RIL becomes first firm to breach ₹20 lakh crore market cap: 5 key facts about Mukesh Ambani-led company

Mukesh Ambani-led Reliance Industries Limited (RIL) became the first Indian company to breach the ₹20 lakh crore market capitalisation milestone on Tuesday as its shares hit all-time high.

RIL shares gained as much as 1.88% to hit a record high of ₹2,957.8 apiece on BSE in intraday trade on Tuesday. The stock closed at ₹2,829.85 apiece, up 0.9% on BSE.

The diversified conglomerate has seen its stock price going up nearly 14% so far this year. Reliance Industries has added nearly ₹1 lakh crore to its market capitalisation in less than two weeks since breaching the ₹19 lakh crore mark on January 29, 2024.

The consolidation in RIL's stock prices has been fuelled by the company's strong performance in the quarter ending December 31, 2023 (Q3FY24).

The company's net profit for the quarter ending in December 2023 stood at ₹19,641 crore, registering an 11% surge compared to ₹17,706 crore in the year-ago period.

The conglomerate's gross revenue in the third quarter of FY2023 jumped 3.2% year-on-year (YoY) to ₹2,48,160 crore, led by continued growth momentum in consumer businesses. The gross revenue spike for RIL was led by the company's gains in the retail, and oil and gas segments.

With RIL reaching another historic milestone, here's a look at five key factors about the diversified conglomerate led by billionaire Mukesh Ambani.

1. RIL surpassed ₹1 lakh crore market cap in 2005

The market capitalisation of Reliance Industries has doubled in the last five years since it hit the ₹10 lakh crore mark in November 2019. The company has made remarkable progress as its market capitalisation swelled by ₹19 lakh crore so far, since it breached the ₹1 lakh crore milestone in 2005. The company surpassed the ₹4 lakh crore market capitalisation in October 2007. However, it took nearly a decade to reach the ₹5 lakh crore milestone. It surpassed ₹5 lakh crore mark in market cap in July 2017.

2. RIL growth and expansion

Founded by Dhirubhai Ambani in 1957, Reliance started its journey with yarn trading businesses in Mumbai. In 1973, Reliance Textile Industries was established, marking a significant milestone in the company's journey. Reliance Textile's IPO in 1977 shattered many records and was oversubscribed 7 times. Reliance forayed into the petrochemicals segment in 1980 and there has not been any looking back since then.

Over the years, RIL diversified into other sectors such as petrochemicals and refining, renewable energy, retail, media, financial services and telecommunication. The company announced a demerger of its financial services business in 2023.

Reliance disrupted the telecommunication space in India with the launch of Jio in 2016. The new entity expanded its market presence quickly, establishing itself as the 2nd largest single-country operator in the world.

3. RIL share holding

Reliance Industries Limited's promoters include the Ambani family led by Mukesh Ambani, who holds a majority of 50.3% stake in the company, as of December 2023. Of the remaining shares, over 22% stake is held by foreign institutional investors (FIIs) and 11.97% stake is with retail and other investors. Other domestic institutions hold 8.64% shares of RIL whereas mutual funds account for 6.97% stake.

4. Reliance Industries revenue in FY 2023

In FY 2023, Reliance Industries Limited reported a consolidated revenue of ₹9,74,864 crore, up 23.6% year-on-year compared to ₹7,88,743 crore in FY 2021-22.

5. Reliance Industries net profit in FY 2023

The company's net profit shot up to ₹73,670 crore in FY 2023, marking an 11.3% year-on-year growth. Its EBITDA (earnings before interest, taxes, depreciation, and amortisation) stood at ₹1,53,920 crore in FY23, marking nearly 25% rise from the previous financial year.