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<keyword id="19896380" type="General" weightage="20" keywordseo="Reliance-Industries" source="keywords" meta.keywordsubtype="org" meta.entityname="Reliance Industries" meta.hostid="261" meta.entityid="Reliance Industries">Reliance Industries</keyword>, under the leadership of <keyword id="19916798" type="General" weightage="20" keywordseo="Mukesh-Ambani" source="keywords">Mukesh Ambani</keyword>, showcased its vision for the future during the company’s Annual General Meeting (AGM) that was held today (August 29). During the AGM, <keyword id="19936674" type="General" weightage="20" keywordseo="reliance" source="keywords">Reliance</keyword> laid out ambitious plans that span across its diverse businesses. The conglomerate, which has interests ranging from oil to telecom to retail, is positioning itself as a key player in India’s growth story, with a particular focus on <keyword id="20239522" type="General" weightage="20" keywordseo="technological-innovation" source="keywords">technological innovation</keyword>, energy security, and retail expansion. <h2>Not chasing short-term profits</h2><keyword id="19898589" type="General" weightage="20" keywordseo="ambani" source="keywords">Ambani</keyword>, during his speech, said that Reliance is not merely chasing short-term profits but is dedicated to creating long-term wealth for the nation. He reiterated the company’s commitment to providing high-quality products and services that enhance the lives of Indian consumers. The chairman announced that the company’s board will consider issuing bonus shares on September 5, further rewarding shareholders as Reliance continues to grow. <h2>Transforming into a deep-tech company</h2>A major theme of the AGM this year was Reliance’s transformation into a deep tech company, with advanced manufacturing capabilities at its core. Ambani described this shift as essential to securing a place in the global top-30 companies in the near future. He highlighted the company’s strategic adoption of artificial intelligence (AI), calling it one of the most transformative events in human history. AI, he noted, opens up new avenues to address complex problems, making Reliance a net producer of technology. Reliance has been making significant strides in R&amp;D, with over ₹3,643 crore invested in FY24 alone, taking the total research expenditure to over ₹11,000 crore in the last four years. This investment is driving innovations in various areas, including bio-energy, solar power, green energy, and high-value chemicals. The company has also been active in digital research, filing patents in 6G, 5G, AI, and IoT, among others. Ambani assured that this tech-driven transformation would propel Reliance into a new phase of hyper-growth, multiplying its value in the coming years. <h2><keyword id="20337020" type="General" weightage="20" keywordseo="retail-business" source="keywords">Retail business</keyword> to double</h2>In addition to technological advancements, Reliance Retail, the company’s retail arm, is set to double its business in the next three to four years. Isha Ambani, Director of Reliance Retail, shared that the retail segment recorded a gross revenue of ₹3.06 lakh crore for the financial year ending March 31, 2024, marking a 17.8% growth over the previous year. The retail business has rapidly expanded, with Reliance opening 1,840 new stores in the past year, bringing the total to 18,836 stores across 79 million square feet of retail space. This growth has positioned Reliance Retail among the top-5 global retailers in terms of store count and among the top-10 in market capitalization globally. Isha Ambani emphasised that much of this growth is driven by a focus on smaller towns, where two-thirds of the new stores have been opened. Reliance Retail is also focused on creating high-quality, affordable products through its Consumer Brands business, which has seen the re-launch of popular brands like Campa, Lotus Chocolates, and Sosyo. Mukesh Ambani concluded by underscoring Reliance’s mission to provide energy security to India while also contributing to a cleaner and greener world. As the global landscape becomes increasingly uncertain, he expressed confidence in India’s role as a key growth engine in the global economy. The International Monetary Fund (IMF) projects that India will become the world’s third-largest economy by 2027, surpassing Japan and Germany. Ambani affirmed that Reliance will continue to be a driving force in India’s march toward becoming a developed nation.

Reliance AGM 2024: Company aims to double retail business, Mukesh Ambani says not pursuing short-term profit

