India’s largest conglomerate, Oil-to-telecom major Reliance Industries overtook IT major Tata Consultancy Services (TCS) on Tuesday to become India’s most valued firm in terms of market capitalization. This also comes less than a month after RIL breached the $100 billion market capitalisation mark after a decade.
According to the Bombay Stock Exchange (BSE) website, RIL’s market capitalization currently stands at around Rs 7.56 trillion, while TCS’ market cap is at $7.54 trillion. RIL surpassed TCS after its stock rose around 3% on the BSE on Tuesday to a record high of Rs 1,185.85. The shares of Reliance are currently trading at Rs 1,194.35.
Market capitalization is the total value of the company based on its current share price and the total number of outstanding stocks.
The surge in its stock price came after Reliance reported its highest-ever profit for the quarter in Q1 of FY19, which was driven by performance of its petrochemicals and consumer businesses.
RIL reported its numbers last week registering a quarterly net profit of Rs 9,459 crore for Q1, which is 17.9% higher than Rs 8,021 crore registered in Q1 last year. Revenue grew 56.5% to Rs 1.4 trillion as against Rs 90,537 crore in the corresponding previous quarter.
The petrochemical business reported a 35% year-on-year growth in volumes. Of its consolidate income of Rs 1,41,699 crore Rs 36,581 crore came in from its consumer business, which includes the retail, telecom and media businesses.
Its newest business, Reliance Jio, reported 19.9% increase in profit at Rs 612 crore, while clocking a revenue of Rs 8,109 crore.
At its AGM earlier this month, Reliance also announced the launch of fibre-to-home (FTH) services ‘Jio Giga Fiber’ and will reportedly invest Rs 500 billion to bring last-mile connectivity to 50 million homes over the next two to three years.
TCS, on the other hand, reported a profit of Rs 7,340 crore, which is a 24% increase over the same quarter last year and 16% increase in revenue to Rs 34,261 crore, driven by its banking, financial services and insurance and North American operations.