Wipro Result Updated

8/2/2019 Wipro Result Updated

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Please refer to important disclosures at the end of this report 1

(` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)Net revenue 9,869 9,997 (1.3) 8,302 18.9EBITDA 1,961 1,984 (1.2) 1,707 14.9

EBITDA margin (%) 19.9 19.8 2bp 20.6 (69)bp

PAT 1,481 1,456 1.7 1,375 7.7Source: Company, Angel Research

For 4QFY2012, Wipros results came in-line with our expectations.

The companys client base increased to seven in the US100mn+ bracket at the

end of FY2012 from three in FY2011, which was a positive sign. The major

disappointment came from managements 1QFY2013 USD revenue growth

guidance of -1 to 1%, which is very sluggish as 1Q is typically a good quarter for

IT companies. This guidance indicates that management is seeing further delays

in deal closures and ramp-up of projects. We recommend Neutral on the stock.Quarterly highlights: For 4QFY2012, Wipro registered a 1.3% qoq decline in itsrevenue to `9,869cr. Revenue from the IT services segment came in at

US$1,536mn, up 2.0% qoq. Revenue from the consumer care and lighting

segment grew strongly by 25.2% yoy, while the IT products segment reported

merely 2.9% yoy revenue growth. EBIT margin of the IT services, IT products and

consumer care and lighting business declined by 8bp, 60bp and 61bp qoq to

20.7%, 4.7% and 12.5%, respectively. Wipros overall EBIT margin declined by

8bp qoq to 17.2%.

Outlook and valuation: For 1QFY2013, Wipro has given USD revenue guidanceof US$1,520mn-1,550mn, which translates into qoq growth of -1 to 1% qoq,

which is extremely subdued. Now, managements endeavor is to grow at par with

industrys average revenue growth for FY2013. Nasscom has guided for 11-14%

yoy USD revenue growth for FY2013 to achieve this Wipro needs to record at

least 3.5% qoq USD revenue growth post 1QFY2013. This number indicates that

management is banking more on back-ended growth for FY2013, which makes

us slightly cautious about the companys growth outlook. We expect USD and INR

revenue CAGR for IT services to be at 10.3% and 11.0%, respectively, over

FY2012-14E. We expect EBIT margin of the IT services segment to slide down to

20.2% in FY2013 from 20.8% in FY2012. We expect a 12.1% and 12.3% CAGR

in EBITDA and PAT, respectively, over FY2012-14E. We value the stock at 15xFY2014E EPS of `28.6, which gives us a target price of `430. We recommendNeutral on the stock.Key financials (Consolidated, IFRS)Y/E March (` cr) FY2010* FY2011 FY2012 FY2013E FY2014ENet sales 27,124 31,099 37,525 41,918 46,879% chg 6.2 14.7 20.7 11.7 11.8

Net profit 4,594 5,297 5,573 6,152 7,030% chg 18.5 15.3 5.2 10.4 14.3

EBITDA margin (%) 21.9 21.2 19.8 19.4 19.9

EPS (`) 18.9 21.7 22.7 25.1 28.6P/E (x) 21.7 18.9 18.1 16.4 14.3

P/BV (x) 4.6 4.2 3.5 3.0 2.6

RoE (%) 23.4 22.0 19.5 18.6 18.3

RoCE (%) 15.6 15.5 14.7 13.9 13.9

EV/Sales (x) 3.4 2.9 2.4 2.1 1.7

EV/EBITDA (x) 15.7 13.9 12.3 10.6 8.6

Source: Company, Angel Research; Note: *Adjusted for 2:3 bonus

NEUTRALCMP `410

Target Price -

Investment Period -

Stock Info

Sector

Bloomberg Code

Shareholding Pattern (%)

Promoters 78.4

MF / Banks / Indian Fls 3.4

FII / NRIs / OCBs 6.7

Indian Public / Others 11.5

Abs. (%) 3m 1yr 3yr

Sensex 0.4 (12.4) 51.4

Wipro (2.0) (11.9) 119.2

Face Value (`)

BSE SensexNifty

Reuters Code

100,630

0.8

472/310

126,707

IT

Avg. Daily Volume

Market Cap (` cr)

