RIL AGM 2022 – Key Takeaways: ICICI Securities


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Reliance Industries Ltd., in its 44th annual general meeting held on August 29, 2022, has announced a slew of new initiatives across businesses, along with the rolling out of 5G network from October 2022 in key cities (pan-India rollout by December 2023).

It announced a massive new investment worth ~Rs 1.1 trillion in digital services space (in addition to ~Rs 0.9 trillion for spectrum).

RIL also announced a material Rs 750 billion worth of investment in aggressive capacity expansion across PTA/PET/Vinyl PFY and PSF chains.

Retail business is also seeing continuous momentum, with sustained growth in both offline and online parts of the business. RIL also announced its formal entry in the fmcg segment.

Its ‘Green Energy’ plans are also progressing, with the first 10 gigawatt giga solar factory targeted for commissioning by CY24 and further (10 GW) to 20 GW by CY26.

RIL’s aggressive plans for Jio/oil-to-chemicals and green energy create a clear roadmap for growth over FY22-27E, but the sharply higher capex reinforces our cautious stance on returns from the business, with muted free cash flow yield, depressed return ratios and strong multiples limiting upsides from here.

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