Diversified industrial conglomerate Reliance Industries (RIL) on Monday attained a market capitalisation of more than Rs 5 lakh crore, becoming the second Indian corporate entity after Tata Consultancy Services (TCS) to achieve this landmark. The market capitalisation of Tata Consultancy Services (TCS) on Monday was Rs 4.72 lakh crore.
According to Motilal Oswal, mobile broadband industry remains steady which has been led by RJio with market share of 43%. “MBB subscribers increased steadily by 7.4 million to reach 273 million. RJio continues to drive industry MBB subscription, contributing 65% of overall ads,” added Motilal Oswal. The market capitalisation of Reliance Industries was `5.04 lakh crore on Monday, the highest m-Cap in its lifetime. The company is currently the most valued company on the bourses.
TCS had achieved this milestone three years back in July 2014. Later in November 2014, the market capitalisation of TCS surged to 5.43 lakh crore. Analysts expect announcements regarding RIL’s low priced 4G feature phone. With regard to RIL’s refining business, one of the key drivers for its profitability over the last two years has been discounts on heavier crudes. JPMorgan forecasts consolidated.
Among major expansions, all eyes are on the company’s refinery off-gas cracker (ROGC) commissioning at Jamnagar. In a letter to shareholders, company chairman Mukesh Ambani said that “we are in the process of starting up the ROGC in the world along with related downstream capacities.
This is a pioneering initiative and a unique opportunity available at Jamnagar due to the scale of our refinery operations”. The cracker is tightly integrated with the company’s refineries and will use refinery off-gases as feedstock. This cracker will be among the lowest-cost operations globally. The benefits to profitability clearly will be strong.