#1. Corporate revenues struggled in 2023-24 but profits posted a sharp recovery on higher margins

Combined net sales of 1,057 listed firms rose by a modest 4.8 percent in 2023-24, the slowest annualized in the past three years that compared with the 22.5 percent expansion seen in the preceding financial year, the Business Standard reported. The combined net sales of 939 non-financial companies grew by 1.8 percent, down from 23.4 percent. The combined net profit of non-financial companies rose 26.2 percent, a sharp turnaround from 3.6 percent earlier.

Why it’s important: The post-pandemic boom in corporate revenues in India has faded, but India Inc. still reported a sharp recovery in profits on a low base and helped by higher margins.

#2. Reserve Bank of India eases rules for portfolio investment in offshore funds

The Reserve Bank of India has allowed listed Indian companies and resident individuals to invest in offshore funds that are regulated through their fund managers, the Hindu Businessline reported. These investments can be in any instrument and funds set up as limited partnerships, limited liability companies, variable capital companies, companies, or trusts. Currently, overseas portfolio investment is permitted only if the funds are regulated in their home jurisdictions and the investments are in so-called units.

Why it’s important: The easing will reopen doors for investment in funds in jurisdictions such as Singapore and Delaware in the US and could see Indians using more of the liberalized remittance scheme route.

#3. Hospitality firm Leela to seek a valuation of $2.5 billion in IPO likely in nine months

The Leela Palaces, Hotels and Resorts will seek a valuation of at least $2.5 billion (Rs 21,000 crore) in a public listing likely in nine months, the Mint reported. Promoter Brookfield has tapped JM Financial and Bank of America to be investment bankers. The Canadian investor plans to sell 15 percent to the public initially, and another 10 percent over the next three years. The IPO may be worth around Rs 3,150 crore.

Why it’s important: The Leela IPO could be the biggest in India’s hospitality space, which would be a remarkable turnaround for the luxury chain that changed ownership under crushing debt and loan defaults five years ago.

#4. Electronics manufacturing revenues set to double to $55 billion by 2026-27 on increased sourcing

Revenues of India’s local electronics manufacturing services industry are set to more than double to reach $55 billion by 202627, driven by increased sourcing of components and with Apple, Samsung, Lenovo, and other global companies expected to expand their presence in India, the Economic Times reported, citing a BNP Paribas report.

Why it’s important: The projected expansion is good news but For India to become a key player in the global value chain in electronics, there is still a need for clear goals and timelines.

#5. NTPC looks beyond electricity generation in planned capital spending of Rs 4.17 lakh crore

Government-owned NTPC is planning capital expenditure of $50 billion (Rs 4.17 lakh crore) over the next 10 years, the Mint reported. India’s biggest power generation company will spend $5 billion each year to foray into the production of various clean fuels and also towards increasing its power generation capacity.

Why it’s important: If the long-term capex pans out, it will see the state-run NTPC becoming a true energy company from just a producer of electricity.

#6. Realty firm Total Environment repays Rs 2,070 in debt on robust residential sales

Total Environment has paid up Rs 2,070 crore of debt raised from financial institutions, driven by robust residential sales, the Economic Times reported. The company raised investment across multiple residential projects from domestic and foreign entities such as Brookfield Asset Management, HDFC Capital, HDFC Bank, and L&T Finance between 2007-08, which were invested between 2015 and 2019 with the cost of capital ranging between 14 percent to 20 percent a year.

Why it’s important: The delivery by Total Environment is yet another indication of a resurgence in residential realty in the country that has been struggling for several years. Most of the rebound is in the premium segment though.

#7. Investors sold stakes in Edelweiss, IIFL Finance Ltd, and Paytm ahead of regulatory action

Three large investors sold big chunks of Edelweiss Financial Services, IIFL Finance, and Paytm weeks before regulatory action slammed their stocks, the mint reported. Between January and May, the Reserve Bank placed curbs on the three financial firms. Ahead of the regulatory action, Mohnish Pabrai, Prem Watsa, and Softbank sold a significant percentage of shares in Edelweiss, IIFL, and Paytm, respectively.

Why it’s important: There might not be a clear link between the regulatory action and the share sales, they were certainly odd, and the market regulator may want to find out why they sold their shares.

#8. Fitness start-up Cult. fit’s e-commerce arm to drive growth and profitability

Fitness startup Cult. fit expects its direct-to-consumer e-commerce vertical Cultsport to outpace its core gym business and achieve gross profitability within a year, CEO Naresh Krishnaswamy said in an interview with Mint. While Cultsport presently generates 30 percent of the firm’s revenue, it is expected to rise to 50 percent within 2-3 years, driven by brand credibility.

Why it’s important: Once a business is run well, gains can be made from unexpected quarters. India’s fitness products industry seems to be booming and firms are lining up brands offering workout wear, at-home equipment, and fitness trackers such as weighing scales and smartwatches.

#9. Real estate companies pin hopes on reforms to sustain growth momentum

The real estate sector is optimistic about the third term of the Narendra Modi government as it is hoping for crucial reforms to sustain growth and streamline operations, the Economic Times reported. Industry players and experts are emphasizing the need for tax rationalization and reduced approval costs to foster a more conducive environment for investment and development.

Why it’s important: The realty sector is hopeful that reforms will continue to stimulate growth, boost transparency, and address the pressing challenges of affordability and sustainability.

#10. Direct-to-consumer brands hitch a ride on the quick commerce growth bandwagon

The growth of direct-to-consumer brands in quick commerce has overtaken traditional e-commerce and the channel is currently proving to be more profitable as well, the Business Standard reported, citing industry executives. Other than consumer goods and groceries, quick commerce has become a preferred platform for direct-to-consumer brands.

Why it’s important: Quick-commerce firms are scripting a remarkable expansion story in India by establishing themselves in the metros and expanding to smaller towns and cities. Some direct-to-consumer brands are sure to benefit from the surge