<keyword id="19938772" type="General" weightage="20" keywordseo="Reliance-Industries-Ltd" source="keywords" meta.keywordsubtype="org" meta.entityname="Reliance Industries Ltd" meta.hostid="261" meta.entityid="Reliance Industries Ltd">Reliance Industries Ltd</keyword> on Monday reported an almost flat March quarter net profit, while its annual earnings hit a record high on the back of a recovery in its core oil and petrochemicals business and sustained momentum across the consumer-facing telecom and retail businesses. The oil-to-telecom-and-retail conglomerate's consolidated net profit stood at Rs 18,951 crore, or Rs 28.01 per share, in January-March quarter of the 2023-24 fiscal compared to Rs 19,299 crore, or Rs 28.52 a share, a year ago, according to a company's stock exchange filing. The profit was, however, higher quarter-on-quarter when compared to Rs 17,265 crore in October-December period. For the full fiscal FY24 (April 2023 to March 2024), Reliance posted a record net profit of Rs 69,621 crore as compared to Rs 66,702 crore earnings in the preceding financial year. Reliance also became the first Indian company to hit Rs 10 lakh crore turnover in FY24 when revenue from operations rose 2.6 per cent from Rs 9.74 lakh crore in 2022-23. The oil-to-chemicals (O2C) business, the main milch cow, posted a rise in profitability annually as well as sequentially, while retail business' earnings rose on new store openings despite lower footfalls. The firm helmed by billionaire <keyword id="19916798" type="General" weightage="20" keywordseo="Mukesh-Ambani" source="keywords">Mukesh Ambani</keyword> saw telecom revenues soar as it outpaced competition in subscriber addition and data traffic. While quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) was up 14.3 per cent year-on-year to Rs 47,150 crore, registering growth across all businesses, the revenue from operations rose almost 11 per cent to Rs 2.64 lakh crore. The mainstay oil refining and petrochemicals business, called O2C, posted a 11 per cent rise in revenue and a 3 per cent higher EBITDA at Rs 16,777 crore in Q4. This was primarily because of "advantageous" sourcing of feedstock (crude oil) for refining business and use of ethane for making chemicals as well as higher domestic product placement, a company statement said, adding exports were down 8.5 per cent. With the consumer base swelling to 481.8 million from 470.9 million at the end of December on a flat per-user revenues of Rs 181.7, Reliance <keyword id="21397660" type="General" weightage="20" keywordseo="Jio-Infocomm-Ltd" source="keywords" meta.keywordsubtype="org" meta.entityname="Jio Infocomm Ltd" meta.hostid="261" meta.entityid="Jio Infocomm Ltd">Jio Infocomm Ltd</keyword> - the digital services business - posted a 12 per cent rise in net profit at Rs 5,583 crore in the fourth quarter of FY24. Also, aiding the business was rise in data traffic to 40.9 billion GB in January-March from 38.1 billion GB in the preceding quarter. For the full year, Jio posted a profit of Rs 21,424 crore as compared to Rs 19,124 crore in FY23. Profits from the retail business climbed 11.7 per cent to Rs 2,698 crore as store count rose to 18,836 from 18,774. Store footfalls dropped to 272 million from 282 million in October-December 2023 but were higher than 219 million recorded in January-March 2023. Oil and gas EBITDA soared 47.5 per cent to Rs 5,606 crore as higher gas volumes partly offset lower price realisation. The firm's flagship KG-D6 block in Krishna Godavari basin in the Bay of Bengal is now producing about 30 million standard cubic metres per day of gas and 23,000 barrels a day of oil/condensate. The company said its outstanding debt rose to Rs 3.24 lakh crore from Rs 3.11 lakh crore in December-end. After accounting for cash in hand, net debt at Rs 1.16 lakh crore as on March 31 was lower than Rs 1.25 lakh crore a year back. Mukesh Ambani, Chairman and Managing Director of <keyword id="20076630" type="General" weightage="20" keywordseo="reliance-industries-limited" source="keywords">Reliance Industries Limited</keyword>, said all segments of business have posted a robust financial and operating performance. "This has helped the Company achieve multiple milestones. I am happy to share that this year, Reliance became the first Indian company to cross the Rs 1 lakh-crore threshold in pre-tax profits," he said. Performance of the digital services segment has been boosted by accelerated expansion of subscriber base, supported by both mobility and fixed wireless services, he said. "With over 108 million True 5G customers, Jio truly leads the 5G transformation in India." <keyword id="19901342" type="General" weightage="20" keywordseo="reliance-retail" source="keywords">Reliance Retail</keyword>, he said, continued to provide customers endless choices through its robust omni-channel presence. "We continue to offer product differentiation and superior offline experience through stores re-modelling and revamping of layouts. Our digital commerce platforms also provide newer solutions to users with a broad brand catalogue," Ambani said. 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," he said. "We remain committed to our projects and initiatives, including those in the new energy segment, which will bolster the company, and help it deliver sustainable growth for the future," he added. 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Reliance Industries quarterly profit stays flat; annual earnings hit record at ₹69,621 crore

The <keyword id="19898327" type="General" weightage="20" keywordseo="ipo" source="keywords">IPO</keyword> of <keyword id="14070439" type="General" weightage="100" keywordseo="Waaree-energies-limited" source="Orion">Waaree Energies Limited</keyword> (WEL), India's biggest manufacturer and exporter of solar PV (photovoltaic) modules, opens for subscription today and is set to close on October 23, 2024. The IPO worth Rs 4,321.44 crore is a combination of a fresh issue worth Rs 3,600 crore and OFS (offer for sale) worth Rs 721.44 crore. Retail investors, who are being offered about 35% of the total issue pie, can bid for a minimum of 1 lot, which includes 9 shares, taking the minimum investment amount to Rs 13,527. With the listing set for Monday, October 28, 2024, the company has set a price band of Rs 1,427 to Rs 1,503 per share. However, prior to the stock's debut on the bourses, the company's <keyword id="19931032" type="General" weightage="20" keywordseo="gmp" source="keywords">GMP</keyword> (grey market premium) has been scaling fresh highs. As of today, <keyword id="1415709" type="General" weightage="20" keywordseo="Waaree" source="Orion">Waaree</keyword> Energies GMP was Rs 1,475, taking the potential listing price to Rs 2,978. This means that the expected gain per share from the stock's listing is a whopping 98.14%. The company's GMP has been on a steady rise, inching up from Rs 1,280 on October 15, 2024, to Rs 1,475 today. However, today's GMP was a tad bit down from the Rs 1,510 levels it was trading at yesterday. <h2>About the company</h2>The company, which operates 4 manufacturing facilities in Gujarat, India, commenced operations in 2007. As of FY24, it commands a 21% share in India's domestic solar module manufacturing space and a healthy 44% share in its exports from the country. In just 3 years, the company has exponentially increased its manufacturing capacity, from 2 GW in FY21 to 13.3 GW in FY24. Waaree will be utilizing the proceeds from the issue to set up a 11.4 GW integrated manufacturing facility. Out of this, a 5.4 GW solar cell manufacturing facility will be operational in Chikhli next year. Another 6 GW establishment in Odisha, which is expected to be functional by FY27, will produce ingots, wafers, and solar cells. The company has recently also been awarded orders worth Rs 19 billion under the government's PLI (Production-Linked Incentive Scheme). The company's bottom line, i.e., financials, have also been going from strength to strength over the past few years. Waaree's revenue from operations stood at Rs 1,13,976.09 million as of FY24, up from Rs 28,542.65 million in FY22. Its PAT (<keyword id="142274" type="General" weightage="20" keywordseo="Profit-after-tax" source="Orion">profit after tax</keyword>) also took a massive jump, from Rs 796.5 million in FY22 to Rs 12,743.67 million in FY24. The company also reported PAT margins of 2.70% in FY22, 7.29% in FY23, 10.96% in FY24, and 11.47% in the first quarter of FY25. During these years, WEL's basic EPS (earnings per share), a measure of the company's profitability, also inched up 3.84 in FY22 to 48.05 in FY24. However, the company is not without its share of risks. The most prominent of them is its heavy reliance on its top 10 customers and export revenue. As of FY24, they contributed 56.77% and 57.64% to the total revenue, respectively. <h2>Subscribe for the long-term</h2>Experts are largely recommending subscribing to this IPO for the long term. Per InCred Equities' IPO note, "In 1QFY25, the company’s revenue was at Rs 34 billion (+2% YoY), while EBITDA and PAT stood at Rs 5.5 billion (+18% YoY) and ~Rs 4 billion (+19% YoY), respectively. Based on FY25F annualized financials, the IPO’s higher band implies an EV/EBITDA of~18x and a P/E of~27x, which is at a discount to its peers, in our view. We recommend subscription to the IPO, given the strong financials, strong industry tailwinds with long-term opportunities in the solar industry, robust order backlog, and further expansion plans." Bajaj Broking also shares these views, albeit it notes that the issue appears to be fully priced rather than being on discount. "If we attribute FY25 annualized super earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 26.91, and based on FY24 earnings, the P/E stands at 44.36. The issue relatively appears fully priced. We recommend subscribing to this IPO for the long term," it continued. Per Anand Rathi Research, the company's offer is reasonably priced with a PE of 26x (per FY25 earnings) and a market cap of Rs 4,31,786 million. "We believe that, with solar energy emerging as a key global theme in the transition to renewable energy, WEL is well placed to capitalize on the growing opportunity given its leading market share, strong financials, and continued focus on innovation and sustainability with capacity expansion through backward integration. We recommend "subscribing” to this IPO issue," it explained.

