltd as the company’s shares witnessed a noticeable ascent, closing in on a 1 per cent increase after the conglomerate announced its annual earnings had soared to unprecedented heights. The uplift was clearly reflected in the stock movements on Tuesday with a 0.85 per cent rise recorded at the Bombay Stock Exchange (BSE) where shares reached Rs 2,986.05, and a slightly higher surge of 0.92 per cent to Rs 2,987 per share at the National Stock Exchange (NSE).
The impressive climb in its market share concurrently elevated the market valuation of Reliance Industries to an imposing Rs 20,07,346.55 crore, underscoring the market’s optimistic reaction to the financial disclosure.
The fiscal tailwinds for Reliance bolstered the group when on Monday, it came to light that despite a near-flat net profit increment in the closing quarter of the fiscal year, the annual earnings hit a milestone. The integrated behemoth encompassing core sectors such as oil, petrochemicals along with growth engines in telecom and retail sectors, unveiled a consolidated net profit of Rs 18,951 crore, equating to Rs 28.01 per share, for the Q4 of FY24 (January-March). This figure subtly trailed the Rs 19,299 crore or Rs 28.52 a share profit from the identical quarter the previous year divulged in the company’s stock exchange filing.
Yet, stepping back to appraise the performance from a quarter-on-quarter viewpoint, the last quarter’s earnings showed a healthier picture as they surpassed the numbers of the October-December phase which was at Rs 17,265 crore.
The truly resounding achievement materialized when evaluating the full-year fiscal picture. Reliance Industries’ report for FY24 (spanning April 2023 to March 2024) illustrated a record net profit at Rs 69,621 crore, striding beyond the Rs 66,702 crore earnings chiseled in the preceding financial year. This thrust the company into the limelight as it went on to become the first Indian corporation to ever breach a Rs 10 lakh crore turnover threshold in a financial year, marking a 2.6 per cent uptick from the prior year’s Rs 9.74 lakh crore revenue from operations.
Reliance’s robust performance could be attributed to the recovery and growth in its core businesses. The oil and petrochemical industries have seen significant uptrends after periods of market challenges, which include fluctuating crude oil prices and varying demands. This, coupled with the consistent performance and expansion of Reliance Jio, its telecommunication arm, and Reliance Retail, its consumer retail business, has fortified the conglomerate’s earnings.
Jio Platforms, a subsidiary of Reliance Industries, has changed the face of telecommunications in India with its affordable data plans, leading to widespread internet adoption and digital innovation across the nation. Similarly, Reliance Retail has revolutionized the Indian retail sector through its expansion in physical and e-commerce retail platforms.
Striding towards new horizons, Reliance Industries has not only strengthened its traditional business verticals but also laid significant impetus on newer avenues like green energy and digital platforms, positioning itself for enduring growth in a rapidly evolving economic landscape.
The company’s sustained investments in next-gen technology and commitment to reducing carbon footprint resonate with its objectives to remain aligned with global transitions while driving profitability. Global investors and market analysts posit that Reliance Industries shares remain a strategic portfolio inclusion, promising a blend of stable blue-chip asset quality with the allure of growth potential in a dynamic market.
In the midst of shifting global economic tides, the market’s buoyancy about Reliance’s financials serves as a testament to its strategic diversification, steadfast corporate governance, and its unyielding pursuit of innovation, earmarking it as a bellwether in the Indian industrial arena.
