24 June 2021 Update | Sector: Oil & Gas

Reliance Industries

BSE SENSEX S&P CNX 52,699 15,790 CMP: INR2,153 TP: INR2,430 (+13%) Buy

Motilal Oswal values your support AGM Takeaways: Towards a greener Reliance in the Asiamoney Brokers Poll 2021 for India Research, Sales, Unveils vision and forays in green energy

Corporate Access and Trading (RIL), in its AGM held on 24th June’21, announced a change in gears team. We request your ballot. with the introduction of its New Green Energy business, with large-scale capex planned for the same. It also continues to focus on the next-gen opportunities in Digital and . Here are the key highlights:

Big foray in new green energy

 Constantly on the lookout for large-scale and high-growth business opportunities, RIL today announced its next big value creation engine with the launch of its New Green Energy business. With the peak of the investment cycle behind in RJio and Reliance Retail, it now plans to invest INR750b towards this ambition over the next three years. Our FY22/FY23 Stock Info capex estimate of INR850b/INR500b does not capture this development. RIL Bloomberg RIL IN Equity Shares (m) 6,339 plans to create a 5,000 acre Green Energy Giga complex in Jamnagar, and M.Cap.(INRb)/(USDb) 14106.9 / 190.2 build four Giga factories to manufacture a) solar photovoltaic cells, b) 52-Week Range (INR) 2369 / 1696 energy storage batteries, c) electrolyzers for the production of green 1, 6, 12 Rel. Per (%) 4/-4/-26 hydrogen, and d) fuel cells. It plans to establish a 100GW solar energy 12M Avg Val (INR M) 30632 capacity by 2030. RIL plans to repurpose its existing business without any Free float (%) 50.9 asset write-downs and aims to be a zero-emission company by 2035 –

providing a multi-decadal growth path through this growth engine. Financials Snapshot (INR b) INR Billion FY21 FY22E FY23E Growth hinges on JioPhone Next Sales 4,669 6,078 6,730  RIL’s Digital business (RJio) has seen revenue growth deceleration in the EBITDA 807 1,116 1,343 recent past, with slower subscriber additions and a rising base effect – 29% NP 437 602 757 EPS (Rs) 67.7 93.4 117.5 revenue growth was seen in FY21 v/s 102%/34% in FY19/20 and the EPS Growth (%) 1.9 37.9 25.8 expectation of 9% revenue growth in FY22E. To accelerate growth, it plans BV/Share (Rs) 1,086 1,171 1,278 to target 300m 2G feature subscribers who are presently unable to use RoE (%) 7.6 8.3 9.6 RJio’s 4G service due to lacking device capabilities (only compatible with the RoCE (%) 8.2 8.1 9.2 2G network). Thus, RJio plans to launch JioPhone Next, an ultra-affordable Valuations smartphone, in partnership with Google on 10th Sep’21. However, it is yet to P/E (x) 31.7 23.0 18.3 provide the price details for the product. The success of the product P/BV (x) 2.0 1.8 1.7 depends on a) its long-lasting and high data consumption EV/EBITDA (x) 19.7 14.3 11.5 capability/durability and b) the pricing. It has historically proved challenging EV/Sales (x) 3.4 2.6 2.3 to upgrade customers from the low-income bracket (the product’s target

market) to high data consumption packs. Therefore, RIL may offer long- term plans to subsidize the device cost and monthly spend, extending the return on investment. While the current JioPhone has had a limited impact on Bharti, including the recent relaunch in Mar’21, the success of the product could pose a risk to Bharti/VIL’s 40–50% non-data subscriber base that is yet to upgrade to 4G. RIL is also actively working on the 5G technology and ecosystem development with the aim to be the first to launch full-fledged 5G services in the country.

Swarnendu Bhushan- Research Analyst ([email protected]) Aliasgar Shakir - Research Analyst ([email protected]) Sarfraz Bhimani - Research Analyst ([email protected]) Investors are advised to refer through important disclosures made at the last page of the Research Report. Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Reliance Industries

Shareholding pattern (%) Reliance Retail’s digital initiatives As On Mar-21 Dec-20 Mar-20  RIL has leveraged the digital opportunities in the market by transforming into an Promoter 49.1 49.1 48.9 omni-channel retailer, with service offerings in 1,300 cities. Ajio.com contributes DII 12.5 12.7 13.6 25% to the Apparel business. The Grocery business already has >300k FII 27.8 27.3 25.9 merchant/shopkeeper partners across 150 cities. RIL now aims to transform the Others 10.6 10.9 11.6 traditional grocery channel through a target of 10m merchant partner additions FII Includes depository receipts over the next three years. It expects to grow the Retail business >3x over the

Stock performance (one-year) next 3–5 years by (a) expanding its store footprints multi-fold, (b) widening the sourcing ecosystem, (c) aggressively ramping up the supply chain infrastructure, (d) investing in product development capabilities, and (e) acquiring businesses to broaden its offerings.

Key highlights from the AGM  a) H.E. Yasir Al-Rumayyan (Chairman of Saudi Aramco and Governor of PIF) joined the board of RIL, a precursor to Aramco’s formalization of its investment in the O2C business. b) It would invest INR750b in new green energy (solar- and hydrogen-based energy) over the next three years. c) It aims to launch JioPhone Next by 10th Sep’21 and aggressively ramp up Jio Fiber as well as the 5G technology and ecosystem development. d) It is planning investments in new commerce, and targets 10m merchant/kirana partner additions and growth of >3x over the next 3–5 years.

Valuation  Using SOTP, we value the O2C business at FY23E EV/EBITDA of 7.5x, arriving at a valuation of INR764/share for the standalone business, and add INR68 for the E&P assets. We ascribe an equity valuation of a) INR847/share to RJio on FY23E 20x EV/EBITDA and b) INR755/share to Reliance Retail on FY23E 35x EV/EBITDA, factoring in the recent stake sale. We reiterate Buy, with TP of INR2,430/share. The higher multiple for the Digital business captures the revenue opportunity, potential tariff hikes, and opportunity in the Feature Phone market. The higher multiple for the Retail biz captures the acceleration in store openings, digital commerce, and the new JioMart platform.

