An excerpt from an article I recently read:
Profitability Metrics
RIL’s 5-year rolling CROICI dropped from 28.8% between 2016-2021 to -2.41% between 2017-2022 due to the cyclical working capital movement. Standalone CROICI between 2011-2022 came to 19.5% which significantly outperforms the consolidated figure during the same period. This huge discrepancy is mainly driven by the loss-making and cash-intensive ProConnect business and the recent slowdown in the profitability of the international business. I believe this gap will shorten as the international scene improves in the coming quarters. The cash return on incremental acquisition for the period between 2011 and 2022 comes to 30.32% which is commendable.
A detailed write up on Redington’s FY22 Performance. Read it if you are interested.
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