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RESULTSREVIEW4QFY13

21 APR2013

Wipro

UNDERPERFORM

INDUSTRY
ITSERVICES
CMP(ason18Apr2013) Rs370
TargetPrice
Rs359
Nifty

5,783

Sensex

19,016

KEYSTOCKDATA
Bloomberg/Reuters WPROIN/WIPR.BO
No.ofShares(mn)

2,463

MCap(Rsbn)/($mn)

909/16,840

6mavgtradedvalue(Rsmn)

735

STOCKPERFORMANCE(%)
52Weekhigh/lowRs463/295

3M

6M

12M

Absolute(%)

(7.1)

6.6 (13.7)

Relative(%)

(2.0)

5.4 (23.0)

SHAREHOLDINGPATTERN(%)
Promoters

78.28

FIs&LocalMFs

3.32

FIIs

7.30

Public&Others
Source:BSE

MadhuBabu
madhu.babu@hdfcsec.com
+912261717316

11.10

Growthchallengemaypersist
Wipros 4QFY13 results were a disappointment with
topline and EBIT missing our estimates. Volume
growth(up2.5%QoQ)cameasasurpriseafterfour
consecutive quarters of weakness. However, blend
pricingdroppedby2.8%QoQfor4QFY13resultingin
mutedrevenuegrowth.Webelievethepricingdrop
byWiproaswellasInfosysin4QFY13(coupledwith
their weak commentary) denotes pricing pressure in
thecommoditisedpartoftheirservicemix.
Wipro guided for weak 1QFY14 IT services revenue
growth (0.6% to 1.6% QoQ) and attributed it to
seasonality in India business and slower traction in
discretionaryspends.WeareconcernedoverWipros
performance across verticals (barring energy &
utilities)andmutedgrowthindevelopedmarkets.At
7%,ourUSDrevenuegrowthassumptionforWiproin
FY14E is significantly below its peerset (1114%).
RetainUPFwitharevisedTP(postdemerger)ofRs
359(13xFY15EEPS).

4QFY13Highlights:TotalrevenuesatUS$1,585mn(up
0.5% QoQ) were below our estimates (US$ 1,610mn).
ITservicesvolumesgrowth cameat2.5%QoQ(onsite
up2.4%QoQ,offshoreup2.5%QoQ).Blendedpricing
was down 2.8% QoQ (onsite down 3.5%, offshore
down 2%). IT services PBIT margin came at 20.2%,
down60bpsQoQandwasbelowourexpectation.PAT
for continuing operations (core business post
demerger)cameatRs15.8bn,up12.4%QoQ.

Emerging markets drive growth: Healthcare and Life


sciences (up 2.5% QoQ) and Manufacturing (up 3.7%
QoQ) shone bright on the vertical front. Technology
Infrastructure services (up 4% QoQ) drove growth
amongservicelines.GeographieswereledbyIndiaand
MiddleEast(up7.4%QoQ)andAPAC&otherEMs(up
3.1%QoQ).Top10clientrevenuesfellby1.7%QoQ.

Attritionmoderates:Exitheadcountcameat145,812
withnetadditionsof2,907employees.Utilization(ex
trainees) fell to 74.6%, down 20bps QoQ. Attrition
(LTM)moderatedto12.5%forthequarter,whichisat
athreeyearlow.

Financialsummary(consolidated)
(Rsmn)
NetSales
EBITDA
PAT
DilutedEPS(Rs)
P/E(x)
EV/EBITDA(x)
RoE(%)

4QFY13
96,078
17,067
15,838

4QFY12
84,547
15,306
14,096

YoY(%)
13.6
11.5
12.4

FY12
3,71,971
70,865
55,730
22.72
16.3
11.9
21.2

FY13
4,30,980
84,892
66,359
27.00
13.7
9.6
23.3

FY14E
4,02,213
80,957
63,705
26.03
14.2
9.9
19.5

FY15E
4,30,557
86,728
67,638
27.6
13.4
8.8
19.3

Source:Company,HDFCsecInstResearch*ProjectionsforFY14EandFY15EexcludeConsumercareandLightingandWiproInfrastructurebusiness

HDFCsecuritiesInstitutionalResearchisalsoavailableonBloombergHSLB<GO>&ThomsonReuters

WIPRO :RESULTSREVIEW4QFY13

Concallhighlights

Volume growth for the quarter was driven by ramp


up of the new deal wins. Company attributed weak
pricing in the quarter to currency volatility and
changeinbusinessmix.