24 June 2021 2 Reliance Industries

RIL AGM takeaways

1. Energy business: a. The strategic alliance with Saudi Aramco is expected to be formalized during the financial year. b. H.E. Yasir Al-Rumayyan (Chairman of Saudi Aramco and Governor of PIF) has joined the RIL board, while YP Trivedi has offered to resign from the board (appointed in 1992). c. The company aims to achieve carbon neutrality by 2035. d. The New Green Energy and New Materials businesses were announced. e. The Green Energy Giga complex would be set up in Jamnagar.  An overall initial investment of INR750b is planned over the next three years. This includes INR600b towards setting up four Giga factories and the remaining INR150b towards the value chain, partnerships, and future technologies. f. The company would build four Giga factories – to manufacture and integrate all the critical components for clean and green energy.  An integrated solar photovoltaic factory for solar cells would enable 100GW by 2030.  An advanced energy storage Giga factory is planned.  An electrolyzer manufacturing facility is planned for green hydrogen production.  A fuel cell Giga factory is planned; fuel cells find use in transportation, among other applications. g. Furthermore, RIL would create two sub-divisions:  Dedicated Renewable Energy Management and Constructions division  Dedicated Renewable Energy Finance division h. RIL would also build India’s first carbon fiber plant to support the hydrogen and solar ecosystems. i. All of these would provide opportunities for the existing O2C business:  Decarbonizing and turning net carbon zero in the legacy business  Commercializing multi-feed catalytic cracking (MCC) technology

2. Reliance Jio: a. Jio is presently the world's second largest mobile data carrier; it handles monthly traffic of over 6.3b gigabytes. b. Investments: During the recent spectrum auctions, the company has invested INR571.2b, in addition to INR151.8b, to strengthen its network infrastructure to acquire significant additional spectrum – making it the largest operator of 4G spectrum in India. Furthermore, the company has operationalized nearly 100% of this additional spectrum. These investments have created the capacity to accommodate additional 200m subscribers. c. Jio Fiber: Jio Fiber acquired >2m new premises last year. Currently, with a cumulative base of 3m active home and business users, it is the largest fixed broadband operator in India. d. Google partnership:

24 June 2021 3 Reliance Industries

 JIOPHONE NEXT: Jio, along with Google, has jointly developed an affordable smartphone called JioPhone Next. This phone is expected to be available in the market from 10th Sep’21. This would be a fully featured smartphone with an Android Play Store, and would be packed with features such as voice and language assistance and a smart camera, with augmented reality filters. It is expected to be among the most affordable smartphones and would be launched in India and then globally.  Furthermore, Reliance Retail would shift its core ops to Google Cloud, enabling it to take advantage of Google's AI and machine learning, e- commerce, and demand forecasting offerings. e. Facebook partnership: The company has launched an initial set of integrations between WhatsApp and JioMart on a trial basis. It is actively developing the full new commerce solution linking merchants and consumers, to be launched in the coming quarters. f. Microsoft partnership: It has operationalized an initial 10MW capacity of JIO- AZURE Cloud Data centers in two cities – Jamnagar and Nagpur. g. 5G services: Along with its partners, RJio has tested the Jio 5G solutions in India, which successfully demonstrated speeds in excess of 1 GBPS. The company is confident of being the first to launch full-fledged 5G services.

3. Reliance Retail: a. Store additions: The company added 1,500 new stores (the largest retail expansion), taking the store count to 12,711 in FY21. It has a presence in 1300 cities through the omni-commerce channel. b. Volume: The Apparel business sold 180m units, Consumer Electronics sold 450m units of electronics, and Reliance Retail sold over 1b units of groceries. c. Partnerships: In the previous year, over 300k merchants and shopkeeper partners across 150 cities were linked to the JioMart digital network. d. AJio platform: AJio contributes >25% to the Apparel business, with a portfolio of > 2,000 labels/brands and 500k product listings. e. Growth plans: Reliance Retail aims to be among the top 10 retailers in the world, with growth of >3x over 3–5 years. f. Acquisitions: Recent acquisitions for Reliance Retail include leading physical/digital commerce platforms such as Netmeds, Urban Ladder, and Zivame.

4. General: a. Capital raise: The company completed the largest capital raise of ~USD440b (INR3,244.3b) through Reliance Retail and Jio. b. Rights issue: It has the largest successful rights issue, which gave returns of 4x to investors in a year. c. Debt position: It turned net debt free before March 2021. d. Change in directors: Mr YP Trivedi has resigned from the board and Mr Yasir Al Rumayyan (Chairman of Saudi Aramco) has joined the board as Independent Director.

24 June 2021 4 Reliance Industries

e. Financial performance:  The company’s consolidated revenue was nearly INR5,400b, led by a sharp increase in its consumer businesses.  The company’s consolidated EBITDA was nearly INR980b, with almost 50% contributed by the consumer businesses.

Exhibit 1: RIL – SoTP: Maintain Buy at TP of INR2,430 7.5x FY23 EBITDA Equity value Standalone

4 847

755 2,430 68 764

O2C E&P Reliance Retail RJio Net debt / Target price (cash) INR/share Source: MOFSL

Exhibit 2: RJio – EV/EBITDA based valuation Particulars (INRb) EBITDA 436 EV/EBITDA (x) 20 EV 8,926 Debt 850 Equity Value 8,076 Value Per Share 1,274 Stake 66.5% RIL stake in Rjio 847 Source: MOFSL, Company

Exhibit 3: Reliance Retail SOTP

Valuation EBITDA multiple EV (INR b) Core EBITDA 155 35 5,415 Petro and Connectivity 23 4 95.0 Total 5,510 Less Net Debt 100 Equity Value 5,410 No of Shares (in b) 6.4 Target Price 839 RIL stake in RRVL 89.9% RRVL value in SOTP 755

24 June 2021 5 Reliance Industries

Key Exhibits of

Exhibit 4: EBITDA and PAT margin expanded over FY19-21 Exhibit 5: Subscriber and ARPU reported growth Revenue (INR b) EBITDA margin (%) Subscriber (m) ARPU (INR) PAT margin (%) 44% 40% 144 37% 143 33% 39% 137 26% 20% 130 11%

202 407 543 699 187 307 388 426

FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21

Exhibit 6: FCF/sales improving annually Exhibit 7: Jio Platforms – Quality of earnings improving

