Reliance AGM - Summary

Market Announcements 📢
1

Reliance’s performance highlights for FY23:

  • Consolidated revenues were ₹9,74,864 crore.
  • EBITDA reached ₹1,53,920 crore, and net profit was ₹73,670 crore.
  • Exports surged by 33.4% to ₹3.4 lakh crore, accounting for over 9.3% of India’s exports.
  • Contribution to the National Exchequer was ₹1,77,173 crore, including a tax increase of ₹16,639 crore.
  • Corporate Social Responsibility spending reached ₹1,271 crore.
  • Created 2.6 lakh jobs across all sectors, with nearly 3.9 lakh total on-roll employees.
  • Maintained leadership in revenues, profits, exports, market value, employment, taxes, and social responsibility.

Digital Services (Jio)

  • Achieved record-high revenue of ₹1,19,791 crore and an EBITDA of ₹50,286 crore.
  • Jio’s customer base surpassed 450 million subscribers, with over 20% YoY revenue growth.
  • Average per-user data consumption reached 25 GB per month, resulting in a monthly data traffic of 1100 crore GB, growing 45% YoY.
  • Launched Jio 5G, already present in over 96% of census towns and set to cover the entire country by December 2023.
  • Over 85% of India’s operational 5G cells are in Jio’s network, aiming for nearly one million 5G cells by December.
  • Introduced Jio True 5G with advantages like comprehensive spectrum, standalone architecture, and carrier aggregation.
  • Launched commercial services on millimetre-wave spectrum, enhancing private 5G, home broadband, and enterprise applications.
  • Created its own low-power small cells for efficient coverage in specific areas.
  • Leading in 5G adoption with 50 million customers, focusing on high-ARPU, post-paid customers.
  • Established Jio as the operator of choice through Mobile Number Portability.
  • Jio 5G ecosystem includes connectivity, devices, support, and value-added services.
  • Jio’s 5G stack is entirely in-house developed, aligning with the Atmanirbhar vision and enabling advanced technologies.
  • Focused on innovation, positioning Jio to develop 6G capabilities and file global patents.
  • Launched Jio Bharat, an ultra-affordable 4G phone to bridge the digital divide for featurephone users.
  • Jio Fiber achieved 10 million subscribers, with average usage exceeding 280 GB per month.
  • Introduced JioAirFiber, a fixed-wireless broadband service using 5G network to bypass last-mile fibre challenges.
  • JioAirFiber will launch on Ganesh Chaturthi, expanding customer value and revenue growth.

Media and Entertainment:

  • JioCinema disrupted the industry, streaming IPL for free, with 45 crore viewers globally.
  • IPL viewership shifted from linear TV to digital devices, indicating a significant change in content consumption.
  • IPL final garnered over 12 crore viewers, with a peak concurrency of 3.2 crore, a global digital event record.
  • Jio Dive, an AR/VR device, transformed sports viewing with a stadium-like experience from any location.
  • JioCinema emerged as India’s largest digital entertainment hub, offering movies, originals, reality shows, and global studio content.
  • JioCinema’s strong growth in paid subscribers and industry-leading engagement metrics.
  • Network18 made strides to become a leading Indian news network, expanding locally and internationally.
  • Moneycontrol and Firstpost, Reliance’s digital news platforms, achieved global benchmarks.

Reliance Retail:

  • Achieved an annual revenue of ₹2,60,364 crore in FY23, with a 30% YoY growth.
  • EBITDA of ₹17,928 crore and net profit of ₹9,181 crore.
  • Recognized as the only Indian retailer in the global Top 100 and one of the fastest growing retailers worldwide.
  • Attracted investments from reputable global investment firms and sovereign wealth funds due to strong fundamentals.
  • Qatar Investment Authority invested USD 1 billion for a 1% equity stake, valuing Reliance Retail at ₹8,28,000 crore.
  • Rapid increase in valuation, nearly doubling in less than three years.
  • Achieved significant engagement metrics, including over 100 crore transactions and 78 crore footfalls.
  • Among the Top-10 most visited retailers globally.
  • Digital and new commerce sales contributed nearly ₹50,000 crore, about a fifth of revenues.
  • Invested over USD 10 billion in building integration, in-house brands, and supply chain networks.
  • Expanded store count to 18,040, with two-thirds in Tier II, Tier III cities, and smaller towns.
  • Partnered with over 30 lakh merchants, serving 98% of India’s PIN codes.
  • Created innovative platforms like Tira for experiential retail services and personalization.
  • Embraced sustainability through green initiatives and eco-friendly practices.
  • Retail business covers 90% of daily needs of Indian households.
  • Sold over 18 lakh metric tonnes of groceries, 5 lakh laptops, over 23 lakh appliances, and 50 crore garments.
  • AJIO’s strong performance with a catalogue size exceeding 13 lakh options.
  • Entered FMCG business, revitalizing heritage Indian brands.
  • JioMart’s success on WhatsApp with 9X growth in customers.
  • Focus on inclusive development, partnering with artisans, weavers, and micro-entrepreneurs.
  • Promoting local craft and working with handloom weavers to preserve Indian art forms.

