A

PROJECT REPORT

ON

“Analysis on performance of Wipro and Infosys”

A Functional project done in

“FINANCE”

Submitted in partial fulfillment of the requirement for the award of degree of

Master of Management Studies (MMS) under the university of Mumbai

Submitted by

SHUBHAM TELAWANE
ROLL NO:87
BATCH: 2017-2019

NAME OF THE GUIDE

PROF. Veena Chavan

Bharati Vidyapeeth’s
Institute of Management Studies & Research
Navi Mumbai
 ACKNOWLEDGEMENT

I would like to take this opportunity to express my sincere gratitude to my

college and for all the guidance, inspiration and suggestion from
Prof. Veena Chavanwho helped me in completion of this project.

I would also like to thank Dr. Anjali kalse, Director of B.V.I.M.S.R for
providing me with all the facilities that helped me with the completion of
project. And also like to thank all the Team members for their continuous,
selfless and valuable support without which this project could not have been
complete. I am also grateful to all the professors, staff and students who are
responsible directly or indirectly in completion of the project.

Signature of the student

(Shubham Telawane)

(ii)
 EXECUTIVE SUMMARY

Ratio Analysis is one of the techniques of financial analysis where ratios are used as a
yardstick for evaluating the financial condition and performance of a firm. Analysis and
interpretation of various accounting ratios gives a better understanding of financial condition
and performance of firm. It provides data for intra-firm comparison. They also revel
financially strong and weak such as overvalued and undervalued of firms. These ratios help
to indicate a company ‟efficiency in the past and likely performance in future. It should be
noted that computing the ratios does not add any information in figures of profits and sales.
Trend ratios involve a comparison of the ratios of a firm over a period, that is present ratios
involve a comparison of the ratios of a firm. Trend ratios indicate the direction of change in
the performance.

Returns Analysis is done by fetching historical data of past three years opening and closing
price of respective companies stocks. Monthly opening and closing price is taken and
accordingly the returns are calculated. The final data is being interpreted in form of graphs
and analysis of Ratios is also interpreted in forms of tables respectively.

This project report helps in understanding the trends in stocks in securities market as well as
from point of investors whether it is worth to invest in the companies so as it will give fruitful
returns.

(iv)
Chapter No. Particulars Page No.

Acknowledgement (ii)

Certifications (iii)

Executive Summary (iv)

Table of Content (vi)

1. Introduction of the Project 1

1.1. Objectives of the study, 2

1.2. Scope of study 2

2. Ratio Analysis 3

2.1. Trend Analysis 5

3. Introduction to the Industry 7

4. Companies Profile 8

4.1. Infosys 8

4.2 Wipro 11

5. Research Methodology 13

5. Data analysis & Interpretation 14

6. Findings 23

7. Conclusion 23

8. Bibliography 24
 1. Introduction of project

Financial analysis is the process of identifying the financial strengths and weakness of the
firm. It is done by establishing relationships between the items of financial statements viz.,
balance sheet and profit and loss account. Financial analysis can be undertaken by
management of the firm, viz., owners, creditors, investors and others.
Ratio Analysis is one of the techniques of financial analysis where ratios are used as a
yardstick for evaluating the financial condition and performance of a firm. Analysis and
interpretation of various accounting ratios gives a better understanding of financial condition
and performance of firm. It provides data for intra-firm comparison. They also revel
financially strong and weak such as overvalued and undervalued of firms. These ratios help
to indicate a company ‟efficiency in the past and likely performance in future. It should be
noted that computing the ratios does not add any information in figures of profits and sales.
Trend ratios involve a comparison of the ratios of a firm over a period, that is present ratios
involve a comparison of the ratios of a firm. Trend ratios indicate the direction of change in
the performance.

Returns Analysis is done by fetching historical data of past three years opening and closing
price of respective companies stocks. Monthly opening and closing price is taken and
accordingly the returns are calculated. The final data is being interpreted in form of graphs
and analysis of Ratios is also interpreted in forms of tables respectively.
Trend analysis on returns of both companies which help in knowing the standard deviation
,variance of both the companies and interpreting performance of both the companies was
undertaken.

1
1.1 Objectives of Project:

 To study the performance of Infosys and Wipro using Ratio analysis.

 To analyze the Returns trend of Infosys.

 To analyze the Returns trend of Wipro.

1.2 Scope of study:

 It helped in understanding the trends of Stock returns in both Wipro and Infosys which is
performing better in BSE by the help of historical Data.

 Comparison of both companies using Stocks opening and closing price for a month from
1/04/2016 to 31/01/2019.

 The Ratio analysis of last three financial years 2016, 2017, 2018 where Liquidity ratio,
and profitability ratio as well as Debt to Equity ratios are used to see the overall
performance of Wipro and Infosys.

2.
2. Ratio Analysis.

NATURE Of RATIO ANALYSIS

Ratio Analysis is a powerful tool of financial analysis. A ratio is defined as "the indicated
quotient of mathematical expression" and as "the relationship between two or more things". A
ratio is used as benchmark for evaluating the financial position and performance of the firm.
The relationship between two accounting figures, expressed mathematically, is known as a
financial ratio. Ratio helps to summarizes large quantities of financial data and to make
qualitative judgment about the firm's financial performance. The persons interested in the
analysis of financial statements can be grouped under three head owners (or) investors who
are desired primarily a basis for estimating earning capacity. Creditors who are concerned
primarily with Liquidity and ability to pay interest and redeem loan within a specified period.
Management is interested in evolving analytical tools that will measure costs, efficiency,
liquidity and profitability with a view to make intelligent decisions.