Beta

52 Week High / Low

2

17,1515,202

WIPR.BO

WPRO@IN

Ankita Somani+91 22 3935 7800 Ext: 6819

[email protected]

WiproPerformance Highlights

4QFY2012 Result Update | IT

April 25, 2012


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Wipro | 4QFY2012 Result Update

April 25, 2012 2

Exhibit 1:4QFY2012 performance (Consolidated, IFRS)

Y/E March (` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy) FY2012 FY2011 % chg (yoy)Net revenue 9,869 9,997 (1.3) 8,302 18.9 37,525 31,099 20.7Cost of revenue 6,580 6,710 (1.9) 5,512 19.4 25,304 20,464 23.7

Gross profit 3,289 3,287 0.1 2,790 17.9 12,220 10,635 14.9

SG&A expense 1,328 1,303 1.9 1,083 22.6 4,806 4,047 18.8

EBITDA 1,961 1,984 (1.2) 1,707 14.9 7,414 6,588 12.5Dep. and amortization 267 260 2.5 228 17.0 1,013 821 23.4

EBIT 1,694 1,724 (1.7) 1,479 14.6 6,401 5,767 11.0

Other income 198 113 149 541 472

PBT 1,893 1,849 2.4 1,642 15.3 6,975 6,303 10.7

Income tax 402 381 5.4 260 54.2 1,376 971 41.7

PAT 1,491 1,468 1.6 1,381 7.9 5,599 5,332 5.0Minority interest 10 11 (9.6) 6 74.6 26 35 (25.8)

Adj. PAT 1,481 1,456 1.7 1,375 7.7 5,573 5,297 5.2

Diluted EPS (`) 6.0 5.9 1.7 5.6 7.7 22.7 21.7 4.7Gross margin (%) 33.3 32.9 44bp 33.6 (28)bp 32.6 34.2 (163)bp

EBITDA margin (%) 19.9 19.8 2bp 20.6 (69)bp 19.8 21.2 (143)bp

EBIT margin (%) 17.2 17.2 (8)bp 17.8 (64)bp 17.1 18.5 (149)bp

PAT margin (%) 17.0 15.7 131bp 16.6 37bp 16.3 18.6 (226)bp

Source: Company, Angel Research

Exhibit 2:4QFY2012 Actual vs. Angel estimates

(` cr) Actual Estimate Variation (%)Net revenue 9,869 10,125 (2.5)

EBITDA margin (%) 19.9 19.9 (1)bp

PAT 1,481 1,522 (2.7)


Results in-line but guidance muted

For 4QFY2012, Wipros IT services revenue came largely in-line with expectations

at US$1,536mn, up 2.0% qoq, primarily led by 0.8% qoq volume growth in global

IT services and 1.1% qoq (constant currency basis) offshore pricing growth.

In constant currency (CC) terms, onsite pricing was flat on a qoq basis. Volume

growth of 0.8% qoq in global IT services came on the back of 1.1% offshore

volume growth and 0.2% onsite volume growth. In CC terms, the IT service

segments revenue grew by 1.3% qoq to US$1,525mn. In INR terms, revenue ofthe IT services segment came in at `7,590cr, down 0.2%, impacted by INR

appreciation against USD.


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April 25, 2012 3

Exhibit 3:Volume trend (Effort wise)

(0.4)

5.8

9.0

1.5

0.2

2.8

0.2

4.7

2.0

1.1

(2)

0

2

4

6

8

10

4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

(%)

Onsite Offshore


Exhibit 4:Pricing trend (Effort wise, CC basis)

0.9

(1.7)

(0.4)

4.3

-0.4(1.2)

(4.1)

3.6 1.1

(6)

(4)

(2)

0

2

4

6


(%)

Onsite Offshore


Service wise, Wipros anchor service lines, business application services

(contributed 30.6% to revenue), application development and maintenance (ADM)

(contributed 23.6% to revenue) and technology infrastructure services (contributed22.6% to revenue) posted 1.3%, 0.7% and 6.4% qoq growth in revenue,

respectively. In addition, analytics and information management services posted

modest 5.4% qoq growth in revenue. However, revenue from other service verticals

such as BPO and product engineering and mobility declined by 2.0% and 1.5%

qoq, respectively. Service vertical wise, the company is now witnessing traction

from deals related to application management, application support, infrastructure

services and BPO. Revenue from BPO services has been declining since the last

three quarters and management indicated that revenue from BPO is expected to

come back to the growth path in the next couple of quarters.