FCF post interest/sales (%) Accrual ratio (%)

6% FY18 FY19 FY20 FY21

FY18 FY19 FY20 FY21 -2% -2%

-82% -114% -7% -202% -9%

Exhibit 8: CFO/EBITDA suggests healthy earnings Exhibit 9: Return ratios continually improving

CFO/EBITDA RoE (%) RoCE (%) 7.6% 6.2% 6.8% 5.3% 105% 6.9% 4.1% 77% 3.5% 5.2% 2.1% 53% 44% 2.7% 0.8% 0.9%

FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21

Exhibit 10: Leverage significantly reduced over FY19-21 Exhibit 11: Interest coverage ratio improved Net debt (INR b) Net debt/EBITDA (x) Net debt/equity (x) Interest coverage ratio (x) 5.0 1,421 1,382 21.1 9.2 2.1 2.1 1.5 3.4 370 1.4 1.7 279 0.9 0.2 0.2

FY18 FY19 FY20 FY18 FY19 FY20 FY21 Source: MOFSL, Company Source: MOFSL, Company

24 June 2021 6 Reliance Industries

Key exhibits of Reliance Retail

Exhibit 12: Reliance Retail – largest subsidiary and major contributor to holding company Reliance Retail Reliance Retail Ventures Reliance Retail Ltd (as % of Reliance Ventures) (INR b) FY20 FY21 FY20 FY21 FY20 FY21 Sales 1,629 1,576 1,202 NA 74% NM EBITDA 97 97.93 90 NA 107% NM

*Reliance Retail’s financials as disclosed in quarterly investor presentation

Exhibit 13: EBITDA declined by 12% Exhibit 14: Core EBITDA down 21% YoY on pandemic woes

EBITDA (INR b) EBITDA margin (%) Core EBITDA (INR b) Core EBITDA margin (%)

7.0% 9.3% 6.1% 9.1% 5.8% 6.0% 7.0% 4.9% 5.0% 4.7% 4.3% 3.9% 4.4% 4.6%

8 9 12 24 59 91 81 8 8 11 26 51 86 68 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY15 FY16 FY17 FY18 FY19 FY20 FY21

Source: Company, MOFSL Source: Company, MOFSL

Exhibit 15: Core segment revenue continues to scale higher

FY15 FY16 FY17 FY18 FY19 FY20 FY21

446 377 392 346 287 234 227

139 136 108 115 110 95 86 84 61 51 72 42 28 42

Food & Grocery Consumer Electronics Fashion and Lifestyle

Source: Company, MOFSL

24 June 2021 7 Reliance Industries

Reliance Jio Infocomm: Financials and valuations

Consolidated - Income Statement (INR M) Y/E March FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22E FY23E Total Income from Operations 0 0 0 2,01,545 4,06,630 5,43,160 6,98,880 7,65,004 8,61,601 Change (%) NA 0.0 -50.0 NA 101.8 33.6 28.7 9.5 12.6 Total Expenditure 195 214 433 1,34,240 2,55,670 3,27,490 3,89,750 3,83,849 4,25,130 % of Sales NA NA NA 66.6 62.9 60.3 55.8 50.2 49.3 EBITDA -195 -213 -432 67,304 1,50,960 2,15,670 3,09,130 3,81,156 4,36,471 Margin (%) NA NA NA 33.4 37.1 39.7 44.2 49.8 50.7 Depreciation 34 43 49 35,765 63,980 73,960 1,15,340 1,47,874 1,61,605 EBIT -228 -257 -481 31,539 86,980 1,41,710 1,93,790 2,33,281 2,74,867 Int. and Finance Charges 16 14 10 20,486 41,480 66,170 38,400 44,976 49,976 Other Income 13 31 12 39 60 870 5,480 9,316 6,521 PBT after EO Exp. -231 -241 -479 11,091 45,560 76,410 1,60,870 1,97,621 2,31,412 Total Tax 0 -83 -165 3,862 15,920 20,790 40,720 49,805 58,321 Tax Rate (%) 0.0 34.4 34.5 34.8 34.9 27.2 25.3 25.2 25.2 Reported PAT -231 -158 -314 7,230 29,640 55,620 1,20,150 1,47,816 1,73,091 Adjusted PAT -231 -158 -314 7,230 29,640 55,620 1,20,150 1,47,816 1,73,091 Change (%) NA -31.7 98.6 LP 310.0 87.7 116.0 23.0 17.1 Margin (%) NA NA NA 3.6 7.3 10.2 17.2 19.3 20.1

Consolidated - Balance Sheet (INR M) Y/E March FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22E FY23E Equity Share Capital 3,01,250 4,50,000 4,50,000 4,50,000 4,50,000 4,50,000 4,50,000 4,50,000 4,50,000 Total Reserves -508 -77,640 2,58,644 5,79,330 -46,000 12,59,560 13,79,730 15,27,546 17,00,637 Net Worth 3,00,742 3,72,360 7,08,644 10,29,330 4,04,000 17,09,560 18,29,730 19,77,546 21,50,637 Total Loans 2,38,503 8,84,353 12,44,490 14,38,210 13,98,950 4,69,840 2,99,760 5,99,760 3,99,760 Capital Employed 5,39,245 12,56,713 19,53,134 24,67,540 18,02,950 21,79,400 21,29,490 25,77,306 25,50,397

Gross Block 10,256 11,825 13,606 15,94,917 14,43,607 17,72,210 19,64,820 27,64,097 29,56,097 Less: Accum. Deprn. 1,398 2,428 3,862 39,627 1,03,607 1,37,940 2,53,280 4,40,782 6,02,386 Net Fixed Assets 8,858 9,397 9,744 15,55,290 13,40,000 16,34,270 17,11,540 23,23,316 23,53,711 Capital WIP 7,22,978 10,60,694 17,79,776 6,99,870 3,46,080 2,12,580 1,69,810 0 0 Total Investments 7,924 8,332 8,729 10,160 12,630 24,890 15,280 11,080 11,080