STANDARDS OF COMPARISON
The ratio analysis involves comparison for an useful interpretation of
the financial statements. A single ratio in itself does not indicate
favorable or unfavorable condition. It should be compared with some
standard. Standards of comparison are:
1. Past Ratios
2. Competitor's Ratios
3. Industry Ratios.
4. Projected Ratios
 Past Ratio: Ratios calculated from the past financial statements of the same firm.
 Competitor's Ratio: Ratios of some selected firms, especially the most progressive and
successful competitor at the same point in time.
 Industry Ratios: Ratios of the industry to which the firm belongs.
 Projected Ratios: Ratios developed using the projected financial
statements of the same firm.

 Liquidity Ratios: It is also known as ‘Working Capital Ratio’, ‘Solvency Ratio’. This
Ratio indicates the relationship between Current Assets and Current Liabilities. Ideally,
the Current Assets should be more than Current Liabilities. If Current Ratio > 1 then the
current assets are said to be enough to pay current obligations. Analysts consider current
ratio of 2:1 to be ideal. Formula= Current Asset / Current liability.

 Profitability Ratios:

1. Net Profit Margin ratio: When doing a simple profitability ratio analysis, net profit
margin is the most often margin ratio used. The net profit margin shows how much of
each sales dollar shows up as net income after all expenses are paid. For example, if the
net profit margin is 5% that means that 5 cents of every dollar is profit.
The net profit margin measures profitability after consideration of all expenses including
taxes, interest, and depreciation. The calculation is: Net Income/Net Sales. Both terms of
the equation come from the income statement.
3
 2. Operating Profit Margin: Operating profit is also known as EBIT and is found on the
company's income statement. EBIT
is earnings before interest and taxes. The operating profit margin looks at EBIT as a
percentage of sales. The operating profit margin ratio is a measure of overall operating
efficiency, incorporating all of the expenses of ordinary, daily business activity. The
calculation is: EBIT/Net Sales.
Both terms of the equation come from the company's income statement.

3. Return on Asset: Return on assets (ROA) is an indicator of how profitable a company

is relative to its total assets. ROA gives a manager, investor, or analyst an idea as to how
efficient a company's management is at using its assets to generate earnings. Return on
assets is displayed as a percentage.

The Formula for Return on Assets – ROA = Net Income/Total Asset

4. Return on Equity: Return on equity (ROE) is a measure of financial performance

calculated by dividing net income by shareholders' equity. Because shareholders' equity is
equal to a company’s assets minus its debt, ROE could be thought of as the return on net
assets.
ROE is considered a measure of how effectively management is using a company’s assets
to create profits. ROE is expressed as a percentage and can be calculated for any company
if net income and equity are both positive numbers.
Formula is Net Income / Shareholders equity.

 Solvency ratio:
Solvency ratio is a key metric used to measure an enterprise’s ability to meet its debt and
other obligations. The solvency ratio indicates whether a company’s cash flow is
sufficient to meet its short-term and long-term liabilities.
1. Debt-to-equity ratio (D/E): It is a financial ratio indicating the relative proportion of
shareholders' equity and debt used to finance a company's assets.Closely related to
leveraging, the ratio is also known as risk, gearing or leverage. The two components are
often taken from the firm's balance sheet or statement of financial position (so-called
book value), but the ratio may also be calculated using market values for both, if the
company's debt and equity are publicly traded, or using a combination of book value for
debt and market value for equity financially.
Formula =Total debts/ Equity

4
2.1 Trend analysis of stocks

Arithmetic average or mean :

The arithmetic average measures the central tendency . The purpose of computing an average
value for a set of observations is to obtain a single value, which is representative of all the
items. The main objective of averaging is to arrive at a single value which is a representative
of the characteristics of the entire mass of data and arithmetic average or mean of a
series(usually denoted by x) is the value obtained by dividing the sum of the values of various
items in a series (sigma x) divided by the number of items (N) constituting the series.

Thus, if X1,X2……………..Xn are the given N observations. Then

X= X1+X2+……….Xn
N

RETURN

Current price-previous price *100

Previous price

STANDARD DEVIATION :

The concept of standard deviation was first suggested by Karl Pearson in 1983.it may be
defined as the positive square root of the arithmetic mean of the squares of deviations of the
given observations from their arithmetic mean. In short S.D may be defined as “Root Mean
Square Deviation from Mean”

It is by far the most important and widely used measure of studying dispersions.
For a set of N observations X1,X2……..Xn with mean X,
Deviations from Mean: (X1-X),(X2-X),….(Xn-X)
Mean-square deviations from Mean:
= 1/N (X1-X)2+(X2-X)2+……….+(Xn-X)2

=1/N sigma(X-X)2
Root-mean-square deviation from mean,i.e.

5
VARIANCE :

The square of standard deviation is known as Variance.

Variance is the square root of the standard deviation: variance = (S.D)2
Where,(S.D)is standard deviation

6.
3.Introduction to Industry.

