Reliance Industries Ltd.

Overview Key strengths Key risks Leading oil refining and petrochemical producer in Asia with strong operating efficiency thanks to its large and integrated oil refinery complex. Exposure to oil refining and petrochemical business cycles. Steady operating cash flows owing to its improving domestic market position in digital and retail segments. Potential for investments in 5G spectrum in the telecommunications sector, and growth appetite in the retail business. Low leverage following a series of asset monetization efforts over the past 24 months, and prudent investment policies. RIL is one of the largest and most complex refiners globally. Its refineries have a processing capacity of 1.24 million barrels per day (bpd), and the Jamnagar site's complexity index of 21.1x is well above

...We expect Reliance Industries Ltd. (RIL) to maintain its leadership position in Asia's oil refining industry. RIL is one of the largest and most complex refiners globally. Its refineries have a processing capacity of 1.24 million barrels per day (bpd), and the Jamnagar site's complexity index of 21.1x is well above the average. This, together with the high integration of its petrochemical facilities and refining business, has enabled RIL to maintain more stable and higher profitability in the O2C (oil to chemicals) segment than its peers. In fiscal 2023, we expect oil refining margins and petrochemical spreads to remain at the elevated levels experienced in fiscal 2022 as demand picks up, while planned global expansions are delayed. RIL's operating performance should continue to remain strong in fiscal 2023 and beyond. We anticipate changes to consumer behavior; increasing digitization of shopping and hybrid work arrangements will support RIL's operational outlook. Given the benign outlook...

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