Curr. Assets, Loans&Adv. 80,392 1,97,404 2,10,634 2,71,990 2,59,090 5,45,310 6,04,260 6,02,725 5,61,127 Account Receivables 0 1 2 9,120 7,350 16,090 14,100 14,671 16,524 Cash and Bank Balance 270 153 268 7,180 4,290 74,800 5,890 2,374 -42,043 Loans and Advances 80,121 1,97,250 2,10,364 2,55,690 2,47,450 4,54,420 5,84,270 5,85,680 5,86,646 Curr. Liability & Prov. 2,80,906 19,115 55,750 69,770 1,54,850 2,37,650 3,71,400 3,59,815 3,75,521 Account Payables 0 0 0 31,170 32,560 47,000 22,390 21,033 23,295 Other Current Liabilities 2,80,724 18,718 55,067 34,060 1,21,240 1,90,060 3,23,030 3,24,110 3,35,702 Provisions 182 397 683 4,540 1,050 590 25,980 14,671 16,524 Net Current Assets -2,00,514 1,78,289 1,54,884 2,02,220 1,04,240 3,07,660 2,32,860 2,42,911 1,85,606 Appl. of Funds 5,39,245 12,56,713 19,53,134 24,67,540 18,02,950 21,79,400 21,29,490 25,77,306 25,50,397 E: MOSL Estimates

24 June 2021 8 Reliance Industries

Reliance Jio Infocomm: Financials and valuations

Ratios Y/E March FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22E FY23E

Basic (INR) EPS 0.0 0.0 0.0 0.2 0.7 1.2 2.7 3.3 3.8 Cash EPS 0.0 0.0 0.0 1.0 2.1 2.9 5.2 6.6 7.4 BV/Share 10.0 8.3 15.7 22.9 9.0 38.0 40.7 43.9 47.8 DPS 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Payout (%) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Valuation (x)

FCF per share -4.9 -9.3 -7.2 -8.3 -7.6 1.5 -6.0 4.4

Return Ratios (%) RoE -0.1 0.0 -0.1 0.8 4.1 5.3 6.8 7.8 8.4 RoCE NA 0.0 0.0 0.9 2.7 5.2 6.9 7.7 8.2 RoIC NA 7.7 -0.2 2.1 3.5 6.2 7.6 7.8 8.0

Working Capital Ratios Fixed Asset Turnover (x) 0.0 0.0 0.0 0.1 0.3 0.3 0.4 0.3 0.3 Asset Turnover (x) 0.0 0.0 0.0 0.1 0.2 0.2 0.3 0.3 0.3 Debtor (Days) 274 913 3,650 17 7 11 7 7 7 Creditor (Days) 0 0 0 56 29 32 12 10 10

Leverage Ratio (x) Current Ratio 0.3 10.3 3.8 3.9 1.7 2.3 1.6 1.7 1.5 Interest Cover Ratio -14.0 -18.0 -47.2 1.5 2.1 2.1 5.0 5.2 5.5 Net Debt/Equity 0.8 2.4 1.7 1.4 3.4 0.2 0.2 0.3 0.2

Consolidated - Cash Flow Statement (INR M) Y/E March FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22E FY23E OP/(Loss) before Tax -231 -239 -479 11,090 45,560 76,410 1,60,870 1,97,621 2,31,412 Depreciation 34 43 49 35,770 63,980 73,960 1,15,340 1,47,874 1,61,605 Interest & Finance Charges 16 14 10 20,490 41,480 66,170 38,400 44,976 49,976 Direct Taxes Paid 0 3 0 -2,400 -9,680 -11,670 -1,380 -49,805 -58,321 (Inc)/Dec in WC -27,827 -43,454 -33,637 -29,310 -74,860 -36,860 19,230 -13,567 12,888 CF from Operations -28,009 -43,633 -34,057 35,640 66,480 1,68,010 3,32,460 3,27,100 3,97,559 Others -8 -26 -1 59 100 -2,190 -6,420 -9,316 -6,521 CF from Operating incl EO -28,017 -43,659 -34,058 35,699 66,580 1,65,820 3,26,040 3,17,784 3,91,038 (Inc)/Dec in FA -95,351 -1,76,334 -3,85,398 -3,57,860 -4,38,390 -5,08,040 -2,57,470 -5,89,840 -1,92,000 Free Cash Flow -1,23,368 -2,19,992 -4,19,456 -3,22,161 -3,71,810 -3,42,220 68,570 -2,72,056 1,99,038 (Pur)/Sale of Investments -5,338 -246 -242 -1,430 320 -8,650 14,340 4,200 0 Others 70 78 61 70 430 -1,60,170 4,140 13,426 10,631 CF from Investments -1,00,619 -1,76,502 -3,85,579 -3,59,220 -4,37,640 -6,76,860 -2,38,990 -5,72,214 -1,81,369 Issue of Eq/Pref.Shares 70,530 1,50,000 3,36,600 3,13,400 0 1250,000 0 0 0 Inc/(Dec) in Debt 71,513 1,02,861 1,41,437 1,01,980 4,60,090 -5,37,730 -1,20,460 3,00,000 -2,00,000 Interest Paid -13,453 -32,740 -58,188 -84,890 -91,650 -1,03,480 -23,450 -44,976 -49,976 Dividend Paid 0 0 0 0 0 0 0 0 0 Others 0 0 0 4 0 -20,420 -7,910 0 0 CF from Fin. Activity 1,28,590 2,20,121 4,19,849 3,30,494 3,68,440 5,88,370 -1,51,820 2,55,024 -2,49,976 Inc/Dec of Cash -45 -40 212 6,973 -2,620 74,630 -64,770 594 -40,307 Opening Balance 315 193 56 207 6,910 170 70,660 1,780 -1,736 Closing Balance 270 153 268 7,180 4,290 74,800 5,890 2,374 -42,043