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April 25, 2012 4

Exhibit 5:Revenue growth (Service wise)

Service verticals % to revenue % growth (qoq) % growth (yoy)Technology infrastructure services 22.6 6.4 14.7

Analytics and information management 6.8 5.4 24.9Business application services 30.6 1.3 13.0

BPO 8.2 (2.0) (8.4)

Product engineering and mobility 8.2 (1.5) 8.5

ADM 23.6 0.7 5.1

R&D business 12.0 (2.9) 1.3

Consulting 2.9 (1.1) 0.3


Industry wise, Wipros growth was led by retail and transportation (contributed

15.4% to revenue) and energy and utilities (contributed 14.0% to revenue), which

reported revenue growth of 5.2% and 5.1% qoq (CC terms), respectively. Revenue

from the companys anchor vertical, financial services (contributed 26.6% to

revenue) reported a 1.1% qoq decline (CC terms) due to challenges and delays

seen from investment banking and insurance firms. Revenue from healthcare, life

sciences and services (contributed 10.0% to revenue) and manufacturing and

hi-tech (contributed 19.1% to revenue) grew by 1.7% and 2.4% qoq (CC terms),

respectively. Management indicated that equipment manufacturers space in the

telecom industry is still challenged in terms of IT spend; service provider

companies, especially small companies, are looking for new opportunities in

Europe and Asia Pacific. Other than telecom, management indicated that the deal

pipeline in financial services and healthcare looks promising.

Exhibit 6:Revenue growth (Service wise CC basis)

% to revenue % growth (qoq) % growth (yoy)Global media and telecom 14.9 (2.9) (2.8)

Financial solutions 26.6 (1.1) 10.5

Manufacturing and hi-tech 19.1 2.4 8.2

Healthcare, life sciences and services 10.0 1.7 6.7

Retail and transportation 15.4 5.2 10.2

Energy and utilities 14.0 5.1 50.4


Geography wise, Wipro reported revenue growth across all its geographies, except

Japan. Revenue from APAC and other emerging markets grew by 6.2% qoq (CC

terms). Revenue from America and India and Middle East posted 1.0% and 4.1%

qoq (CC terms) growth, respectively.


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April 25, 2012 5

Exhibit 7:Revenue growth (Geography wise, CC basis)

% to revenue % growth (qoq) % growth (yoy)America 52.1 1.0 6.1

Europe 27.7 0.4 11.3Japan 1.1 (16.7) (21.3)

India and Middle East 9.6 4.1 27.7

APAC and other emerging markets 9.5 6.2 36.3


Segmental performance

During the quarter, the IT services segments revenue came in at US$1,536mn, up

2.0% qoq, with India and Middle East business being the major growth driver,

posting 6.4% qoq growth. Revenue from global IT services came in at

US$1,159mn, up 1.5% qoq, while revenue from BPO services declined by 1.6%qoq to US$126mn.

Exhibit 8:IT services Revenue growth (qoq)

2.7 2.3

4.7 4.3

1.5

7.7

(4.4)

7.5

(5.0)

6.4

9.8

(4.6)

(1.0) (1.2)

(1.6)

4.2

0.5

4.6

2.22.0

(8)

(4)

0

4

8

12


(%)

Global IT India and Middle East BPO IT services


Exhibit 9:Global IT services revenue trend

1.9 1.8

6.0

1.8

0.8

4.2

0.5

4.6

2.2 2.0

0

1

2

3

4

5

6

7


(%)

Global IT volume growth IT services revenue growth (in USD)



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April 25, 2012 6

The IT products segment reported merely 2.9% yoy growth in revenue to `937cr

during the quarter. The consumer care and lighting segment posted another strong

quarter with 25.2% yoy growth in revenue to `907cr, with brands like Yardley,

Santoor and Chandrika bolstering growth. In the lighting business, Wipro isgaining traction in its eco-energy business, which involves managing energy

through the use of renewable products.