Introduction
The global sourcing market in India continues to grow at a higher pace compared to the IT-
BPM industry. India is the leading sourcing destination across the world, accounting for
approximately 55 per cent market share of the US$ 185-190 billion global services sourcing
business in 2017-18. Indian IT & ITeS companies have set up over 1,000 global delivery
centres in about 80 countries across the world.
India has become the digital capabilities hub of the world with around 75 per cent of global
digital talent present in the country.
 Market Size
India’s IT & ITeS industry grew to US$ 167 billion in 2017-18. Exports from the industry
increased to US$ 126 billion in FY18 while domestic revenues (including hardware)
advanced to US$ 41 billion.
Spending on Information Technology in India is expected to grow over 9 per cent to reach
US$ 87.1 billion in 2018.
 Revenue from digital segment is expected to comprise 38 per cent of the forecasted US$
350 billion industry revenue by 2025.
Investments/ Developments
Indian IT's core competencies and strengths have attracted significant investments from
major countries. The computer software and hardware sector in India attracted cumulative
Foreign Direct Investment (FDI) inflows worth US$ 32.23 billion between April 2000 to June
2018, according to data released by the Department of Industrial Policy and Promotion
(DIPP).
 Leading Indian IT firms like Infosys, Wipro, TCS and Tech Mahindra, are diversifying
their offerings and showcasing leading ideas in blockchain, artificial intelligence to
clients using innovation hubs, research and development centres, in order to create
differentiated offerings.
 Nasscom has launched an online platform which is aimed at up-skilling over 2 million
technology professionals and skilling another 2 million potential employees and students.
Revenue growth in the BFSI vertical stood at 10.3 per cent y-o-y in the first quarter of 2018-
19.
As of March 2018, there were over 1,140 GICs operating out of India.
Private Equity (PE)/Venture Capital (VC) investments in India's IT & ITeS sector reached
US$ 7.6 billion during April-December 2017.
 Government Initiatives
Some of the major initiatives taken by the government to promote IT and ITeS sector in India
are as follows:
The government has identified Information Technology as one of 12 champion service
sectors for which an action plan is being developed. Also, the government has set up a Rs
5,000 crore (US$ 745.82 million) fund for realising the potential of these champion service
sectors. As a part of Union Budget 2018-19, NITI Aayog is going to set up a national level
programme that will enable efforts in AI^ and will help in leveraging AI^ technology for
development works in the country.
Achievements
 Following are the achievements of the government during 2017-18:
About 200 Indian IT firms are present in around 80 countries.
IT exports from India are expected to reach highest ever mark of US$ 126 billion in 2017-18.
Highest ever revenue was generated by Indian IT firms at US$ 167 billion in 2017-18.
Road Ahead 7
India is the topmost offshoring destination for IT companies across the world. Having proven
its capabilities in delivering both on-shore and off-shore services to global clients, emerging
technologies now offer an entire new gamut of opportunities for top IT firms in India. Export
revenue of the industry is expected to grow 7-9 per cent year-on-year to US$ 135-137 billion
in FY19. The industry is expected to grow to US$ 350 billion by 2025 and BPM is expected
to account for US$ 50-55 billion out of the total revenue.

4. COMPANIES PROFILE:

1. INFOSYS:
Infosys Limited (formerly Infosys Technologies Limited) is an Indian multinational
corporation that provides business consulting, information technology and outsourcing
services. It has its headquarters in Bengaluru, Karnataka, India.
nfosys was established by seven engineers in Pune, India, with an initial capital of $250 in
1981.It was registered as Infosys Consultants Private Limited on 2 July 1981. In 1983, it
relocated its office to Bengaluru, Karnataka, India.
Name change: The company changed its name to Infosys Technologies Private Limited in
April 1992 and to Infosys Technologies Limited when it became a public limited company in
June 1992. It was later renamed to Infosys Limited in June 2011.
Share listing: An initial public offer (IPO) in February 1993 with an offer price of ₹95
(equivalent to ₹490 or US$6.80 in 2017) per share against book value of ₹20 (equivalent to
₹100 or US$1.40 in 2017) per share was under subscribed but it was "bailed out" by US
investment bank Morgan Stanley, which picked up 13% of equity at the offer price. Its shares
were listed in stock exchanges in June 1993 with trading opening at ₹145 (equivalent to ₹750
or US$10 in 2017) per share.
Its shares were listed on NASDAQ in 1999 through ADR route. The share price surged to
₹8,100 (equivalent to ₹25,000 or US$340 in 2017) by 1999 making it the costliest share on
the market at the time. At that time, Infosys was among the 20 biggest companies by market
capitalization on the NASDAQ. The ADR listing was shifted from NASDAQ to NYSE
Euronext to give its European investors better access to its stock.

