Financial management project

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Financial management project

  1. 1. SUBJECT : FINANCIAL MANAGEMENT WIPRO INDUSTRIES
  2. 2. 2 INDEXSRNO TOPIC PAGE NO1 WIPRO TECHNOLOGIES 32 History 43 Key industries 64 Timeline 75 Wipro businesses 76 FINANCIAL STATUS 87 COMPANY PROFILE REPORT 11
  3. 3. 3WIPRO TECHNOLOGIESWipro Technologies is the global technology services division of Wipro established in1980. It has 30 offices worldwide, 45,000 employees and over 300 customers acrossUSA, Europe and Japan including 50 of the Fortune 500 companies. Some of itscustomers are Boeing, Cisco, Ericsson, IBM, Microsoft, Prudential, Seagate, Sony, andToshiba. It is listed at New York Stock Exchange and is part of the TMT (technology-media-telecom) index of it.In 1995, it received ISO 9001 quality certification. In 1997, Wipro received CMM level 3certification from the Software Engineering Institute. In 2001, Business Today rated it asIndias most valuable company. In June 2001, it was ranked among the top 100 bestperforming technology companies globally by Business Week. In November 2002, it wasranked among the top 10 software services companies in the world by Business Week Wipro Technologies Type Public (NYSE: WIT) Founded 1945 Location Bangalore, India Key people Azim Premji, Chairman and Managing Director Industry Computer Services Products Computer hardware Revenue $1.2 billion USD (2004) Employees ~50,000 (2005) Website www.wipro.com
  4. 4. 4Wipro Technologies, the Global IT Services division of Wipro Limited NYSE: WIT(incorporated 1946, in operation since 1945) is an India-based global IT services, ITsolutions and technology services major. It is headquartered in Bangalore,India and islisted on the Bombay Stock Exchange, National Stock Exchange of India and the NewYork Stock Exchange. As of 2004, it was the 4th largest company in the world in termsof market capitalization in IT services.With over 45,000 employees and revenues in the excess of US $ 1.2 billion it makesWipro one of Indias major Information Technology companies. Wipro has 54 dedicateddevelopment centers across India, Europe and United States, and also has 30 offices inNorth America, Europe and Asia Pacific.Azim Premji, Chairman and Managing Director of Wipro is said to have been responsiblefor expanding and diversifying this company from an FMCG company which madeVanaspati Oil, soaps and other consumer products into a IT services company it is today.Wipro, along with other Indian IT Services Companys like Infosys and TCS, arespearheading Indias booming Business Processing Outsourcing(BPO) sector.Wipro Limited achieved a PCMM Level 5 and SEI CMM Level 5 certification as an ITServices Company in 1995OFFICE AND FACILITESWipro is headquartered in Bangalore, India, in a campus spread across 464,000 squarefeet (43,000 m²). Wipro has 54 dedicated development centers across India, Europe andUnited States, and also has 30 offices in North America, Europe and Asia Pacific.Wipros centres in India are spread across Hyderabad, Bangalore, Calcutta,Chennai,Gurgaon, Mumbai, New Delhi, Pune and Kochi.HistoryWipro was set up in the backdrop of the small town of Amalner in Maharashtra in 1945.Primarily an oil factory, the chief products were Sunflower Vanaspati and 787 laundrysoap (a by-product of the Vanaspati operations). The company was called Western IndiaProducts Limited, with a modest presence in Maharashtra and Madhya PradeshIn the 1970s Wipro embarked on an ambitious phase of expansion and diversificationIt was in the early eighties that Wipro made its foray into the Infotech arena. Anenergetic, committed team of professional R & D and marketing managers came togetherin Bangalore in 1980. With this began the Wipro Infotech story. In a small lab at theIndian Institute of Science (IISc), the team developed the first Indian 8086 chipWipro has transcended from being a service provider to being a consultant, guide andtrusted partner
