Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The market was closed on account of Independence day.

TOP STORIES

Oyo Marks Milestone with First-Ever Profit

What happened

Oyo has hit a major milestone by reporting its first-ever annual profit in FY24, raking in ₹229 crore after tax. This marks a significant turnaround for the hospitality giant, which has now recorded eight consecutive quarters of positive adjusted EBITDA. 

• The company’s revenue, however, saw a slight dip, clocking in at ₹5,388 crore, down 1.37% from the previous year. 
  
  
  

Why it matters

Oyo’s profit is a clear sign of the company’s strategic shift towards a leaner operation model. 

• The company's total costs dropped by 13% to ₹4,500 crore in FY24, thanks to reduced general and administrative expenses and optimised marketing spending.
  
  

•  Additionally, Oyo expanded its inventory significantly, growing from 12,938 hotels in FY23 to 18,103 in FY24. 
  
  

This expansion is part of Oyo's broader strategy to tap into rising demand and favourable market conditions, especially in key markets like Europe and Southeast Asia.

Conclusion

To top it all off, Ritesh Agarwal, Oyo’s mastermind, has just recently poured ₹830 crore into the company. Oyo’s debut profit isn’t just a financial high-five—it’s a shout-out to their savvy new strategies. With a laser focus on trimming costs and eyeing strategic expansions, the company is geared up to seize golden opportunities, especially in hot markets like Europe. 

PAISON KA KHEL

Railways call off ₹30,000 crore Vande Bharat deal over pricey bids

Indian Railways has pulled the brakes on its ₹30,000 crore tender for 100 Vande Bharat trains after finding Alstom India's bid a bit too high. Alstom, the lowest bidder, quoted ₹150.9 crore per train, while Railways wanted it at ₹140 crore—guess they were hoping for a "discount train." Only two bidders participated, making Railways hope a fresh tender will attract more players and better deals.

Bharti secures $1.8 billion to grab major BT stake

Bharti Group is making a bold move, securing a hefty $1.8 billion from Barclays to acquire a 24.5% stake in the UK's BT Group. This strategic purchase from BT's largest shareholder, Altice UK, has already driven BT's stock up by 10%, pushing its market cap to $18.55 billion. Bharti’s international arm is initially picking up 9.99% of the stake, with the remainder pending regulatory approval.

TOP STORIES

India's $600 Million Oil Standoff with Russia

What happened

India is in a bit of a pickle with Russia over oil from the Sakhalin-1 project. ONGC Videsh Ltd (OVL), which holds a 20% stake in this Russian oil and gas field, is eager to receive equity oil as per their original agreement. However, Russia, along with oil giant Rosneft PJSC, prefers to pay dividends instead. This disagreement comes at a time when Indian state-run firms are already waiting for $600 million in stuck dividends from other Russian oil ventures, including Vankorneft and Taas-Yuryakh.


Why it matters

This isn’t just a spat over oil; it’s a matter of energy security for India. The country imports over 87% of its oil needs and having direct access to equity oil from Sakhalin-1 would provide a much-needed cushion against volatile global markets.

• The original deal, which saw ONGC investing $331 million back in 2001, has already paid off handsomely, bringing in $4.5 billion. 
  

But with Russia now holding back on equity oil and instead offering dividends that are hard to transfer due to sanctions, India’s position is increasingly precarious. Add to this the fact that the stuck dividends are piling up and you’ve got a situation that’s as sticky as an overcooked batch of Biryani.

Final words

This standoff is causing ripples, especially as India, the world’s third-largest oil importer, navigates an increasingly tight energy market, thanks to production cuts by OPEC-plus.

For now, India continues to push for equity oil, while Russia stands firm on paying dividends. Both sides will need to find common ground, or India’s quest for energy security might hit a few more roadblocks. 

GLOBAL NAZARA

Apple's $1,000 robot promises to make your home smarter

Apple is cooking up something new—a $1,000 tabletop robot with an iPad-like display and a robotic arm that could make your home smarter than your smartphone. Dubbed "J595," this gizmo isn't just another pretty face; it’s a multitasker. Whether it's acting as a smart home hub, a videoconferencing tool, or a security watchdog, this bot does it all—with a spin. 

Expected to debut around 2026, it’ll use Siri and AI to take commands like “look at me” literally, spinning its screen toward you. Just don’t ask it to drive—it’s not that kind of robot!

Swan Energy to sell LNG terminal to Turkey’s Botas for $399 million

Swan Energy, a Mumbai-based company is set to sell its stake in a floating LNG terminal to Turkey’s state-owned Botas for $399 million. The deal, expected to close within six months, is pending shareholder and regulatory approval. The terminal, Vasant 1, is operated by Swan's subsidiary, Triumph Offshore Pvt, where Swan holds a 51% stake, while IFFCO controls the rest. It's unclear if IFFCO will also sell its shares.

Originally planned for 2019-20, the project faced delays due to COVID-19 and a cyclone. Currently, India has seven land-based LNG terminals, with five operating below capacity due to weak demand and pipeline issues.

TOP STORIES

Vedanta Cuts Stake in Hindustan Zinc to Raise Funds

What happened

Vedanta Ltd has decided to sell a 3.31% stake in Hindustan Zinc Ltd (HZL), which is expected to bring in over ₹8,000 crore. Initially, Vedanta planned to sell 2.6% of its stake, but after seeing positive market conditions, it bumped it up to 3.31%. The move will reduce Vedanta's stake in HZL from 64.92% to 61.61%. This decision is seen as a way for Vedanta to raise funds for debt repayment and capital expenditure (capex), which are critical for the company's financial stability.

Why it matters

This stake sale is a double-edged sword for Vedanta. On the one hand, it's a credit positive for Vedanta Resources Ltd (VRL), as the cash infusion will help pay down debt and fund ongoing projects. This could ease VRL's interest burden, which has been weighing heavily on the company's finances. 

However, there's a downside. HZL has been a cash cow for Vedanta, with its dividends forming a significant portion of the group's income. Selling off part of this asset means Vedanta will receive lower dividends in the future, which could impact its ability to service debt down the line.

The final take

Vedanta's decision to sell part of its golden goose, HZL, may have been driven by the recent rally in HZL's stock price, but it will also weaken future cash flows. In the end, the move might give Vedanta some breathing room in the short term, but it will need to find new ways to maintain financial health in the future.  

MIRCH MASALA

🏋️ Khalid Shaari's astonishing 542 kg weight loss journey
😵 What about driverless cars are driving US residents crazy?
⚠️ Discussing business over WhatsApp lands a $400 million penalty
👯 Watch: 63-year-old grandmother charms the internet with dance moves 
👶 Chinese couple reunites with son given away by grandmother after 37 years