Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: On August 1, 2024, India's benchmark indexes, the NSE Nifty 50 and S&P BSE Sensex, achieved record closing highs, driven by expectations of a U.S. interest rate cut that could boost foreign investments. The Nifty 50 climbed 0.24% to 25,010.9, and the Sensex rose 0.15% to 81,867.55, with energy stocks surging following a windfall tax cut on petroleum crude.

BUSINESS

Maruti Suzuki Cranks Up Discounts to Drive Q1FY25 Sales

What happened

Maruti Suzuki, India's car king, decided to sprinkle some extra sugar on its sales strategy by boosting discounts by a whopping 50% in Q1FY25. The average discount zoomed to ₹21,700 per vehicle from ₹14,500 in the previous quarter. Despite these juicy offers, the company saw its net profit rev up by 46.9% year-on-year, hitting ₹3,649.9 crore in Q1FY25, compared to ₹2,485.1 crore last year. 

Driving the news

This hefty discount surge and profit spike showcase Maruti Suzuki's smart play in a tough market hit by scorching heat and lukewarm consumer mood. Thanks to cost-cutting, friendly commodity prices, and favourable foreign exchange rates, the company’s net sales also climbed to ₹33,875.3 crores from ₹30,845.2 crore in Q1FY24.

With new assembly lines and eco-friendly initiatives, Maruti Suzuki is steering towards steady growth, eyeing a modest increase in passenger vehicle sales for the full fiscal year.

Zoom out

Maruti Suzuki managed to keep its wheels turning smoothly despite the market heat, selling 521,868 vehicles in Q1FY25, a 4.8% year-on-year increase. 

• Domestic sales climbed 3.8% to 451,308 units, while exports jumped 11.6% to 70,560 units. 

The company is hopeful that a better monsoon and the festive season will further fuel sales. Rural markets are outshining urban ones, and Maruti is all set to ride this wave. 

BIG MONEY MOVES

BoB's ₹301 crore jackpot from Go First's bankruptcy bonanza

Bank of Baroda (BoB) has snagged ₹301 crore from the defunct Go First Airlines, thanks to the Emergency Credit Line Guarantee Scheme (ECLGS). This is the first lender recovery from the bankrupt airline, and other lenders are now hoping to get their share.

While Go First still owes BoB a staggering ₹1,744 crore, this victory is a solid start. With the National Credit Guarantee Trustee Co Ltd's nod, the Central Bank of India and IDBI Bank are now queuing up to cash in. 

Angel One splashes ₹250 crore on wealth management jackpot

Angel One just went all-in with a ₹250 crore investment in its wealth management arm, aiming to cash in on India’s rising tide of affluence. This investment will boost their tech game with AI and analytics, expand their market footprint, and sharpen their product offerings.

Angel One Wealth is rolling out the red carpet for high-net-worth individuals (HNI), ultra HNIs, and alternate assets. India’s HNI population is expected to grow 16% annually to 16.5 lakh by 2027.

BUSINESS

DMart’s Balancing Brick-and-Mortar with E-commerce

What happened

DMart, India's retail titan, is on a growth spree with a clever two-pronged strategy. The company is set to open 20-30 new stores each year, targeting smaller cities for physical expansion. Meanwhile, DMart Ready, its e-commerce arm, is zooming into bigger cities, already raking in 6% of the company's impressive ₹50,789 crore revenue in FY24. 

The secret sauce!

Here’s where it gets interesting: while many are racing into quick-commerce, DMart is taking a different route. They’re sticking to their strengths, prioritizing value over just speed. With their stores generating about ₹33,000 per square foot in revenue, they’re far outpacing Reliance Retail’s ₹10,000-11,000 per square foot. It’s like DMart has a secret recipe that keeps customers loyal, even if it means a longer wait. Their approach proves that, sometimes, the best way to stand out is by focusing on what you do best.

Zoom out

DMart’s plan to ramp up stores and ‘screens’ together is just out of the box. They plan to add 60-70 stores annually to hit their revenue targets. Even though they have fewer stores than Reliance Retail, DMart’s revenue per square foot is way ahead.

With over 110 stores in Maharashtra and strongholds in Gujarat and South India, plus a growing online presence, DMart is well-positioned to grab an even bigger slice of the retail pie.

BIG PICTURE

Bank of England cuts rate for first time since pandemic

The Bank of England has finally given borrowers a break! The Bank has sliced its interest rate by 0.25 percentage points to 5.0%. This is the first rate cut since March 2020, when the world was knee-deep in pandemic chaos. It was a close call, with a 5-4 vote, but Governor Andrew Bailey and his crew decided it was time to give borrowers a break. Meanwhile, savers might find their interest rate dessert a little less sweet.

Hero MotoCorp kicks off operations in the Philippines

Hero MotoCorp has launched its operations in the Philippines through a new partnership with Terrafirma Motors Corporation (TMC). They’ve unveiled a massive 6,000-square-meter assembly hub in Laguna, ready to churn out over 150,000 bikes a year.

Hero MotoCorp is already zooming through 48 countries with tech centers in India and Germany, and factories in India, Colombia, and Bangladesh.

BUSINESS

India’s Smartphone Market Smashes Records in Q2

What happened

Hold onto your smartphones! India’s phone market has just hit a record-breaking high of $10 billion in revenue for Q2 2024. This is a grand slam compared to the usual $8-9 billion range. Despite a minor 2% dip in shipments, the revenue soared thanks to our growing love for fancy gadgets.

In a plot twist, Vivo elbowed Apple out of the way to snag the spot as the second biggest player by value, while Samsung strutted ahead with a 24.5% market share.

Why it matters

The significant revenue spike highlights a shift towards higher-end smartphones in India, even as overall shipment numbers fell. Analysts predict that the introduction of 5G-enabled phones priced under $99 by late 2024 will boost both value and volume in the market.

Estimates suggest that this shift could generate an additional $13 billion in revenue from 2024 to 2030 by transitioning 156 million feature phone users to 5G. 

How’s Apple?

Apple’s iPhone revenue fell by 20% in Q2 2024, reflecting a similar drop in shipments, as the second quarter often sees customers waiting for new models and discounts. But hold the tears—Apple's overall revenue still ticked up by 4% year-on-year. Analysts are predicting a bounce-back next quarter thanks to recent price slashes.

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