Waaree Energies Limited opens for subscription today. Should you invest?

Think Initial Public Offers (IPOs) are a sure-shot, quickfire method to make a quick buck? If so, then investing in some of India's biggest IPOs to date would have created multiple millionaires. However, if the data is to be believed, 18 out of India's top 30 IPOs by way of size have failed to deliver on the returns front. Recent data from Capitalmind PMS suggests that of all the mega IPOs India has seen in the past 2 decades, only 12 IPOs i.e. stocks of 12 companies have delivered more returns that what you would have received, had you bought and held your investments in Nifty500(which invests in biggest 500 companies by market size). Infact, Paytm (54%), <keyword id="20024191" type="General" weightage="20" keywordseo="Reliance-Power" source="keywords" meta.keywordsubtype="org" meta.entityname="Reliance Power" meta.hostid="261" meta.entityid="Reliance Power">Reliance Power</keyword> (81%), General Insurance Corporation (2%) actually generated negative total returns to date. The only outliers in the list of top 10 IPOs were Zomato (listed in July 2021) and Coal India (listed in April, 2010), which managed to generate excess returns i.e. more than what was generated by Nifty500. While Zomato's total return to date, which is considered a comprehensive gauge of a stock's profitability, stands at 265%, Coal India total returns are a massive 443%. In these cases, had you simply bought and held the Nifty500 index for a similar duration, your returns would've been 73%, and 435% respectively. Also, 5 of the biggest IPOs India has ever seen (Bajaj Housing Finance, Bharti Hexacom, Brainbees, Ola Electric) have come in the last 2 years. In some cases, having stayed put in your index investments would have yielded you far better returns. Consider this, FSN E-Commerce, Nykaa's parent company, listed on the exchanges on November 2021. Its total returns till date have been 2%, while had you invested in Nifty500 index, your returns would've been 53%. Similarly, the total returns to date on Bandhan Bank's stock, which listed in March 2018, was a negative 43%. But, the index has delivered a whopping 163% returns during the same time. Hits and Misses <table class="redcator-table-advance"><tbody><tr><td>Company Name</td><td>Total Returns to Date (In %)</td><td>CNX (Nifty500) Returns (In %)</td></tr><tr><td>Reliance Power (Feb 2008)</td><td>-81</td><td>961</td></tr><tr><td>Zomato (July 2021)</td><td>265</td><td>73</td></tr><tr><td>Gland Pharma (November 2020)</td><td>14</td><td>124</td></tr><tr><td>NHPC (September 2009)</td><td class="se-table-selected-cell">389</td><td>961</td></tr><tr><td>Indian Railways Finance Corporation (January 2021)</td><td>582</td><td>109</td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source: CapitalMind PMS <h2>Surge in IPOs? Not really </h2>It is impossible to overlook the sheer number of public offerings seen in the Indian markets over the past 2 years. Around 600 share sale offers have already hit the market since 2023. Out of these, 335 have come in this year, as of October 2024. While over Rs 50,000 crores have been raised by these share sales so far since 2023, only 22% of these funds raises have come from companies who are hitting the market for the first time i.e. bringing out their IPOs. The rest have come from already listed companies seeking to raise more funds. The biggest IPO that India has seen to date, that of <keyword id="19906087" type="General" weightage="20" keywordseo="Hyundai" source="keywords" meta.keywordsubtype="org" meta.entityname="Hyundai" meta.hostid="261" meta.entityid="Hyundai">Hyundai</keyword> Motor India, closes for subscription today. With an offer size of Rs 27,870.16 crore, it is 35% bigger than the previous biggest IPO in the country(LIC in May 2022). As of 12:30 pm today, Hyundai's offer had been 87% subscribed, with significant interest from QIBs and employees. At 0.43x, participation of retail investors remained largely subdued. Notably, an IPO is considered cancelled and withdrawn, if it fails to meet the 90% subscription threshold.