  5. 5. 5Wipro Consumer Care and Lighting (WCCLG) is the mother division of Wipro Ltd withits roots going back to 1945 when Western India Vegetable Products was incorporated asa Private Ltd company to manufacture edible oil.Over the years, Wipro Consumer Care and Lighting has crossed various milestones andmetamorphosed from being a manufacturer of Hydrogenated Vegetable Oils to a strongplayer in the FMCG space with robust brands addressing consumer needs in variouscategories like Personal Wash, Fabric Wash, Toiletries, Personal Grooming, Baby Care,Cooking Medium, Domestic and Industrial Lighting and Energy drinks. WCCLG’sacquisition of the Chandrika in December 2003 has heralded Wipro’s entry in the fastgrowing Natural Products market.A focus on customer needs with distinctive offerings, supported by a robust distributionsystem, and innovation in product and strategy have helped us successfully compete withdominant market players in categories like soaps, lighting and baby skin care with brandsthat make WCCLG;No.1 in Haircare SoapsNo. 2 in Toilet Soaps in South and No. 4 AllIndiaNo. 2 in Baby Skin care productsNo. 2 in General Lighting Systems (Bulbs)No. 2 in the Ayurvedic soap segment.No. 2 in Cosmetic Talcum PowderWipro Technologies is the global technology services division of Wipro established in1980. It has 30 offices worldwide, 24,400 employees and over 300 customers acrossUSA, Europe and Japan including 50 of the Fortune 500 companies. Some of itscustomers are Boeing, Cisco, Ericsson, IBM, Microsoft, Prudential, Seagate, Sony, andToshiba. It is listed at New York Stock Exchange and is part of the TMT (technology-media-telecom) index of it.In 1995, it got ISO 9001 quality certification. In 1997, Wipro got CMM level 3certification from the Software Engineering Institute. In 2001, Business Today rated it asIndias most valuable company. In June 2001, it was ranked among the top 100 bestperforming technology companies globally by Business Week. In November 2002, it wasranked among the top 10 software services companies in the world by Business Week.Wipro Technologies, the Global IT Services division of Wipro Limited (incorporated1946, in operation since 1945) is an India-based global IT services, IT solutions andtechnology services major. It is headquartered in Bangalore,India and is listed on theBombay Stock Exchange, National Stock Exchange of India and the New York StockExchange. As of 2004, it was the 4th largest company in the world in terms of marketcapitalization in IT services.
  6. 6. 6With over 44,000 employees and revenues in the excess of US $ 1.2 billion it makesWipro one of Indias major Information Technology companies. Wipro has 54 dedicateddevelopment centers across India, Europe and United States, and also has 30 offices inNorth America, Europe and Asia Pacific.Azim Premji, Chairman and Managing Director of Wipro is said to have been responsiblefor expanding and diversifying this company from an FMCG company which madeVanaspati Oil, soaps and other consumer products into a IT services company it is today.Wipro, along with other Indian IT Services Companys like Infosys and TCS, arespearheading Indias booming Business Processing Outsourcing(BPO) sector.Wipro Limited achieved a PCMM Level 5 and SEI CMM Level 5 certification as an ITServices Company in 1995.Key industriesThe key industries covered currently under this practice are:Engineering EnterprisesFinancial ServicesHealthcareLife SciencesManufacturingRetail & Consumer Packaged GoodsBanking and Capital MarketsTravel and LeisureMedia and EntertainmentTechnologyTelecomTransportationAviationUtilities & EnergyEnterprise SolutionsBusiness process outsourcing (BPO) through - Wipro BPOConsulting
  7. 7. 7TimelineWipro Limited was incorporated in 1945 and commenced its operations in 1946.Significant milestones are • 1947:An oil mill and hydrogenated cooking medium plant set up • 1975:Wipro Fluid Power set up to manufacture hydraulic and pneumatic cylinders • 1980:Information technology services for domestic market started • 1983:Software products subsidiary -Wipro Systems Ltd. – established • 1985:Toilet soaps manufacture begins • 1989:Joint venture with GE of US for medical systems, Wipro GE Medical Systems Ltd • 1990:Product software business discontinued; software services begin • 1992:Lighting business established • 1994:Merger of subsidiaries Wipro Technologies Ltd. and Wipro Systems Ltd. with Wipro Ltd • 1999:Software business reaches SEI certification • 1999:Wipro Net set up by restructuring Wipro Ltd.s communication services business to address the Internet market • 2000:Listing of Wipro Ltd.s ADRs on New York Stock Exchange • 2000:Six Sigma initiative begun • 2001:Wipro becomes worlds first PCMM Level 5 company • 2002:Wipro becomes CMMiWipro businessesWipro TechnologiesWipro InfotechWipro Consumer Care and LightingWipro Fluid PowerWipro GE Medical SystemsWipro ePeripherals (WeP)Wipro BPO *[1]Interview at WiproFINANCIAL STATUS
