Ria Gokharu 135- PGDM C
ABOUT WIPRO
Wipro Ltd is a global information technology, consulting and outsourcing company with 140,000 employees serving over 900 clients in 57 countries. The company posted revenues of $7.37 billion for the financial year ended Mar 31, 2012. Wipro helps customers to do business better leveraging our industry-wide experience, deep technology expertise, comprehensive portfolio of services and a vertically aligned business model. Our 55+ dedicated emerging technologies ‘Centers of Excellence’ enable us to harness the latest technology for delivering business capability to our clients. Wipro is globally recognized for its innovative approach towards delivering business value and its commitment to sustainability. Wipro champions optimized utilization of natural resources, capital and talent. Today we are a trusted partner of choice for global businesses looking to ‘differentiate at the front’ and ‘standardize at the core’ through technology interventions. In today’s world, organizations will have to rapidly reengineer themselves and be more responsive to changing customer needs. Wipro is well positioned to be a partner and coinnovator to businesses in their transformation journey, identify new growth opportunities and facilitate their foray into new sectors and markets. Milestones Wipro, one of the world's most trusted brands, is a name with a long history. Here's a snapshot of our journey to date:
? ? ? ? ? ? ? ? ? ? ? ?
Established in 1945 as Western India Vegetable Products Limited in Amalner, Maharashtra IPO for capital in February 1946 Ventured in to the fledgling IT industry in 1981 Established software products and exports subsidiary, Wipro Systems Ltd. in 1983 Pioneers in marketing indigenous Personal Computers in 1985 Established a Joint venture with GE in 1989 Entered IT services in the 1990s - we were among the pioneers in developing the ODC (Offshore Development Center) concept Software business assessed at SEI-CMM Level 5 in 1998 Listed on NYSE in 2000 (NYSE:WIT) The first company in the world to be assessed at PCMM Level 5 in 2001 Entered the BPO business in 2002 Entered the Eco-energy business in 2008
Wipro Group Companies ? Wipro Consumer Care & Lighting ? Wipro Infrastructure Engineering ? Wipro GE Healthcare Private Limited
Management Team ? Azim H. Premji - Chairman ? T K Kurien - CEO, IT Business & Executive Director ? Suresh C Senapaty - Executive Director & Chief Finance Officer ? Pratik Kumar - Executive Vice President, Human Resources, Wipro Limited ? Anurag Behar - Chief Sustainability Officer, Wipro Limited ? Vineet Agrawal - President, Wipro Consumer Care and Lighting
MAJOR DIVISIONS
1. IT Services: Wipro provides complete range of IT Services to the organization. The range of services extends from Enterprise Application Services (CRM, ERP, eProcurement and SCM) to e-Business solutions. Wipro's enterprise solutions serve a host of industries such as Energy and Utilities, Finance, Telecom, and Media and Entertainment. 2. Product Engineering Solutions: Wipro is the largest independent provider of R&D services in the world. Using "Extended Engineering" model for leveraging R&D investment and accessing new knowledge and experience across the globe, people and technical infrastructure, Wipro enables firms to introduce new products rapidly. 3. Technology Infrastructure Service: Wipro's Technology Infrastructure Services (TIS) is the largest Indian IT infrastructure service provider in terms of revenue, people and customers with more than 200 customers in US, Europe, Japan and over 650 customers in India. 4. Business Process Outsourcing: Wipro provides business process outsourcing services in areas Finance &Accounting, Procurement, HR Services, Loyalty Services and Knowledge Services. In 2002, Wipro acquiring Spectra mind and became one of the largest BPO service players. 5. Consulting Services: Wipro offers services in Business Consulting, Process Consulting, Quality Consulting, and Technology Consulting.
RECENT NEWS
1. Wipro Ltd, India's No.3 software services provider, gained 2.5 percent in pre-open trade after the company in a statement on Sunday said it would acquire L.D. Waxson Group, a Singapore-based consumer goods company, in an all-cash deal worth about $144 million. (Reuters, December 9, 2012) 2. Wipro Ltd., beat forecasts with a 24 percent rise in quarterly profit, helped by a surge in outsourcing demand as Western clients look to cut costs in an uncertain economic environment. (Reuters, December 10, 2012)
3. Wipro shareholders' gives demerger nod, shares up over 1%. Wipro said its shareholders
have approved the company's plans to hive off non-IT business into unlisted arm. (Money Control, 31st December, 2012) 4. See Nifty scale to 6150; Wipro may test Rs 440: Amit Gupta. In Wipro Rs 370 has become the intermediate support and from here on the open interest base in the stock may start declining, so the stock is heading towards Rs 440 levels, says Amit Gupta of ICICI Direct. (Money Control, 11 January, 2013) 5. Indian ADRs ended mixed on Friday. In the IT space, Infosys gained 18.82% at $52.22 and Wipro was up 6.54% at $9.78. (Money Control, 12 January, 2013)
ANALYSIS OF BALANCE SHEET PARTICULARS
Secured loans Share Application Money Loans and Advances Sundry Debtors Current Assets
2012 (in crores)
1 0 8135.90 7967.00 12187.30
2011 (in crores)
0 0.7 6756.80 5781.30 8840.40
? Increase in Sundry Debtors is due to increase in Sales Turnover by Rs. 5402.2 crores. ? Increase in loans and advances is due to increase in Interest by Rs. 23.2 crores. ? Increase in Current Assets is due to increase in Inventories, Cash and Bank Balance and
Sundry Debtors.