24 June 2021 9

Reliance Industries

Reliance Retail: Financials and valuations

Standalone - Income Statement (INR b) Y/E March FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22E FY23E Total Income from Operations 161 183 264 515 1019 1304 1317 1755 2225 Change (%) 26.9 13.8 44.2 94.6 98.1 27.9 1.0 33.3 26.7 Total Expenditure 153 174 253 491 960 1212 1236 1630 2059 % of Sales 95.1 95.0 95.6 95.4 94.2 93.0 93.9 92.9 92.5 EBITDA 8 9 12 24 59 91 81 125 166 Margin (%) 4.9 5.0 4.4 4.6 5.8 7.0 6.1 7.1 7.5 Depreciation 3 3 4 4 6 11 14 16 21 EBIT 5 6 8 19 53 80 66 109 145 Int. and Finance Charges 2 1 1 1 6 9 7 12 12 Other Income 1 0 0 0 1 3 2 2 2 PBT bef. EO Exp. 4 5 8 19 48 74 62 99 135 EO Items 0 0 0 0 0 0 0 0 0 PBT after EO Exp. 4 5 7 19 48 74 62 99 135 Total Tax 1 2 3 6 17 19 16 25 34 Tax Rate (%) 31.1 38.2 43.6 33.7 34.9 25.4 25.8 25.2 25.2 Reported PAT 3 3 4 12 31 55 46 74 101 Adjusted PAT 3 3 4 12 31 55 46 74 101 Change (%) -9.4 9.9 40.4 192.8 NA NA NA NA NA Margin (%) 1.7 1.6 1.6 2.4 3.1 4.2 3.5 4.2 4.5

Standalone - Balance Sheet Y/E March FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22E FY23E Equity Share Capital 50 50 50 50 50 50 50 50 50 Eq. Share Warrants & App. Money 0 0 0 0 0 0 0 0 0 Preference Capital 0 0 0 0 0 0 0 0 0 Total Reserves 2 11 18 41 76 131 203 277 378 Net Worth 52 61 68 91 126 181 253 327 428 Total Loans 17 11 0 34 128 47 147 147 147 Deferred Tax Liabilities -6 -10 -9 -6 0 0 0 0 0 Capital Employed 63 62 60 119 254 228 401 475 576

Gross Block 33 35 40 53 98 114 158 206 252 Less: Accum. Deprn. 13 14 17 21 26 33 43 60 80 Net Fixed Assets 21 20 23 32 72 82 114 146 171 Capital WIP 4 5 7 41 25 88 106 106 106 Total Investments 5 5 8 5 36 6 6 6 6

Curr. Assets, Loans&Adv. 51 64 70 156 211 180 276 440 576 Inventory 39 52 51 105 113 93 123 221 280 Account Receivables 2 2 7 22 43 25 60 91 116 Cash and Bank Balance 2 0 3 2 3 3 4 10 31 Loans and Advances 8 9 9 28 52 58 89 117 148 Curr. Liability & Prov. 17 33 48 116 90 128 101 223 283 Account Payables 13 28 39 82 41 57 67 178 226 Other Current Liabilities 4 5 9 33 48 71 34 45 57 Provisions 0 0 0 0 0 0 1 1 1 Net Current Assets 34 32 22 41 121 52 174 217 293 Appl. of Funds 63 62 60 119 254 228 401 475 576 E: MOSL Estimates

24 June 2021 10

Reliance Industries

Reliance Retail - Financials and valuations

Ratios Y/E March FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22E FY23E Basic (INR)

EPS 0.6 0.6 0.9 2.5 6.3 11.1 9.2 14.8 20.3 Cash EPS 1.2 1.3 1.6 3.4 7.5 13.3 12.1 18.1 24.4 BV/Share 10.4 12.3 13.7 18.2 25.2 36.3 50.8 65.6 85.9 DPS 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Payout (%) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Return Ratios (%)

RoE 5.3 5.3 6.6 15.7 29.0 36.1 21.1 25.5 26.8 RoCE 5.4 5.3 6.7 13.5 18.7 25.7 16.2 18.9 20.9 RoIC 6.7 7.0 9.6 22.8 26.6 37.5 23.7 25.5 27.7 Working Capital Ratios

Fixed Asset Turnover (x) 4.8 5.3 6.6 9.7 10.4 11.4 8.4 8.5 8.8 Asset Turnover (x) 2.6 3.0 4.4 4.3 4.0 5.7 3.3 3.7 3.9 Inventory (Days) 88 105 70 74 40 26 34 46 46 Debtor (Days) 5 4 10 16 16 7 17 19 19 Creditor (Days) 29 55 54 58 15 16 19 37 37 Leverage Ratio (x)

Current Ratio 3.0 2.0 1.5 1.4 2.3 1.4 2.7 2.0 2.0 Interest Cover Ratio 3.3 5.0 10.3 19.1 8.7 9.3 9.6 9.2 12.3 Net Debt/Equity 0.2 0.1 -0.2 0.3 0.7 0.2 0.5 0.4 0.3

Standalone - Cash Flow Statement Y/E March FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22E FY23E OP/(Loss) before Tax 4 5 8 19 48 74 62 99 135 Depreciation 3 3 4 4 6 11 14 16 21 Interest & Finance Charges 1 1 1 1 -1 -2 -2 12 12 Direct Taxes Paid -1 -1 -1 -5 -10 -11 -14 -25 -34 (Inc)/Dec in WC -4 2 11 -15 -33 84 -61 -36 -55 CF from Operations 4 10 22 4 11 156 -1 67 78 Others 0 0 1 1 6 9 7 -2 -2 CF from Operating incl EO 4 11 22 5 17 165 6 65 77 (Inc)/Dec in FA -4 -4 -8 -48 -47 -67 -82 -48 -46 Free Cash Flow 0 6 14 -43 -30 98 -76 16 31 (Pur)/Sale of Investments 1 0 -3 3 -7 18 0 0 0 Others 1 0 0 -4 0 2 -15 2 2 CF from Investments -1 -5 -11 -49 -54 -48 -97 -46 -44 Issue of Shares 0 0 0 10 4 0 26 0 0 Inc/(Dec) in Debt 23 -6 -8 34 94 -81 118 0 0 Interest Paid -2 -1 -1 -1 -6 -9 -6 -12 -12 Dividend Paid 0 0 0 0 0 0 0 0 0 Others -25 0 0 0 -23 -27 -47 0 0 CF from Fin. Activity -3 -7 -9 43 68 -117 91 -12 -12 Inc/Dec of Cash -1 -1 2 -1 32 0 0 7 21 Opening Balance 2 2 0 3 2 33 33 34 40 Closing Balance 2 0 3 2 3 3 4 10 31

