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Equity research report wipro [2012]

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Equity research report wipro [2012] Equity research report wipro [2012] Presentation Transcript

  • Type :Public Ltd. CompanyIndustry :IT Services, IT ConsultancyFounded :Amalner, Maharashtra(December1945)Founder :Mr. Mohamed Hasham PremjiHeadquarters :Bangalore, Karnataka, IndiaServices :IT, Business Consulting AndOutsourcing servicesEmployees :1,40,569 (As on march 2012)
  • Shareholding Pattern[As on March 2012]80%7%5%4% 2% 1% 1%0%Promoters Foreign Companies General PublicOther Financial Institutions Foreign NRIBanks Mutual Funds DirectorsTotal share capital :- Rs.491.7 Cr. Source: economictimes.com
  • Source :- www.moneycontrol.com
  • Particular March ’12 March ‘11 March ’10 March ‘09 March ‘08Income In INR [CR]Sales Turnover31,803.40 26,401.20 23,006.30 21,612.80 17,658.1020.46% 14.75% 6.44% 22.39% 28.34%(Excise Duty) 120.50 100.70 84.30 105.50 165.50Net Sales31,682.90 26,300.50 22,922.00 21,507.30 17,492.6020.46% 14.73% 6.57% 22.95% 27.83%Other Income 524.90 603.30 866.70 -480.40 326.90StockAdjustments-44.90 31.60 111.00 -3.80 187.00Total Income 32,162.90 26,935.40 23,899.70 21,023.10 18,006.50
  • Particular March ’12 March ‘11 March ’10 March ‘09 March ‘08(Expenditure) In INR [CR]Raw Materials 4,684.90 3,805.60 3,768.80 3,438.80 3,139.30Power & Fuel Cost 233.40 199.70 141.40 154.00 0.00Employee Cost 13,223.70 10,937.40 9,062.80 9,249.80 7,409.10OtherManufacturingExpenses3,722.90 2,780.20 2,145.30 1,687.80 299.80Selling and AdminExpenses2,057.60 1,703.30 1,491.40 1,523.00 557.80MiscellaneousExpenses1,495.80 1,145.00 921.80 691.40 2,558.00Total Expenses25,418.30 20,571.20 17,531.50 16,744.80 13,964.0023.56% 17.33% 4.69% 19.90% 32.79%
  • Particular March ’12 March ‘11 March ’10 March ‘09 March ‘08Operating Profit6,219.70 5,760.90 5,501.50 4,758.70 3,715.607.96% 4.71% 15.60% 28.07% 14.16%PBDIT6,744.60 6,364.20 6,368.20 4,278.30 4,042.505.97% -0.06% 48.84% 5.83% 14.09%(Interest)79.90 58.60 99.80 196.80% 116.8036.34% -41.28% -49.28% 68.49% 1522.22PBDT6,664.70 6,305.60 6,268.40 4,081.50 3,925.705.69% 0.59% 53.57% 3.96% 11.02%(Depreciation) 739.50 600.10 579.60 533.60 456.00Other Written Off 6.60 0.00 0.00 0.00 0.00Profit Before Tax 5,918.60 5,705.50 5,688.80 3,547.90 3,469.70(Extra-ordinaryitems)0.00 0.00 0.00 1.00 0.00
  • Particular March ’12 March ‘11 March ’10 March ‘09 March ‘08PBT (Post Extra-Ord Items)5,918.60 5,705.50 5,688.80 3,547.90 3,469.70(Tax) 1,233.50 861.80 790.80 574.10 406.40Reported NetProfit4,685.10 4,843.70 4,898.00 2,973.80 3,063.30-3.27% 1.10% 64.70% -2.92% 7.78%
  • 31,682.9038,858.548,907.2231,254.000.005,000.0010,000.0015,000.0020,000.0025,000.0030,000.0035,000.0040,000.0045,000.00Net SalesWIPRO TCS HCL INFOSYS
  • 31,803.4038,858.798,907.2231,254.000.005,000.0010,000.0015,000.0020,000.0025,000.0030,000.0035,000.0040,000.0045,000.00Sales TurnoverWIPRO TCS HCL Infosys
  • 25,418.3027,472.566,371.1521,191.000.005,000.0010,000.0015,000.0020,000.0025,000.0030,000.00Total ExpensesWIPRO TCS HCL INFOSYS
  • 6,219.7011,385.722,510.2210,063.000.002,000.004,000.006,000.008,000.0010,000.0012,000.00Operating ProfitWIPRO TCS HCL INFOSYS
  • 79.916.497.272020406080100120InterestWIPRO TCS HCL INFOSYS
  • 4,685.1010,975.981,950.428,470.000.002,000.004,000.006,000.008,000.0010,000.0012,000.00Net ProfitWIPRO TCS HCL INFOSYS
  • 4thHCL“C” Grade3rdINFOSYS2ndWIPRO1stTCS