Exhibit 10:IT products Revenue growth (yoy)

911

1,006 1,001

900

9372.3

20.9

(6.4)

2.42.9

(15)

(5)

5

15

25

700

800

900

1,000

1,100

1,200


(%)

(`cr)

IT products yoy growth (%)


Exhibit 11:Consumer care and lighting Revenue growth (yoy)

724

755

800

879

907

19.1

17.6

20.3

26.4

25.2

15

17

19

21

23

25

27

29

600

650

700

750

800

850

900

950


(%)

(`cr)

Consumer care and lightening yoy growth (%)


On a consolidated level, Wipros revenue came in at `9,869cr, down 1.3% qoq.

Hiring and utilization

Wipro reported net reduction of 814 employees in its IT services employee base,

which was a negative surprise with its employee base now standing at 135,920.

Management attributed this to the transition going on in the company, which is

leading to people shifting offshore. Gross hiring during the quarter was healthy at

~7,000. Voluntary attritions (annualized) in global IT business increased slightly to

14.4% in 4QFY2012 from 14.2% in 3QFY2012. Also, attrition rate (quarterly) in

BPO increased to 15.1% in 4QFY2012 from 13.9% in 3QFY2012.


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April 25, 2012 7

Exhibit 12:Employee pyramid

Employee pyramid 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12Utilization Global IT (%) 68.9 69.7 69.3 67.1 67.4

Attrition (%)Global IT 20.9 23.2 18.5 14.2 14.4

BPO 15.5 15.3 14.1 13.9 15.1

Net additions 2,894 4,105 5,240 5,004 (814)


Utilization rate of the global IT business improved slightly by 30bp qoq to 67.4%.

As per management, of the total hiring to be done in FY2012, ~70% was of

freshers, which in turn did not give utilization level much headroom to scale up.

Going ahead, increased utilization level will be an important margin lever.

Margins decline slightlyDuring 4QFY2012, Wipro reported a decline in EBIT margin across all its business

segments. EBIT margin of the IT services segment declined slightly by 8bp qoq to

20.7%. EBIT margin of the IT products business segment and consumer care and

lighting business segment declined by 60bp and 61bp qoq to 4.7% and 12.5%,

respectively. On a consolidated level, Wipros EBIT declined by 8bp qoq to 17.2%.

Exhibit 13:Segment-wise EBIT margin trend

22.1 22.0

20.020.8 20.7

3.64.2 4.5

5.3 4.7

12.0 11.911.0

11.9 12.5

17.8 17.516.4

17.2 17.2

0

5

10

15

20

25


(%)

IT services IT products Consumer care and lightening Consolidated


Client pyramid

Wipro added 41 new clients in 4QFY2012 but its active client base reduced to 943

in 4QFY2012 from 953 in 3QFY2012. The companys client pyramid witnessed

qualitative improvement, with one client getting added in the US$100mn plus

revenue bracket and one client in the US$75mn-100mn revenue bracket. Two

clients from the US$10mn-20mn bracket moved to the US$20mn-50mn revenue

bracket. The company witnessed addition of 11 clients in the US$5mn-10mn

revenue bracket.


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April 25, 2012 8

Exhibit 14:Client metrics

Particulars 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12US$100mn plus 3 4 5 6 7

US$75mn$100mn 9 8 8 8 9US$50mn$75mn 10 12 11 11 9

US$20mn$50mn 46 45 46 48 50

US$10mn$20mn 49 49 50 48 46

US$5mn$10mn 63 77 72 76 87

US$3mn$5mn 75 63 75 87 84

US$1mn$3mn 174 180 195 178 183

New clients 68 49 44 39 41

Active customers 904 937 930 953 943


Outlook and valuation

As per management, the company witnessed pressure from clients in India

business, which led to delays in project closures. For 1QFY2013, management has

given USD revenue guidance of US$1,520mn-1,550mn, which translates into qoq

growth of -1 to 1% qoq, which is extremely subdued. Now, managements

endeavor is to grow at par with industrys average revenue growth in FY2013.

