Bulletin: Reliance Industries' Expansion Is Manageable

SINGAPORE (S&P Global Ratings) April 26, 2023--Reliance Industries Ltd.'s (RIL) strategy to diversify and dominate a number of industries will boost spending above our original expectations. We estimate the adjusted debt-to-EBITDA ratio of the India-based conglomerate will remain at 1.8x-2.0x over the next two years. The leverage is higher than what we previously expected after a sizeable deleveraging during fiscal 2021 (ended March 2021), but is below our downgrade trigger of 2.5x. In our view, the company remains committed to maintaining leverage commensurate with the rating (BBB+/Stable/--). Management has publicly reiterated its focus managing the balance sheet to maintain its investment grade rating at the current level. We also believe the company's appetite for a bigger investments or M&As will

...April 26, 2023 SINGAPORE (S&P Global Ratings) April 26, 2023--Reliance Industries Ltd.'s (RIL) strategy to diversify and dominate a number of industries will boost spending above our original expectations. We estimate the adjusted debt-to-EBITDA ratio of the India-based conglomerate will remain at 1.8x-2.0x over the next two years. The leverage is higher than what we previously expected after a sizeable deleveraging during fiscal 2021 (ended March 2021), but is below our downgrade trigger of 2.5x. In our view, the company remains committed to maintaining leverage commensurate with the rating (###+/Stable/--). Management has publicly reiterated its focus managing the balance sheet to maintain its investment grade rating at the current level. We also believe the company's appetite for a bigger investments or M&As will dissipate. By our estimates, RIL's adjusted debt will remain at Indian rupee (INR) 2.6 trillion¡INR2.7 trillion over the next two years. This is due to a number of planned investments...

Bulletin