Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: On Thursday, domestic benchmark indices started strong with global support, and despite heavy volatility, Nifty closed positively at 22,404 levels. Widespread buying in the closing session led to significant gains for key indices in a volatile trading day.

BUSINESS

PVR Inox Turns Popcorn Powerhouse: F&B Sales Trump Movie Tickets

What happened

PVR Inox, India's top multiplex chain, has stirred up the food industry by clocking a staggering ₹1,958 crore in food and beverage (F&B) revenue in FY24 jumping from ₹1,618 crore in FY 23. This impressive figure surpassed their movie ticket sales year-on-year growth, which settled at ₹3,279 crore from ₹2,751.4 crore in FY23.

This marks a paradigm shift in their revenue streams. The F&B segment witnessed a robust 21% growth, outpacing the 19% increase in box-office earnings, showcasing a hunger for snacks and sodas that rivals the allure of the silver screen.

Why it matters

Despite the volatility in box-office collections, their F&B revenue stream remained steady, hinting at a strategic pivot that could redefine the cinema experience. 

• Despite good sales, the company faced a net loss of ₹134 crore, reflecting a 60.06% increase compared to the previous year. 
  
  

• On the brighter side, EBITDA stood at ₹317 crore, up by 13.56% from March 2023. 

In the fiscal year 2023, PVR Inox stood out as the fifth-largest player in the food industry, boasting a substantial F&B revenue of ₹1,525 crore. This impressive figure placed them ahead of Restaurant Brands Asia, which recorded ₹1,343 crores in revenue. 

Zoom out

Additionally, PVR is collaborating with Devyani International for food courts in malls highlighting their ambition for expansion beyond conventional cinema offerings. This strategic move has been praised by Nitin Menon of NV Capital as a savvy approach to mitigate risks associated with uncertainties in the theatrical sector.

BIG MONEY MOVES

Mutual funds place ₹10,000 crore bet on Kotak and HDFC Bank 

In April, mutual funds invested ₹10,000 crore in Kotak Mahindra Bank and HDFC Bank, despite their decline in Nifty rankings. Kotak shares, down 9%, attracted purchases worth ₹7,884 crore, totalling 4.65 crore shares. HDFC Bank saw 1.22 crore shares bought for ₹1,859 crore. Major fund houses like HDFC MF, SBI MF, and Axis MF increased their stakes in HDFC Bank, while Nippon India MF and others invested in Kotak.

Adani Energy acquires Essar's Mahan-Sipat transmission assets for ₹1,900 crore

Adani Energy Solutions has successfully completed the acquisition of Essar's Mahan-Sipat Transmission assets for ₹1,900 crore. This acquisition, which was part of definitive agreements signed in June 2022, includes a fully operational 400 kV, 673-circuit kilometres inter-state transmission line linking Mahan in Madhya Pradesh to the Sipat pooling substation in Chhattisgarh.

Through its subsidiary Adani Transmission Step Two Ltd, Adani Energy Solutions now holds a 100% stake in Essar Transco Ltd. 

BUSINESS

Societe Generale Pledges $1 Billion Financing to ReNew Energy

What happened

Europe's Societe Generale has agreed to lend up to $1 billion to Nasdaq-listed ReNew Global for its energy transition projects over the next three years. This collaboration comes at a pivotal time as ReNew aims to broaden its presence in green power and decarbonization efforts.

The funding will support ReNew's projects both in India and globally, encompassing solar, wind, complex renewables, green hydrogen, energy storage, and solar module manufacturing.

Why it matters

This financial injection from Societe Generale marks a significant boost for ReNew's ambitious growth plans in the renewable energy sector. Sumant Sinha, the founder, CEO, and chairperson of ReNew, emphasized the importance of this collaboration in advancing India's net zero goals.

Moreover, ReNew's recent strategic tie-ups with JERA Co. Inc., Indian Oil Corp., Larsen & Toubro, and others highlight its multifaceted approach towards expanding its green energy portfolio. The company's focus on solar module manufacturing, green hydrogen development, and energy storage solutions underscores its comprehensive strategy in driving the adoption of clean energy technologies.

Zoom out

Despite a net loss of ₹321 crore in the December quarter, ReNew is actively pursuing strategic initiatives to bolster its growth trajectory. The company's commitment to raising funds through asset sales and debt financing underscores its determination. With an ambitious goal of doubling its renewable energy portfolio to 20 GW within four years, ReNew continues to drive the transition towards a sustainable energy future.

BIG PICTURE

Netflix unveils in-house ad platform with 40 million user base

Netflix is gearing up to launch its in-house advertising technology platform by 2025, aiming to enhance user experience while empowering advertisers. With Microsoft as its previous partner, Netflix is set to expand its ad opportunities through strategic alliances with firms like The Trade Desk and Google.

The streaming giant's ad-supported tier, now boasting 40 million monthly users globally, reflects a growing trend towards affordable streaming. As Netflix delves deeper into ads, its diverse programming lineup, including NFL games and WWE content, promises a compelling future for both viewers and brands. 

Walmart sees sales boom as wealthier shoppers pour in

Walmart's sales rose 3.8% at US stores for the quarter ending April 26, surpassing Wall Street expectations. With easing inflation, transaction numbers increased by 3.8%, while the average ticket remained flat. E-commerce sales jumped 22%, driven by upper-income households seeking essentials and discounts. Walmart's shares soared 7.3% on the New York Stock Exchange, marking the most significant jump since late 2022.

BUSINESS

RINL's Revenue Hit Hard as Strike at Adani's Gangavaram Port Persists

What happened

Rashtriya Ispat Nigam Ltd (RINL), also known as Vizag Steel Plant, is reeling from a massive revenue loss of ₹ 40-50 crore per day due to an ongoing strike at Adani's Gangavaram port in Andhra Pradesh. This strike, ignited by wage disputes, has disrupted the supply of vital coking coal for RINL's steel production. With only one out of three blast furnaces operational, the steel plant is grappling with severe production challenges.

Why it matters

The strike's implications extend beyond RINL's immediate financial woes. The steelmaker has approximately ₹700 crore worth of coking coal and limestone stuck at the Adani-controlled port since the onset of the protest. This backlog underscores the significant logistical and financial challenges faced by RINL amidst the labour dispute.

A dispute has emerged between the Adani Gangavaram Port management and manual workers who are on strike, demanding higher wages and better retirement benefits. The conflict began after Adani Ports acquired a 58.1% stake in the port for ₹3,604 crore in 2021.

Former fishermen, who were impacted by the acquisition, were subsequently employed as manual workers at the port. Despite their demands, the management has yet to reach an agreement with the striking workers.

Zoom out

The strategically located port serves as a crucial trade gateway on India's east coast, connecting India with key Asia-Pacific markets, including China, Japan, South Korea, and ASEAN nations, highlighting its importance in regional trade. The strike's impact reverberates through the entire steel industry, affecting supply chains, market dynamics, and regional trade networks.

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