Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: On Monday, BSE Sensex rose by 112 points to reach 72,776, while Nifty surged by 48 points to 22,104, anticipating domestic inflation data. Tata Motors and RIL saw a decline in their shares, contrasting with Nifty Bank's gain of 333 points to 47,754 and Nifty Midcap's rise of 203 points to 49,735.

BUSINESS

Zomato's Blinkit Expansion Drives Growth Amid Profit Milestone

What happened

Zomato Ltd, a prominent player in the food-delivery sector, has reported its first full-year profit and is now shifting its attention towards boosting its quick-commerce business, Blinkit. This move comes as Zomato aims to add approximately 100 Blinkit stores by June, with the quick-commerce segment witnessing a substantial increase in gross order value during the March quarter.

Why it matters

The surge in Blinkit's gross order value by 97% during the March quarter, along with a doubling of revenue to ₹769 crore from the previous year, highlights the growing significance of this segment within Zomato's ecosystem. The company is strategically focusing on expanding Blinkit's footprint to capitalize on the rising demand for instant delivery of daily essentials.

Zomato's CEO, Deepinder Goyal, expressed optimism about Blinkit's future growth potential, projecting it to outpace the core food-delivery business in the coming year. This strategic shift shows Zomato's adaptability and responsiveness to evolving market demand, particularly in the realm of quick-commerce services.

Zoom out

As Zomato celebrates its first full-year profit, its intensified focus on Blinkit signifies a strategic pivot towards leveraging the rapid growth opportunities in the quick-commerce space. With plans to ramp up Blinkit's presence to 1,000 warehouses by the end of the financial year and a strong performance in terms of revenue and order value, Zomato is positioning itself for sustained success in the online delivery services space.

BIG MONEY MOVES

Shriram Finance to sell Shriram Housing Finance for ₹4,630 crore

Shriram Finance has approved the sale of its housing finance arm, Shriram Housing Finance, to Warburg Pincus for ₹4,630 crore. This move follows a decision to unlock value in the subsidiary, with Warburg Pincus acquiring a controlling stake subject to regulatory approvals. The transaction includes equity and convertible instruments of SHFL. Shriram Finance, predominantly in commercial vehicle financing, sees this as an opportunity to maximize value creation and focus on its core segments. 

Piramal Alternatives invests ₹300 crore in Annapurna Finance

Piramal Alternatives, part of the Piramal Group, recently purchased a 9.85% stake in Annapurna Finance, a microlender based in Odisha, for ₹ 300 crore. This investment was made through secondary equity deals and the subscription of Tier-2 convertible bonds. The shares were bought from various existing investors, including Asian Development Bank and Sidbi Ventures. With this move, Piramal Alternatives has become one of the top three institutional shareholders in Annapurna Finance.

BUSINESS

Fuel Retailers Hit Jackpot with ₹81,000 Cr Profit 

What happened

State-owned fuel giants Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) have made headlines with a combined record profit of approximately ₹ 81,000 crore in FY24, surpassing their pre-oil crisis earnings by a significant margin.

This surge in profits marks a dramatic turnaround from previous years when these companies faced losses and challenges due to fluctuating oil prices.

Why it matters

In FY24, the three companies reported unprecedented profits, with IOC leading the pack with a standalone net profit of ₹ 39,618.84 crore, followed by BPCL at ₹ 26,673.50 crore and HPCL at ₹ 14,693.83 crore. These figures not only exceeded their previous year's earnings but also outperformed their pre-crisis profits.

The fuel price freeze, which began in April 2022 and continued until a reduction in March 2023, shielded consumers from price fluctuations while allowing the companies to stabilise their financial positions. This strategic approach, combined with timely adjustments in pricing and government interventions, underscores the resilience and adaptability of India's fuel retail sector in a challenging economic environment.

Zoom out

FY24 stands out as a landmark year for IOC, BPCL, and HPCL, marking a significant shift from losses to record profits. The strategic decisions, market dynamics, and government support mechanisms collectively contributed to this success, highlighting the resilience and profitability of India's fuel retailers despite the uncertainties in the global oil market. 

BIG PICTURE

🤝 Airtel and Google Cloud unite to transform cloud solutions

Bharti Airtel and Google Cloud have announced a long-term collaboration aimed at delivering cutting-edge cloud solutions to Indian businesses. This partnership will offer a range of advanced cloud solutions from Google Cloud to accelerate cloud adoption and modernization for Airtel's customer base of over 2,000 large enterprises and one million emerging businesses.

The collaboration also targets India's growing public cloud services market, which is projected to reach $17.8 billion by 2027.

🏏 IPL's ad boom: Viewership surges, advertisers thrive

The ongoing Indian Premier League (IPL) season has become a goldmine for advertisers, with record-breaking viewership numbers on both TV and digital platforms. The TV audience has surpassed 505 million for the first 51 matches, while digital viewership is on track to beat 450 million, already hitting 383 million in the initial 29 matches. Advertisers are capitalizing on this surge, leveraging flexible ad rates offered by broadcasters like Disney Star and Viacom18.

BUSINESS

Influencer Marketing in India: A ₹34 Billion Growth Story by 2026

What happened

India's influencer marketing industry is on a rapid growth trajectory, expected to surge to ₹34 billion by 2026 from ₹19 billion in 2023. This substantial increase is fueled by factors like widespread digitization, heightened internet accessibility, and robust social media engagement. Businesses are strategically leveraging platforms like Instagram, YouTube, Snapchat, and emerging niche platforms to harness the power of influencer-driven marketing strategies.

Why it matters

The exponential growth in influencer marketing signifies a paradigm shift in advertising dynamics. With dedicated budgets and collaborations with influencers, brands are tapping into their ability to create impactful content that resonates with specific audiences. This approach extends beyond macro influencers to include regional and micro-influencers, who are proving to be highly effective in driving brand awareness, engagement, and ultimately, sales.

The influencer marketing landscape is evolving, with brands now focusing on data-driven strategies. They evaluate influencers based on key metrics like audience demographics, engagement rates, and conversion rates. This shift to performance-based pay highlights the industry's focus on tangible results. 

Zoom out

Beyond Instagram and YouTube, niche platforms like Snapchat and Moj are becoming popular in the Indian market, especially among younger audiences. Pranav Agarwal, co-founder of SW Network, pointed out that Reddit and Discord are also gaining traction among gaming influencers and communities. Experts note a trend towards performance-based pay for influencers, giving smaller influencers a fair chance based on their results.

MIRCH MASALA

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😉 Jugaad at its best: Video shows two men moving a couch on an electric scooter
🏏 Former Indian international advocates Virat Kohli's return as RCB captain in sensational proposal