24 June 2021 11

Reliance Industries

Reliance Standalone: Financials and valuations

Standalone - Income Statement (INR B) Y/E March FY16 FY17 FY18 FY19 FY20 FY21 FY22E FY23E Total Income from Operations 2,331.6 2,420.3 2,900.4 3,716.2 3,369.5 2,456.7 3,360.4 3,447.2 Change (%) -29.1 3.8 19.8 28.1 -9.3 -27.1 36.8 2.6 EBITDA 393.5 432.6 517.4 588.5 528.3 335.0 527.5 657.9 Margin (%) 16.9 17.9 17.8 15.8 15.7 13.6 15.7 19.1 Depreciation 85.9 84.7 95.8 105.6 97.3 92.0 92.8 95.8 EBIT 307.6 347.9 421.6 483.0 431.0 243.0 434.7 562.1 Int. and Finance Charges 25.6 27.2 46.6 97.5 121.1 162.1 86.8 74.9 Other Income 78.2 87.1 82.2 88.2 135.7 148.2 128.4 134.7 PBT bef. EO Exp. 360.2 407.8 457.3 473.7 445.6 229.1 476.3 622.0 EO Items 0.0 0.0 0.0 0.0 -42.5 43.0 0.0 0.0 PBT after EO Exp. 360.2 407.8 457.3 473.7 403.2 272.1 476.3 622.0 Total Tax 86.3 93.5 121.1 122.0 94.1 -47.3 119.9 156.6 Tax Rate (%) 24.0 22.9 26.5 25.8 23.3 -17.4 25.2 25.2 Reported PAT 273.8 314.3 336.1 351.6 309.0 319.4 356.4 465.4 Adjusted PAT 274.2 314.3 336.1 351.6 335.1 273.1 356.4 465.4 Change (%) 20.7 14.6 7.0 4.6 -4.7 -18.5 30.5 30.6 Margin (%) 11.8 13.0 11.6 9.5 9.9 11.1 10.6 13.5

Standalone - Balance Sheet (INR B) Y/E March FY16 FY17 FY18 FY19 FY20 FY21E FY22E FY22E Equity Share Capital 32.4 32.5 63.4 63.4 63.4 64.5 64.5 64.5 Total Reserves 2,507.6 2,850.6 3,083.1 3,989.8 3,848.8 4,680.4 4,983.3 5,379.0 Net Worth 2,540.0 2,883.1 3,146.5 4,053.2 3,912.2 4,744.8 5,047.8 5,443.4 Total Loans 923.2 1,013.0 968.4 1,572.0 1,973.3 1,646.1 1,247.6 1,247.6 Deferred Tax Liabilities 237.5 247.7 279.3 473.2 505.6 307.9 307.9 307.9 Capital Employed 3,700.7 4,143.8 4,394.1 6,098.3 6,391.0 6,698.8 6,603.3 6,998.9 Gross Block 2,622.3 2,584.5 3,158.6 3,286.4 4,416.6 4,512.2 4,716.6 4,866.6 Less: Accum. Deprn. 1,146.9 1,053.2 1,149.0 1,254.6 1,351.8 1,443.8 1,534.5 1,630.3 Net Fixed Assets 1,475.4 1,531.3 2,009.6 2,031.9 3,064.8 3,068.3 3,182.1 3,236.3 Capital WIP 1,109.1 1,341.9 994.8 1,115.6 279.7 328.4 321.7 371.7 Total Investments 1,572.5 1,924.5 2,252.2 3,316.8 4,918.2 3,472.9 3,472.9 3,472.9 Curr. Assets, Loans&Adv. 659.8 669.8 918.6 1,293.2 1,454.3 1,867.2 2,414.1 2,777.6 Inventory 280.3 340.2 395.7 441.4 388.0 374.4 449.5 461.1 Account Receivables 35.0 54.7 104.6 121.1 74.8 41.6 56.9 58.4 Cash and Bank Balance 68.9 17.5 27.3 37.7 84.9 55.7 277.8 514.7 Loans and Advances 275.6 257.3 391.0 693.0 906.6 1,395.5 1,629.9 1,743.4 Curr. Liability & Prov. 1,116.1 1,323.6 1,781.2 1,659.1 3,326.0 2,037.9 2,787.5 2,859.6 Account Payables 1,093.7 1,289.8 1,749.9 1,626.5 3,301.1 2,013.9 2,754.7 2,825.9 Provisions 22.4 33.9 31.2 32.7 24.8 24.0 32.8 33.7 Net Current Assets -456.3 -653.9 -862.6 -365.9 -1,871.6 -170.7 -373.4 -82.0 Appl. of Funds 3,700.7 4,143.8 4,394.1 6,098.3 6,391.0 6,698.8 6,603.3 6,998.9 E: MOSL Estimates

24 June 2021 12

Reliance Industries

Reliance Standalone: Financials and valuations

Ratios Y/E March FY16 FY17 FY18 FY19 FY20 FY21E FY22E FY23E Basic (INR) EPS 42.5 48.8 52.2 54.6 52.0 42.4 55.3 72.2 Cash EPS 55.9 61.9 67.0 70.9 67.1 56.6 69.7 87.1 BV/Share 412.8 468.6 511.4 658.8 635.8 771.2 820.4 884.7 Valuation (x) P/E 52.3 45.6 42.7 40.8 42.8 52.5 40.2 30.8 Cash P/E 39.8 35.9 33.2 31.4 33.2 39.3 31.9 25.5 P/BV 5.4 4.7 4.4 3.4 3.5 2.9 2.7 2.5 EV/Sales 6.5 6.3 5.3 4.3 4.8 6.5 4.6 4.4 EV/EBITDA 38.6 35.5 29.5 27.0 30.7 47.6 29.0 22.9 Dividend Yield (%) 0.2 0.2 0.2 0.3 0.3 0.3 0.4 0.5 FCF per share 36.5 35.1 58.0 6.7 84.3 -34.5 118.1 59.2 Return Ratios (%) RoE 11.7 11.6 11.1 9.8 8.4 6.3 7.3 8.9 RoCE 8.9 9.1 9.2 8.7 7.5 7.5 6.6 8.0 RoIC 21.1 29.6 31.3 26.1 24.1 14.4 12.1 16.3 Working Capital Ratios Fixed Asset Turnover (x) 0.9 0.9 0.9 1.1 0.8 0.5 0.7 0.7 Asset Turnover (x) 0.6 0.6 0.7 0.6 0.5 0.4 0.5 0.5 Inventory (Days) 44 51 50 43 42 56 49 49 Debtor (Days) 5 8 13 12 8 6 6 6 Creditor (Days) 171 195 220 160 358 299 299 299 Leverage Ratio (x) Current Ratio 0.6 0.5 0.5 0.8 0.4 0.9 0.9 1.0 Interest Cover Ratio 12.0 12.8 9.1 5.0 3.6 1.5 5.0 7.5 Net Debt/Equity 0.3 0.3 0.3 0.4 0.5 0.3 0.2 0.1