Nasscom has guided for 11-14% yoy USD revenue growth for FY2013 to

achieve this Wipro needs to record at least 3.5% qoq USD revenue growth post

1QFY2013. This number indicates that management is banking more on back-

ended growth for FY2013, which makes us slightly cautious about the companys

growth outlook. We expect USD and INR revenue CAGR for IT services to be at

10.3% and 11.0%, respectively over FY2012-14E.At the operating front, Wipro has tailwinds of improving utilization level and

headwinds such as wage inflation and moderate volume growth, which are

expected to pull down its margins to some extent. We expect EBIT margin of the IT

services segment to slide down to 20.2% in FY2013 from 20.8% in FY2012.

We expect a 12.1% and 12.3% CAGR in EBITDA and PAT over FY2012-14E.

We value the stock at 15x FY2014E EPS of `28.6, which gives us a target price of`430. We recommend Neutral on the stock.Exhibit 15:Key assumptions

FY2013 FY2014Revenue growth IT services (USD) 9.5 11.0

USD-INR rate (realized) 49.0 49.0

Revenue growth Consolidated (`) 11.7 11.8

EBITDA margin (%) 19.4 19.9

Tax rate (%) 21.0 24.0

EPS growth (%) 10.5 14.3



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April 25, 2012 9

Exhibit 16:Change in estimates

FY2013E FY2014EParameter Earlier Revised Variation Earlier Revised Variation(` cr) estimates estimates (%) estimates estimates (%)Net revenue 43,249 41,918 (3.1) 48,043 46,879 (2.4)

EBITDA 8,507 8,118 (4.6) 9,254 9,320 0.7

Other income 960 819 (14.7) 1,627 1,216 (25.2)

PBT 8,327 7,812 (6.2) 9,610 9,276 (3.5)

Tax 1,665 1,641 (1.5) 2,162 2,226 3.0

PAT 6,641 6,152 (7.4) 7,427 7,030 (5.3)


Exhibit 17:One-year forward PE chart

50

200

350

500

650

800

950

A

pr-06

O

ct-06

A

pr-07

O

ct-07

A

pr-08

O

ct-08

A

pr-09

O

ct-09

A

pr-10

O

ct-10

A

pr-11

O

ct-11

A

pr-12

(`)

Price 34x 28x 21x 14x 7x


Exhibit 18:Recommendation summary

Company Reco. CMP Tgt. price Upside FY2014E FY2014E FY2011-14E FY2014E FY2014E(`) (`) (%) EBITDA (%) P/E (x) EPS CAGR (%) RoCE (%) RoE (%)

HCL Tech Accumulate 508 560 10.3 17.4 11.8 17.0 20.4 21.3

Hexaware Neutral 130 - - 18.3 12.6 53.4 24.1 21.6

Infosys Buy 2,349 2,792 18.9 30.6 13.5 13.4 22.8 20.8

Infotech Enterprises Accumulate 159 177 11.1 16.6 8.6 13.9 16.9 13.2KPIT Cummins Buy 83 98 18.7 14.9 7.6 (1.4) 20.0 18.0

Mahindra Satyam Buy 74 89 19.5 15.0 9.0 25.3 11.4 13.0

MindTree Accumulate 548 585 6.8 15.5 9.4 32.9 19.8 17.0

MphasiS Buy 356 433 21.6 17.9 8.6 1.7 14.1 13.7

NIIT Buy 45 61 36.0 16.9 4.9 18.0 11.5 19.0

Persistent Neutral 354 - - 22.4 8.8 4.7 17.0 14.5

TCS Accumulate 1,172 1,276 8.8 28.7 16.5 16.8 28.8 27.7

Tech Mahindra Accumulate 688 750 9.1 15.7 7.9 20.8 12.9 18.0

Wipro Neutral 410 - - 19.9 14.3 9.7 13.9 18.3Source: Company, Angel Research


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April 25, 2012 10

Profit & Loss account (Consolidated, IFRS)

Y/E March (` cr) FY2010* FY2011 FY2012 FY2013E FY2014ENet revenue 27,124 31,099 37,525 41,918 46,879Cost of revenues 18,630 21,285 26,317 29,390 32,740Gross profit 8,494 9,814 11,207 12,529 14,139% of net sales 31.3 31.6 29.9 29.9 30.2