Infosys, Bengaluru
Revenue growth: Its annual revenue touched US$100 million in 1999, US$1 billion in 2004
and US$10 billion in 2017.
Geographical expansion: In 2012, Infosys announced a new office in Milwaukee, Wisconsin,
to serve Harley-Davidson, being the 18th international office in the United States. Infosys
hired 1,200 United States employees in 2011, and expanded the workforce by an additional
2,000 employees in 2012. In April 2018 Infosys announced expanding in Indianapolis,
Indiana. The development will include more than 120 acres and is expected to result in 3,000
new jobs—1,000 more than previously announced.
Product and portfolio expansion: In July 2014, Infosys started a product subsidiary called
EdgeVerve Systems, focusing on enterprise software products for business operations,
customer service, procurement and commerce network domains. In August 2015, the Finacle
Global Banking Solutions assets were officially transferred from Infosys and became part of
the product company EdgeVerve Systems product portfolio.
Products and Services 8
It provides software development, maintenance and independent validation services to
companies in finance, insurance, manufacturing and other domains.
One of its known products is Finacle which is a universal banking solution with various
modules for retail & corporate banking.

Glass building in Pune campus

Its key products and services are:
NIA – Next Generation Integrated AI Platform (formerly known as Mana)
Infosys Consulting – a global management consulting service
Infosys Information Platform (IIP) – Analytics platform
EdgeVerve Systems which includes Finacle, a global banking platform
Panaya Cloud Suite
Skava
Geographical presence

Main block in Chennai campus

Infosys had 82 sales and marketing offices and 123 development centres across the world as
at March 31, 2018, with major presence in India, United States, China, Australia, Japan,
Middle East and Europe.
In 2017, 61.9%, 22.5% and 3.2% of its revenues were derived from projects in North
America, Europe and India, respectively. Remaining 12.4% of revenues were derived from
rest of the world

In India, shares of Infosys are listed on the BSE where it is included in BSE SENSEX and
NSE where it is included in CNX NIFTY. Its shares are listed by way of American
Depositary Receipts (ADRs) at the New York Stock Exchange.
Over a period of time, the shareholding of its promoters has gradually reduced, starting from
June 1993 when its shares were first listed. The promoters' holdings reduced further when
Infosys became the first Indian-registered company to list Employees Stock Options Schemes
and ADRs on NASDAQ on 11 March 1999. The promoter holding on 31 March 2002 was
28.72% and at 30 June 2017 it dropped to 12.75% as they gradually sold their shares and
reduced involvement in active management of the company.

A building in Thiruvananthapuram campus

Shareholders (as of 30 June 2017)
Shareholding Promoters group 12.75%
Foreign instiutional investors (FII)37.47%
ADR 16.70%
Individual shareholders 09.83%
Banks, financial institutions and insurance companies 11.24%
Mutual funds 08.97%
Others 03.04%
Total 100.00%
Employees
Infosys had a total of 225,501 employees at the end of December 2018. Its workforce consists
of employees representing 129 nationalities. In 2016, 89% of its employees were based in
India. Out of its total workforce, 79% are software professionals, 16% are working in its
BPM arm and remaining 5% work for support and sales.
During financial year 2018, Infosys received 1,540,498 applications from prospective
employees, interviewed 143,872 candidates and had a gross addition of 53,943 employees, a
4% hiring rate. These numbers do not include its subsidiaries.
The attrition rate of Infosys Ltd., excluding its subsidiaries, for financial year 2018 was
16.4%. Training centre in Mysuru The Development Centre in Mysuru campus
As the world's largest corporate university, the Infosys global education centre in the 337
acrecampus has 400 instructors and 200+ classrooms,with international benchmarks at its
core. Established in 2002, it had trained around 125,000 engineering graduates by June
2015.It can train 14,000 employees at a given point of time on various technologies
The Infosys Leadership Institute (ILI), based in Mysuru, has 96 rooms and trains about 400
Infoscions annually.Its purpose is to prepare and develop the senior leaders in Infosys for
current and future executive leadership roles.
The Infosys Training Centre in Mysuru also provides a number of extracurricular facilities
like tennis, badminton, basketball, swimming pool and gym.
CEOs[edit]
Since its establishment in 1981 till 2014, the CEOs of Infosys were its promoters, with N. R.
Narayanmurthy leading the company in its initial 21 years. Dr Vishal Sikka was the first non-
promoter CEO of Infosys who worked for around 3 years. Dr Vishal Sikka resigned in
August 2017. In a personal note to board colleagues, Sikka cites a "drumbeat of distractions"
and "false, baseless, malicious and increasingly personal attacks" as his reason for leaving
Infosys. Many sources suspect this is in reference to a long running feud with Infosys
Founders over the new direction Sikka was reportedly taking Infosys. After his resignation,
UB Pravin Rao was appointed as Interim CEO and MD of Infosys. Infosys has appointed
Salil Parekh chief executive officer (CEO) and managing director (MD) of the company with
effect from January 2, 2018.

Salil S. Parekh, current CEO & MD

CEOs Name Period
Narayan Murthy 1981 to March 2002
Nandan Nilekani March 2002 to April 2007
S. Gopalakrishnan April 2007 to August 2011
S. D. Shibulal August 2011 to July 2014
Vishal Sikka August 2014 to August 2017
UB Pravin Rao August 2017 to December 2017
Salil S. Parekh January 2018 onward

10
2. WIPRO
Wipro Limited is an Indian multinational corporation that provides information technology,
consulting and business process services. It is headquartered in Bengaluru, India. In 2013,
Wipro demerged its non-IT businesses into separate companies.
The company was incorporated on 29 December 1945 in Amalner, Maharashtra by Mohamed
Premji as "Western India Vegetable Products Limited", later abbreviated to "Wipro". It was
initially set up as a manufacturer of vegetable and refined oils in Amalner, Maharashtra,
British India, under the trade names of Kisan, Sunflower, and Camel.

