Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Markets fell again last Friday, with the Sensex closing below 80,000 due to a broader selloff and disappointing Q2 earnings. Continued selling by foreign investors and falling crude oil prices show that major economies are still facing a slowdown.

TOP STORIES

Piramal Pharma Makes a $85 Million Bet

What happened

Piramal Pharma is starting a bold journey with a planned investment of $85 million this fiscal year. Under the leadership of Chairperson Nandini Piramal, the company has already invested $30 million in the first half of the year. This capex will be allocated for capacity expansion, maintenance and optimising its Contract Development and Manufacturing Organization (CDMO) sites. 

Why it matters

Notably, some of the funds will support initiatives in the U.S. market, reflecting the company's ambition to broaden its global reach. Piramal Pharma aims to reach $2 billion in revenue by FY30. 

The firm is aiming to transform its CDMO vertical into a $1.2 billion entity and expects its critical care segment to reach $600 million by FY30. This growth will improve the company's operations and make it stronger in a rapidly changing market.

The numbers

Piramal Pharma is not just investing in infrastructure; it's investing in its future. With a fourfold increase in its net profit, reaching ₹23 crore this quarter and revenue climbing to ₹2,242 crore, the company is proving that growth and sustainability can go hand in hand. Plus, eyeing both organic and inorganic growth avenues, the company is gearing up to be a major player on the global stage.

PAISON KA KHEL

₹85,790 crore exit from Indian stocks in October

October is shaping up to be a nightmare for Indian equities, with foreign portfolio investors (FPIs) withdrawing a staggering ₹85,790 crore (about $10.2 billion) this month alone. This selloff follows a September surge, where they invested ₹57,724 crore. So, what’s got them packing their bags? Attractive stock prices in China and elevated valuations in India are the main culprits.

Since June, FPIs have been buying stocks, but this month’s outflows have pulled the NSE’s Nifty index down by 8%. 

Hindustan Zinc’s $2B plan to double output

Hindustan Zinc, the Vedanta Group subsidiary, is ready to dig deep—into its pockets! With up to $2 billion on the line, the company aims to double production to 2 million tonnes by 2027. CEO Arun Misra hinted at project announcements soon and shared ambitious milestones: 1.2 million tonnes in 2025, 1.35 MT in 2026 and 1.8 MT in 2027.

In a profitable streak, Hindustan Zinc reported a 34.5% profit rise this quarter, with net earnings of ₹2,327 crore, boosted by higher income. 

TOP STORIES

IndiGo Soars Back from Grounding Woes

What Happened

IndiGo, India's largest airline, is finally shaking off the turbulence caused by faulty Pratt and Whitney engines that had left around 75 of its aircraft grounded—about 20% of its fleet. The airline's management announced that this number is expected to drop below 60 by the end of the year and into the 40s by April. 

• Unfortunately, the grounding led IndiGo's parent company, InterGlobe Aviation, to report a loss of ₹987 crore for the September quarter.

Why It Matters

On the bright side, the airline's revenue climbed 14% to ₹16,970 crore, fueled by a surge in air travel demand in India. It now boasts a fleet of 410 aircraft, making it the first airline in India to achieve this milestone.

However, this achievement comes amidst challenges, as rising fuel costs have led to increased operational expenses. Specifically, the cost per available seat kilometre (CASK) has risen by 12%, reaching ₹4.69. In response to these challenges, IndiGo has announced plans to return some older leased aircraft starting in January.

What’s next?

The airline is launching the IndiGo Ventures Fund–I, with an investment of ₹295 crore aimed at supporting aviation startups. As IndiGo works to stabilise its operations, passengers might experience some fare reductions—assuming oil prices remain favourable and competitors like SpiceJet and Go First manage to return to the skies. These airlines currently have over 100 grounded planes and their return will significantly influence ticket pricing across the market.

GLOBAL NAZARA

Volkswagen hits the brakes on salaries to save €4 billion

Volkswagen is gearing up for a tough road ahead, contemplating a 10% pay cut and a two-year salary freeze to bank an impressive €4 billion. As management races to formulate a solid future strategy, they’re also eyeing bonus caps and trimming anniversary payments.

In addition, some German production facilities could face closure as well. Negotiations with unions are in full swing and with the next wage talks set for October 30, employees will be keenly waiting for the updates.

Indian Government seeks help from Meta and X

India’s skies have recently been marred by hoax bomb threats, disrupting over 250 flights in just 11 days. In response, the government is enlisting the help of social media giants Meta and X to identify the pranksters behind these alarming antics.

On one particularly chaotic day, more than 80 flights were targeted, with Air India and IndiGo each facing 20 threats. While authorities are diligently tracking down the culprits, specific details about the perpetrators remain hidden. 

TOP STORIES

JSW Steel Faces 85% Profit Decline

What Happened

JSW Steel has reported a staggering 85% drop in its net profit for the September quarter, plummeting to ₹404 crore from ₹2,773 crore a year earlier. This decline is largely due to falling revenues and a one-time exceptional cost of ₹342 crore linked to asset valuations from the surrender of the Jajang Iron Ore mine in Odisha. 

What do the numbers say?

JSW Steel is facing big challenges, as its steel sales dipped by 3% year-on-year to 6.13 million tonnes. A major factor contributing to this decline is the staggering 43% drop in exports, primarily due to increased competition from Chinese steel exports, which surged by 21% this year. 

Despite achieving record domestic sales of 5.57 million tonnes, the export slump is putting pressure on JSW Steel. The aggressive export strategy from China is squeezing global steel prices, ultimately impacting profit margins across the industry.

Conclusion

JSW Steel’s recent performance highlights the volatility of the steel industry, where international competition can dramatically impact profitability. While the company is aiming to boost order execution in the latter half of the fiscal year, the road ahead seems rocky, with external factors heavily influencing sales.

Also, the company is dealing with higher debt, which rose to ₹85,098 crore, partly due to ongoing expansion projects and working capital needs. 

MIRCH MASALA

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