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Harish Krishnan's avatar

Thnx

CFO is not X + Y....as CFO can be used multiple ways as well , infact can be lesser than overall Capex as well (as was case in 2008). The graph plots unrelated bets as percent of CFO as well as enterprise value (aggregate). Hope it clarifies

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The Silent Treasury's avatar

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Kush Garg's avatar

Really nice and insightful article.

Always get a new perspective to look at things from an aggregate level.

However, it seems that numbers don't add up in the last chart (M&A and Group Investment of listed India Inc).

Assuming PPE Capex as x and M&A and Group Investments as y

Then CFO= x+y

Take the year 2008 for instance, y= 0.24 x

Then (y/(x+y))= 0.1935

i.e. M&A and Group Investments as % of CFO should be 19.35%, but actually it is ~35%.

This is same for all years. Am I mistaken?

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