2011-2018
In April 2011, Wipro signed an agreement with Science Applications International
Corporation (SAIC) for the acquisition of their global oil and gas information technology
practice. In 2012 Wipro employed more than 70,000 H-1B visa professional temporary
workers in the United States.
In 2012 Wipro acquired Australian Trade Promotions Management firm Promax Applications
Group (PAG) for $35 million.Also, in that year, Wipro Ltd. demerged its consumer care,
lighting, furniture, infrastructure engineering (hydraulics and water and medical diagnostic
business) into a separate company to be named 'Wipro Enterprises Ltd'. Prior to demerger,
these companies together contributed about 10% of the revenues of Wipro Limited.
In 2014, Wipro signed a 10-year $1.2 billion contract with ATCO, a Canadian Energy &
Utilities corporation based in Calgary, Alberta. This was the largest deal in Wipro's history.
In October 2016, Wipro announced that it was buying Appirio, an Indianapolis-based cloud
services company for $500 million. In 2017, the company expanded its operations in London.
In 2017, Wipro Limited won a five-year IT infrastructure and applications managed services
engagement with Grameenphone (GP), a leading telecom operator in Bangladesh and
announced it would set up a new delivery centre there.
In 2018, the company began building software to help with the General Data Protection
Regulation (GDPR) in Europe. In March 2018, Wipro said it would be buying a third of
Denim Group. In April 2018, the company sold its stake in the airport IT services company
JV.
In August 2018, Wipro paid US $75m to National Grid US as a settlement for a botched SAP
implementation that a 2014 audit estimated could cost the company US $1 billion. Wipro had
been hired as systems integrator in 2010, but errors in the rollout, intended to replace an
Oracle system, caused serious losses and reputational damage.
To compete with Hindustan Unilever and Procter & Gamble, in May 2018 Wipro Consumer
Care and Lighting announced it would increase Indian distribution of its acquired personal
care brands Enchanteur and Yardley. Other recent acquisitions included Unza Holdings, LD
Waxson, and Zhongshan. On May 3, 2018, it was announced that Wipro was opening
manufacturing locations in Andhra Pradesh and Guangzhou. On May 4, 2018, it was reported
that Wipro's stock value had been decreasing. The day earlier, press had said that HCL would
likely unseat Wipro that quarter as the third largest Indian IT company, after TCS and Infosys
Western India Products Limited
Wipro Limited is a global provider of comprehensive IT solutions[buzzword] and services,
including Systems Integration, Consulting, Information Systems outsourcing, IT-enabled
services, R&D services.
Wipro entered into the technology business in 1981 and has over 160,000 employees and
clients across 54 countries. IT revenues were at $7.1 billion for the year ended 31 March
2015, with a repeat business ratio of over 95%.
Wipro Consumer Care & Lighting
11
Wipro Consumer Care and Lighting (WCCLG), a business unit of Wipro Limited operates in
the FMCG segment dealing in consumable commodities. Established in 1945, its first product
was vegetable oil, later sold under the brand name "Sunflower Vanaspati". It sells personal
care products, such as Wipro Baby Soft and Wipro Safewash, toilet soaps Santoor and
Chandrika as well as Yardley.It sells lighting products, including Smartlite CFL,LED, and
emergency lights.
Through product sales and acquisitions, Wipro Consumer Care and Lighting has grown
steadily in the FMCG segment.

Wipro Infrastructure Engineering

Wipro Infrastructure Engineering is the hydraulics business division of Wipro Limited and
has been in the business of manufacturing hydraulic cylinders, truck cylinders, and their
components and solutions[buzzword] since 1976. This division delivers hydraulic cylinders
to international OEMs and represents the Kawasaki, Sun Hydraulics and Teijin Seiki range of
hydraulic products in India. It has entered into partnerships Kawasaki and aerospace giant
EADS. In 2010 Wipro Infrastructure Engineering was the second largest independent
manufacturer of hydraulic cylinders in the world.
Wipro GE Medical Systems
Wipro GE Medical Systems Limited is Wipro’s joint venture with GE Healthcare South Asia.
It is engaged in the research and development of advanced solutions[buzzword] to cater to
patient and customer needs in healthcare. This partnership, which began in 1990, today
includes gadgets and equipment for diagnostics, healthcare IT solutions[buzzword] and
services to help healthcare professionals combat cancer, heart disease, and other ailments.
There is complete adherence to Six Sigma quality standards in all products.

Board of Directors
1. Azim H . Premji Chairman
2. Dr Ashok S Ganguly Former Chief Ex.Officer Nortel
3. B .C. Prabhakar Practitioner of Law
4. Dr. Sheth Proffessor Of Marketing-Emory Uni.Usa.
5. N.Vagual Chairman-ICICI Bank Ltd
6. Bill Owens Former Chief Ex.Officer,Nortel
7. P. M. Sinba Former Chairman Pepsico India

12
5. Research methodology

The current study is based on secondary data collected from company websites as well other
Finance oriented websites. The Statistical tools like standard deviation, variance were used in
order to show the variations in Returns from stocks. Historical data was collected from the
https://in.finance.yahoo.com/.