Managementindicatedthat1Qistraditionallyaweak
quarter for Wipro due to softness in the India
business. Hence, the guidance for IT services (0.6%
to 1.6% QoQ) factors in the same. Wipro hinted at
acceleratedgrowthin2Qand3Q.

ITservicesrevenuesat
USD1,585mn,up0.5%QoQ
andwasbelowourexpectation

ITServicesEBITmargins
contracted60bpsona
sequentialbasis

RupeeappreciationimpactedEBITmarginsfortheIT
services business negatively by 70bps in 4QFY13.
Forex hedges as at the end of the quarter stood at
US$2.1bn.

Infrastructure Management Services is presenting


tremendous growth opportunities in the IT services
market. Wipros slower growth in IMS (relative to
peerset) is on account of India business, which has
beenregisteringweakness.

Wage hikes will be given as per schedule, effective


June2013.

Within BFSI, Retail banking growth remained strong,


whileInvestmentbankingwasweak.

Energy & Utilities and Manufacturing remained


relativelyrobustduringthequarter.

QuarterlyFinancialsSnapshot(continuingoperations)
(Rsmn)
NetSales
Costofsalesandservices
Sellingandmarketingexpenses
Generalandadministrativeexpenses
OperatingProfits
InterestCost
OtherIncome
FXGains/(Loss)
PBT
Tax
Profitattributedtocompany

4QFY13
96,078
67,008
6,183
5,820
17,067
395
3,077
62
19,811
3,973
15,838

4QFY12
84,547
59,140
4,838
5,263
15,306
375
2,448
521
17,900
4,848
13,052

YoY(%)
13.6

11.5

12.4

Source:Company,HDFCsecInstResearch

MarginAnalysis
EBITMargins(%)
ITServices
ITProducts

4QFY13
20.2
2.5

3QFY13
20.8
2.4

QoQ(bps)
(64)
10

4QFY12
20.7
4.7

YoY(bps)
(54)
(218)

Source:Company,HDFCsecInstResearch

Page|2

WIPRO :RESULTSREVIEW4QFY13

6.0

2.8

4QFY13

2QFY11

Q4FY13

Q3FY13

Q2FY13

Q1FY13

Q4FY12

Q3FY12

Q2FY12

Q1FY12

1.0

1.7

3QFY13

2.0%

6.0%

1.2

2QFY13

0.2

4.0%

Q4FY11

0.1

2.0%

1QFY13

0.8 0.8

1.2

0.7

0.0%

2.5

0.0%

Q3FY11

0.8 0.6

2.0%
1.8

1.8

3.8
2.4

4QFY12

2.0%

1.9

BlendedPricing

3QFY12

1.5

Offshore

3.0

4.0%

6.0%
4.0%

Onsite

6.0%

2QFY12

6.6

TotalVolumegrowth

1QFY12

8.0%

Offshore

BillingRates(QoQ)

3QFY11

Onsite

10.0%

4QFY11

VolumeGrowth(QoQ)

Q2FY11

Volumegrowthcameat2.5%QoQ
(onsitevolumeup2.4%QoQ,
offshorevolumeup2.5%QoQ).
Managementindicated
thatrampinnewdealwinsdrove
volumegrowth

Source:Company,HDFCsecInstResearch

Source:Company,HDFCsecInstResearch

Geographicmix

Revenuegrowthwasdrivenby
India&MiddleEastandAPAC
andotheremergingmarkets.
Developedmarketsremainweak,
whichisacauseforconcern

