RIL shares jumped nearly 5% to hit the all-time high on Monday after the Mukesh Ambani firm posted the biggest ever quarterly net profit with Reliance Jio turning profitable.
RIL shares jumped nearly 5% to hit the all-time high on Monday after the Mukesh Ambani firm posted the biggest ever quarterly net profit with Reliance Jio turning profitable. Shares of the market capitalisation leader Reliance Industries surged nearly 5% to a lifetime high of Rs 974.5 after opening up 2% at Rs 948.5 in the early trades. The oil-to-telecom conglomerate Reliance Industries posted its highest quarterly net profit of Rs 9,423 crore on record earnings from petrochemical business and the telecom company Reliance Jio logging its first-ever profit. RIL reported a rise of 25.1% in the consolidated net profit to Rs 9,423 crore in October-December period of the financial year 2017-2018 as compared to Rs 7,533 crore in the corresponding quarter in the year-ago period.
The newest telecom company Reliance Jio backed by India’s richest person Mukesh Ambani turned profitable in the third quarter of the financial year 2017-2018. Reliance Jio Infocomm Ltd reported its first-ever net profit of Rs 504 crore for the three-month period from October-December 2017, its second quarter of the commercial operations. In the July-September quarter of 2017-2018, Reliance Jio incurred a loss of Rs 271 crore. Reliance Jio’s total subscriber base stood at 16.01 crore as on 31 December 2017.
Following the earnings booster, shares of RIL topped Sensex rising as much as 4.85% to the lifetime high of Rs 974.5 while the stock zoomed 4.6% to hit a record high of Rs 974.15 on NSE. Following a sharp spike in the share prices of Reliance Industries, RIL added as much as Rs 28,979.43 crore to the market capitalisation at Rs 6,17,622.24 crore at the all-time high price of Rs 974.5 from Rs 5,88,642.81 according to Friday’s closing. A heavy trading volume was witnessed in the shares of Reliance Industries, as at 12:55, more than 1.6 crore share exchanged hands on both NSE and BSE with about 1.45 crore shares on NSE alone.
“Jio’s strong financial result reflects the fundamental strength of the business, significant efficiencies and right strategic initiatives. Jio has demonstrated that it can sustain its strong financial performance,” said Mukesh Dhirubhai Ambani, Chairman and Managing Director, Reliance Industries Ltd.
“I am happy to share record-setting consolidated quarterly earnings to mark the 40th anniversary of Reliance’s listing in January 1978. Fittingly, this quarter marks the culmination of our petrochemical expansion projects and the first positive net profit contribution from our newest business line – Digital Services,” Mukesh Ambani added.
Mukesh Ambani forayed into telecom business with his flagship company Reliance Jio in a highly-competitive telecom sector in September 2016 with a six-month promotional offer of free voice and data, a strategy that helped it mobilise millions of users.