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Financial Comparison RIL TCS

This report compares the financial health of Reliance Industries and Tata Consultancy Services for FY 2024–25, analyzing key ratios in profitability, liquidity, solvency, efficiency, and market valuation. TCS outperforms Reliance in most categories, particularly in profitability and liquidity, due to its service-oriented business model. While Reliance is financially strong, it faces challenges from its capital-intensive operations, leading to lower margins and higher leverage.

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15 views3 pages

Financial Comparison RIL TCS

This report compares the financial health of Reliance Industries and Tata Consultancy Services for FY 2024–25, analyzing key ratios in profitability, liquidity, solvency, efficiency, and market valuation. TCS outperforms Reliance in most categories, particularly in profitability and liquidity, due to its service-oriented business model. While Reliance is financially strong, it faces challenges from its capital-intensive operations, leading to lower margins and higher leverage.

Uploaded by

idhantmehta
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Financial Health Comparison: Reliance Industries v/s TCS

(Based on Standalone FS: FY 2024–25)

Introduction

This report provides a comparative analysis of the financial health of Reliance Industries Limited
(RIL) and Tata Consultancy Services (TCS) for FY 2024–25, based on their standalone financial
statements.

Five key ratio categories—profitability, liquidity, solvency, efficiency, and market valuation—have
been evaluated to understand the financial strengths of both companies.

Financial Data (FY 2024–25)

Reliance Industries

• Revenue: ■6,80,000 crore

• Profit after tax: ■79,600 crore

• Total assets: ■12,30,000 crore

• Shareholder’s equity: ■5,25,000 crore

• Current assets: ■2,45,000 crore

• Current liabilities: ■1,65,000 crore

• Inventory: ■93,800 crore

• Interest expense: ■18,600 crore

• Number of shares: 676 crore

TCS

• Revenue: ■2,40,000 crore

• Profit after tax: ■47,800 crore

• Total assets: ■1,15,000 crore

• Shareholder’s equity: ■95,800 crore

• Current assets: ■71,900 crore

• Current liabilities: ■30,400 crore

• Inventory: ■0 crore

• Interest expense: ■210 crore

• Number of shares: 366 crore

Profitability Ratios
Net Profit Margin

• Reliance Industries: 11.7%

• TCS: 19.9%

Return on Equity (ROE)

• Reliance Industries: 15.2%

• TCS: 49.9%

Liquidity Ratios

Current Ratio

• Reliance Industries: 1.48

• TCS: 2.36

Quick Ratio

• Reliance Industries: 0.88

• TCS: 2.36

Solvency / Leverage Ratios

Debt to Equity Ratio

• Reliance Industries: 0.58

• TCS: 0.00

Interest Coverage Ratio

• Reliance Industries: 6.3

• TCS: 227

Efficiency Ratios

Asset Turnover Ratio

• Reliance Industries: 0.55

• TCS: 2.08

Inventory Turnover Ratio

• Reliance Industries: 7.3

• TCS: N/A

Market Ratios

Earnings per Share (EPS)


• Reliance Industries: ■117.7

• TCS: ■130.6

Price to Earnings Ratio (P/E)

• Reliance Industries: 21.4

• TCS: 29.5

Conclusion

TCS demonstrates superior performance across profitability, liquidity, solvency, and efficiency
ratios due to its service-oriented, asset-light business structure.

Reliance, while financially strong, operates in highly capital-intensive industries, resulting in lower
margins and higher leverage.

Both firms remain leaders in their sectors, but their financial profiles differ due to the nature of their
business models.

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