Newswala aaya, taaza khabre laya! Good morning!
 

MARKETS

Markets:  

The Nifty 50 and Sensex sustained their upward momentum, while the banking sector experienced a decline attributed to the RBI-Paytm controversy. The interim budget, unveiled on February 1, proved uneventful as Nifty exhibited sideways movement, defying expectations of heightened volatility on the budget day.

BUSINESS

SBI Steps in After Paytm Woes

What happened

In the aftermath of regulatory restrictions on Paytm Payments Bank, State Bank of India (SBI), India's largest lender, is seizing the opportunity to extend its services to merchants and retailers. Chairman Dinesh Khara affirmed that SBI is actively reaching out to merchants, offering them a seamless transition into its network through its subsidiary, SBI Payment Services Pvt Ltd.

The move comes after the Reserve Bank of India (RBI) imposed restrictions on Paytm Payments Bank due to compliance issues, presenting a window for competing banks to tap into the merchant market.

Why it matters

SBI's proactive approach is significant in light of the recent regulatory actions against Paytm Payments Bank. The bank is capitalizing on the situation, aiming to integrate merchants seamlessly into its network, thereby preventing any operational disruptions for businesses. SBI's extensive infrastructure positions it as a robust alternative for merchants affected by the Paytm predicament.

• SBI Payments, with a vast network of over 2.93 million merchant payment acceptance points and more than 1.14 million PoS machines, is strategically positioned to absorb the affected merchants.

• Last week, SBI posted a net profit of ₹9,163 crore for the past quarter of 2023-24, witnessing a significant 35% drop from the ₹14,205 crore reported in the corresponding period last year.

The new acquisition campaign will surely boost the company’s morale. The move aligns with SBI's broader strategy to maintain a balanced geographical distribution of its operations.

Zoom out

As SBI strategically supports merchants affected by the Paytm situation and onboards new members, the bank also reported its Q3 FY24 financial results. State Bank of India (SBI) faced a slight contraction in its Domestic Net Interest Margin, settling at 3.41% while boasting a 4.6% increase in Net Interest Income to ₹39,816 crore.

The bank's lending landscape showcased robust growth, with a 14.5% surge in domestic advances and an overall loan book of ₹35.8 trillion. Chairman Dinesh Khara's positive outlook on credit growth, maintaining a targeted range of 14-16%, underlines SBI's strategic foresight.

BIG MONEY MOVES

India eyes ₹14,000 crores from online gambling tax

By taxing online gambling firms, India is eyeing a robust ₹14,000 crores in goods and services tax (GST) revenue in the upcoming fiscal year. The recent imposition of a 28% tax on online gaming earnings, raising concerns in the $1.5 billion industry, is projected to contribute significantly, with the current fiscal year expected to yield around ₹7500 crores.

Byju's US unit files for bankruptcy, postpones salaries in India

Byju's American unit has filed for bankruptcy in the court of Delaware, citing liabilities between $1 billion and $10 billion. The court documents revealed assets in the $500 million to $1 billion range, with an estimated 100 to 199 creditors. Meanwhile, Byjus has also postponed employee's salaries for January citing liquidity issues. Byju's US unit hits financial turbulence, proving that even edtech giants need homework help.

BUSINESS

JSW Infrastructure's Profit Soars to ₹250.66 Crore in Q3

What happened

Private-sector port operator JSW Infrastructure Ltd declared a consolidated net profit of ₹250.66 crore in the third quarter of 2023-24, a remarkable surge from ₹114.89 crore reported a year ago. The boost is attributed to heightened cargo volumes and increased tariffs, propelling the company's revenue from operations to ₹940.11 crore , marking a substantial 17.85% year-on-year increase.

The total cargo handled by JSW Infrastructure in Q3 amounted to 28.1 million tonnes, witnessing a substantial 17% uptick compared to the previous year. The third-party volume increase was even more striking at 47% year-on-year, constituting 39% of the overall volumes, up from 31% a year ago.

Why it matters

JSW Infrastructure's CEO, A Maheshwari, attributed the impressive performance to increased capacity utilisation at key terminals and mines. With assets strategically located, the company aims to reach utilization levels of 80-85%, anticipating further growth in the port industry.

