Reliance Jio making off-net voice calls free, is positive for Vodafone Idea as it is a net payer of IUC and it has a low market share.
A super easy thread to help a layman understand the concept of IUC (Internet Usage Charges) and also AGR (Adjusted Gross Revenue). 👇🧵
1. ‘Raju’ is a ‘Vodafone’ user and he calls his friend ‘Vivek’ who uses the services of ‘Jio’. Now when Raju calls Vivek, his operator (Vodafone) will charge money for connecting to the other operator (Jio).
2. Now please note that the money collected by Vodafone from ‘Raju’ is actually owed to Jio. Hence, Vodafone will transfer the money to Jio. This is called as IUC (Interconnect Usage Charge).
3. Now, the amount collected by Vodafone is its revenue but in true sense it is not the money retained by it, as it has to transfer it to Jio.
4. Hence, the revenue of Vodafone will be adjusted and deducted to the extent of IUC paid to Jio and Jio’s revenue will be adjusted and increased to that extent.
5. Hence, the term AGR : 'Adjusted' Gross Revenue is used and not just Gross Revenue.

#VodafoneIdea #RelianceJio #investing #investors

@OnkarThonte, @darshanvmehta1, @_anujsinghal

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with swapnilkabra

swapnilkabra Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @caswapnilkabra

31 Dec 20
A super simple thread to help everyone understand the concept of 'Fiscal Deficit' and what happens when government spends more than its receipts. 👇🧵

#fiscaldeficit #economics #financialliteracy
1. Let us understand everything bit by bit.
Say, Raju is a businessman. Now, like every businessman, Raju is ambitious and curious to know his profit. Hence, he keeps his accounts to calculate his profit.
2. Throughout the year, his total revenue was Rs.10 lakh and his total expenditure was Rs.8 lakh. Hence, Raju is having profit or surplus of Rs.2 lakh.
Read 20 tweets
29 Dec 20
Have you ever wondered why price of large cap cos like Reliance ind. Ltd. or Apple inc. fluctuates less in magnitude but share price of a small cap co witnesses huge volatility?
A simple thread to explain the economics behind stock fluctuations!👇🧵
#investing #financialliteracy
1. Penny stocks show huge volatility but on the other hand stock of large cap companies show little fluctuations.
Did you ever observe how ‘Foreign Exchange’ rates show little fluctuation and are range bound?
Let us understand the economics behind it.
2. In this thread we will learn two things,
👉Why large companies show quick change in their prices though the magnitude of change is less?
👉What causes huge jump in prices of penny stocks? Or why on a bad day they can easily fall with huge magnitude?
Read 34 tweets
20 Dec 20
A simple thread to help all understand ‘Futures and Options’ in an easy way. Though I would personally not recommend new investors to trade in F & O, but it is always good to know things. 👇🧵

#Investing #Investors #Options #Futures
1. What is a ‘Derivative’?
‘Derivative’ simply means a product which is derived or dependent on some asset. This asset is called as ‘underlying asset’.
Let me simplify this by putting this example.
Both ‘Coffee’ and ‘Tea’ require ‘Milk’ for their making (assuming that you drink it that way, of course) . Hence, if the price of ‘Milk’ increases, the prices of ‘Tea’ and ‘Coffee’ will also increase.
Read 28 tweets
17 Dec 20
One of the major reason why the recent IPOs saw such huge listing gains is the fact that they are massively oversubscribed on the last day by HNIs and QIBs who end up pumping the Grey Market Premium.
A small thread to explain the same 🧵👇

#MrsBectorsFoodIPO #burgerkingipo
1. HNIs and QIBs are smarter than us, the retailers. The reason is simple, retail investors get shares on the basis of lottery system. So, your chance of getting an allotment as a retail investor purely depends on luck.
2. However, that’s not the case with HNIs. They get shares on a proportionate basis. Hence, if the HNI quota gets oversubscribed 100x then an HNI will get 1/100x shares.
Read 11 tweets
16 Dec 20
Some red flags in the red herring prospectus of #mrsbectorsipo which I am sure would be ignored completely because to hell with corporate governance when we can make money easily in IPOs!
A small thread to point out the same🧵👇
#investing #investors #mrsbectors
1. So, the company is paying a salary of Rs. 1 crore to Mrs. Rashmi Bector, spouse of the promoter and her role is not defined anywhere in the prospectus!
You can see this on page no.21 of the prospectus. I am attaching an image for the reference.
2. This is odd because the company has defined the roles of every other executive but not of Mrs. Rashmi Bector. You may read this from page 203 onwards. I am adding an image for reference.
Read 7 tweets
15 Dec 20
A small thread to explain the tax implications of dividend of Rs.974 per share declared by #majesco Ltd which is winding up its business🧵👇
1. For starters, Majesco is declaring such huge dividend on account of it selling its US business. But, as an investor, should one think of buying the shares now? Let us find out.
2. The current market price per share of Majesco is Rs.980. This is almost at par with the dividend per share. Now, if you buy shares of Majesco, you will be entitled to dividend of Rs.974 per share.
Read 12 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!