Do large IPOs guarantee large returns? Data suggests that 18 of India's biggest 30 IPOs did not generate solid returns

The Rs 260.04 crore IPO of <keyword id="23568743" type="General" weightage="20" keywordseo="Deepak-Builders" source="keywords">Deepak Builders</keyword> and Engineers, which went live yesterday, received a thumping response from <keyword id="19972907" type="General" weightage="20" keywordseo="retail-investors" source="keywords">retail investors</keyword>, who oversubscribed to the issue by 16x. In effect, retail investors bid for 7,20,24,282 shares as opposed to 44,83,500 shares, or 35% of the issue that is reserved for them. The issue, worth Rs 260.04 crore, is a combination of a fresh issue of about Rs 217.21 crore and an OFS (offer for sale) of Rs 42.83 crore. With a price band of Rs 192-203, the company will list on the bourses on Monday, October 28, 2024, with allotment finalization happening on Thursday, October 24, 2024. Retail investors can bid for a minimum of 1 lot, which consists of 73 shares. The minimum required investment to participate in this IPO is Rs 14,819, while the maximum is Rs 1,92,647. The company's last traded GMP (grey market premium) today was Rs 61. This takes its estimated listing price to Rs 264, and the expected listing gains at 30.05% per share. <h2>Should you invest?</h2> The company has a strong presence in northern India, with multiple projects across Punjab, Haryana, Rajasthan, Uttarakhand, Chandigarh, and Delhi. The company currently oversees twelve ongoing projects, including seven EPC (Engineering, Procurement, and Construction) projects and five contracts based on item or percentage rates. As of June 30, 2024, the company’s <keyword id="20162999" type="General" weightage="20" keywordseo="order-book" source="keywords">order book</keyword> totals Rs 13,803.89 million for FY 2024, up from Rs 11,126.88 million for FY23. The company's revenue from operations also went up from Rs 3,630.52 million in FY22 to Rs 5,114.02 million in FY24. Consequently, its PAT (profit after tax) jumped to Rs 604.1 million in FY24, up from Rs 213.95 million in FY23 and Rs 176.79 million in FY22. Its EPS (earnings per share), considered a reliable measure of profitability, also inched up substantially from 4.92 in FY22 to 16.84 in FY24. Per the company's prospectus, proceeds from the IPO will be used to repay borrowings, meet working capital requirements, and for other general corporate purposes. Financial analysts have recommended subscribing to the IPO for long-term investment, citing the company's steady <keyword id="20748625" type="General" weightage="20" keywordseo="financial-growth" source="keywords">financial growth</keyword> over the past few years. However, the issue is not without its share of risks. For instance, most of the company's projects are concentrated in Punjab. As of June 30, 2024, about 33.02% of the company's revenue from operations came from Punjab-based projects. Moreover, the company's finances have seen meteoric growth over the past few years, raising questions about its sustained continuity. While its EBITDA margin increased from 12.20% in FY 2023 to 22.98% in FY 2024 and 29.92% during the three-month period ended June 30, 2024. Similarly, their profit after tax margin increased from 4.94% in FY2023 to 11.81% in FY 2024 and 13.52% during the three-month period ended June 30, 2024. It Despite these concerns, Bajaj Broking and Anand Rathi's research both recommended subscribing to this IPO. "The company has a diversified project portfolio, which reduces its reliance on a single market segment. As of June 2024, the company has some litigations towards projects amounting to Rs 884 million (6% of the total order book). We believe that the liability of this should not impact the going concern of the company's profitability. With a strong order book, Deepak Builders has growth potential visibility in the infrastructure sector, which aligns them with government initiatives. At the upper price band, the company is valued at a P/E of 15.6x with a market cap of Rs 9,455 million post-issue of equity shares and a return on net worth of 52.9%. On the valuation front, we believe that the company is fairly priced. Thus, we recommend a “SUBSCRIBE” rating to the IPO," noted Anand Rathi.

Deepak Builders & Engineers IPO closes for subscription tomorrow. Here's all you need to know

New Delhi, Walt <keyword id="19899232" type="General" weightage="20" keywordseo="disney" source="keywords">Disney</keyword> CEO <keyword id="20023956" type="General" weightage="20" keywordseo="bob-iger" source="keywords">Bob Iger</keyword> has said a joint venture with <keyword id="19936674" type="General" weightage="20" keywordseo="reliance" source="keywords">Reliance</keyword> Industries after merging its <keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword> business would benefit the company in terms of profit and also "derisk" its business in the Indian market. The merger deal will create a big entity and help it to stay in the market at a "significant level", said Iger at a Morgan Stanley investor conference earlier this week. "We had an opportunity to align with Reliance, which is obviously the company that has done very well there and one that we respect. And in doing so, end up owning part of a bigger media company. And we believe that, that not only should benefit us in terms of the bottom-line, but derisk us as well there," he said. Last month, Walt Disney Co. and Reliance Industries announced signing of binding pacts to merge their media operations in India. Under the deal, Reliance and its affiliates will hold 63.16 per cent and Disney will have 36.84 per cent in the JV, which will create India's leading media company that will house two streaming services and around 120 television channels. "We wanted to stay in India. We made a big investment in India when we purchased the assets of 21st Century Fox. We are one of the biggest media companies in India. But even though it is the most populous country in the world, we felt we want to be there because of that, we also know that there are challenges in that market," he said. Iger said, the merger will create a big entity and help it to stay in the market at a "significant level". "So, it's kind of the best of both worlds. We stay in the market at a significant level. We have a very good partner in Reliance, and we get to have a chance of growing a business and lowering the risk of doing so," he added. The transaction values the joint venture at Rs 70,352 crore (USD 8.5 billion) on a post-money basis, excluding synergies. Billionaire Mukesh Ambani-led Reliance has also agreed to invest at closing Rs 11,500 crore into the joint venture to give it the muscle to fight rivals such as Japan's Sony, and Netflix. Its OTT platform Disney + Hotstar has seen its paid subscriber base decline from around 55 million to 40 million in the first quarter of FY24 because of Reliance's <keyword id="19985346" type="General" weightage="20" keywordseo="jio-cinema" source="keywords">Jio Cinema</keyword> winning exclusive rights for live sports. The combined entity will have the largest OTT subscriber base. Disney + Hotstar was launched in India in 2020, post the acquisition of the entertainment assets of 21st Century Fox at a valuation of USD 71.3 billion, thereby taking over the operations of Star India and Hotstar. It housed entertainment and cinema channels such as StarPlus and StarGold as well as sports channels like Star Sports. While Disney + Hotstar rapidly increased its subscriber base initially with the streaming rights of cricket matches (IPL, World Cup), it lost the bid for the digital streaming rights in 2023-27 cycle, which was won by Reliance-backed Viacom18 for USD 720 billion, 12.92 per cent higher than what Star India had paid on an average per match value. Media ventures of Reliance are currently housed in Network 18, which owns TV18 news channels as well as a plethora of entertainment (under the 'Colors' brand) and sports channels. NW18 also has stakes in moneycontrol.com, bookmyshow and publishes magazines. NW18 owns news channels CNBC/CNNNews. Reliance separately owns a movie production arm - JioStudios, and majority stakes in two listed cable distribution companies, Den and <keyword id="20777796" type="General" weightage="20" keywordseo="hathway" source="keywords">Hathway</keyword>. 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Merger with Reliance would boost company's profits and reduce risk in India: Disney CEO Bob Iger