Selling and mktg exp. 1,861 2,218 2,778 3,240 3,627

% of net sales 6.9 7.1 7.4 7.7 7.7

General and admin exp. 1,482 1,829 2,029 2,315 2,472

% of net sales 5.5 5.9 5.4 5.5 5.3

Depreciation and amortization 783 821 1,013 1,144 1,280

% of net sales 2.9 2.6 2.7 2.7 2.7

EBIT 5,151 5,767 6,401 6,974 8,040% of net sales 19.0 18.5 17.1 16.6 17.2

Other income, net 337 472 541 819 1,216

Share in profits of eq. acc. ass. 53 64.8 33.3 20 20

Profit before tax 5,541 6,303 6,975 7,812 9,276

Provision for tax 929 971 1,376 1,641 2,226

% of PBT 16.8 15.4 19.7 21.0 24.0

PAT 4,612 5,332 5,599 6,172 7,050Share in earnings of associate - - - - 1Minority interest 18 35 26 20 20

Adj. PAT 4,594 5,297 5,573 6,152 7,030Diluted EPS (`) 18.9 21.7 22.7 25.1 28.6

Note: *Adjusted for 2:3 bonus


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April 25, 2012 11

Balance sheet (Consolidated, IFRS)Y/E March ( cr) FY2010* FY2011 FY2012 FY2013E FY2014EAssetsGoodwill 5,380 5,482 6,794 6,794 6,794

Intangible assets 401 355 423 500 500

Property, plant & equipment 5,346 5,509 5,899 5,954 5,875

Investment in equ. acc. investees 235 299 323 400 400

Derivative assets 120 298 346 500 500

Non-current tax assets 346 924 1,029 1,338 1,234

Deferred tax assets 169 147 260 300 300

Other non-current assets 878 898 1,178 1,469 1,477

Total non-current assets 12,875 13,913 16,251 17,255 17,079Inventories 793 971 1,066 1,034 1,156

Trade receivables 5,093 6,163 8,033 8,039 8,990

Other current assets 2,111 1,974 2,574 2,632 2,700

Unbilled revenues 1,671 2,415 3,003 3,101 3,468Available for sale investments 3,042 4,928 4,196 9,411 12,799

Current tax assets 660 496 564 780 800

Derivative assets 262 171 147 247 250

Cash and cash equivalents 6,488 6,114 7,767 7,700 10,421

Total current assets 20,118 23,231 27,349 32,943 40,584Total assets 32,993 37,144 43,600 50,199 57,663EquityShare capital 294 491 492 492 492

Share premium 2,919 3,012 3,046 3,046 3,046

Retained earnings 16,579 20,325 24,191 28,620 33,928

Share based payment reserve 314 136 198 198 198

Other components of equity (440) 58 659 659 659

Shares held by controlled trust (54) (54) (54) (54) (54)

Equity attrib. to shareholders of Co. 19,611 23,968 28,531 32,960 38,268

Minority interest 44 69 85 85 85

Total equity 19,655 24,037 28,616 33,045 38,353LiabilitiesLong term loans and borrowings 1,811 1,976 2,251 2,401 2,551

Deferred tax liability 38 30 35 70 80

Derivative liabilities 288 259 31 350 370

Non-current tax liability 307 502 540 700 850

Other non-current liabilities 323 271 352 400 450

Provisions 10 8 6 16 15Total non-current liabilities 2776.7 3045.3 3215.3 3937 4316Loans and bank overdraft 4,440 3,304 3,645 3,978 4,350

Trade payables 3,875 4,405 4,726 5,636 6,369

Unearned revenues 746 660 957 750 900

Current tax liabilities 485 734 723 780 850

Derivative liabilities 138 136 635 635 635

Other current liabilities 650 591 970 1,220 1,620

Provisions 227 232 112 216 270

Total current liabilities 10,561 10,062 11,769 13,216 14,994

Total liabilities 13,338 13,107 14,984 17,153 19,310

Total equity and liabilities 32,993 37,144 43,600 50,199 57,663Note: *Adjusted for 2:3 bonus


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April 25, 2012 12

Cash flow statement (Consolidated, IFRS)