? Wipro bought secured loans for the first time in 5 years of Rs. 1 crore. ? There was an increase in Total Share Capital but still no increase in Share Application
Money that means Earnings Per Share increased without issuing new shares.
RATIO ANALYSIS FOR YEAR 2011-2012
SHORT TERM SOLVENCY RATIO i. Current Ratio = 1.83 ii. Quick Ratio = 2.38 iii. Working Capital Ratio = 55.89 million LONG TERM SOLVENCY RATIO i. Debt Equity Ratio = 0.21 ii. Owners Fund as % of Total Source = 82.28 iii. Capital Gearing Ratio = 0.22 iv. Debt to Total Asset Ratio = 0.98 v. Equity Multiplier Ratio =1.21 vi. Long Term Debt Equity Ratio = 0.08 TURNOVER RATIO i. Debtors Turnover Ratio = 5.23 ii. Stock/Inventory Ratio = 39.73 iii. Asset Turnover Ratio = 1.22 iv. Fixed Assets Turnover Ratio = 3.32 v. Investment Turnover Ratio = 39.73 vi. Total Asset Turnover Ratio = 1.44 vii. Average Finished Goods Held = 4.52
PROFITABILITY RATIO i. Return on Assets = 9.53% ii. Return on Equity = 21.21% iii. Return on capital = 21.26% iv. Operating Margin = 18.90% v. Return on Long Term Funds = 23.86% vi. EBITDA Margin = 15.93% vii. Gross Profit Ratio = 16.33% viii. Net Profit Ratio = 14.70% ix. Return on Net Worth = 20.74% PAYOUT RATIO i. Dividend Payout Ratio = 36.59 ii. Earning Retention Ratio = 68.78 COVERAGE RATIO i. Total Debt to Owners Fund = 0.21 ii. Interest Coverage = 68.08
doc_272359491.docx
ABOUT WIPRO
Wipro Ltd is a global information technology, consulting and outsourcing company with 140,000 employees serving over 900 clients in 57 countries. The company posted revenues of $7.37 billion for the financial year ended Mar 31, 2012. Wipro helps customers to do business better leveraging our industry-wide experience, deep technology expertise, comprehensive portfolio of services and a vertically aligned business model. Our 55+ dedicated emerging technologies ‘Centers of Excellence’ enable us to harness the latest technology for delivering business capability to our clients. Wipro is globally recognized for its innovative approach towards delivering business value and its commitment to sustainability. Wipro champions optimized utilization of natural resources, capital and talent. Today we are a trusted partner of choice for global businesses looking to ‘differentiate at the front’ and ‘standardize at the core’ through technology interventions. In today’s world, organizations will have to rapidly reengineer themselves and be more responsive to changing customer needs. Wipro is well positioned to be a partner and coinnovator to businesses in their transformation journey, identify new growth opportunities and facilitate their foray into new sectors and markets. Milestones Wipro, one of the world's most trusted brands, is a name with a long history. Here's a snapshot of our journey to date:
? ? ? ? ? ? ? ? ? ? ? ?
