Balance sheet consolidated, RIL ready for next level of growth: Ambani

Commenting on the global economy, Ambani said, 'In this world of volatility and uncertainty, India is shining as a beacon of stability and prosperity'

Reliance Industries (RIL) has consolidated its balance sheet and is prepared for the next level of growth, the conglomerate’s Chairman and Managing Director Mukesh Ambani told shareholders.

RIL released its annual report for the financial year ending March 2024 on Wednesday. 

The company will hold its annual general meeting (AGM) for 2023-24 on August 29.

“Reliance has consolidated its balance sheet after the previous round of capital expenditure and is ready for the next level of growth,” Ambani said in his message to shareholders.

The company’s annual report on its funding strategy also noted that it will continue to monitor financial markets to seize suitable opportunities for capital raising to support its growth plans while maintaining a sharp focus on financial discipline and risk management.

 

RIL’s AGM is one of the most closely monitored events by the market, as the group chairman has previously used these meetings to make big announcements.

 

In his note to shareholders, Ambani also mentioned that the conglomerate’s mega project, the Dhirubhai Ambani 

Green Energy Giga Complex in Jamnagar, is progressing rapidly.

The annual report indicated that the phased commencement of operations at the solar photovoltaic gigafactory is expected by the end of 2024 and that by 2030, 100 gigawatt of renewable energy (RE) capacity will be established and enabled.

Discussing future plans, Ambani revealed that the company is also exploring multiple technologies for carbon capture and recycling. 

“Our research and development teams are working around the clock, devising solutions that leverage novel techniques in the carbon recycling process,” Ambani said.

The company outlined its ambition to become India’s largest RE player. 

The report noted that work on RE development has commenced, and the company has been allotted land in Gujarat.

“We aim to become the largest RE developer in India. We have initiated participation in RE power purchase agreements, including the first agreement with Maharashtra State Electricity Distribution Company for 128 megawatt over 25 years,” the report said.

According to the annual report, the company has also signed a memorandum of understanding with Maharashtra for the production of 100 kilotonnes per annum of green hydrogen, with an investment of Rs 15,000 crore.

Asia’s richest billionaire also had a message for the business community.

“Now is the time for all of us in the business community to work together as a grand coalition and transform India into a fully developed nation by 2047 — a prosperous India in which no Indian and no region will be left behind,” the annual report quoted Ambani.

Supply chain shocks challenge for Jio

Unforeseen circumstances across the global tech supply chain could have an impact on Jio’s ability to rollout network and digital services, RIL’s annual report points out. The futuristic vision on digital services also necessitates and puts the responsibility of creating the device ecosystem on the telecom operator, it said.  
 

Case in point, Jio Platforms and its subsidiaries have filed for 1,255 patents and were granted 144 patents in FY24. "The cumulative count of patents granted has increased to 331 as of March 2024. These patents span across 6G, 5G, AI, Deep Learning, Big Data, Devices, IoT and NB-IoT," the report said.

Among the potential challenges being faced by the telecom operator, the burden of investing to considerable time and effort in developing use cases has also been flagged. While Jio's 5G user base has expanded to 130 million users at Q1-end, monetizing 5G has been tough while enterprise use cases has not taken off. Meanwhile, costs have risen as the telco's share of data traffic have grown to 60 percent in India.

Jio also needs to increase engagement across its digital platforms, the report said. Meanwhile, it continues to bat for JioAirFiber, it's fixed wireless access offering. The service has seen strong demand and customer engagement, especially in underserved segments, the report said.