Capex done, Mukesh Ambani's Reliance Industries on course to reap gains

Return ratio, which had dipped to 9% after the start of the capex cycle in 2013, is expected to improve to 14%

With capex (capital expenditure) on the telecom network roll-out and capacity additions in the energy vertical behind it, FY19 could see the start of the monetising cycle for Reliance Industries (RIL).

The company, which announced the launch of its wireline broadband services on Thursday, has invested over $35 billion in its telecom venture and $20 billion in the energy segment over the past five years. With capex slowing, telecom subscriber addition remaining high, energy margins moving to a higher level, analysts at Morgan Stanley say, average earnings growth is expected to be at 20 per cent over the next three