S&P and Fitch anticipate rising RIL profits
Global rating agencies S&P and Fitch have given Reliance Industries Ltd (RIL) a vote of confidence because of the company’s strong fiscal year-ending profits, which backed its expansion goals and restrained debt.
In distinct remarks, S&P Global Ratings and Fitch Ratings discussed how their EBITDA, or roughly translated pre-tax profit, will increase in the current and next fiscal years due to increased sales and prior investments.
“As the business pursues its expansion goals, leverage will be restrained thanks to Reliance Industries Ltd.’s (RIL) solid profitability. In a note, S&P said, “We anticipate that the company’s debt-to-EBITDA ratio will continue to be consistent with the rating (BBB+/Stable/–).
The expansion goals of the oil, telecom, and retail conglomerate are still intact, it said, adding that in recent months, the firm has increased its investments in the media sector. For a media joint venture in which RIL would spend Rs11,500 crore, it inked into legally binding final agreements with The Walt Disney Co. in 2024. After that, the business decided to pay around Rs4,300 crore to purchase Paramount Global’s 13.01 percent share in the regional entertainment network Viacom18 Media Pte Ltd.
The rating agency said, “These investments are in line with RIL’s strategy to diversify and have a strong presence in a few key industries.”
Additionally, in 2024, the government gave the corporation permission to exploit the gas deposits in the Bay of Bengal’s KG-D6 block. This may result in a 13–17% increase in the company’s gas production capacity.
