Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Markets bounced back last Friday, gaining over 2% as banking and IT stocks led the recovery despite early Nifty volatility. IT and realty sectors shone with over 3% gains, while broader indices followed with moderate performance.

TOP STORIES

PharmEasy Cuts Losses But Faces Tough Road Ahead

What Happened

PharmEasy has managed to cut its losses in half in FY24, trimming them to ₹2,533.5 crore from a whopping ₹5,211.7 crore in FY23. The secret? Cost-cutting, fewer goodwill impairment charges (₹582 crores this year vs. ₹2,826 crores last year), and a massive diet for employee expenses, which slimmed down from ₹1,283 crores to ₹699 crore.

However, not everything was rosy—revenues shrank 15% to ₹5,664 crore, with competition from Tata 1mg, Apollo 24x7, and Netmeds stealing some of the spotlight.

Why It Matters

PharmEasy’s numbers are a mix of good news and “oh no” moments. While cost-cutting has worked wonders, the company’s valuation tumbled 90% to $710 million during its $216 million funding round in April. That’s down from a dreamy $5.6 billion valuation in 2021.

Meanwhile, its global investor Janus Henderson slashed the value of its stake by 92%. PharmEasy’s big gamble—the ₹4,546 crore Thyrocare acquisition in 2021—was supposed to be funded through an IPO, but that listing never took off, leaving the company with a ₹3,500 crore debt from Goldman Sachs.  

Conclusion

While PharmEasy’s financial diet plan has worked wonders for its losses, it’s still stuck in a tricky spot. With shrinking revenue and tough competitors, the road ahead isn’t easy. Sure, cutting costs is great, but at some point, they’ll need to focus on growth—without another crash diet for their valuation. 

In the end, a prescription for success is exactly what PharmEasy needs. Let’s hope they find it before competitors grab all the medicine!

PAISON KA KHEL

Sony India bags $170 million cricket deal

Sony India has just snagged a big deal, securing the media rights for all Asian Cricket Council tournaments until 2031 for a whopping $170 million! The deal, covering television, digital, and audio platforms, means cricket fans across Asia are in for an action-packed ride! 

Surprisingly, Disney and Reliance didn’t bid, giving Sony the chance to step in. This move is a big win for Sony, especially after backing out of a $10 billion merger earlier this year.

India launches a $5 billion plan to boost local electronics 

India’s ready to put its money where its tech is! With a $5 billion incentive plan, the country is gearing up to power up its own electronics manufacturing, from smartphones to laptops, and cut the cord on Chinese imports.

• With electronics production already at $115 billion in 2024, the target is to hit $500 billion by 2030. 
  
  

• This move comes at a crucial time, as India looks to move away from importing over half of its $89.8 billion in electronics from China and Hong Kong.

TOP STORIES

Reliance Rebounds in Refining, Retail Stuck

What happened?

Reliance Industries Ltd., India’s corporate giant led by Mukesh Ambani, has had a mixed bag recently. Its refining margins, a critical profit driver, are back on track after earlier declines, boosted by reduced Chinese export tax rebates. 

However, the retail segment struggles to find its footing, hurt by a broader retail slowdown and company restructuring. 

• The company’s stock, down 22% since its July peak, has sharply underperformed the Nifty’s 3.3% dip in the same period.

Why it matters

Reliance is a powerhouse in India’s economy, with its oil-to-chemical (O2C), Jio telecom, and retail divisions as major profit drivers. Together, Jio and Retail make up half of its $20 billion annual EBITDA. The recent rebound in refining margins is good news, but the lack of clarity in retail revenue growth has investors on edge. 

Quick commerce’s impact and timing uncertainties around Jio and Retail IPOs further cloud the outlook. Still, Reliance's strong free cash flow generation over the next three years is expected to provide a buffer against elevated spending on new energy projects and retail expansions.

Final words

The rebound in refining margins, supported by reduced Chinese export tax rebates, has provided relief. Yet, retail remains an unpredictable story, with analysts lowering FY25-26 retail EBITDA projections by 10-15%.

Despite these hurdles, Reliance is pushing forward with solar energy initiatives, with initial capacities set to be operational by March 2024. 

GLOBAL NAZARA

$300 billion promise to fight climate woes

World leaders wrapped up COP29 in Baku with a $300 billion annual climate finance deal to help poorer nations tackle climate change. This new target replaces the missed $100 billion goal from 2020, which was only met in 2022.

UN climate chief Simon Steill called the agreement “humanity’s insurance policy,” adding, “Like all insurance, it only works if you pay up—on time!”

* COP29 refers to the 29th annual Conference of the Parties (COP) under the United Nations Framework Convention on Climate Change (UNFCCC). 

India and EU go green with hydrogen handshake

India and the European Union (EU) have finalised a detailed plan to work together in the green hydrogen sector. The roadmap includes developing infrastructure, enhancing technological cooperation, and strengthening supply chains to boost this clean energy source. 

The agreement came after the 10th India-EU Energy Panel meeting in Brussels, where they outlined a "work plan" for the 2025-2028 phase of their Clean Energy and Climate Partnership.

TOP STORIES

Oberoi Hotels to expand with luxury properties  

What happened?

Oberoi Hotels is diving into the luxury wave, announcing plans for 12 new properties and upscale boats over the next five years. Adding 1,350 rooms—288 of which will be outside India—this expansion targets destinations like Goa, Tirupati, Saudi Arabia, Bhutan, and even London.

Speaking of London, their upcoming Mayfair hotel will be Oberoi’s first in the UK, with a £69 million investment and a financial partner sharing 49% of the stake.

Driving the news

Oberoi is riding high on growing demand for upscale holidays. 

• In Q2, its occupancies rose to 73% from 69% last year, while average room rates climbed 9% to nearly ₹15,000. 

Currently managing 3,772 rooms in India and 497 internationally, Oberoi’s expansion is a significant step to increase its global footprint. Notably, nine of the 12 new properties will be EIH-owned, while the rest will be managed, showcasing a strategic mix of risk and opportunity.

The bigger picture

The Mayfair property in London isn’t just about adding a new address; it’s a bold step into one of the world’s priciest and most competitive markets, where suite rates average £1,200. Meanwhile, back in India, destinations like Tirupati and Rajasthan are set to capture the growing demand for premium stays during peak travel seasons.

With room rates already hitting $1,000 during winter and weddings, and a 41% jump in Q2 profits, Oberoi is leveraging its strong financial footing.

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