Geography(%)
Americas
Europe
India&MiddleEast
APACandother
EmergingMarkets

Q4FY11
53.9
28.0
9.1

Q1FY12
53.0
28.6
9.0

Q2FY12
51.7
28.8
9.3

Q3FY12
52.5
28.2
9.1

Q4FY12
52.1
27.7
9.6

Q1FY13
51.6
28.1
8.8

Q2FY13
51.5
28.2
8.6

3QFY13
49.9
29.6
8.8

4QFY13
50.1
28.5
9.4

9.0

9.4

10.2

10.2

10.6

11.5

11.5

11.7

12.0

Source:Company,HDFCsecInstResearch

RevenuesbyGeography
GeographicGrowth(US$mn)
Americas
Europe
India&MiddleEast
APACandotherEmergingmarkets

Q4FY13
794.1
451.7
149.0
190.2

Q3FY13
786.9
466.8
138.8
184.5

QoQgrowth(%)
0.9
(3.2)
7.4
3.1

Q4FY12
800.0
425.4
147.4
163.4

YoYgrowth(%)
(0.7)
6.2
1.1
16.4

Source:Company,HDFCsecInstResearch

Verticalmixofrevenues

Globalmediaandtelecomvertical
remainedweak.Volatilevertical
performanceremainsacausefor
concern

Verticals(%)
GlobalMediaandTelecom
Financesolutions
ManufacturingandHitech
HealthcareandLifeSciencesandServices
RetailandTransportation
Energy&Utilities
Total

Q4FY11
17.2
26.7
19.7
10.5
15.7
10.2
100.0

Q1FY12 Q2FY12
16.8
15.7
26.7
27.1
19.7
19.0
10.2
9.8
15.0
14.7
11.6
13.7
100.0
100.0

Q3FY12
15.4
27.3
19.0
10.0
14.9
13.4
100.0

Q4FY12
14.9
26.6
19.1
10.0
15.4
14.0
100.0

Q1FY13
14.9
26.4
19.4
10.1
15
14.2
100.0

Q2FY13
14.4
27.0
19.0
9.5
15.0
15.1
100.0

Q3FY13
14.3
26.9
18.7
9.9
15.1
15.1
100.0

Q4FY13
13.8
26.3
19.3
10.1
15.1
15.4
100.0

Source:Company,HDFCsecInstResearch

Page|3

WIPRO :RESULTSREVIEW4QFY13

Verticalwiserevenues
Vertical(US$mn)
GlobalMediaandTelecom
FinanceSolutions
ManufacturingandHitech
HealthcareandLifeSciencesandServices
RetailandTransportation
EnergyandUtilities

Q4FY13
218.7
416.9
305.9
160.1
239.3
244.1

Q3FY13
225.5
424.2
294.9
156.1
238.1
238.1

QoQgrowth(%)
(3.0)
(1.7)
3.7
2.5
0.5
2.5

Q4FY12
228.8
408.5
293.3
153.6
236.5
215.0

YoYgrowth(%)
(4.4)
2.1
4.3
4.2
1.2
13.5

Source:Company,HDFCsecInstResearch

TechnologyInfrastructure
servicesoutperformedonthe
servicelinefront

Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13


21.4
21.6
21.7
22.1
21.7
22.6
22.8
23.2
23.7
5.9
6.0
6.4
6.6
6.6
6.8
7.1
7.1
7.1
29.8
29.7
30.4
30.5
30.8
30.6
30.7
30.7
31.4
9.3
9.8
9.3
8.8
8.5
8.2
8.4
8.7
8.8
8.5
8.2
8.3
8.4
8.4
8.2
8.5
8.2
7.5
25.1
24.7
23.9
23.6
24.0
23.6
22.5
22.1
21.5

ServiceLines(%)
TechnologyInfrastructureServices
AnalyticsandInformationManagement
BusinessApplicationServices
BPO
ProductEngineering&Mobility
ADM

