Reliance Industries Ltd.

Overview Key strengths Key risks Major 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 leading domestic market position in digital and retail segments. Potential for investments in 5G rollout in the telecommunications sector, and growth appetite in the retail and renewable businesses. Flexibility to monetize non-strategic assets should keep its balance sheet in check. expect Reliance Industries Ltd. (RIL) to maintain its strong 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),

...We expect Reliance Industries Ltd. (RIL) to maintain its strong 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 industry 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 oil to chemicals (O2C) segment than its peers. RIL's operating performance should remain resilient over the next 24 months. This is thanks to rising earnings in the digital services and retail segments that mitigates softness in the O2C segment. We expect Reliance's oil refining margin to remain higher than peers but it will weaken over the next 24 months amid an economic slowdown and from a high base effect. Earnings in the digital services segment will improve from increasing data demand and...

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