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Karnivesh

Simplifying finance.... • 21d

For a long time, I assumed revenue showed how strong a business really was. Studying Indian companies more closely changed that belief. What customers see isn’t always where profits are made. 𝐀𝐜𝐫𝐨𝐬𝐬 𝐈𝐧𝐝𝐢𝐚 𝐈𝐧𝐜., 𝐚 𝐜𝐥𝐞𝐚𝐫 𝐩𝐚𝐭𝐭𝐞𝐫𝐧 𝐬𝐭𝐚𝐧𝐝𝐬 𝐨𝐮𝐭👇 • 🏪 Consumer-facing businesses attract scale • 📉 These visible segments often run on thin margins • 💰 Real profitability comes from deeper revenue layers. 𝐄𝐱𝐚𝐦𝐩𝐥𝐞𝐬: •Reliance’s retail builds reach, refining drives cash •TCS balances stable maintenance with high-margin consulting •HDFC Bank leverages low-cost deposits for lending spreads •Flipkart sells products, but monetises seller ads •Hero sells bikes, while financing boosts margins 📌 𝗞𝗲𝘆 𝗶𝗻𝘀𝗶𝗴𝗵𝘁: Revenue creates visibility, but margins create value. To understand a business better, look beyond top-line growth and ask where sustainable profits actually come from. 👉 For a deeper breakdown, refer to the attached link.

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