<keyword id="19906087" type="General" weightage="20" keywordseo="hyundai" source="keywords">Hyundai</keyword>'s mammoth Rs 27,870 crore <keyword id="19898327" type="General" weightage="20" keywordseo="ipo" source="keywords">IPO</keyword>, which will open for subscription between October 15-17, is set to be India's <keyword id="20459351" type="General" weightage="20" keywordseo="largest-IPO" source="keywords">largest IPO</keyword> ever, surpassing LIC's Rs 21,000 crore public offer, which came out in May 2022. This is also the first instance where an international giant (Hyundai Motor Group is based out of South Korea) will be listing its subsidiary (<keyword id="19908548" type="General" weightage="20" keywordseo="Hyundai-Motor-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Hyundai Motor India" meta.hostid="261" meta.entityid="Hyundai Motor India">Hyundai Motor India</keyword>) in an overseas market. Additionally, the company is also looking to raise Rs 8,315.28 crore from <keyword id="21330641" type="General" weightage="20" keywordseo="anchor-investors" source="keywords">anchor investors</keyword>, who will begin bidding on October 14th, 2024. Hyundai is the third largest auto original equipment manufacturer (OEM) globally, based on passenger vehicle sales. "We have been in India now for more than 26 years. We have a very high market share. We are at number two position in India in the passenger vehicle space. We have got so much love and affection from the people of India. So we believe this is the right time to take one step forward and even further Indianize our operations," Hyundai Motor India Ltd (HMIL) COO Tarun Garg told PTI in an interaction. Garg further added that the whole aim is to really become the most trusted brand of India. On being asked why they choose India for launching their IPO, he noted that the brand Hyundai has really been accepted very well in India, which is why it is probably the right country to really go for the IPO. Hyundai has set a price band of Rs 1,865-1,960 per share for the IPO, taking the company's valuation to Rs 1.6 lakh crore, or $19 billion. For <keyword id="19972907" type="General" weightage="20" keywordseo="retail-investors" source="keywords">retail investors</keyword>, the minimum lot size is 7 shares, while the minimum investment amount is Rs 13,720. Out of the total issue, 35% has been reserved for retail investors, which will give them a fair shot at owning HMIL shares. Also, 7,78,400 shares have been allocated for employees, which will be offered at a discount of Rs 186 to the issue price. Most experts are suggesting subscribing to the IPO from a medium to long-term perspective. According to Bajaj Broking's IPO note, "The issue relatively appears fully priced, but the company is poised for bright prospects post completion of its ongoing expansions. The company reported PAT margins of 6.05% (FY22), 7.67% (FY23), 8.50% (FY24), 8.48% (Q1-FY25), and RoCE (return on capital employed)margins of 20.37%, 28.75%, 62.90%, 13.69% for the referred periods, respectively. We recommend to subscribe the IPO with a long-term perspective". Notably, the entire IPO is an <keyword id="19951016" type="General" weightage="20" keywordseo="OFS" source="keywords">OFS</keyword> (offer for sale) meaning that the company will not receive anything from this. All proceeds will go towards the promoters who are offloading their shares. <table class="redcator-table-advance"><tbody><tr><td>Period</td><td>Total Income (In Rs)</td><td>Net Profit (In Rs)</td></tr><tr><td>FY21</td><td>41,404.65 crore </td><td> 1,881.16 crore</td></tr><tr><td>FY22</td><td>47,966.05 crore </td><td>2,901.59 crore</td></tr><tr><td>FY23</td><td>61,436.64 crore </td><td>4,709.25 crore</td></tr><tr><td>FY24</td><td class="se-table-selected-cell">71,302.33 crore </td><td>6,060.04 crore</td></tr><tr><td>Q1FY25 (As of June 30, 2024)</td><td>17,567.98 crore</td><td>1489.65 crore </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source: DRHP of <keyword id="20104772" type="General" weightage="20" keywordseo="Hyundai-Motors" source="keywords" meta.keywordsubtype="org" meta.entityname="Hyundai Motors" meta.hostid="261" meta.entityid="Hyundai Motors">Hyundai Motors</keyword> India HMIL’s current range of passenger vehicles consists of 13 models across key passenger vehicle segments by body type, including sedans (Aura and Verna), hatchbacks (Grand i10 NIOS, i20, and i20 N Line), and SUVs (Exter, Venue, Venue N Line, Creta, Creta N Line, Alcazar, Tucson, and IONIQ 5). Per Anand Rathi Wealth's IPO note, "HMIL follows a premiumization strategy, concentrating on selling higher-end trims with a higher average selling price (ASP) for their respective passenger vehicles. HMIL aims to align their EV strategy with market demands in India by carefully timing the launch of suitable EV models across various price segments. At the upper band company is valuing at 26.2x its FY24 earnings along with being valued at 26.7x if we annualize FY25 earnings. Following the issuance of equity shares, the company's market capitalization stands at Rs 15,92,581 million, with a market cap-to-sales ratio of 2.28 based on its FY24 earnings. We believe that the issue is fully priced and recommend “Subscribe –Long Term” rating to the IPO". <h2>History of large IPOs in India </h2>Back in 2007, DLF came out with the then-largest IPO, which was worth Rs 9,187.50 crores and saw 3.5x overall subscription. This was soon eclipsed by Reliance Power's IPO worth Rs 11,563.20 crore in January 2008. At 70X+subscription, it was massively oversubscribed in retail, QIB and HNI segments. The company managed to garner Rs 7.5 lakh crore as against its issue size of Rs 11,000 crore. Then came government's (GOI) disinvestment in Coal India in 2010, which had a book size of 15,199.44 crores. After a 10-year lull, Paytm's Rs 18,300 crore IPO broke this slumber in 2021. This was short lived because GOI decided to disinvest a small stake in LIC of India with a massive Rs 21,000 crore IPO in 2022, which was oversubscribed 2.95 times.