Q4FY13
24.5
7.1
31.4
8.8
7.5
20.7

Source:Company,HDFCsecInstResearch

Clientmetrics

Revenuesfromtopclientinched
up13%QoQ.However,revenues
fromtop10clientsdeclinedby
1.7%QoQindicatingweaknessin
thetop210clients

Companyindicatedpruningof
selecttailaccounts

ClientDetails
Topcustomer
Topfivecustomers
Top10customers

>100mn
>75mn
>50mn
>20mn
>10mn
>5mn
>3mn
>1mn

TotalNumberofCustomers
Numberofnewcustomers

Q3FY11
3.0%
10.7%
19.2%

Q4FY11
3.1%
11.4%
19.7%

1
10
21
64
113
176
254
433

3
12
22
68
117
180
255
429

880
36

904
68

Q1FY12 Q2FY12
3.3%
3.7%
11.6%
10.9%
19.4%
20.0%

4
5
12
13
24
24
69
70
118
120
195
192
258
267
438
462

937
930
49
44

Q3FY12
3.9%
11.8%
19.9%

Q4FY12
3.5%
11.5%
20.0%

Q1FY13
3.5%
12.2%
20.9%

Q2FY13
3.5%
13.0%
22.3%

Q3FY13
3.2%
13.2%
22.4%

6
14
25
73
121
197
284
462

7
16
25
75
121
208
292
475

8
14
25
73
131
213
302
478

9
16
25
71
133
218
293
475

10
16
26
73
132
214
293
484

953
39

943
41

919
37

939
53

966
50

Q4FY13
3.6%
13.1%
21.9%

10
16
26
76
133
213
291
490

978
52

Source:Company,HDFCsecInstResearch

Page|4

WIPRO :RESULTSREVIEW4QFY13

Netadditionsremainedsteadyat
2,907employees.

Voluntaryattritionmoderated
whichisanencouragingsign.

Headcount
Total
Netadditions
GlobalITservicesexclIFOX
Gross
GlobalITserviceexeclIFOXNet
GlobalITservicesexeclIFOXNet
excludingtrainees
Attritions
VoluntaryTTM
VoluntaryQuarterlyAnnualized
InvoluntaryattritionAnnualized

Q3FY11
119,491
3,591

Q4FY11
122,385
2,894

Q1FY12 Q2FY12
126,490 131,730
4,105
5,240

Q3FY12
136,734
5,004

Q4FY12
135,920
(814)

Q1FY13
138,552
2,632

Q2FY13
140,569
2,017

Q3FY13
142,905
2,336

Q4FY13
145,812
2907

68.6%

68.9%

69.7%

69.3%

67.1%

67.4%

68.3%

66.8%

64.8%

64.9%

75.6%

76.1%

76.9%

76.1%

73.5%

74.1%

75.5%

73.7%

71.7%

71.7%

79.9%

79.7%

81.0%

80.7%

77.5%

76.1%

77.9%

77.9%

74.8%

74.6%

21.6%
21.7%
2.2%

22.7%
20.9%
2.5%

22.6%
23.2%
2.0%

21.1%
18.5%
1.3%

19.0%
14.2%
1.6%

17.5%
14.4%
2.5%

15.6%
15.2%
3.2%

14.6%
14.4%
3.5%

14.2%
12.9%
4.0%

13.7%
12.5%
3.7%

Source:Company,HDFCsecInstResearch

Peervaluations

EPS

P/E

CMP

Mcap
(Rsbn)

FY12

FY13

FY14E FY15E

FY12

FY13

Infosys

2,281

1,310

145.6

164.9

166.3

176.9

15.8

13.9

13.8

TCS

1,456

2,855

53.2

70.5

79.4

90.5

27.4

20.7

Wipro

370

900

21.29

24.95

26.0

27.6

17.4

HCLTech

752

522

35.7

55.1

60.7

66.2

21.1

EV/EBIDTA

FY14E FY15E

FY12

FY13

13.0

10.3

9.3

8.5

18.7

16.5

19.2

15.3

14.8

14.2

13.4

11.9

13.6

12.4

11.4

13.1

ROE(%)