  • GDP 1,847.98 Bill.USDBalance of Trade (1,086.12) Bill.INRInflation 6.62%Index of industrial production (0.60) %Exports 1,389.82 Bill.USDExchange Rate ($-Rs) 54.91 Rs.REPO 7.75%RE-REPO 6.75%http://www.tradingeconomics.com
  • India China Russia Brazil54.916.2330.731.98Exchange RateExchange Rate
  • India China Russia Brazil1389.821873664060015966.73ExportsExports
  • India China Russia Brazil1847.98 7298.1 1857.77 2476.65GDPGDP
  • India China Russia Brazil6.6227.16.15InflationInflation
  • 11-12 Q4 18.2%Growth rate of IT 11-12 Q4 9.4%Value of IT industry BSE-S&P [BSE IT] 6,763.05 INRMarket Capitalization of ITBSE-S&P [BSE IT](Free float)3,04,239.45 Cr. INR10.45% of 100%Volume of shares traded BSE-S&P [BSE IT] 356.90 LacValue of shares traded BSE-S&P [BSE IT] 0.19 Cr. INRTurnover BSE-S&P [BSE IT] 74.8001 Cr. INRP/E Ratio BSE-S&P [BSE IT] 19.60Source :- www.bseindia.com& www.finmin.nic.in
  • “A” Grade
  • Source :- www.money conrol.com
  • Liquidity Ratio WiproCurrent ratio 2.56Quick ratio 1.26Solvency RatioDebt to equity 0.21Debt asset ratio 0.24Interest coverage ratio 84.41Financial Charges Coverage Ratio 88.66Profitability RatioGross profit margin ratio 30.84Operating profit margin ratio 19.63Net profit margin ratio 14.39Return on capital employed 22.78Source :- www.money conrol.com
  • Efficiency Ratio WiproReceivable turnover ratio 91Inventory turnover ratio 48.33Working capital turnover ratio 2.24Valuation RatioEarning per share 23.19Price earning ratio 18.33Dividend payout ratio 36.59Book value per share 99.04Source :- www.money conrol.com
  • 4thHCL“A” Grade3rdINFOSYS2ndTCS1stWIPRO
  • Strengths:Strong & Global R&D facilityLarge employee base & Diversified skill baseacross service linesImpressive list of clienteleMEGA Partnership – Cisco, EMC, Microsoft, Oracle& SAP
  • Weaknesses:Domestic market is huge but underdevelopedSmall player in global marketClients not trusting the capabilities of IndianSoftware CompaniesHigh reliance on foreign market
  • Opportunities:In the consultancy areaIn the emerging technology areas like BlueTooth, WAP etc.Huge global marketIT sector booming
  • Threats:Increasing cost of human capitalSlowdown in the US economyCompetition by Indian companies indomestic market [Emerging small ITcompanies]Exchange rate
  • Source :- www.indiansplash.comSellingTarget Price: Rs. 4405/03/2013BSE:419.55NSE:419.50
  • • Wipros board of directors has approved the demerger of non-it businesses (Consumer care, lighting, infrastructure, medicalproduct) business will be demerged. These businesses willcome under Wipro Enterprise ltd.• The move is positive for the company as the focus on ITservices will sharpen• On share holding of five equity shares with face value of Rs.2each, the share holder will get one equity share with facevalue of Rs.10 in Wipro Enterprise Ltd.• Mahindra World City, Jaipurs IT / ITES zone to be developedby Wipro Ltd• Wipro has signed an agreement to acquire 100% shareholdingof the L.D. Waxsons Group, a Singapore based FMCG company
  • IndustryAnalysisRevenueStatementAnalysisRatioAnalysisTechnicalAnalysis‘A’ Grade “C” Grade ‘A’ GradeCall :“BUY”Selling TargetPrice : Rs. 440
  • Website Namehttp://www.moneycontrol.comhttp://www.indiansplash.comhttp://money.rediff.comhttp://fms-syssoc.nethttp://www.nse india.comhttp://www.bseindia.comhttp://www.tradingeconomics.comhttp://www.bseindia.comhttp://www.wipro.comhttp://en.wikipedia.org/wiki/Wiprohttp://economictimes.indiatimes.com/wipro-ltd