Upcoming IPO aimed to Indianize operations, says Hyundai Motors

<ul><li>For FY23, <keyword id="6354504" type="General" weightage="20" keywordseo="reliance-jio" source="Orion">Reliance Jio</keyword>’s net profit stood at ₹18,207 crore, increasing from ₹14,817 crore in FY22.</li><li>Its revenue from operations for the quarter grew 1.7% sequentially to ₹23,394 crore compared to ₹22,998 crore in the previous quarter.</li><li>The average revenue per user (ARPU) grew marginally to ₹178.8 in the March quarter from ₹178.2 in the December quarter while it increased nearly 7% on a yearly basis.</li></ul>India’s largest telecom provider, Reliance Jio on Friday said its March-quarter net profit rose 1.7% sequentially to ₹4,716 crore from ₹4,638 crore in the December quarter. On a yearly basis, its profit grew by 13%. Its revenue from operations for the quarter also grew 1.7% sequentially to ₹23,394 crore as compared to ₹22,998 crore in the previous quarter. On a yearly basis, it increased 12%. For FY23, Reliance Jio’s net profit stood at ₹18,207 crore, increasing from ₹14,817 crore in FY22. The company attributed the annual growth in revenue from operations to the full impact of tariff hike, ramp-up of wireline services and continued subscriber addition for mobility services. Reliance Jio’s depreciation and amortisation expenses have increased to ₹4,982 crore in Q3 FY23 from ₹4,810 crore in the previous quarter due to higher network utilisation and incremental addition to gross block, it said in an exchange filing. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q4 FY23 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q3 FY23 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q4 FY22 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹23,394 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹22,998 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹20,901 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net profit </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹4,716 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹4,638 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹4,173 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ARPU </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹178.8 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹178.2 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹167.6 </td></tr></tbody></table> The average revenue per user (ARPU) grew marginally to ₹178.8 in the March quarter from ₹178.2 in the previous quarter while it increased nearly 7% on a yearly basis. The ARPU came <a href="https://www.businessinsider.in/business/corporates/news/rils-q4-to-be-driven-by-sustained-momentum-in-retail-business-o2c-to-see-modest-growth/articleshow/99629278.cms">below analysts expectations </a>of ₹179-181. The telecom operator said that ARPU increased due to impact of tariff hike, better subscriber mix and data add-ons within select customer cohorts. <div type="image" title="Copy of Jio ARPU Q1 FY23 (4)" msid="99674341" hostid="261" sizebytes="19324"></div> Reliance Jio added more subscribers in the March quarter as compared to the previous December quarter. It added 6.4 million net subscribers in Q4 compared to 5.3 million in the previous quarter. With this, its total customer base as on March 31, 2022 stood at 439.3 million. “Jio’s industry leading net subscriber addition was 29.2 million for FY23 with monthly churn remaining stable at ~2%,” said the company in an exchange filing. <div type="image" title="Copy of Jio subscribers + net addition Q1 FY23 (3)" msid="99674346" hostid="261" sizebytes="31346"></div> Jio on track to rollout 5G services pan India by December 2023 Currently, Reliance Jio is busy processing network deployments across the country for 5G services. It highlighted that Jio is on track to complete pan India rollout by December 2023. Jio has extended coverage of its True5G services to over 2,300 cities/towns across India. “Jio has taken formidable strides in pioneering 5G rollout across the country with unmatched speed of execution. 5G has led to a significant improvement in customer experience, reflected in the higher engagement levels among Jio users,” said Akash M Ambani, chairman of Reliance Jio Infocomm. Ahead of its earnings announcement, shares of Reliance Industries closed 0.21% higher at ₹2,351 apiece. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/reliance-industries-q4-net-profit-of-19299-crore-beats-analyst-expectations-driven-by-retail/articleshow/99673940.cms">RIL’s Q4 net profit of ₹19,299 crore beats analyst expectations, driven by retail</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/reliance-retails-q4-net-profit-grows-12-9-on-the-back-of-rapid-expansion/articleshow/99673732.cms">Reliance Retail’s Q4 net profit grows 12.9% on the back of rapid expansion</a>

Reliance Jio Q4 net profit grows 1.7% sequentially to ₹4,716 crore; ARPU up marginally

