Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The domestic market saw a downturn due to a mixed global trend and partial profit-booking, despite declining crude prices benefiting the economy. Market volatility persisted, with indices closing slightly lower, extending their corrective phase after an initial rise.

TOP STORIES

Jio Continues to Dominate the Telecom Market

What Happened

Reliance Jio Infocomm recently reported its second-quarter results beating analysts' expectations. 

• The telecom giant recorded a consolidated net profit of ₹6,539 crore, reflecting a 14.76% quarter-on-quarter increase and a substantial 23.4% rise year-on-year. 
  

Consolidated revenue from operations also rose 7.67% to ₹31,709 crore, with an impressive 18% year-on-year growth. Meanwhile, average revenue per user (ARPU) jumped to ₹195.1, a 7.4% increase after three quarters of flatlining.

Why It Matters

The substantial increase in Jio's net profit and revenue is largely attributed to its strategic tariff hikes, which are expected to provide a sustained boost to earnings over the next several quarters. 

Mukesh Ambani, chairman of Reliance Industries, noted that the growth in digital services and improved customer engagement metrics reflect Jio's strong service value. The launch of JioAirFiber, which delivers broadband-like speeds without fiber connectivity, further strengthens Jio's position in the competitive telecom market. Moreover, Jio's ability to manage about 45 exabytes of data on its network is a testament to its scale and efficiency.

Conclusion

With a whopping 479 million customers, including 148 million 5G users, it’s cruising as the second-largest base worldwide, just behind China. Sure, it lost 10.9 million subscribers this quarter, but that’s all part of the usual SIM spring cleaning after those recent tariff hikes (13% to 25%—yikes!).

Looking ahead, Jio’s on a mission to connect 1 million more homes to JioAirFiber each month, with its snazzy AI service, JioBrain, promising to make things even smarter. 

PAISON KA KHEL

HDFC AMC's profit soars 32%, but stock keeps it steady

HDFC Asset Management Company (AMC) is on a roll, reporting a 32% jump in net profit to ₹577 crore for Q2 FY24. Revenue wasn’t left behind either, climbing 38% to ₹1,058 crore, up from last year’s ₹765 crore. Assets under management (AUM) rose 7.5%, reaching ₹7.58 lakh crore. 

With all these numbers soaring, HDFC AMC’s stock also saw a modest rise of 1.11% at ₹4,533.

SpiceJet’s $23 million dispute lands safely with a $5 million settlement

SpiceJet has successfully cleared the turbulence of a $23.39 million dispute with Aircastle and Wilmington Trust, settling for a much lighter $5 million. After some friendly negotiation, the two parties chose to skip the courtroom drama and resolve things peacefully. The settlement also includes an agreement on aircraft engines, and all ongoing disputes will now be grounded.

This marks SpiceJet’s third financial peace treaty in recent weeks, as it continues to tighten up its finances and legal standing.

TOP STORIES

Ola Electric Powers Up its Market Share

What Happened

Ola Electric is leaving no stone unturned! The company has zoomed ahead in the electric two-wheeler race, boasting a stellar 34.9% market share this month, a significant leap from 28.7% just a month ago.

With its beloved S1 scooter line and a rapidly expanding service network, Ola sold a whopping 17,417 electric two-wheelers by October 15. And guess what? Their festive season promotions are expected to turbocharge sales as we inch closer to Diwali. 

• Competitors like Bajaj Auto and TVS Motor are still in the race, holding 22.9% and 21.8% market shares, respectively.

There’s more to the story

Ola's impressive market share gain comes with its share of potholes. The company is facing regulatory bumps, particularly regarding recent pricing strategies that have caught the attention of the Automotive Research Association of India (ARAI). 

Customers have raised eyebrows over after-sales service and product quality, resulting in a ₹347 crore loss last quarter—up from ₹267 crore the previous year. 

• However, Ola's operating revenue is on the upswing, rising by 32.3% to reach ₹1,644 crore. 

The cure

To address service complaints and ensure customer satisfaction, CEO Bhavish Aggarwal has set ambitious plans to double service centres to 1,000 by December 2024 and onboard 10,000 partners through the Network Partner program by the end of 2025. Plus, they’ve just announced a groundbreaking EV Service Training Program aimed at training 100,000 third-party mechanics across India to become EV-ready. 

GLOBAL NAZARA

Tax terror and spending cuts haunt France

France is feeling the pinch as Prime Minister Michel Barnier unveils a budget plan aimed at tackling a hefty 6.1% GDP deficit, targeting a reduction to 5% next year. With a proposed €60 billion ($65 billion) squeeze, Barnier plans tax hikes on the wealthiest 24,000 households and big corporations while freezing state pensions for six months.

Unsurprisingly, the budget has sparked outrage from lawmakers and labour unions, fearing it will hit low-income families hard. 

Citigroup soars with stellar earnings

Citigroup is on a roll! The bank's third-quarter revenue hit $20.32 billion, exceeding expectations and fueled by a dazzling 31% boost in investment banking. Overall, banking revenue jumped 18%.

While net income slipped to $3.2 billion due to increased reserves for potential loan losses, investors are cheering with a 2% premarket stock bump. With shares up 28% this year, Citigroup is definitely taking the lead in the financial race!

TOP STORIES

BEML to Build India’s First Indigenous Bullet Trains

What happened?

BEML (Bharat Earth Movers Limited), a state-owned company, just bagged a major contract to build India’s first bullet trains. They’ll be producing two high-speed trainsets, with each train having eight coaches, for a total price tag of ₹866.87 crore.

These bullet trains are part of India's high-speed rail project, aiming to make train travel faster and fancier. With modern facilities, including reclining seats and entertainment systems, passengers can look forward to a first-class train experience.

Why it matters?

This contract is a big deal because it marks India's leap into the world of high-speed rail, previously dominated by countries like France and Japan. Initially, India was eyeing Japanese bullet trains for the Ahmedabad-Mumbai route, but talks have stalled. 

Now, India is shifting gears to locally-made bullet trains, saving a heap of money in the process. BEML’s project not only slashes costs but also boosts India’s self-reliance in advanced technology. With these indigenous trains set to speed at 280 kmph, the country is joining the global club of high-speed rail nations.

Zoom out

The trains will roll out by the end of 2026, with each coach priced at ₹27.86 crore—a significant saving compared to Japan’s price of ₹46 crore per coach. Passengers will be able to zip between cities in comfort, on trains that are both advanced and proudly "Made in India." While Japan's Shinkansen still holds the speed record, this effort is a powerful step forward for India’s infrastructure

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