5.1 Sources of Data:

Secondry Data:The information used for project was gathered from books
Financial websites.

13
 6. Data Analysis and Interpretation:

Year 2016 Infosys

Months Open close Return (P1
– P0)/P0
Apr-16 603.23 599.31 -0.65
May-16 600.25 619.43 3.20
Jun-16 618.14 580.81 -6.04
Jul-16 585.37 532.71 -9.00
Aug-16 531.55 513.86 -3.33
Sep-16 514.93 513.96 -0.19
Oct-16 513.69 497.12 -3.23
Nov-16 499.45 483.95 -3.10
Dec-16 484.17 501.34 3.55
Jan-17 501.58 460.66 -8.16 Mean -1.34
Feb-17 456.94 502.23 9.91 Variance 28.74
Mar-17 502.03 507.12 1.01 sd 5.365

Year 2016 WIPRO

Months Open close Return (P1
– P0)/P0
Apr-16 283.5 277.175 -2.23
May-16 275.5 272.725 -1.01
Jun-16 272.8 278.975 2.26
Jul-16 279.875 272.525 -2.63
Aug-16 272.525 245.825 -9.80
Sep-16 244.85 239.475 -2.20
Oct-16 240 231.05 -3.73
Nov-16 232.525 232.625 0.04
Dec-16 234.85 237.225 1.01
Jan-17 237.525 229 -3.59
Mean -0.95
Feb-17 230.5 244.4 6.03
Variance 17.39
Mar-17 247 257.85 4.39
sd 4.17

14
Year 2017 Infosys
Months Open close Return (P1
– P0)/P0
Apr-17 512.03 455.87 -10.97
May-17 458.38 484.69 5.74
Jun-17 480.85 464.11 -3.48
Jul-17 466.86 501.63 7.45
Aug-17 501.53 453.89 -9.50
Sep-17 454.38 446.42 -1.75
Oct-17 451.48 457.31 1.29
Nov-17 458.87 484.22 5.52
Dec-17 485.86 516.94 6.40
Jan-18 514.78 570.61 10.85
Feb-18 566.62 581.7 2.66 Mean 0.91
Mar-18 580.21 561.46 -3.23 Variance 46.58
sd 6.82

Year 2017 WIPRO

Months Open close Return (P1
– P0)/P0
Apr-17 258.225 247.125 -4.30
May-17 248.075 267.75 7.93
Jun-17 267.725 258.35 -3.50
Jul-17 260 288.45 10.94
Aug-17 289 299.1 3.49
Sep-17 298 280.25 -5.96
Oct-17 281.4 294.05 4.50
Nov-17 296 291.9 -1.39
Dec-17 292 314.25 7.62
Jan-18 311.5 304.7 -2.18
Feb-18 305.05 292.8 -4.02
Mar-18 292.8 281.15 -3.98 Mean 0.763
Variance 33.72
sd 5.80

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Year 2018 Infosys
Months Open close Return (P1
– P0)/P0
Apr-18 567.75 599.7 5.63
May-18 600 615.95 2.66
Jun-18 615.95 653.375 6.08
Jul-18 656.95 682.5 3.89
Aug-18 682.925 720 5.43
Sep-18 729 727.85 -0.16
Oct-18 735.1 686.25 -6.65
Nov-18 693.9 666.5 -3.95
Dec-18 670.5 659.85 -1.59
Jan-19 661 749.6 13.40
Mean 2.47
Variance 33.44
sd 5.7830463
7

Year 2018 WIPRO

Months Open close Return (P1
– P0)/P0
Apr-18 283.5 278.75 -1.68
May-18 279 261.9 -6.13
Jun-18 262.95 261.5 -0.55
Jul-18 260.7 276.4 6.02
Aug-18 276 301.25 9.15
Sep-18 327 324 -0.92
Oct-18 324 331.2 2.22
Nov-18 332.95 324.65 -2.49
Dec-18 325 330.85 1.80
Jan-19 330.75 369.2 11.63 Mean 1.90
Variance 30.52
sd 5.524

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 Infosys Balance sheets
EQUITIES AND LIABILITIES
SHAREHOLDER'S
FUNDS 2018 2017 2016
Equity Share Capital 1,092.00 1,148.00 1,148.00
Total Share Capital 1,092.00 1,148.00 1,148.00

Reserves and Surplus 62,410.00 66,869.00 59,934.00

Total Reserves and
Surplus 62,410.00 66,869.00 59,934.00
Total Shareholders
Funds 63,502.00 68,017.00 61,082.00
NON-CURRENT
LIABILITIES
Deferred Tax
Liabilities [Net] 505 0 0
Other Long Term
Liabilities 208 82 62
Total Non-Current
Liabilities 713 82 62
CURRENT
LIABILITIES
Trade Payables 738 269 623
Other Current
Liabilities 10,488.00 11,167.00 10,529.00
Short Term
Provisions 436 350 436
Total Current
Liabilities 11,662.00 11,786.00 11,588.00
Total Capital And
Liabilitie s 75,877.00 79,885.00 72,732.00
ASSETS
NON-CURRENT
ASSETS
Tangible Assets 9,027.00 8,605.00 8,248.00
Intangible Assets 130 0 0
Capital Work-In-
Progress 1,442.00 1,247.00 934
Fixed Assets 10,599.00 9,852.00 9,182.00
Non-Current
Investments 11,993.00 15,334.00 11,076.00
Deferred Tax Assets
[Net] 1,128.00 346 405
Long Term Loans
And Advances 19 5 5
Other Non-Current
Assets 8,048.00 6,666.00 5,967.00
Total Non-Current
Assets 31,787.00 32,203.00 26,635.00