<ul><li><keyword id="58448" type="General" weightage="20" keywordseo="reliance-retail" source="Orion">Reliance Retail</keyword> has reported its “best quarter ever” with its gross revenue crossing ₹58,000 crore mark for the second time this year.</li><li>However, the company’s profit has declined for the second consecutive quarter due to inflationary pressures.</li><li>The company reported a consolidated gross revenue of ₹2 lakh crore in the financial year 2022 that ended in March.</li></ul>Reliance Retail — a subsidiary of Reliance Industries Limited (RIL) — has reported its best quarter ever with its gross revenue crossing ₹58,000 crore (over $7 billion) mark once again in the April to June 2022 quarter. However, its net profit declined for the second time this year too, with high input costs weighing it down. Reliance Retail reported a gross revenue of ₹58,554 crore in the last three months, representing nearly 52% hike from the April-June quarter of last year. Its net profit stood at ₹2,061 crore, representing a hike of 114% from last year. “In the retail business, we continue to focus on enhancing our consumer touch-points and building a stronger value proposition for our customers. Our strong supply chain infrastructure and sourcing efficiency is helping us maintain competitive pricing for daily essentials, thereby insulating consumers from inflationary pressures,” Mukesh Ambani, chairperson and MD of Reliance Industries Limited (RIL) said. Even though its revenue increased by ₹537 crore compared to the previous quarter, its net profit actually declined by ₹78 crore. This is the second sequential fall in net profit – the retail giant reported a similar decline in the March quarter as well, despite marginal increases in revenue. <div type="image" title="Reliance Retail reports a second consecutive quarter of declining profits" msid="93059085" hostid="261" sizebytes="140952"></div> <cmsannotation type="cmsannotation" annotationid="Reliance Retail has managed to navigate the inflation storm so far" comment="subhead" text="Reliance Retail has managed to navigate the inflation storm so far">Reliance Retail has managed to navigate the inflation storm so far</cmsannotation> Despite a challenging macro environment, the marginally higher revenue suggests Reliance Retail has maintained its topline. “Reliance Retail delivered a strong performance with its best-ever quarterly revenues in a macro environment that remained challenging,” the company said in a statement. Even though inflation has been hitting the customers’ demand, discretionary spendings have largely been immune to the negative consumer sentiment. According to a report by ICICI Securities, <a href="https://www.businessinsider.in/retail/news/its-food-not-fashion-where-price-pinches-as-shopping-bags-retailer-coffers-are-swelling/articleshow/92515313.cms">customers’ shopping bags got heavier </a>this year and all retail brands like Reliance Retail, Shoppers Stop, Bata, Pantaloons and Lifestyle are reaping its benefits. “Despite various headwinds, fashion retailers displayed a resilient show with demand picking up pace in the latter part of the second half of FY22. Revenue recovery rate for most apparel and footwear players surpassed pre-Covid levels (100- 105%) from Q3FY22 onwards,” the report said. Reliance Retail has been adding more stores in order to cash in on immunity from inflation. Reliance Retail now owns a network of 15,866 physical stores, out of which 792 were added in the last three months. The company added 2,566 stores in the last fiscal year itself. <div type="image" title="Reliance Retail has managed to navigate the inflation storm so far" msid="93059093" hostid="261" sizebytes="93262"></div> The company also created 1,50,000 new jobs in the last financial year and claims to be one of the biggest employers in India, employing close to 3,61,000 in total. SEE ALSO <a class="tout-title-link" href="https://www.businessinsider.in/stock-market/news/reliance-industries-itc-infosys-and-other-hot-stocks-on-july-22/articleshow/93041515.cms">Indian markets open in the green – RIL, M&amp;M gain while Nifty IT, Infosys decline</a> <a href="https://www.businessinsider.in/business/ecommerce/news/amazon-prime-day-best-offers-deals-discounts/articleshow/93024348.cms">Amazon Prime Day 2022 – early deals, bank offers, Prime membership and everything else you need to know</a> <a href="https://www.businessinsider.in/business/news/reliance-industries-to-start-fy23-with-strong-earnings-thanks-to-refining-margins/articleshow/93041430.cms">Reliance Industries to start FY23 with strong earnings, thanks to refining margins</a>

Reliance Retail reports a second consecutive quarter of declining profits

<keyword id="19938772" type="General" weightage="20" keywordseo="Reliance-Industries-Ltd" source="keywords" meta.keywordsubtype="org" meta.entityname="Reliance Industries Ltd" meta.hostid="267" meta.entityid="Reliance Industries Ltd">Reliance Industries Ltd</keyword> has won a vote of confidence from global rating agencies <keyword id="20043943" type="General" weightage="20" keywordseo="SP" source="keywords">S&amp;P</keyword> and <keyword id="19950093" type="General" weightage="20" keywordseo="Fitch" source="keywords">Fitch</keyword> after its robust earnings in the fiscal year ended March 31, 2024, supported its growth aspirations and kept leverage under check. S&amp;P Global Ratings and Fitch Ratings in separate notes spoke of its <keyword id="19957744" type="General" weightage="20" keywordseo="EBITDA" source="keywords">EBITDA</keyword> (loosely known as pre-tax profit) rising in the current fiscal year and next on rising revenue and past investments. "<keyword id="19896380" type="General" weightage="20" keywordseo="Reliance-Industries" source="keywords">Reliance Industries</keyword> Ltd's (<keyword id="20002939" type="General" weightage="20" keywordseo="ril" source="keywords">RIL</keyword>) strong earnings will keep leverage in check as the company continues to pursue growth ambitions. We expect the company's debt-to-EBITDA ratio to remain commensurate with the rating (BBB+/Stable/--)," S&amp;P said in a note. The oil-to-telecom-and-retail conglomerate's growth aspirations remain intact, it said, adding the company has ramped up investments in the media business in recent months. In 2024, it entered into binding definitive agreements with The Walt Disney Co for a media joint venture in which RIL will invest Rs 11,500 crore. The company subsequently agreed to buy Paramount Global's 13.01 per cent stake in local entertainment network Viacom18 Media Pte Ltd for about Rs 4,300 crore. "These investments are in line with RIL's strategy to diversify and have a strong presence in a few key industries," the rating agency said. Also, the company received government approval in 2024 to develop gas reserves in the KG-D6 block in the Bay Of Bengal. This could increase the company's gas production capacity by 13-17 per cent. RIL's earlier announced investments include a Rs 75,000 crore expansion plan over five years (starting 2022) for the oil-to-chemicals business. "RIL's earnings will benefit from past investments," S&amp;P said. "We project the company's adjusted EBITDA will rise 2-4 per cent in fiscal 2025 (year ending March 31, 2025)," it added. Just as in the past two years, the digital services segment (Reliance Jio Infocomm Ltd) will be the key growth driver, with segment's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) increasing 10-12 per cent in fiscal 2025. Reliance Jio's wireless subscriber base and average revenue per user will gain from the company's investments in its 5G network since late 2022. Meanwhile, earnings in the oil and gas as well as retail segments will reap the rewards of increased production volume and a wider retail store network. "The EBITDA improvement that we expect in fiscal 2025 comes after a 14 per cent increase to Rs 1.6 lakh crore in fiscal 2024," it said. S&amp;P saw RIL's rising earnings providing it greater balance-sheet flexibility for growth. "We expect the combination of robust operating performances and continued spending to keep the company's debt-to-EBITDA ratio at 1.8x-2.0x over the next two years. This compares with our estimate of 1.7x for fiscal 2024 and our downgrade trigger of 2.5x," S&amp;P said. RIL's leverage has some distance from the upper end of the company's internal leverage target. RIL has reiterated its intention to keep its net debt-to-EBITDA ratio (by its own calculations) below 1x. The ratio was 0.65x as of March 31, 2024. Separately, Fitch Ratings said RIL's EBITDA net leverage is likely to remain below 1x in the medium term, supported by increasing cash flows and lower capex intensity, even as the conglomerate's absolute capex and investments remain high in the near term. "We expect RIL's EBITDA to increase by 8 per cent year-on-year in the financial year ending March 2025 (FY25) and 14 per cent in FY26, while capex intensity (capex/revenue) is likely to reduce below 13 per cent by FY26 (FY24: 15.3 per cent). Lower capex intensity would be driven by growing revenue and reduction in capex after FY25," it said. Fitch expected the conglomerate's Cash Flow from Operations (CFO) to be sufficient to fund its capex from FY26, which will limit additional debt funding and keep its EBITDA net leverage below 1.0x in the medium term (FY24: 0.9x, FY23: 1.1x). "Fitch estimates RIL's FY24 EBITDA net leverage at 0.9x, better than our expectation of 1.1x, driven by marginally higher EBITDA and Rs 20,900 crore of equity raised mainly from the sale of a stake in a subsidiary, even as its capex remained high at Rs 1.5 lakh crore (FY23: Rs 1.4 lakh crore)," the rating agency said in a statement. It rates RIL at 'BBB'/Stable, one notch above India's rating (BBB-/Stable). "We expect the EBITDA increase in the near to medium term to be driven by the telecom and retail businesses, supported by contribution from the upstream oil and gas segment and marginal recovery in petrochemical spreads in the oil to chemical (O2C) segment," Fitch said, adding EBITDA from digital services, largely telecom, is likely to benefit from a 10-15 per cent tariff hike and 15-20 million of additional subscribers in FY25 (FY24: 482 million subscribers). Digital services EBITDA rose by 13 per cent in FY24, as Reliance added 42 million subscribers and monthly average revenue per user increased to Rs 182. Monthly user data consumption increased by 24 per cent to 28.7 GB, one of the highest globally. Fitch expected retail EBITDA to increase by 20-25 per cent in FY25 (FY24: 28%) as Reliance continues to expand its physical stores and digital channels. EBITDA would be supported by a 22.2 per cent increase in its registered customer base to 304 million in FY24. Also, O2C segment EBITDA is expected to remain above Rs 60,000 crore in FY25 (FY24: Rs 62,400 crore), as a gradual improvement in petrochemical spreads from FY24 lows is expected as a supply overhang recedes. Upstream oil and gas EBITDA should stay at around Rs 20,000 crore in FY25 (FY24: Rs 20,200 crore), assisted by the expectation of a 10 per cent increase in gas production in the first full year of operation of three gas fields in the KG-D6 block, which should offset the potential reduction in price realisation with lower gas prices in international benchmarks. 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Reliance gets thumbs-up from S&P, Fitch as strong earnings keep leverage in check