FY14E FY15E

FY12

FY13

FY14E

FY15E

7.9

27

26

22

21

13.1

11.4

39

42

39

37

9.6

9.9

8.9

21.3

23.3

19.4

19.2

9.1

8.1

7.2

26

32

29

27

Source:Company,HDFCsecInstResearch

Assumptions
CombinedITservicesrevenues(USDmn)
Growth(%)
GlobalITservices
Growth(%)
AverageExchangeRate
PBITMargin(%)ITservices
PBITMargin(%)ITproducts
EBITmarginConsolidated
Headcount(ITservices)

FY10
4,391

FY11
5,221
18.9%
3863.0
18.5%

FY12
5,921
13.4%
4442.0
15.0%

FY13
6,218
5.0%
4709.0
6.0%

FY14E
6,700
7.7%
5071.6
7.7%

FY15E
7,337
9.5%
5553.4
9.5%

46.14
23.6%
4.6%

45.01
22.7%
4.4%

1,08,071

1,22,385

47.96
20.8%
4.4%
17.7%
1,35,920

54.37
20.7%
2.5%
17.9%
1,45,812

54.00
20.3%
2.8%
17.63%
1,51,644

53.00
20.1%
2.8%
17.64%
1,57,710

3259.3

Source:Company,HDFCsecInstResearch

Page|5

WIPRO :RESULTSREVIEW4QFY13

Corebusiness(PostDemerger)
(Rsmn)
Grosssalesandservices
Growth(%)
Costofsalesandservices
Costofsalesandservices/Sales(%)
Sellingandmarketingexpenses
S&M/Sales
GeneralandAdministrativeexpenses
G&A/Sales
EBIT
EBITMargin(%)
Otherincome
Interest
ForeignExchangegain/(Losses)
ProfitBeforeTaxation
PBTMargin(%)
ProvisionforTax
TaxRate
ProfittoEquityholdersofthecompany
NPM(%)
DilutedEPS(inRs.)
%GrowthinEPS
Source:Company,HDFCsecInstResearch

FY12
3,18,747

FY13
3,74,256
17.4
2,60,665
70%
24,213.00
6.5%
22,032
5.89%
67,346
17.99%
11,317
2,693
2,626
78,596
21.0%
16,912
21.5%
61,684
16.5%
24.95
17.2%

2,25,794
71%
17,953.00
5.6%
18,416
5.78%
56,584
17.75%
8,982
3,371
3,328
65,523
20.6%
12,955
19.8%
52,568
16.5%
21.29

FY14E
4,02,213
7.4
2,81,839
70%
25,339.44
6.3%
24,133
6.00%
70,902
17.63%
12,400
2,400
1,200
82,102
20.4%
18,062
22.0%
64,039
15.9%
26
4.2%

FY15E
4,30,557
7.0
3,02,511
70%
26,686.70
6.2%
25,395
5.90%
75,964
17.64%
12,400
2,400
1,200
87,164
20.2%
19,176
22.0%
67,988
15.8%
27.6
6.2%

Page|6

WIPRO :RESULTSREVIEW4QFY13

IncomeStatement
(Rsmn)
NetSales
Growth(%)
CostofSoftwaredevelopment

BalanceSheet
FY11

FY12

FY13

FY14E*

FY15E*

3,10,542

3,71,971

4,30,980

4,02,213

4,30,557

19.8

15.9

(6.7)

7.0

(Rsmn)
ShareCapital
Reserves

FY12

FY13

FY14E*

FY15E*

4,908

4,917

4,926

4,926

4,926

2,34,772

2,80,397

2,78,886

3,24,200

3,72,309

2,04,597

2,53,044

2,86,329

2,71,784

2,91,747

Sellingandmarketingexpenses

22,172

27,777

36,065

25,339

26,687

TotalShareholdersFunds

GeneralandAdminexpenses

18,339

20,285

23,694

24,133

25,395

MinorityInterest

EBIDTAProfits

65,434

70,865

84,892

80,957

86,728

LongTermDebt

19,759

22,510

854

854

854

21.1

19.1

19.7

20.1

20.1

ShortTermDebt

33,043

36,448

62,962

62,962

62,962

TotalDebt

52,802

58,958

63,816

63,816

63,816

301

353

846

846

846

81

61

EBIDTAProfitMargin(%)
EBIDTAGrowth(%)