Established in 1945 as Western India Vegetable Products Limited in Amalner, Maharashtra IPO for capital in February 1946 Ventured in to the fledgling IT industry in 1981 Established software products and exports subsidiary, Wipro Systems Ltd. in 1983 Pioneers in marketing indigenous Personal Computers in 1985 Established a Joint venture with GE in 1989 Entered IT services in the 1990s - we were among the pioneers in developing the ODC (Offshore Development Center) concept Software business assessed at SEI-CMM Level 5 in 1998 Listed on NYSE in 2000 (NYSE:WIT) The first company in the world to be assessed at PCMM Level 5 in 2001 Entered the BPO business in 2002 Entered the Eco-energy business in 2008
Wipro Group Companies ? Wipro Consumer Care & Lighting ? Wipro Infrastructure Engineering ? Wipro GE Healthcare Private Limited
Management Team ? Azim H. Premji - Chairman ? T K Kurien - CEO, IT Business & Executive Director ? Suresh C Senapaty - Executive Director & Chief Finance Officer ? Pratik Kumar - Executive Vice President, Human Resources, Wipro Limited ? Anurag Behar - Chief Sustainability Officer, Wipro Limited ? Vineet Agrawal - President, Wipro Consumer Care and Lighting
MAJOR DIVISIONS
1. IT Services: Wipro provides complete range of IT Services to the organization. The range of services extends from Enterprise Application Services (CRM, ERP, eProcurement and SCM) to e-Business solutions. Wipro's enterprise solutions serve a host of industries such as Energy and Utilities, Finance, Telecom, and Media and Entertainment. 2. Product Engineering Solutions: Wipro is the largest independent provider of R&D services in the world. Using "Extended Engineering" model for leveraging R&D investment and accessing new knowledge and experience across the globe, people and technical infrastructure, Wipro enables firms to introduce new products rapidly. 3. Technology Infrastructure Service: Wipro's Technology Infrastructure Services (TIS) is the largest Indian IT infrastructure service provider in terms of revenue, people and customers with more than 200 customers in US, Europe, Japan and over 650 customers in India. 4. Business Process Outsourcing: Wipro provides business process outsourcing services in areas Finance &Accounting, Procurement, HR Services, Loyalty Services and Knowledge Services. In 2002, Wipro acquiring Spectra mind and became one of the largest BPO service players. 5. Consulting Services: Wipro offers services in Business Consulting, Process Consulting, Quality Consulting, and Technology Consulting.
RECENT NEWS
1. Wipro Ltd, India's No.3 software services provider, gained 2.5 percent in pre-open trade after the company in a statement on Sunday said it would acquire L.D. Waxson Group, a Singapore-based consumer goods company, in an all-cash deal worth about $144 million. (Reuters, December 9, 2012) 2. Wipro Ltd., beat forecasts with a 24 percent rise in quarterly profit, helped by a surge in outsourcing demand as Western clients look to cut costs in an uncertain economic environment. (Reuters, December 10, 2012)
3. Wipro shareholders' gives demerger nod, shares up over 1%. Wipro said its shareholders
have approved the company's plans to hive off non-IT business into unlisted arm. (Money Control, 31st December, 2012) 4. See Nifty scale to 6150; Wipro may test Rs 440: Amit Gupta. In Wipro Rs 370 has become the intermediate support and from here on the open interest base in the stock may start declining, so the stock is heading towards Rs 440 levels, says Amit Gupta of ICICI Direct. (Money Control, 11 January, 2013) 5. Indian ADRs ended mixed on Friday. In the IT space, Infosys gained 18.82% at $52.22 and Wipro was up 6.54% at $9.78. (Money Control, 12 January, 2013)
ANALYSIS OF BALANCE SHEET PARTICULARS
Secured loans Share Application Money Loans and Advances Sundry Debtors Current Assets
2012 (in crores)
1 0 8135.90 7967.00 12187.30
2011 (in crores)
0 0.7 6756.80 5781.30 8840.40
? Increase in Sundry Debtors is due to increase in Sales Turnover by Rs. 5402.2 crores. ? Increase in loans and advances is due to increase in Interest by Rs. 23.2 crores. ? Increase in Current Assets is due to increase in Inventories, Cash and Bank Balance and
Sundry Debtors.
? Wipro bought secured loans for the first time in 5 years of Rs. 1 crore. ? There was an increase in Total Share Capital but still no increase in Share Application
Money that means Earnings Per Share increased without issuing new shares.
RATIO ANALYSIS FOR YEAR 2011-2012
SHORT TERM SOLVENCY RATIO i. Current Ratio = 1.83 ii. Quick Ratio = 2.38 iii. Working Capital Ratio = 55.89 million LONG TERM SOLVENCY RATIO i. Debt Equity Ratio = 0.21 ii. Owners Fund as % of Total Source = 82.28 iii. Capital Gearing Ratio = 0.22 iv. Debt to Total Asset Ratio = 0.98 v. Equity Multiplier Ratio =1.21 vi. Long Term Debt Equity Ratio = 0.08 TURNOVER RATIO i. Debtors Turnover Ratio = 5.23 ii. Stock/Inventory Ratio = 39.73 iii. Asset Turnover Ratio = 1.22 iv. Fixed Assets Turnover Ratio = 3.32 v. Investment Turnover Ratio = 39.73 vi. Total Asset Turnover Ratio = 1.44 vii. Average Finished Goods Held = 4.52
PROFITABILITY RATIO i. Return on Assets = 9.53% ii. Return on Equity = 21.21% iii. Return on capital = 21.26% iv. Operating Margin = 18.90% v. Return on Long Term Funds = 23.86% vi. EBITDA Margin = 15.93% vii. Gross Profit Ratio = 16.33% viii. Net Profit Ratio = 14.70% ix. Return on Net Worth = 20.74% PAYOUT RATIO i. Dividend Payout Ratio = 36.59 ii. Earning Retention Ratio = 68.78 COVERAGE RATIO i. Total Debt to Owners Fund = 0.21 ii. Interest Coverage = 68.08
doc_272359491.docx