<ul><li>India’s largest retailer said that the operating environment is at par with pre-Covid levels. </li><li>“Our retail business delivered record performance with strong revival in footfalls, store additions and digital integration,” said Mukesh Ambani, CMD of RIL. </li><li>Early onset of festivities and key promotional events drove positive consumer sentiments, the company said. </li><li><keyword id="9124982" type="General" weightage="20" keywordseo="jiomart-on-whatsapp" source="Orion">JioMart on WhatsApp</keyword> brought in 37% of orders from customers who had not shopped on JioMart before. </li></ul><keyword id="58448" type="General" weightage="20" keywordseo="reliance-retail" source="Orion">Reliance Retail</keyword>’s second quarter net profit grew 36% to ₹2,305 crore from ₹1,695 crore in the same quarter last year. This segment’s revenue grew 42.8% to ₹64,936 crore from ₹45,450 crore in the same quarter last year. India’s largest retailer said that the operating environment is at par with pre-Covid levels as the pandemic impact has ‘waned’. “Our retail business delivered record performance with strong revival in footfalls, store additions and digital integration. Reliance Retail continues to provide a compelling proposition of great shopping experience and superior value across consumption baskets and price points,” said Mukesh Ambani, chairman and managing director of Reliance Industries, in a press release. Early onset of festivities and key promotional events drove positive consumer sentiments, said the company whose EBITDA for the quarter went up by 51%. Its EBITDA margin from operations also expanded to 7.4% in the September quarter as compared to 6.1% in the same period last year. The company attributed it to favorable mix, positive operating leverage and operational efficiencies. The company’s retail space went up 20% quarter-on-quarter, taking its total store count to 16,617 stores spread across 54.5 million square feet. “Reliance Retail is the only Indian retailer with more than 50 million square feet of retail space under operation. The business continued to invest in bolstering its infrastructure capabilities by expanding over 5.4 million square feet of warehouse space,” the company said. JioMart on WhatsApp brought in 37% orders from ‘new’ customers The daily orders for its digital commerce business went up by 53% year-on-year, with a 2x growth in merchant base. JioMart’s ‘Tyohar Ready Sale’ resulted in 2.5x growth in traffic and 3x app installations, it said. “The business launched JioMart on WhatsApp native app during the quarter, a novel and disruptive initiative that brings the simplicity of instant chat service to the online shopping experience to millions of consumers. An impressive 37% of orders received from this platform are from new customers who had not shopped on JioMart before,” the company said. Its August ‘Digital India Sale’ was the best ever, the company said, adding that attractive offers and new product launches aided it. Mobile phones, TVs and washing machines did particularly well with 30% year-on-year growth. As consumers refreshed their wardrobe, its fashion and lifestyle business also recorded a strong quarter it said without providing data. However, it added that offline business in this category saw its best quarter ever with double-digit growth thanks to many festivals like Onam, Ganesh Chathurthi, Navratri and Pujo. “During the quarter, the business introduced three new store concepts. ‘Azorte’, a tech-aided premium fashion and lifestyle store format; ‘Centro’, a fashion &amp; lifestyle departmental store format and ‘Fashion Factory’, a format that offers value deals across brands to serve discerning customers,” the company said.

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