• Notably, the company's EBITDA (earnings before interest, taxes, depreciation, and amortization) for the quarter reached ₹558 crore, displaying an impressive 33% year-on-year growth .

• The company, already India's second-largest private port operator, is maintaining a balanced 60:40 ratio of capacity on the western and eastern coasts.

• Recently, the company won the bid for a greenfield port in Karnataka, with a capital expenditure estimated at ₹4,119 crore.

JSW Infra's recent acquisitions, including a majority stake in PNP Maritime Services and a liquid storage facility in the UAE, have played a pivotal role in reaching more than half of its ambitious 300 MTPA target for 2030.

Zoom out

JSW Infrastructure's port profits are sailing smoothly, proving they're the captains of cargo. The stellar financial results are credited to its strategic vision, efficient operations, and ambitious growth plans. With a strong financial foundation, ongoing capacity utilization improvements, and strategic acquisitions, the company is poised for a promising trajectory in the dynamic port industry. 

BIG PICTURE

💲  Meta shatters records with a staggering $196 billion surge in a day

Meta Platforms, the parent company of Facebook, made Wall Street history with a staggering $196 billion market cap gain, the largest single-day increase ever recorded. This milestone follows Meta's announcement of a 50 cents per share quarterly dividend and $50 billion in share repurchases. In 2023, Meta's efficiency-focused approach led to a 22% reduction in headcount, contributing to surpassing expectations for full-year 2023 ad revenue. Not just likes, Meta is cashing in 'Wows' on Wall Street!

🚗  Volkswagen's entry-level electric vehicle to hit Indian roads soon

Volkswagen plans to launch an affordable electric vehicle (EV) in India by the second half of this decade, aiming for increased EV penetration. The CEO of Volkswagen India, emphasized the need for significant investment, hinting at potential exports to Southeast Asia, and North Africa. While extensively testing the electric SUV for an Indian launch, the company aligns with India's target for EVs to constitute 30% of passenger vehicle sales by 2030, a substantial increase from the current 2%.

BUSINESS

Oil Giants ONGC, IOC, and Peers Set to Splash ₹1.2 Lakh Crore in FY25 Investments

What Happened

As India's oil giants open their fiscal treasure chests, ONGC and friends are set to make crude profits – talk about striking liquid gold in the balance sheets! The oil majors ONGC, IOC, and other public sector undertakings are primed to inject a whopping ₹ 1.2 lakh crore into oil and gas exploration, refineries, petrochemicals, and pipeline projects in the upcoming fiscal year.

The ambitious investment plan for 2024-25 showcases a 5% surge from the current fiscal year's expenditure, as per Budget 2024-25 documents.

Why It Matters

In a strategic move to meet the surging energy demands of the nation, ONGC is leading the pack with a planned capital spending of ₹30,800 crore, slightly surpassing the previous fiscal year.

• ONGC's overseas arm, OVL, is set to invest ₹5,580 crore in global oil and gas operations, marking a substantial 68% increase.

• IOC, the leading oil refiner, is slated to be the top spender with an investment outlay of ₹30,910 crore, primarily focused on refining expansion.

• Bharat Petroleum Corp Ltd (BPCL) eyes a 30% boost in capital spending at ₹13,000 crore, predominantly in refining.

• GAIL India Ltd anticipates a decline in planned investment to over ₹8,000 crore.

• Hindustan Petroleum Corp Ltd (HPCL) plans to invest ₹12,500 crore, a marginal increase from the previous year.
  

Zoom out

As India positions itself as a powerhouse in the energy landscape, these strategic investments underscore the industry's commitment to growth and innovation. Despite adjustments in government support and equity infusion, the oil giants' ambitious plans signal a robust trajectory for the nation's energy sector in the fiscal year ahead, aligning with environmental goals and fortifying economic resilience.

MIRCH MASALA

👟 Unmatched 'Jordan' shoes make headlines, sell for $8 million

🚘️  Queen's iconic Range Rover , used during Obama's state visit, is up for auction

🚿  Read : Man decides to freshen up with a shower before embracing handcuffs

🩻 Explore the universe with the most detailed X-ray image ever

👶 AB de Villiers reveals the recent addition to Virushka’s family