Others

FY11

8.3

19.8

(4.6)

7.1

OtherIncome

6,652

8,895

12,828

12,400

12,400

DeferredTaxes

Depreciation

8,211

10,130

12,374

10,055

10,764

LongTermProvisions

(1,933)

(3,491)

(2,822)

(2,400)

(2,400)

Others

445

3,277

2,626

1,200

1,200

Interest
Forexgain/(loss)
SharefromAssociates

TOTALSOURCESOFFUNDS

648

333

(105.0)

PBT

63,035

69,749

85,045

82,102

87,164

NetBlock

Tax

9,714

13,762

18,349

18,062

19,176

Intangibleassets

PAT

53,321

55,987

66,696

64,039

67,988

344

257

339

334

350

52,977

55,730

66,357

63,705

67,638

5.2

19.1

(4.0)

6.2

21.6

22.7

27.0

26.0

27.6

5.1

19.0

(3.7)

6.2

MinorityInterest
APAT
APATGrowth(%)
EPS
EPSGrowth(%)

Source:Company,HDFCsecInstResearch
*Demergeriseffective31March2013.HenceFY14andFY15financialsincludeonlyITservicesand
ITproductsbusiness

2,39,680

2,85,314

2,83,812

3,29,126

3,77,235

691

849

1,171

1,171

1,171

10,313

9,229

8,298

10,733

11,178

3,03,868

3,54,764

3,57,952

4,05,701

4,54,255

55,094

58,988

50,525

55,470

59,706

3,551

4,229

1,714

1,714

1,714

54,818

67,937

54,756

54,756

54,756

2,993

3,232

APPLICATIONOFFUNDS

Goodwill
Equityaccountedinvestee

Investments

49,282

41,961

69,171

69,171

69,171

Inventories

9,707

10,662

3,263

13,223

14,155

UnbilledRevenues

24,149

30,025

31,988

32,981

34,445

TradeReceivables

61,627

80,328

76,635

79,341

84,932

Cash&Equivalents

61,141

77,666

84,838

1,03,947

1,40,482

STLoans&Advances

18,887

20,852

20,798

21,177

21,377

OtherCurrentAssets

28,727

37,524

41,807

48,478

53,146

2,04,238

2,57,057

2,59,329

2,99,148

3,48,537

TotalCurrentAssets
TradePayables

44,052

47,258

48,067

48,486

51,903

OtherCurrentLiabilities

21,199

32,858

32,537

27,382

28,836

Provisions
CurrentLiabilities
NetcurrentAssets
MiscExpenses
TOTALAPPLICATIONOFFUNDS

2,324

1,121

1,174

2,924

3,124

67,575

81,237

81,778

78,792

83,863

1,36,663

1,75,820

1,77,551

2,20,356

2,64,673

1,467

2,597

4,235

4,235

4,235

3,03,868

3,54,764

3,57,952

4,05,701

4,54,255

Source:Company,HDFCsecInstResearch
*Demergeriseffective31March2013.HenceFY14andFY15financialsincludeonlyITservices
andITproductsbusiness

Page|7

WIPRO :RESULTSREVIEW4QFY13

CashFlow
(Rsmn)

KeyRatios
FY12

FY13

FY14E*

FY15E*

PATfromOperations

53,321 55,987

66,696

64,039

67,988

PROFITABILITY(%)

Interest

(5,684) (7,651)

(9,417)

(12,400)

(12,400)

8,211 10,129

10,835

10,055

10,764

EBITDAMargin

21.1

19.1

19.7

20.1

20.1

15,260 17,198

17,565

18,062

19,176

EBITMargin

18.4

16.3

16.8

17.6

17.6

(30,671) (35,587) (15,257)