Standalone - Cash Flow Statement (INR B) Y/E March FY16 FY17 FY18 FY19 FY20 FY21E FY22E FY23E OP/(Loss) before Tax 360.2 407.8 457.3 473.7 403.2 272.1 476.3 622.0 Depreciation 85.9 84.7 95.8 105.6 97.3 92.0 92.8 95.8 Interest & Finance Charges 25.6 27.2 46.6 97.5 121.1 162.1 86.8 74.9 Direct Taxes Paid -81.3 -95.6 -86.2 -94.3 -52.5 -16.9 -119.9 -156.6 (Inc)/Dec in WC 149.5 195.3 205.3 -192.9 335.3 -320.1 424.8 -54.6 Others -105.4 -104.9 -98.8 -97.7 -128.9 -194.4 0.0 0.0 CF from Operations 434.5 514.5 620.0 291.9 775.3 -5.1 960.8 581.5 (Inc)/Dec in FA -199.2 -288.1 -246.3 -248.7 -231.8 -217.6 -200.0 -200.0 Free Cash Flow 235.2 226.4 373.8 43.2 543.5 -222.7 760.8 381.5 (Pur)/Sale of Investments -6,938.0 -6,494.1 -5,347.6 -127.5 -1,309.1 1,202.3 0.0 0.0 Others 6,725.0 6,232.8 5,002.8 -163.3 104.7 -242.2 0.0 0.0 CF from Investments -412.2 -549.5 -591.1 -539.5 -1,436.3 742.6 -200.0 -200.0 Inc/(Dec) in Debt 44.4 30.2 91.3 415.4 118.3 -180.8 -398.5 0.0 Interest Paid -43.8 -53.6 -72.7 -115.8 -144.7 -142.9 -86.8 -74.9 Dividend Paid -72.6 0.0 -39.2 -42.8 -45.8 -39.2 -53.5 -69.8 CF from Fin. Activity -69.0 -16.4 -19.1 258.0 708.1 -766.2 -538.8 -144.7 Inc/Dec of Cash -46.8 -51.4 9.8 10.4 47.2 -28.7 222.1 236.9 Opening Balance 115.7 68.9 17.5 27.3 37.7 84.4 55.7 277.8 Closing Balance 68.9 17.5 27.3 37.7 84.9 55.7 277.8 514.7 E: MOSL Estimates

24 June 2021 13

Reliance Industries

Reliance Consol.: Financials and valuations

(INR

Consolidated - Income Statement Billion) Y/E March FY16 FY17 FY18 FY19 FY20 FY21 FY22E FY23E Total Income from Operations 2,740 3,054 3,917 5,692 5,961 4,669 6,078 6,730 Change (%) -27.0 11.5 28.3 45.3 4.7 -21.7 30.2 10.7 EBITDA 417 462 642 842 883 807 1,116 1,343 Margin (%) 15.2 15.1 16.4 14.8 14.8 17.3 18.4 19.9 Depreciation 116 116 167 209 222 266 301 322 EBIT 301 345 475 632 660 542 815 1,021 Int. and Finance Charges 37 38 81 165 220 212 148 141 Other Income 123 93 89 84 139 163 192 200 PBT bef. EO Exp. 387 400 483 551 579 493 859 1,079 EO Items 0 0 0 0 -44 56 0 0 PBT after EO Exp. 387 400 483 551 535 549 859 1,079 Total Tax 89 102 133 154 137 17 202 257 Tax Rate (%) 22.9 25.5 27.6 27.9 25.7 3.1 23.6 23.8 Minority Interest 1 -1 -11 -1 1 41 55 65 Reported PAT 297 299 361 398 397 491 602 757 Adjusted PAT 297 299 361 398 429 437 602 757 Change (%) 26.2 0.5 20.7 10.4 7.6 1.9 37.9 25.8 Margin (%) 10.9 9.8 9.2 7.0 7.2 9.3 9.9 11.3

Consolidated - Balance Sheet (INR B) Y/E March FY16 FY17 FY18 FY19 FY20 FY21E FY22E FY22E Equity Share Capital 29 30 59 59 63 64 64 64 Total Reserves 2,286 2,608 2,876 3,812 4,428 6,937 7,486 8,173 Net Worth 2,316 2,637 2,935 3,871 4,492 7,002 7,550 8,238 Minority Interest 34 29 35 83 122 993 993 993 Total Loans 1,947 1,837 1,816 2,719 2,914 2,238 2,238 2,238 Deferred Tax Liabilities 205 212 245 499 541 370 370 370 Capital Employed 4,501 4,715 5,032 7,173 8,069 10,602 11,150 11,838 Gross Block 3,312 3,564 5,775 5,868 7,450 7,802 9,235 10,026 Less: Accum. Deprn. 1,506 1,628 1,795 2,004 2,226 2,492 2,793 3,115 Net Fixed Assets 1,807 1,936 3,981 3,864 5,224 5,310 6,442 6,912 Goodwill on Consolidation 43 49 58 120 103 102 102 102 Capital WIP 2,287 3,248 1,870 1,795 1,091 1,260 677 385 Total Investments 840 856 855 2,403 2,768 3,648 3,648 3,648 Curr. Assets, Loans&Adv. 1,014 978 1,348 1,843 2,474 2,892 3,678 4,553 Inventory 465 490 608 676 739 817 1,063 1,177 Account Receivables 45 82 176 301 197 190 247 274 Cash and Bank Balance 110 30 43 111 309 174 141 635 Loans and Advances 394 377 522 755 1,229 1,711 2,227 2,466 Curr. Liability & Prov. 1,489 2,353 3,081 2,851 3,590 2,610 3,397 3,762 Account Payables 603 766 1,069 1,083 968 1,089 1,417 1,570 Other Current Liabilities 856 1,546 1,971 1,721 2,581 1,465 1,907 2,111 Provisions 30 41 41 47 41 56 73 81 Net Current Assets -475 -1,375 -1,732 -1,009 -1,116 282 281 791 Appl. of Funds 4,501 4,715 5,032 7,173 8,069 10,602 11,150 11,838 E: MOSL Estimates

