RIL market cap touches Rs 8 lakh crore

RIL market cap touches Rs 8 lakh crore

Courtesy : Mumbai bureau25/08/2018 08:41

Mukesh Ambani's Reliance Industries has registered another achievement under its name. On Thursday, RIL's market cap touched Rs 8 lakh crore for the first time ever.  At 1:45 pm, a share of RIL traded at Rs 1,262.50, with a gain of Rs 16 or 1.28 per cent. With this, Reliance Industries' market cap was Rs 8,00,128.29 crore, according to the stock exchange data. 

Analysts expect to grow it further. In July, Reliance Jio reported a 19.9% growth in net profit at Rs 612 crore for April-June 2018 over the previous quarter, and said its strong first quarter performance is "despite competitive intensity".The company had registered a net profit of Rs 510 crore in the January-March 2018, Reliance Jio said in a statement.

The Rilance Industries' telecom arm had posted a loss of Rs 21.27 crore in the quarter ended June 2017. Reliance Jio's revenue from operations came in at Rs 8,109 crore in the June quarter, up nearly 14% from the fourth quarter of FY'18. Its subscriber base was at 215.3 million at the end of June.

 "Jio continues on its path to drive digital revolution in India. We doubled our customer base and most user metrics in the last 12 months. 215 million customers within 22 months of start is a record that no technology company has been able to achieve anywhere in the world," Reliance Industries Chairman and Managing Director Ambani had then said. He added that the "continued strength in financial results of Jio despite competitive intensity reinforces the customer uptake of its services and its strong operating leverage".

 Jio's average revenue per user (ARPU), a key metrics for telecom companies, was at Rs 134.5 per month.  The company said it had added 28.7 million users (net basis) in the reported quarter, the highest in any quarter since the launch of its commercial services.  On gross basis, the company had added 30.5 million subscribers with a churn of 1.8 million, it said.

 The average data consumption per user per month on Jio's network was 10.6 GB, while average voice consumption was at 744 minutes per user a month. Reliance Jio said its strong financial performance reflects "robust business fundamentals" and is "despite competitive pressures".  The earnings were bolstered by growth in subscriber additions as well as much higher data usage, it added.  The strong Q1 score card of Reliance Jio comes in sharp contrast to the performance of its rivals, with whom the deep-pocketed Reliance Group company has pitched a sustained and relentless price war.

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