Reliance Industries Ltd (RIL) share closed higher ahead of Q2 earnings set to be announced after market hours today. Reliance Industries share price closed 1.37% or 19.15 points higher at Rs 1,415.30 compared to the previous close of Rs 1,396.15 on BSE.
Market capitalisation of the firm stood at Rs 8.97 lakh crore at close. During the day, the Mukesh Ambani-led conglomerate became the first firm in India to cross the Rs 9-lakh crore market capitalisation mark. The conglomerate was also the first to reach Rs 8 lakh crore market cap mark in August last year.
Reliance Industries' market capitalisation rose to Rs 9.03 lakh crore after the stock reached Rs 1,428, a fresh 52-week high. Reliance Industries share rose 2.28% intra day to Rs 1,428 compared to the previous close of Rs 1,396.15 on BSE. The large cap stock opened at Rs 1,403.10. The stock has gained 4.69% in last five sessions.
Reliance Industries share closed higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. RIL share has gained 23.23% during the last one year and gained 26.29% since the beginning of this year. Its closest competitor TCS clocked a market capitalisation of Rs 7.71 lakh crore in trade today. The IT stock closed 1.31% or 26.65 points higher at Rs 2057.35 on BSE.
Expectations are high from the conglomerate's Q2 earnings today. The country's largest company by market cap is expected to post a 17 per cent jump in its consolidated net profit to Rs 11,158 crore for Q2FY20 as per Bloomberg consensus estimates, fuelled by higher growth in the consumer-focused segments and a recovery in the refinery business.
RIL had reported net profit of Rs 9,516 crore in the same period last year. In fact, the company has outperformed the Bloomberg estimates on this front by a margin of 3-21 per cent in seven of the past 10 quarters.
Its standalone profit is expected to increase 11.3 per cent to Rs 9,863 crore, the highest in six quarters, The Economic Times reported.
In the first quarter of the current fiscal, Reliance Industries posted a 6.8 per cent rise net profit as the share of its consumer businesses of retail and telecom saw a steady rise. The oil-to-telecom conglomerate reported a net profit of Rs 10,104 crore, or Rs 17.05 per share, in April-June, up from Rs 9,459 crore, or Rs 15.9 a share, in the same period of the previous financial year, the company said in a statement.
While the profit rose year-on-year, it was lower than the highest ever earning of Rs 10,362 crore in the preceding January-March period. Standalone net profit of Rs 9,036 crore, up 2.4 per cent over the previous year, was a record. It clocked a record consolidated revenue of Rs 1,72,956 crore in Q1 on the back of robust retail sales.
By Aseem Thapliyal