Have heard a lot of noise around IT sector margins suffering due to attrition.
Wanted to share some data and personal experience. Note that this only applies to the multinational companies. Don't apply it to all Indian IT companies.
Hiring people who are outside of the usual pay bands is very frequent for these multinational cos. The way companies handle this is to structure pay in a way that first year salary is higher than the current salary of employee.
The salaries then fall off, unless employee performs very well (in which case they deserve the hike).
These cos achieve this by the way of providing more equity (options, esops etc) in 1st year with subsequent years equity tapering off.
Eg: structuring it like 40% in 1st year, 40% in second, 10% in third, 10% in fourth instead o
25% each year that they generally do.
This definitely front ends the costs and slightly impacts earnings due to tine value of money but the impact is miniscule imo. Earnings might appear optically lower in year 1 or 2, but earning power does not go down.
Conclusion: I don't expect earning power of IT COs to go down. There might be some short term pain due to lot of churn due to covid disruptions, bur eventually things will come back to normal in 2-3 years imo.
Lot of noise imo. Terminal value hardly changes.
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Vaibhav Global is a vertically integrated omnichannel company that sells value fashion jewellery & lifestyle products.
Don't worry, I'll break those terms down in subsequent tweets.
Let's dive deeper into the vertical integration aspect. VGL is present across the value chain.
(i) Identifying trends & products.
(ii) Manufacturing or sourcing.
(iii) Selling.
How to make the right decisions so as to end up being financially independent
OR to be rich.
OR to retire early.
OR to improve the standard of your life.
Sharing my views & what works for me.
If you like it, please RT to benefit maximum investors. 🙏
Imagine a graph of your net worth versus time. Each point on the graph captures on the horizontal axis, what time it is in your life, and on vertical axis, what your net worth is.
This is how it would look like for most people. A wiggly line inching upwards & to the right. What do we want to maximize though?
#racl concall was interesting today. I learned that breaking into company supply chains is quite difficult. Management was appreciated for their corporate governance.
Key takeaway: they will do another 50cr capex this year. This+ last year capex should take care of fy25 topline
Management also mentioned that if I do 100 rs gear in ice and 100 ka volume and gear becomes 500 rupees with 40 volume overall I will gain.
Not sure if it can be taken as guidance but seems like volume drop due to ev will be more than compensated by GM improvement.
Another key benefit is asset turns could go up since volume goes down while total value remains same or slightly increases.
This thread is to create awareness on how to use valuepickr.com
Please note that i am not officially associated with website. Only an active contributor & hope to benefit from network effects of interested investors actively contributing on platform.
Valuepickr.com is above all else a community of like minded investors who wants to actively engage in understandin at a fundamental level & separate wheat from the chaff.
Develop an understanding of the biz, industry, competitive intensity, management, valuation
Website was created > 10 years ago. Early users are seasoned investors & i personally look to learn greatly by following their footprints across the website.
Mega 🧵👇 on #Pix transmissions & what makes this company special.
TL;DR: Recession proof play on global capex cycle revival & mechanisation of indian agriculture.
First of all a huge shout out to ValuePickr. This is one of the hardest companies to research. Without ValuePickr I'd know almost nothing about Pix. Most of knowledge on this thread comes from VP
My life was divided into 3 phases: School, college & job.
With the benefit of hindsight, I wanted to share some key life-lessons from the "school" part of life.
Could end up benefitting everyone regardless of profession, so do read on. 🙏
🧵🧵👇
Plz RT if you find it useful
I mean for this 3-part series of threads to be a definitive answer to "How can I get a Job at Google?"
or in general:
"How can I excel at X" for some X.
For a large part of my school life, I felt I was quite average. I say that in a neutral way. I was neither too good nor too bad at my studies. But mathematics always drew my fascination.