CURRENT ASSETS
Current Investments 5,906.00 9,643.00 2
Trade Receivables 12,151.00 10,960.00 9,798.00
Cash And Cash
Equivalents 16,770.00 19,153.00 29,176.00
Short Term Loans
And Advances 393 310 355
OtherCurrentAssets 8,870.00 7,616.00 6,766.00
Total Current Assets 44,090.00 47,682.00 46,097.00
Total As s e ts 75,877.00 79,885.00 72,732.00
Infosys Profit and loss statement Mar'18 Mar'17 Mar'16
12Months 12Months 12Months
INCOME:
Sales Turnover 61941 59289 53983
Excise Duty 0 0 0
NET SALES 61941 59289 53983
Other Income 0 0 0
TOTAL INCOME 65960 62351 56989
EXPENDITURE:
Manufacturing Expenses 9561 8772 5645
Material Consumed 0 0 0
Personal Expenses 32472 30944 28207
Selling Expenses 0 0 0
Administrative Expenses 2611 2366 4422
Expenses Capitalised 0 0 0
Provisions Made 0 0 0
TOTAL EXPENDITURE 44644 42082 38274
Operating Profit 17297 17207 15709
EBITDA 21316 20269 18715
Depreciation 1408 1331 1115
Other Write-offs 0 0 0
EBIT 19908 18938 17600
Interest 0 0 0
EBT 19908 18938 17600
Taxes 3753 5120 4907
Profit and Loss for the Year 16155 13818 12693
Non Recurring Items 0 0 0
Other Non Cash Adjustments 0 0 0
Other Adjustments 0 0 0
REPORTED PAT 16155 13818 12693

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 Wipro Balance she e t
Particulars Mar-18 Mar-17 Mar-16
EQUITIES AND
LIABILITIES
SHAREHOLDER'S
FUNDS
Equity Share Capital 904.8 486.1 494.1
Total Share Capital 904.8 486.1 494.1
Reserves and Surplus 41,357.80 46,219.50 40,731.60
Total Reserves and
Surplus 41,357.80 46,219.50 40,731.60
Total Shareholders
Funds 42,262.60 46,705.60 41,225.70
NON-CURRENT
LIABILITIES
Long Term Borrowings 72.4 1,146.30 1,146.50
Deferred Tax Liabilities
[Net] 46.3 139.1 72.2
Other Long Term
Liabilities 1,085.30 952.7 869.5
Long Term Provisions 168.8 373.3 399.1
Total Non-Current
Liabilities 1,372.80 2,611.40 2,487.30
CURRENT
LIABILITIES

Short Term Borrowings 4,647.70 5,018.60 5,549.50

Trade Payables 4,176.20 3,818.60 4,362.30

Other Current Liabilities 5,418.60 4,375.80 4,657.50

Short Term Provisions 793.4 626.9 642.6
Total Current Liabilities 15,035.90 13,839.90 15,211.90
Total Capital And
Liabilities 58,671.30 63,156.90 58,924.90
ASSETS
NON-CURRENT
ASSETS
Tangible Assets 3,802.60 3,755.50 3,641.80
Intangible Assets 564.4 606.7 425.7
Capital Work-In-
Progress 1,290.60 694.1 325.1
Fixed Assets 5,657.60 5,056.30 4,392.60
Non-Current
Investments 5,841.60 5,999.40 5,781.10
Deferred Tax Assets
[Net] 452 235.2 425.4
Long Term Loans And
Advances 0 0 195.8
Other Non-Current
Assets 3,752.80 3,138.90 2,869.70
Total Non-Current
Assets 15,704.00 14,429.80 13,664.60
CURRENT ASSETS
Current Investments 24,841.20 29,146.70 20,419.50
Inventories 294.3 355.9 526.2
Trade Receivables 9,502.00 8,129.90 8,398.00
Cash And Cash
Equivalents 2,322.00 3,516.60 8,408.80
Short Term Loans And
Advances 0 191.7 0
OtherCurrentAssets 6,007.80 7,386.30 7,507.80
Total Current Assets 42,922.20 48,727.10 45,260.30
Total Assets 58,671.30 63,156.90 58,924.90
 Profit & Loss - Wipro Ltd.Rs (in Crores)
Particulars Mar'18 Mar'17 Mar'16
12Months 12Months 12Months
INCOME:

