During Thursday’s trading session, the shares of the diversified conglomerate surged 0.73 percent to Rs. 3,052.05 on BSE, after the company secured a 10 GWh (gigawatt hour) battery manufacturing capacity under the Production Linked Incentive (PLI) scheme.
With a market capitalisation of Rs. 20.3 lakh crores, the shares of Reliance Industries Limited opened in the green at Rs. 3,039.45, up by nearly 0.31 percent, as against its previous closing price of Rs. 3,029.8.
What’s the News:
On 4th September, the Ministry of Heavy Industries awarded Reliance Industries Limited (RIL) a 10 GWh (gigawatt hour) capacity allocation for Advanced Chemistry Cell (ACC) manufacturing under the Production Linked Incentive (PLI) Scheme. This move supports India’s goal of becoming self-reliant in battery production.
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The Ministry disclosed that the ACC manufacturing scheme had an allocated budget of Rs. 3,620 crores and attracted bids from seven companies, including ACME Cleantech Solutions, Amara Raja Advanced Cell Technologies, JSW Neo Energy, RIL, and Waaree Energies.
RIL achieved the highest score and secured the bid, while the other shortlisted bidders were ranked and placed on a waiting list based on their ranks. ACME Cleantech Solutions Private Ltd secured the top position, followed by Amara Raja Advanced Cell Technologies Private Ltd, Waaree Energies Ltd, JSW Neo Energy Ltd, and Lucas TVS Ltd.
The shortlisted bidders were assessed based on the Quality & Cost Based Selection (QCBS) method, which ranked them according to their combined technical and financial scores.
This initiative is designed to strengthen domestic manufacturing, decrease reliance on imports, and support Prime Minister Narendra Modi’s “Make in India” and Atmanirbhar Bharat campaigns.
The PLI ACC scheme encourages the production of technology-agnostic Advanced Chemistry Cells (ACCs), aiming to establish India as a global leader in this industry.
Additional News:
Today, September 5, the Board of Reliance Industries Limited (RIL) will meet to consider and recommend the issuance of bonus shares to its shareholders at a 1:1 ratio.
This means that shareholders will receive one additional share for each share they own as of the record date, which is yet to be announced.
This announcement follows Chairman and Managing Director Mukesh Ambani’s disclosure during the company’s 47th Annual General Meeting (AGM) on August 29.
If approved, this will mark RIL’s sixth bonus share issuance since 1980, with previous bonuses granted in 1983, 1997, 2009, and 2017.
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Financials:
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 11.5 percent from Rs. 2,31,132 crores in Q1 FY24 to Rs. 2,57,823 crores in Q1 FY25.
However, its net profit decreased during the same period from Rs. 18,258 crores to Rs. 17,445 crores, indicating a decline of nearly 4.5 percent YoY.
On a year-on-year basis, the Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA increased marginally from Rs. 41,906 crores in Q1 FY24 to Rs. 42,748 crores in Q1 FY25, registering a growth of 2 percent.
Stock Performance
Shares of Reliance Industries have delivered positive returns of nearly 24.5 percent in one year as well as around 0.7 percent in the last six months. So far in 2024, the stock has given about 16.5 percent of positive returns.
About the Company:
Reliance Industries Limited is engaged in activities spanning across hydrocarbon exploration and production, oil to chemicals, retail, digital services, advanced materials and composites, and renewables (solar and hydrogen), which are carried out either directly or through its subsidiaries and joint ventures with third parties.
Written by Shivani Singh
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