  8. 8. 8Founded in 1945 and diversifying into the IT sector in 1980, Wipro is engaged inproviding software services, product sales and implementation, business processoutsourcing, consumer care, and lighting products. These services are provided toindustries such as telecom, BFSI, energy and utilities, healthcare, transportation, andmanufacturing. The company also provides product development outsourcing services inproduct design services, embedded systems software, control systems design, and systemintegration.Wipro is headed by Azim H Premji, chairman and managing director of the company.The equity of the company currently stands at Rs 140.7 crore, wherein 83% is held by thepromoters, 5% by institutional investors, 7% by the Indian public, and the balance 5% isheld by private corporate bodies and others.For the financial year ended March 2005, Wipro reported an impressive revenue growthof 40% amounting to Rs 8160.5 crore as compared to Rs 5840 crore in the previousfinancial year. All the companys business segments reported growth with the Indian andthe Asia Pacific IT Services & Products segment registering a 43% growth amounting toRs 1396.4 crore as compared to Rs 976.2 crore in the last year. Revenues from the GlobalIT Services & Products segment amounted to Rs 6075.3 crore as against 4357.5 crore, up39%, whereas revenues from the Consumer Care & Lighting segment registered a 6%growth amounting to Rs 225.8 crore against Rs 182.6 crore. Revenues for USA amountedto Rs 4193.5 crore, up 36% as compared to Rs 3086.8 crore, whereas revenues for thesameperiod from India witnessed a 28% annual growth amounting to Rs 1951.3 crore asagainst 1520.5 crore. Rest of the world registered a 59% growth in revenues, of Rs 2025crore, as compared to Rs 1273.9 crore. The net profit for the same period stood at Rs1628.5 crore as compared to Rs 1031.5 crore, up an impressive 58%.Wipro signed a multi year contract with Loyalty Gate Limited, a European provider forintegrated solutions to airlines for application maintenance, support and development ofLoyalty Gates business critical application, which would be used for providing servicesto three leading European airlines. The company also entered into an agreement withDassault Systemes, which would enable its customers to manage the product lifecyclemanagement process with Dassault Systemes CAA V5 platform.The company also announced results for the final quarter ended March 2005, whereinrevenues amounted to Rs 2301.1 crore, witnessing a healthy 9% sequential and 30% y-o-y revenue growth as compared to Rs 2103.8 crore and Rs 1773.4 crore. The Indian andthe Asia Pacific IT Services & Products segment registered a 32% y-o-y growthamounting to Rs 484.2 crore, contributing 21% of the total quarterly revenues. Revenuesfrom the Global IT Services & Products segment amounted to Rs 1640.9 crore,witnessing a 31% growth and a 71% contribution, whereas revenues from the ConsumerCare & Lighting segment registered a 20% growth amounting to Rs 102 crorecontributing 5%. Other business segments contributing the balance 3% of the quarterlyrevenues amounting to 62.8 crore, up 2% y-o-y. Revenues for the USA, India and the restof the world contributed 48%, 28% and 24% amounting to Rs 873.8 crore, Rs 572.5 crore
  9. 9. 9and Rs 340 crore, registering a 28%, 14% and 58% y-o-y growth respectively. The netprofit of the company marginally grew a percent on a sequential basis amounting to Rs433 crore, whereas the net profit, as compared to the same quarter in the last yearwitnessed a 35% increase. Wipro added 41 clients during the quarter. The total staffstrength of the company at the end of the quarter stood at 41,857 employees, with 26,184in IT services business and 15,673 in BPO services. During the quarter there was a netaddition of 2,520 employees with 1,187 employees in IT services business and 1,333 inBPO services.