24 June 2021 14

Reliance Industries

Reliance Consol.: Financials and valuations

Ratios Y/E March FY16 FY17 FY18 FY19 FY20 FY21 FY22E FY23E EPS 46.2 46.4 56.0 61.8 66.5 67.7 93.4 117.5 Cash EPS 64.1 64.5 81.9 94.3 100.9 109.0 140.1 167.5 BV/Share 359.3 409.2 455.4 600.6 696.9 1,086.4 1,171.5 1,278.2 DPS 4.8 5.1 5.5 6.0 6.0 6.4 8.3 10.8 Payout (%) 12.4 13.1 11.9 11.6 11.7 8.4 8.9 9.2 Valuation (x) P/E 46.5 46.3 38.4 34.7 32.3 31.7 23.0 18.3 Cash P/E 33.5 33.3 26.2 22.8 21.3 19.7 15.3 12.8 P/BV 6.0 5.2 4.7 3.6 3.1 2.0 1.8 1.7 EV/Sales 5.7 5.1 4.0 2.9 2.8 3.4 2.6 2.3 EV/EBITDA 37.6 33.9 24.3 19.5 18.6 19.7 14.3 11.5 Dividend Yield (%) 0.2 0.2 0.3 0.3 0.3 0.3 0.4 0.5 FCF per share 7.0 1.7 1.8 -0.8 -22.1 14.3 0.0 0.0 Return Ratios (%) RoE 13.2 12.1 13.0 11.7 10.2 7.6 8.3 9.6 RoCE 8.0 7.5 8.8 9.1 8.5 8.2 8.1 9.2 RoIC 17.0 27.9 24.2 17.8 14.5 11.1 10.2 11.2 Working Capital Ratios Fixed Asset Turnover (x) 0.8 0.9 0.7 1.0 0.8 0.6 0.7 0.7 Asset Turnover (x) 0.6 0.6 0.8 0.8 0.7 0.4 0.5 0.6 Inventory (Days) 62 59 57 43 45 64 64 64 Debtor (Days) 6 10 16 19 12 15 15 15 Creditor (Days) 80 92 100 69 59 85 85 85 Leverage Ratio (x) Current Ratio 0.7 0.4 0.4 0.6 0.7 1.1 1.1 1.2 Interest Cover Ratio 8.2 9.0 5.9 3.8 3.0 2.6 5.5 7.2 Net Debt/Equity 0.8 0.7 0.6 0.7 0.6 0.3 0.3 0.2

Consolidated - Cash Flow Statement (INR B) Y/E March FY16 FY17 FY18 FY19 FY20 FY21 FY22E FY23E PBT 387 400 494 552 536 555 859 1,079 Depreciation 116 116 167 209 222 266 301 322 Tax paid -86 -101 -98 -122 -84 -32 -202 -257 Change in deferred tax liability 0 0 0 0 0 0 0 0 Change in net working capital 78 155 185 -288 219 -507 -32 -15 Misc -114 -75 -34 72 87 -19 -55 -65 Operating cash flow 381 496 715 423 981 262 870 1,064 Capex -466 -766 -730 -928 -756 -1,035 -850 -500 Change in investments 58 92 35 -19 141 -473 0 0 Investing cash flows -362 -663 -683 -951 -757 -1,416 -850 -500 Change in borrowings 130 215 199 865 356 -837 0 0 Misc -92 -137 -184 -265 -337 -241 0 0 Issuance of equity 3 8 5 2 1 2,136 0 0 Others -89 -129 -180 -263 -335 1,895 0 0 Dividend paid -73 -1 -39 -43 -46 -39 -53 -70 Financing cash flow -32 86 -20 559 -25 1,019 -53 -70 Net change in cash -13 -81 12 31 198 -135 -33 495 Closing cash balance 110 30 43 111 309 174 141 635 E: MOSL Estimates

24 June 2021 15

Reliance Industries

N O T E S

24 June 2021 16

Reliance Industries

Explanation of Investment Rating Investment Rating Expected return (over 12-month) BUY >=15% SELL < - 10% NEUTRAL < - 10 % to 15% UNDER REVIEW Rating may undergo a change NOT RATED We have forward looking estimates for the stock but we refrain from assigning recommendation *In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend. Disclosures The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations). Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial products. MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products. Details of associate entities of Motilal Oswal Financial Services Limited are available on the website at http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the website at https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx A graph of daily closing prices of securities is available at www.nseindia.com, www.bseindia.com. Research Analyst views on Subject Company may vary based on Fundamental research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views. Regional Disclosures (outside India) This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions. For Hong Kong: This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research Analysis in Hong Kong. For U.S. Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement. The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research analyst account. For Singapore In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”, of which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and inform MOCMSPL. Specific Disclosures 1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company. 2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company 3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months 4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report 5 Research Analyst has not served as director/officer/employee in the subject company 6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months 7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months 8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months 9 MOFSL has not received any compensation or other benefits from third party in connection with the research report 10 MOFSL has not engaged in market making activity for the subject company ******************************************************************************************************************************** The associates of MOFSL may have: - financial interest in the subject company - actual/beneficial ownership of 1% or more securities in the subject company - received compensation/other benefits from the subject company in the past 12 months

24 June 2021 17

Reliance Industries

- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report. - acted as a manager or co-manager of public offering of securities of the subject company in past 12 months - be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) - received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services. The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from clients which are not considered in above disclosures. Analyst Certification The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report. Terms & Conditions: This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of MOFSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as customers by virtue of their receiving this report. Disclaimer: The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information. The person accessing this information specifically agrees to exempt MOFSL or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays. Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263; Website www.motilaloswal.com.CIN no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000. Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL. Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance Officer: Name: Neeraj Agarwal, Email ID: [email protected], Contact No.:022-71881085. * MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National Company Law Tribunal, Mumbai Bench.

24 June 2021 18