Reliance is ready for the next level of growth: Mukesh Ambani

Reliance has consolidated its balance sheet after the previous round of capex and is ready for the next level of growth, Mukesh Ambani, Chairman and Managing Director of RIL, wrote in the annual report, which was released on August 7. The report came ahead of the 47^th annual general meeting (AGM) of Reliance Industries slated to be held on August 29, 2024.

“Our constant endeavor to find solutions for India and Indians has helped us spot multiple growth opportunities that have expanded our business portfolio. This portfolio now enables us to touch the lives of millions of Indians through multiple products and offerings,” says Ambani.

Highlighting the financial performance of the telecom-to-oil conglomerate, Ambani says Reliance navigated obstacles of a volatile global economic scenario, which caused considerable headwinds. The consolidated EBITDA of RIL rose 16.1% year-on-year (YoY) to ₹1,78,677 crore, whereas consolidated net profit stood at ₹79,020 with 7.3% YoY growth.

“Importantly, all our business segments contributed to the growth in earnings. Our strong balance sheet is a testament to our prudent business and financial management strategies which help us maximise cash profits,” he says.

He said that Reliance became the first Indian company to cross the ₹20 lakh crore threshold in market capitalisation. “The demerger of Jio Financial Services has unlocked significant value for shareholders. Enhancing investors’ wealth and contributing to India’s economic expansion inspire us to aim higher.”

On Reliance’s goal to achieve Net Carbon Zero by 2035, he says that the development of the Dhirubhai Ambani Green Energy Giga Complex in Jamnagar is progressing rapidly. “This giga complex will be one of the largest end-to-end integrated renewable energy manufacturing facilities globally. We are also exploring multiple technologies for capture and recycling of carbon. We are confident that our New Energy business will play a pivotal role in the global movement for adoption of cleaner fuels.”

He said that the company’s aim is not just to make clean energy available, but also to make it accessible and affordable, thereby ensuring energy self‑sufficiency for India. “I am confident that Reliance’s arrival on the global renewable energy landscape too will be truly disruptive.”

On retail business, he said that Reliance Retail is perfectly positioned to serve the consumption needs of India’s fast-growing economy. “Reliance Retail’s vision of inclusive development for millions of consumers and merchants, coupled with unprecedented growth of the Indian marketplace, has resulted in marquee names investing in RRVL at a $100 billion valuation milestone.”

Talking about the media and entertainment business, the billionaire says that segment consolidated its market share with leadership across important segments. “Record viewership of the Indian Premier League on JioCinema underscored our ability to scale-up audience on our digital platform in a short time.”

During the year, the company entered into a landmark agreement with The Walt Disney Company, world’s leading media company, for creating a joint venture which combines the businesses of Viacom 18 and Star India. “The resultant JV will be one of the leading television and digital streaming platforms in India, bringing best-in-class entertainment for our audience across the country,” he says.

On digital services, he said that Jio’s subscriber base shot up to 481.8 million. During this year, Jio further enhanced the country’s digital infrastructure by rolling out its True5G network across India in world-record time, with over 108 million subscribers already having migrated to its 5G network. “The launch of JioAirFiber has been well received by consumers. The introduction of JioBharat phone offers people who are on 2G networks an enriching data experience at affordable prices. In fact, JioBharat phone has already acquired 50% market share in the sub-₹1,000 segment.”

On the performance of oil to chemicals business, Ambani says that demand for downstream chemicals was muted globally but domestic demand remained healthy. “Despite the headwinds, the O2C business registered a resilient performance. Jio-bp launched the ‘You Deserve More’ campaign and continued to expand its network of fuel retailing and EV charging outlets.”

On the oil and gas business, he said that the total domestic production grew 53.2% YoY to 268.6 BCFe, while the segment witnessed a robust EBITDA growth of 48.6% YoY on the back of increased production from the KG-D6 block. “Exploration activities in the KG UDW1 block and multi-lateral well campaign in the CBM block are underway.”