13-Feb-2024
2 mins read
In a momentous event for the Indian stock market, Reliance Industries Limited (RIL) has become the first listed Indian company to breach the Rs 20 lakh crore market capitalization mark. This achievement came after RIL shares climbed up to 1.89% to reach a new 52-week high of Rs 2957.80 on the Bombay Stock Exchange (BSE), underscoring the conglomerate’s dominant position in the market.
Swift Growth in Market Cap
The journey of RIL’s market capitalization has been nothing short of extraordinary. From hitting the Rs 1 lakh crore mark in August 2005, the company has shown rapid growth, reaching Rs 2 lakh crore by April 2007 and doubling that figure to Rs 4 lakh crore within the same year. After a period of steady growth, RIL hit the Rs 5 lakh crore mark in July 2017 and doubled its market value to Rs 10 lakh crore by November 2019. The latest surge in RIL shares added Rs 1 lakh crore to its market cap in approximately 15 days, catapulting it from Rs 19 lakh crore on January 29, 2024, to over Rs 20 lakh crore.
Impressive Quarterly Results
RIL’s financial performance in the third quarter of the 2023-24 fiscal year further highlights the company’s robust growth trajectory. The conglomerate reported gross revenue of Rs 248,160 crore ($29.8 billion), marking a 3.2% increase year-over-year. The consolidated EBITDA stood at Rs 44,678 crore ($5.4 billion), witnessing a significant rise of 16.7% from the previous year. Notably, the EBITDA from the Oil and Gas segment saw a substantial increase of 49.6% year-over-year, reaching Rs 5,804 crore ($697 million).
Diverse Business Performance
The diversity of RIL’s business units has been a key factor in its success. The Retail segment’s EBITDA grew by 31.1% year-over-year to Rs 6,258 crore, while JIO Platforms reported an 11.5% increase in its quarterly EBITDA, reaching Rs 13,955 crore. Despite the challenges of higher loan balances and interest rates leading to an 11.3% increase in finance costs, RIL managed to improve its profit after tax by 10.9% year-over-year, showcasing the company’s operational efficiency and strategic focus.