(LiveMint)
The Mukesh Ambani-led Reliance Industries Ltd (RIL) today become the first Indian company to cross ₹ 8 trillion market capitalization after its shares surged nearly 38% this year. RIL share prices rose 1.86% to close at a record high of Rs 1,269.70 on BSE, pegging its market cap at ₹ 8.05 trillion after data from the Telecom Regulatory Authority of India (Trai) showed Reliance Jio continued to add subscribers at a healthy pace. India’s benchmark Sensex Index rose 0.13% to 38,336.76 points.
Investors continued to buy RIL shares on expectation of additional revenue from Reliance Jio Giga Fiber, the telecom firm’s broadband service, and Jio Phone 2. A higher subscription base and attractive tariff plans are also seen as bolstering margins. Analysts also expect strong earnings growth momentum, courtesy the newly commissioned refinery off-gas cracker and ramp-up of RIL’s petcoke gasification project. RIL’s June quarter results, which showed gradual improvement in the telecom and retail financials, also cheered investors.
In July, Reliance Jio reported a profit of ₹ 612 crore for the June quarter, a 19.9% rise on a sequential basis, on revenue of ₹ 8,109 crore from its operations. Reliance Jio had reported a net profit of ₹ 510 crore on revenue of ₹ 7,128 crore during the March quarter. Organized retail reported a 123.7% rise in revenue, at ₹ 25,890 crore for the quarter, backed by rapid store expansion.
