Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Benchmark indices started the week on a sour note, with the Sensex and Nifty 50 both closing in the red. Thin year-end trading volumes, a weakening rupee, and sustained FII outflows weighed heavily on market sentiment. Meanwhile, IREDA shares shot up by 10.93%.

TOP STORIES

EVs Are Here to Stay and So Is the Financing

What Happened:

Five years ago, financing an electric vehicle (EV) was like betting your savings on a robot uprising. Now, according to Umesh Revankar, Vice Chairman of Shriram Finance, it’s a smooth drive. With heavyweights like Tata Motors, Bajaj Auto, and TVS Motor jumping into the electric pool, the EV scene is no longer an experiment. 

Revankar’s confident that with big manufacturers backing the technology and a solid charging infrastructure coming into play, EVs are as reliable as your morning coffee. 

• To top it off, Shriram Finance is launching a shiny new green vertical, aiming for a ₹5,000 crore target to fund everything from EVs to renewable energy projects. 
  

Why It Matters:

What’s so exciting about Revankar’s change of heart? Well, lending for EVs isn’t seen as a risky gamble anymore. It’s now a legitimate business with numbers backing it up. EVs have evolved from “Is this even going to work?” to “Where can I sign up?” 

The total cost of owning an electric vehicle is finally on par with traditional vehicles, making it a no-brainer for both lenders and buyers. Shriram Finance’s move to focus on green projects is the cherry on top, showing how non-bank lenders are charging ahead in this eco-friendly race.

Zoom out

The road ahead for electric vehicle financing is looking greener by the minute. Sure, there’s still a speed bump: the government’s short-term subsidies need to be replaced with long-term strategies for scaling up production and public adoption. 

• The PM E-drive scheme has a ₹10,900 crore budget to support demand-side incentives, with ₹4,391 crore allocated to public transport and ₹2,000 crore for EV charging infrastructure, but it’ll only run until FY26.

PAISON KA KHEL

Mazagon Dock bags ₹1,990 crore deal to power up submarines

Mazagon Dock just landed a ₹1,990 crore contract with the Defence Ministry to make Indian submarines even more powerful. The project involves adding an Air-Independent Propulsion (AIP) system, which lets submarines stay underwater longer without having to surface for air. This tech will be added to the Scorpene submarines, with the first refit expected in 2025. The project will also generate nearly three lakh man-days of work.

Adani Enterprises to sell stake in Adani Wilmar  

Adani Enterprises (AEL) is selling a chunk of its stake—31.06%—in Adani Wilmar (AWL) to Lence, a subsidiary of Wilmar International. The divestment will raise over $2 billion, which AEL will invest in its core infrastructure platforms, including energy, transport, and utilities.

This move is part of AEL’s plan to completely exit its 44% share in AWL.

TOP STORIES

Bank Bad Loans Hit 12-Year Low

What happened

India’s banks are finally getting their act together. The Reserve Bank of India (RBI) reports that gross non-performing assets (GNPA) dropped to 2.6% in September 2024. That’s the lowest in 12 years! 

The drop comes from fewer bad loans, more write-offs, and healthy credit demand. Profits are up too. 

• Banks saw a 22.2% rise in profit after tax (PAT) for the first half of FY 2024-25. Public sector banks (PSBs) led with a 30.2% jump, while private banks weren’t far behind at 20.2%. 
  
  

• Foreign banks? They saw an 8.9% growth. 
  
  

Why should you care?

This is a major win for India’s financial health. The falling GNPA ratio shows that banks are doing a better job at keeping their balance sheets clean. The large borrower segment, which used to contribute a big chunk to bad loans, saw its GNPA ratio drop from 4.5% in March 2023 to 2.4% in September 2024. 

In fact, none of the top 100 borrowers were classified as NPAs in September 2024. That’s one less thing to worry about! 

Zoom out

The overall picture for India’s banking system is positive, with improved profitability, better asset quality, and stronger capital buffers. The sharp decline in GNPA and the growth in profits are encouraging signs for both public and private sector banks.

However, there's a catch—private sector banks have been on a write-off spree, which might be covering up some shaky lending, especially in unsecured loans. 

GLOBAL NAZARA

Kenya's coffee at risk from climate change

Kenya’s famous AA coffee, grown in the volcanic highlands, is facing a tough battle against climate change. Farmers are struggling with shifting rainfall and rising temperatures, which threaten their crops. 

While a cup of Kenyan coffee may cost $4 in Europe, farmers earn just $1.40 a day, working long hours on steep hillsides. With coffee trees taking 3-4 years to mature, climate change is putting the livelihoods of these farmers at risk, casting a shadow over Kenya’s prized "black gold."

Why nuclear power is the new tech darling

Big names like Microsoft, Amazon, Google, and Meta are turning to nuclear power to fuel their growing AI ambitions. The shift is happening because running massive data centers eats up energy—enough to power an entire city! 

With global electricity demand expected to rise by 75% by 2050, AI is becoming one of the biggest energy guzzlers. While renewables like wind and solar are great, they can’t always provide the consistency these tech giants need. That’s where nuclear steps in—steady, reliable, carbon-free, and always on. 

TOP STORIES

Beauty Startups Shrink Losses, Not Their Aspirations 

What Happened

Indian beauty startups like Sugar Cosmetics, mCaffeine, Wow Skin Sciences, and Purplle have been busy cutting losses and tightening their belts in FY24—no glamorously expensive ads here! 

By slashing marketing expenses, these brands have managed to shrink their losses, though high costs still linger. 

The Numbers Say

Let’s break it down, shall we? Despite a 9.5% dip in revenue, Wow Skin Science worked some serious financial magic, trimming its losses by a stunning 39%, bringing them down to ₹130 crore. 

Over at Purplle, the focus was on smart spending. By cutting marketing costs by 20%, they nearly halved their losses, dropping them to ₹124 crore, while revenue shot up by a sparkling 43%. 

Not to be left behind, mCaffeine and Sugar Cosmetics also found ways to shine. mCaffeine’s losses shrank by 7%, while Sugar Cosmetics managed an 11% reduction in theirs. 

Final take

India’s beauty market is soaring like a kite on a windy day, expected to grow by 10-11% annually over the next four years. But while the market sparkles, profitability is still a bit dull for many startups. They’re cutting costs, yes, but they're also trying to expand their offline presence and boost visibility, which is reducing their profitability.

Some brands are still struggling with hefty marketing investments and stiff competition, like Renee Cosmetics and Pilgrim, who are dealing with losses that seem to have more staying power than your favourite lip gloss. 

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NOTICE

The Newswala sends you his best wishes for the new year! 🎉

Also, he is off chasing new stories tomorrow and will return with fresh updates on Jan 2nd. Stay tuned!