Y/E March (` cr) FY2010* FY2011 FY2012 FY2013E FY2014EPre tax profit from operations 5,204 5,832 6,434 6,994 8,060

Depreciation 783 821 1,013 1,144 1,280Expenses (deferred)/written off (18) (35) (26) (20) (20)

Pre tax cash from operations 5,969 6,618 7,422 8,118 9,320

Other income/prior period ad 337 472 541 819 1,216

Net cash from operations 6,306 7,090 7,962 8,937 10,536

Tax (929) (971) (1,376) (1,641) (2,226)

Cash profits 5,377 6,119 6,586 7,296 8,310(Inc)/dec in current assets (1,076) (1,601) (3,197) (447) (1,531)

Inc/(dec) in current liab. 237 (499) 1,707 1,448 1,778

Net trade working capital (840) (2,101) (1,490) 1,001 247

Cashflow from oper. actv. 4,537 4,018 5,096 8,297 8,557(Inc)/dec in fixed assets (1,150) (985) (1,402) (1,200) (1,200)

(Inc)/dec in intangibles 182 (56) (1,380) (77) -

(Inc)/dec in investments (1,455) (1,951) 708 (5,291) (3,389)

(Inc)/dec in net def. tax assets 268 22 (113) (40) -

(Inc)/dec in derivative assets (120) (178) (48) (154) -

(Inc)/dec in non-current tax asset (346) (578) (105) (310) 104

(Inc)/dec in minority interest 20 25 16 - -

Inc/(dec) in other non-current liab (436) 103 (105) 572 229

(Inc)/dec in other non-current ast. (70) (20) (280) (290) (8)

Cashflow from investing activities (3,107) (3,616) (2,709) (6,791) (4,263)Inc/(dec) in debt (157) 165 275 150 150

Inc/(dec) in equity/premium 982 617 713 0 0

Dividends (679) (1,558) (1,723) (1,723) (1,723)

Cashflow from financing activities 146 (775) (735) (1,573) (1,573)Cash generated/(utilized) 1,576 (374) 1,653 (67) 2,721Cash at start of the year 4,912 6,488 6,114 7,767 7,700

Cash at end of the year 6,488 6,114 7,767 7,700 10,421



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April 25, 2012 13

Key Ratios

Y/E March FY2010* FY2011 FY2012 FY2013E FY2014EValuation ratio(x)P/E (on FDEPS) 21.7 18.9 18.1 16.4 14.3

P/CEPS 9.3 9.1 8.4 7.7 6.7

P/BVPS 4.6 4.2 3.5 3.0 2.6

Dividend yield (%) 1.0 1.5 1.5 1.5 1.5

EV/Sales 3.4 2.9 2.4 2.1 1.7

EV/EBITDA 15.7 13.9 12.3 10.6 8.6

EV/Total assets 2.8 2.5 2.1 1.7 1.4

Per share data (`)EPS (Fully diluted) 18.9 21.7 22.7 25.1 28.6

Cash EPS 44.3 45.1 48.8 53.5 61.4

Dividend 4.0 6.0 6.0 6.0 6.0

Book value 89.3 98.0 116.6 134.7 156.3

DuPont analysisTax retention ratio (PAT/PBT) 0.8 0.8 0.8 0.8 0.8

Cost of debt (PBT/EBIT) 7.1 7.7 6.9 6.8 7.2

EBIT margin (EBIT/Sales) 0.0 0.0 0.0 0.0 0.0

Asset turnover ratio (Sales/Assets) 0.8 0.8 0.9 0.8 0.8

Leverage ratio (Assets/Equity) 1.7 1.5 1.5 1.5 1.5

Operating ROE 23.5 22.2 19.6 18.7 18.4

Return ratios (%)RoCE (pre-tax) 15.6 15.5 14.7 13.9 13.9

Angel RoIC 28.5 28.0 25.8 26.5 29.1RoE 23.4 22.0 19.5 18.6 18.3

Turnover ratios (x)Asset turnover(fixed assets) 0.9 0.9 0.9 0.9 0.9

Receivables days 67 66 69 70 66

Payable days 79 71 63 64 67



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Disclosure of Interest Statement Wipro

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