  10. 10. 10Consolidated Financials200420052006*2007*Sales584081611036713076Other Income132957060Operating Profit1271205227033462Operating Profit Margin (%)22252627Net Profit1032162921622766Equity Capital47141141141EPS (Rs)4423
  11. 11. 11Wipro had signed a three-year, multi-million Euro deal with Dutch chemicals groupAkzo Nobel NV to implement a shared information technology network by providinginfrastructure management services for data centers across Europe and the US. Wiproentered into a strategic alliance with TestQuest Incorporated, a provider of testautomation solutions for the mobile and wireless industry to develop a multimediamessaging service and an automated test solution for the formers expanding mobile andwireless customer base. The company recently opened its third office at Munich inGermany, which it claims is the next phase of the companys plans for investment inexpanding its German infrastructure, and is a step forward in its vision of going global.Wipro is currently traded at Rs 637 discounting our projected March 2006 EPS by 21times and March 2007 EPS by 17 times. We had rated the stock as a market performer inFebruary 2004 and since then stock has appreciated by 11%, against a 28% appreciationin the BSE Tech index. Based on the steady improvement in profitability and salesgrowth, we would upgrade this stock to Market Outperformer.Sushanto Mitra The author is the founder of Technology Capital Partners The viewsreflected here are of the author and not of this publication. No liability is accepted forlosses based on the information presented here
  12. 12. Fact Sheet 12www.wipro.comDoddakannelli Sarjapur Road, Bangalore - 560 035Tel: +91 (80) 28440011Fax: +91 (80) 28440256Area of Specialization Software services, product sales and implementation, BPO consumer care andlighting.Revenues (March 2005) Rs 8,161 croreOffices India, USA, Canada, UK, France, Sweden, Germany, Finland, Italy and JapanListing (Stock Exchanges) BSE and NSEFace Value Rs 2 per shareCurrent Market Price Rs 637 per share52-Week High/Low 777/400BSE Code 507685NSE Code WIPROSURESH C SENAPATY, Corporate Executive Vice President-Finance and ChiefFinancial OfficerAs Chief Finance Officer and Corporate Executive Vice President - Finance, WiproSuresh Senapaty heads Legal, Business Planning, Treasury and Controllership, of Wipro.Suresh Senapatys association with Wipro goes back to Wipro Consumer Care businesswhere he was the CFO. He later moved as Vice President-Finance of Wipro Infotech. Hemoved to his present role as CFO for the entire Wipro Corporation in 1995.Suresh Senapaty has accomplished a number of significant milestones for WiproCorporation. His first assignment was the merger of various companies such as WiproInfotech and Wipro Systems with Wipro Ltd. He played a key role in the New YorkStock Exchange Listing of Wipro in 2000. This is the second time in the history of Wiprothat it accessed the capital market, the first time being as early as He has been acommittee member of the Confederation of the Indian Industry (CII) at the RegionalLevel and has made successful representations to the Government India on a variety ofIndustry related issues.
  13. 13. 13COMPANY PROFILE REPORT.This detailed Report provides an Earnings and Dividends history for Wipro Limited.Tabular results include up to a ten-year history of "as reported" Earnings per Share andDividends per Share plus a calculation of the amount of earnings paid out over the year individends (i.e. Payout Ratio). Earnings and Dividends are presented on both a Quarterlyand Annual basis. An annual Percent Change factor is calculated for both Earnings andDividends.Wipro Limited. The Groups principal activities are to offer information technologyservices. These services include integrated business, technology and process solutionsincluding systems integration, package implementation, software applicationdevelopment and maintenance and transaction processing. These services also compriseof information technology consulting, personal computing and enterprise products,information technology infrastructure management and systems integration services. TheGroup also offers products related to personal care, baby care, wellness products. Theoperations of the Group are conducted in India, the United States and other countries

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