Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Indian equity markets underperformed globally, with Sensex and Nifty dropping ~2% this week. Midcap and Smallcap indices fell 5%, and major sectors like Capital Goods, Power, and Realty saw losses over 5%.

TOP STORIES

How TCS is Building Its Empire (And Margins!)

What Happened

TCS, the IT giant known for its scale and ambition, is gearing up to expand profit margins as its ₹15,000-crore BSNL project gradually winds down. This 4G rollout, which helped BSNL catch up in the smartphone era (while the rest of us already dream of 6G), will taper off by September FY26.

On the real estate front, TCS has acquired ₹1,625 crore land plots in Bengaluru’s Whitefield area to build a 25,000-seat IT hub. The city, already home to 70,000 TCS employees, is about to get busier with the planned expansion, making Whitefield’s coffee shops and chai stalls the real winners here.

Why It Matters

The BSNL project’s contribution to TCS’s revenue was no small feat, and its gradual reduction might raise eyebrows. However, the company is confident it can balance the equation by diversifying revenues across other markets.

Currency fluctuations also play a role in TCS’s financial story. While the rupee’s depreciation against the dollar adds a bit of a cushion, gains are offset by the rupee’s tango with other global currencies. Fortunately, TCS’s active hedging strategy ensures no major surprises from these wild financial mood swings.

Zoom out

As TCS prepares for the tapering of its ₹15,000-crore BSNL contract, the company is charting a clear path forward: diversifying its revenue streams, boosting margins, and investing heavily in infrastructure. 

• With a solid 24.5% operating profit margin in the December quarter, TCS is now setting its sights on the ambitious 26-28% range.

PAISON KA KHEL

HUL scoops out a new chapter

Hindustan Unilever Limited (HUL) is serving up a major shake-up! The FMCG giant has spun off its ice cream division into a new subsidiary, Kwality Wall’s (India) Ltd (KWIL). Approved in November 2024, this move gives iconic brands like Cornetto and Magnum their own spotlight. Shareholders will also get shares in the new entity—a sweet deal, right?

The big split comes after experts flagged the ice cream business’s unique cold chain and market needs. With ₹59,579 crore in revenue last year, HUL is clearly in a “chill” league of its own. 

SNB profits soar, payouts return after 3 years

The Swiss National Bank (SNB) ended its 2024 on a golden note, bagging 80 billion francs ($88 billion) in profits. Thanks to hefty gains from foreign reserves (67 billion francs) and a gold windfall, the bank will finally share the love—3 billion francs to the government and cantons, and a 15-franc dividend per share for private investors.

It’s been three years since SNB’s last payout, so the timing is perfect… unless you’re Donald Trump. With his return looming, Switzerland might face another “currency manipulator” label.

TOP STORIES

Indian Railways All Set for Maha Kumbh 

What Happened

Indian Railways is ready for the 2025 Maha Kumbh Mela in Prayagraj. To handle the staggering 40 crore devotees expected, it’s deploying 13,000 train services, including 3,134 special trains—a whopping 4.5 times more than the 2019 Ardh Kumbh. This includes 1,869 short-distance trains, 706 long-haul services, and the star of the show, 559 ring trains designed for super-short journeys.

With ₹5,000 crore spent on upgrades, key routes like Banaras-Prayagraj now boast doubled tracks, bridges, and enough capacity to handle even the most determined last-minute pilgrims.

Why It Matters

Managing the world’s largest peaceful gathering isn’t just a logistical challenge—it’s practically a miracle on wheels. The ring trains, a first for Kumbh, will tackle local congestion while letting lakhs of devotees zip around like pros. 

Plus, a ₹3,700 crore track upgrade is also here. It’s a long-term investment aimed at keeping these sacred routes modern and efficient for years to come. Hmm, I can hear Railways saying, “We’ve got your back—and your track!”

The bigger picture

IRCTC’s impressive numbers make it a clear market leader in the railway e-ticketing and catering space, commanding an 80% direct market share. 

• With a 30% free cash flow margin, 30% return on capital, and minimal capital expenditure, it’s no surprise investors are flocking to the stock. 
  
  

• Add to this the steady revenue stream from fixed commissions per ticket and a 20% indirect share from third-party travel agents, and IRCTC looks set to steam ahead.

GLOBAL NAZARA

Oil sanctions rock the boat for India and China

New U.S. sanctions on Russian oil producers and 183 vessels have thrown a wrench in Moscow’s supply to its biggest buyers, India and China. The sanctions target tankers responsible for moving 530 million barrels of Russian crude last year, nearly 42% of its seaborne exports.

For China and India, this means swapping Russian barrels for oil from the Middle East, Africa, and the Americas, causing freight rates and oil prices to climb. While China imported 2.159 million barrels per day (bpd) of Russian crude last year, India’s intake hit 1.764 million bpd.

IMF’s startling forecast for 2025 global economy

The IMF is predicting steady global growth for 2025, but it comes with a few challenges. While the U.S. economy is performing better than expected and inflation is moving closer to the target, trade policy uncertainties are adding some twists to the global landscape.

In Europe, growth is expected to stall. India, on the other hand, may experience a slight slowdown. Meanwhile, Brazil is grappling with rising inflation, and China is facing deflationary pressures.

TOP STORIES

Jio Star Goes All In for Cricket’s Top Events

What Happened

Jio Star is betting big—like really big—on cricket to fuel its ad revenue, setting its sights on a massive ₹6,000 crore across both TV and digital platforms. 

• The breakdown goes like this: ₹1,500 crore from the ICC Champions Trophy and ₹4,500 crore from the IPL. 

The rate cards are out for the Champions Trophy, and IPL’s pricing is just around the corner. The Champions Trophy will run from February 19 to March 9, while IPL 2025 will swing into action from March 23 to May 25. 

Why It Matters

Why all this buzz, you ask? Because Jio Star isn’t just throwing darts in the dark. They’re targeting cricket fans who spend more time glued to their screens than some of us spend in a week of Zoom meetings. 

• For instance, for the Champions Trophy, Jio Star is charging ₹28 lakh for a 10-second spot during India matches (that’s right, ₹28 lakh!). 
  

• If you’re more into the digital realm, prices are equally spicy—₹55 crore for a co-presenting sponsor, ₹45 crore for “powered-by” deals, and ₹25 crore for associate sponsors. 

Final Words 

You might be thinking, “Wait, isn’t the ad market facing a slowdown?” Well, yes, but Jio Star is banking on the booming financial and automotive sectors to make up for the lag in FMCG spending.

Jio Star’s ₹6,000 crore target may sound like a lot, but cricket is a goldmine that few can resist. The ad sales team at Jio Star is already negotiating deals, with Champions Trophy spots getting priority. 

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