Depreciation
Others
WorkingCapitalChange
OPERATINGCASHFLOW(a)
Capex

FY11

(39,323)

(26,514)

70,422

40,434

59,015

(12,221) (12,977) (10,616)

(15,000)

40,437 40,076

FreeCashFlow

28,216 27,099

Investments&Others

(5,028)

INVESTINGCASHFLOW(b)
CapitalIssuance
DebtIssuance/(paid)
Interest

GPM

FY11

FY12

FY13

FY14E*

FY15E*

34.1

32.0

33.6

32.4

32.2

APATMargin

17.1

15.0

15.4

15.8

15.7

RoE

24.3

21.2

23.3

19.5

19.3

(15,000)

RoCE

19.8

18.4

19.8

17.8

16.8

31.6

28.8

32.8

31.9

31.0

59,806

25,434

44,015

ROIC

4,921 (42,794)

12,400

12,400

EFFICIENCY

(17,249) (8,056) (53,410)

(2,600)

(2,600)

TaxRate(%)

15.4

19.7

21.6

22.0

22.0

25

22

AssetTurnover

1.06

1.09

1.24

1.16

1.13

(10,122)

712

11,394

UnbilledRevenuesdays

22.5

28.3

29.2

27.1

26.3

(696)

(902)

(1,044)

Debtors(days)

72

79

82

72

72

Dividend

(15,585) (17,229) (17,080)

(18,725)

(19,880)

Debt/EBIDTA

0.8

0.8

0.8

0.8

0.7

FINANCINGCASHFLOW(c)

(26,378) (17,397)

(6,721)

(18,725)

(19,880)

NetD/E

(0.2)

(0.2)

(0.3)

(0.3)

(0.4)

(3,190) 14,623

10,291

19,109

36,535

NETCASHFLOW(a+b+c)

Source:Company,HDFCsecInstResearch
*Demergeriseffective31March2013.HenceFY14andFY15financialsincludeonlyITservicesand
ITproductsbusiness

VALUATION
EPS(Rs/sh)

21.6

22.7

27.0

26.0

27.6

CEPS(Rs/sh)

25.0

26.8

32.1

30.1

32.0

BV(Rs/sh)

97.8

116.3

115.7

133.8

153.3

DPS(Rs/sh)
P/E
P/BV
EV/EBITDA
EV/Revenues

5.4

5.7

6.8

6.5

6.9

17.1

16.3

13.7

14.2

13.4

3.8

3.2

3.2

2.8

2.4

13.0

11.9

9.6

9.9

8.8

2.7

2.3

1.9

2.0

1.8

DividendYield(%)

1.5%

1.5%

1.8%

1.8%

1.9%

FreeCashFlowYield(%)

3.1%

3.0%

6.7%

2.8%

4.9%

OCF/EV

4.8%

4.7%

8.6%

5.1%

7.7%

FCF/EV

3.3%

3.2%

7.3%

3.2%

5.8%

Source:Company,HDFCsecInstResearch
*Demergeriseffective31March2013.HenceFY14andFY15financialsincludeonlyITservices
andITproductsbusiness

Page|8

WIPRO :RESULTSREVIEW4QFY13

RatingDefinitions

BUY
: Wherethestockisexpectedtodelivermorethan15%returnsoverthenext12months'period

OUTPERFORM
: Wherethestockisexpectedtodeliver0to15%returnsoverthenext12months'period

UNDERPERFORM
: Wherethestockisexpectedtodeliver()10%to0%returnsoverthenext12months'period

SELL
: Wherethestockisexpectedtodeliverlessthan()10%returnsoverthenext12months'period

Disclaimer:ThisreporthasbeenpreparedbyHDFCSecuritiesLtdandismeantforsoleusebytherecipientandnotforcirculation.Theinformationandopinionscontainedhereinhavebeencompiledorarrivedat,
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Page|9