Sales for the the quarter ended June 30, 2000 is at Rs 6615 crore, an increase of 72 per cent over the same quarter in the previous year. But sales in Q4 of FY2000 was at Rs 6594 crore. But this is natural, as the company is moving towards full utilisation of capacity. Growth of full year FY2000 was 39.5 per cent higher than the previous year at Rs 20301 crore (Rs 14553 crore).

Annualised EPS based on the latest quarter works out to Rs 23 and CEPS works out to Rs 35.4. Where does Reliance Industries go from here. Gone is the phase when Reliance Industries relentlessly pursued asset expansion involving sizeable capital expenditure.

The capital expenditure in the current year is miniscule, compared to its past. Not only that the company would be able to get out of its debt in the next two years.

This is why I call this an year of consolidation. By itself it has positive connotations, not negative. Profit growth during the year will come through price realisation, whenever possible and modest additions to volume.Increasing cash flows from operations will be deployed according to Anil D. Ambani, managing director for the creation of world class assets, in existing businesses and the new infocom landscape with the objective of enhancing overall shareholder value.

The promoters of the company will hold an increasing share in the company equity. Taking their holdings in Indian ADR, time is not far off when they will control 51 per cent of the equity. As on 26/9/98, Foreign investors held 27.75 per cent, institutions a total of 17.33 per cent, company 29.95 per cent, promoters 1.79 per cent and public 22.9 per cent. Obviously, the promoters have increased their holdings. The price dip to Rs.200 inMarch 14 would have come as a golden opportunity to whoesoever who wanted to buy the scrip at an attractive price. The stock price after diving down to Rs 200 recovered very quickly to Rs 370 on April 10.Currently at Rs 353, the scrip is likely to be buoyed with potential buy back offers at Rs 303. In fact a buy back offer would be infructuous if the stock price continues to be significantly higher than the offer price. Looking forward, with a major chunk of holding by the promoters, the ability of other players in the market to move the price would become very limited, almost non-existent.On the positive side the following factors would favourably influence the stock price. With no sizeable capital expenditure, the earnings would be better. Earning would be influenced by global price level of products. Anil Ambani pointed out to this writer, that the company has been following a policy of providing its customers with a value proposition - its products are competitively priced to global prices.

In other words price realisation would be dictated by global trends. And product prices get adjusted with a small time lag to feedstock prices. The real value for shareholders comes as follows: Reliance Industries will be able to command much resource in terms of raising debt in the future.Debt can be raised for acquisition. Readers would recall that the company had expressed interest in acquiring a stake in IPCL; however nothing has been heard from the government since end of last year, Ambani pointed out. Reliance is making forays into other directions like telecommunication.

Value addition to Reliance Industries will come through these moves, as they fructify.

It must be said to the credit of the company that it is redrawing its strategies in the changed business environ. Its adaptability will certainly be recognised by fund managers.