Sales Turnover 44710 46047.8 44680.8

Excise Duty 0 0 0
NET SALES 44710 46047.8 44680.8
Other Income 0 0 0
TOTAL INCOME 47189.6 48693.7 47391.4
EXPENDITURE:
Manufacturing
Expenses 11076.3 10812.2 0
Material Consumed 1527.3 2350.9 2603.1
Personal Expenses 21756.2 21854.4 21267.1
Selling Expenses 0 0 222.2
Administrative
Expenses 1396.4 1473.4 11279.5
Expenses
Capitalised 0 0 0
Provisions Made 0 0 0
TOTAL
EXPENDITURE 35756.2 36490.9 35371.9
Operating Profit 8953.8 9556.9 9308.9
EBITDA 11433.4 12202.8 12019.5
Depreciation 1014.8 1047.7 875.4
Other Write-offs 0 0 0
EBIT 10418.6 11155.1 11144.1
Interest 384.3 468 549.9
EBT 10034.3 10687.1 10594.2
Taxes 2311.5 2525.4 2393.7
Profit and Loss
for the Year 7722.8 8161.7 8200.5

Non Recurring Items 0 0 0

Other Non Cash
Adjustments 0 0 0
Other Adjustments 0 0 0
REPORTED PAT 7722.8 8161.7 8200.5

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 Infosys Wipro
Liquidity Ratio 2018 2017 2016
Liquidity Ratios 2018 2017 2016
Current ratio 3.8 4.0 4.0 Current ratio 2.85 3.52 2.98

Solvency ratio Solvency ratio

Debt to equity 0.20 0.30 0.23 Debt to equity 0.9 0.4 0.4

Profitability ratio Profitability ratio

Net profit 26.08% 23.30% 23.51% Net profit 17.27% 17.72% 18.35%
operating profit 27.92% 29.02% 29.10%
operating profit 20.02% 20.75% 20.83%
ROA 19.55% 23.75% 18.85% ROA 10% 11% 11%
ROE 24.14% 29.07% 23.25% ROE 15% 17% 20%

Interpretation:

After thoroughly going through the Balance sheet and profit and loss statements of both the
companies the above figures were calculated.

 Current Ratio- Current ratio helps in knowing liquidity of firms from above tables it is
clear that Infosys has high rate of liquidity compared to the Wipro. Infosys 3.8, 4.0, 4.0
and wipros 2.85, 3.52, 2.98 for year 2018 2017 2016 respectively is above standard ratio
that is 2:1.

 Debt to Equity ratio- The debt/equity (D/E) ratio compares a company’s total liabilities
to its shareholder equity. Investors can use the D/E ratio to evaluate how much leverage a
company is using. Looking the figures it can be said lower the better and Infosys is at
better position as it is lesser than 0.5 standard ratio. Wipros 2018 its ratio is 0.9, 0.4, 0.4
respectively.

 Net profit- Infosys N.P was more or less same for the year 2016,2017 but has increased to
26.08 % for 2018 . on other hand Wipros profitability compared to last two yrs. is same.
17.27 for 2018. Infosys is now holding good position in stock market.

 Operating profit- Infosys operating profit is 27.92% for 2018 reduced by 2% approx
while operating profit of wipros is not changed much it is consistent at 20%.

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 Return on Asset Return on Equity- Return on equity (ROE) and return on assets (ROA)
are two of the most important measures for evaluating how effectively a company’s
management team is doing its job of managing the capital entrusted to it. The primary
differentiator between ROE and ROA is financial leverage or debt. Comparing two firms
Infosys has higher percentage of ROA and ROE. It means Infosys is utilizing its asset
more efficiently and Investors are getting Expected returns. Wipro is also competing with
its own strategy, buying stocks of wipro also good option for medium risk taking
investors.

 Analysing the returns trend of both companies stocks it shows that the Wipro is more
stable in giving returns compared to Infosys it can be said by seeing the Variance itself it
is more or less consistent for three years. Infosys is Earning profits but looking the
Performance in share market it is volatile to external factors.

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7.Findings :

 Current Ratios Infosys 3.8, 4.0, 4.0 and wipros 2.85, 3.52, 2.98 for year 2018 2017
2016 respectively is above standard ratio that is 2:1.
 Debt to Equity ratio Infosys 0.20, 0.30, 0.23 and wipros 0.9,0.4,0.4 for year 2018
2017 2016
 Standard ratio is 0.5.
 Infosys Net profit 26.08%,23.30%,23.51% wipros 17.27%,17.72%,18.35% for
year 2018 2017 2016
 Infosys operating profit 27.92%,29.02%,,29.10% wipros operating profit
20.02%,20.75%,20.83% for year 2018 2017 2016.
 Infosys ROA 19.55% 23.75% 18.85% ROE 24.14% 29.07% 23.25% wipros
ROA 10% 11% 11% ROE 15% 17% 20% for year 2018,2017,2016.

Infosys Year 2016 Mean

Year 2017 variance
Year 2018 Wipro Year 2016 Mean
Year 2017 variance
Year 2018
Mean -1.33513 0.914589 2.474359 Mean -0.9528566 0.763673 1.905185
Variance 28.74436 46.57716 33.44363 Variance 17.39972 33.7256 30.52442
sd 5.361376 6.824746 5.783046 sd 4.17129716 5.807375 5.524891

8.Conclusion:

This project report was undertaken to understand the Performance of IT based companies
Infosys and Wipro and the report was made by understanding significance of Ratios analysis
and the statistical tools Standard deviation , Variance to understand the trend in stocks of
companies.

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9. Bibliography.

1. www.Investopedia.com
2. Financial management by MY khan, P K jain.
3. https://in.finance.yahoo.com/

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