Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: On Thursday, the stock market saw a significant decline. BSE Sensex dropped 1062 points to close at 72404, while NSE Nifty fell by 345 points to 21957, leading to a ₹5 lakh crore reduction in investors' wealth.

BUSINESS

India's Smartphone Market Hits All-Time High in Q1

What happened

The Indian smartphone industry saw a remarkable surge in the first quarter of 2024, driven by the rise of budget-friendly 5G devices. In Q1 2024, India's smartphone shipments surged by 8% in volume and 18% in value compared to the previous year, marking a historic high. Notably, 5G handset shipments skyrocketed by 70%, largely due to their affordability in the ₹10,000-15,000 price range, experiencing a staggering 400% year-on-year growth.

Why it matters

This surge in smartphone shipments highlights a significant shift in consumer preferences towards technologically advanced yet budget-friendly options. 

• Vivo's ascension as the market leader with a 19% volume share underscores the competitive landscape, while Samsung's revenue leadership reflects higher average selling prices. 
  

• Xiaomi also maintained a strong position, with a notable 28% volume increase. 

Despite challenges like reduced foot traffic and cautious spending, the market's resilience showcases the importance of innovative strategies by smartphone brands.

Zoom out

The premium segment, constituting 20% of total volumes and 51% of revenue, signifies a notable shift towards high-value smartphones. This trend of "premiumisation" is set to continue, with consumers increasingly open to upgrading to premium segments. In an increasingly competitive market, brands that can blend affordability, cutting-edge technology like 5G, and seamless user experiences are poised for success

BIG MONEY MOVES

Road construction boom drives decade-high bitumen sales in India

Bitumen sales soared to a 10-year high in FY24, reaching 8.8 million metric tonnes (MMT), driven by intensified road construction activities. The Ministry of Road Transport and Highways (MoRTH) completed 12,349 km of national highways, a significant increase from the previous year's 10,331 km. India's bitumen imports totalled $1.3 billion, reflecting a notable 8% rise.

Bitumen, constituting about 4% of total refined product consumption, witnessed a steady growth trend, aligning with increased road development efforts. Western India emerged as the largest bitumen consumer, underscoring its pivotal role in infrastructure expansion.

PNB's Q4 earnings triple, surging to ₹3,010 crore

Punjab National Bank (PNB) has hit a home run in its latest financial results, reporting a massive three-fold profit increase to ₹3,010 crore for the fourth quarter. This impressive jump was fueled by stronger earnings from its core operations and a drop in bad loans.

PNB's interest income also saw a notable boost, reaching ₹28,113 crore compared to last year's quarter. Overall, the bank's total income climbed to ₹32,361 crore, marking a significant uptick in its financial performance.

BUSINESS

India Surpasses Japan to Claim Global Solar Power Leadership

What happened

India's dynamic surge in solar energy deployment catapulted it past Japan in 2023, securing the title of the world's third-largest solar power generator. This remarkable achievement reflects India's strategic focus on clean energy, aligning with global efforts to combat climate change and meet escalating electricity demands sustainably.

Why it matters

India's rise in solar power generation is not just a numerical milestone but a strategic shift towards cleaner and greener electricity.

•  In 2023, solar power accounted for a record 5.5% of global electricity production, with India contributing significantly at 5.8%. 
  

• This transition is crucial for reducing carbon emissions, meeting climate goals, and ensuring a resilient energy future.
  

• India witnessed the world's fourth-largest increase in solar generation in 2023, adding 18 terawatt hours (TWh) of solar power. 
  

• This growth, alongside other top solar growth countries like China, the United States, and Brazil, accounted for 75% of the global solar growth.

Ember's Asia Programme director, Aditya Lolla, emphasized that the push for clean electricity is not only about carbon emissions reduction but also about meeting rising energy demands in an electrified economy. Solar energy's status as the world's fastest-growing electricity source, outpacing coal, underscores its importance in the global energy landscape.

Zoom out

India's achievement in solar power generation signifies a significant stride towards sustainable energy practices. With a commitment to triple renewable capacity by 2030 and global efforts to triple global renewable energy capacity, the momentum towards clean energy is palpable.

Accelerating the adoption of renewable energy sources is imperative for India to meet its developmental and climate goals while contributing substantially to global sustainability efforts.

BIG PICTURE

🚗 Toyota's record net profit soars beyond $30 billion

Toyota, the world's largest automaker, celebrated a milestone with a record annual net profit exceeding $30 billion. Fueled by a weak yen and robust hybrid vehicle sales, the company's net profit doubled to ¥4.94 trillion ($31.9 billion) in the fiscal year to March, with revenues hitting an all-time high of ¥45.1 trillion, up 21.4%.

Chief Financial Officer Yoichi Miyazaki credited Toyota's commitment to carbon neutrality and hybrid cars for this success. Despite forecasting a 27.8% dip in net profit for the current year due to investments in electric and hydrogen cars, Toyota remains focused on innovation and growth in the competitive auto industry.

📶 Airtel Africa reports $104 million loss in Jan-March quarter

Airtel Africa, a subsidiary of Bharti Airtel, reported a loss of $104 million in the January-March quarter, a stark contrast to the $195 million profit in the same period last year. The increase in loss was primarily due to foreign exchange losses resulting from the devaluation of currencies in Nigeria and Malawi. Revenue from operations fell by 9.7% sequentially to $1.1 billion, contributing to a 17% year-on-year decline due to currency devaluation challenges.

Despite these challenges, Airtel Africa remains focused on growth opportunities, evident from adding 1.5 million subscribers during the quarter, totalling 152.7 million users by March.

BUSINESS

UPI Service Providers Rally for Profitable Transactions

What happened

In a bid to make transactions more lucrative and encourage investments from smaller players, payment service providers within the United Payment Interface (UPI) ecosystem have urged regulatory intervention.

This appeal came during a closed-door meeting with top officials from the Reserve Bank of India (RBI), including Governor Shaktikanta Das representatives from various entities such as the National Payment Corporation of India (NPCI), banks, third-party application providers, and technology service providers were also present at the meeting.

Why it matters

The dominance of major players like Google Pay, holding 47% market share, and PhonePe, with a significant 37% share, highlights the competition that smaller players face.

The UPI ecosystem's current duopoly underscores the challenges faced by smaller service providers. Despite incurring customer acquisition costs, small providers are not imposing fees on customers, making it financially challenging for them. Their proposal to the banking regulator includes permitting a transaction fee on larger shops to establish a revenue model essential for operational expansion.

During the meeting, discussions also revolved around enhancing accessibility for senior citizens using UPI services, highlighting the need for inclusivity and user-friendly interfaces.

Zoom out

The meeting's focus on widening UPI adoption and usage, along with strategies for scaling up infrastructure and expanding product portfolios, reflects the industry's efforts to innovate and address challenges. The RBI's interest in seeking innovative ideas from UPI players indicates a collaborative approach to integrating more users into the digital payment ecosystem.

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