Mumbai: 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 37% this year. RIL share prices rose 1.31% to hit a record high of 1,262.50 today, pegging its market cap at 8.01 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 was up 0.09% to 38,315.92 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.
According to Trai data, Reliance Jio added 9.71 million users in June, taking its subscriber base well past 215 million. It also recorded market share gain to 18.78% from 18.7% a month ago.
“Jio continued to show strong subscriber momentum, in line with our expectation. However, flattish sequential ARPU despite cashback offers and changes to prime membership are surprises. The focus remains on on boarding more subscribers and driving engagement; price increase appears less of a focus for now,” an analyst said on condition of anonymity.