Reliance JIO:

  • JFS aims to fill a gap in financial services for the informal and underserved sectors in rural, semi-urban, and urban areas, contributing to inclusive economic growth.
  • JFS plans to increase financial services penetration by modernizing them with a digital-first approach, simplifying products, reducing costs, and expanding reach through accessible digital channels.
  • JFS aims to democratize financial services for India’s population, offering simple, affordable, innovative, and intuitive products.
  • JFS announced a joint venture (JV) with BlackRock, the world’s largest asset management company, to set up an asset management business that provides affordable and innovative investment solutions.
  • JFS will consolidate payments infrastructure and explore blockchain-based platforms and Central Bank Digital Currencies (CBDC).
  • JFS will enter the insurance segment, offering simple and smart life, general, and health insurance products through a digital interface.
  • The focus is on using digital-first strategies to expand financial services, offer innovative investment solutions, and transform India’s asset management industry.

Oil and Gas:

  • Collaboration with BP has revived gas production in the KG-D6 Block, increasing production from nearly zero to about 20 million standard cubic meters per day (MMSCMD) in FY23.
  • Successful commissioning of gas projects like R-Cluster and Satellite-Cluster has contributed to this achievement.
  • The MJ Field, a complex deep-water project, was commissioned this year, featuring a state-of-the-art Floating Production Storage and Offloading (FPSO) unit with a gas production capacity of 14 MMSCMD.
  • The MJ Field was commissioned in under three years, making it one of the fastest achievements in the industry.
  • The goal is to enhance gas production to 30 MMSCMD, which will account for 30% of India’s gas production and 15% of its current gas demand.
  • Reliance’s gas production plays a crucial role in providing clean energy and reducing the need for expensive gas imports, potentially saving up to $7 billion annually.
  • The company is pursuing exploration efforts in KG-UDW1 and KG-UDW2 blocks in the Krishna-Godavari Basin to sustain gas production over the next 15-20 years.
  • Reliance is uniquely positioned in India with proven capabilities in exploring and producing oil and gas from deep and ultra-deep blocks.
  • The company intends to leverage these capabilities in related renewable energy areas such as Off-shore Wind and Geothermal energy.

Oil to Chemicals:

In the past year, Reliance’s Oil-to-Chemicals (O2C) business overcame global challenges and achieved significant improvements:
(a) Despite challenges and additional taxes, the O2C business’s EBITDA for FY23 increased by 17.7% to a record high of ₹62,075 crore.
(b) Effective asset utilization, lower feedstock inventory, and integration efforts contributed to this success.
(c) The Gasification unit’s high availability reduced the need for high-cost LNG, helping lower energy costs.
(d) The partnership with bp in fuel retailing and mobility solutions continued to progress steadily.

  • The company is committed to achieving Net Carbon Zero by 2035 through renewable and bioenergy solutions. They are building an ecosystem for solar, wind, batteries, hydrogen, and bio-energy platforms to ensure reliable renewable energy supply, reduce energy costs, and improve profitability.
  • Emphasis is on increasing circularity and consumer integration. The company is scaling up chemical recycling technology to create green products and access new customer markets.
  • The Jamnagar refinery is being transformed into a ‘Chemicals and Materials Feedstock Production’ engine through technology and innovation. Low-value refinery streams are being converted to specialized products like Halo-Butyl Rubber and Purified Isophthalic Acid.
  • Reliance is establishing India’s first Carbon Fibre facility in Hazira, Gujarat, which will produce Carbon Fibre and Carbon Fibre Reinforced Plastics, aiming to be a global leader in these materials.

For detailed speech, refer here.

3 Likes