A

PROJECT REPORT

ON

“Enterprise Analysis & Desk Research: Wipro Ltd.”

In Partial Fulfillment of the Subject

EADR (115)

Submitted By

Darshana Bhaskar Karandikar (A-26)

Guided By

Mr. Vijay Sonaje

Submitted To

Marathwada Mitra Mandal’s Institute of Management Education and Research Training

(IMERT)

(2018-19)

1
 DECLARATION
I, the undersigned, hereby declare that the Project Report entitled “Enterprise Analysis
& Desk Research: Wipro Ltd.” in partial fulfillment of the subject EADR (115) under the
guidance of Prof. Vijay Sonaje is my original work and the conclusion drawn there in are based
on the material collected by myself.

Place: Pune

Date: 22/10/2018 Darshana Bhaskar Karandikar

A-26

2
EXECUTIVE SUMMARY

Practical knowledge is better than classroom knowledge. This project gives an idea about basic
knowledge about IT sector, major players in this sector.

Wipro is well established and well known company since 1945. This report is based on
secondary data obtained from annual report and website of company which gives over view of
fundamental and financial position of Wipro Ltd.

In this report major focus is on financial statements and ratios of last three years. Although
report contains basic information of company, its product line, major peers, industry analysis,
geographical spread, advertisement and branding strategies of company etc.

Overall study of company is important while you are thinking about investing in company. So
this will help you to decide whether to invest in a company or not.

This report also reflects the risk related to IT sector as well as opportunities related to this sector.
Fundamental analysis is a core focus of this report.

3
 CONTENTS

CHAPTER TITLE PAGE NO.

EXECUTIVE SUMMARY
1. INTODUCTION 7
2. INDUSTRY PROFILE 8
3. COMPANY PROFILE 12
4. REVIEW OF LITERATURE 15
5. OBJECTIVES 20
6. RESEARCH METHODOLOY 21

7. DATA ANALYSIS AND INTERPRETATION 23

8. OBSERVATION AND FINDINGS 42

9. SUGGESTIONS 43

10. CONCLUSION 44

4
 LIST OF TABLES

NO. CHAPTER NAME PAGE NO

1. INDUSTRY PROFILE 10
2. COMPANY PROFILE 13
3. DATA ANALYSIS AND INTERPRETATION 26

5
 LIST OF CHARTS

FIGURE NO CHAPTER NAME PAGE NO.

2.1 INDUSTRY PROFILE 12
3.1 COMPANY PROFILE 14
7.1 TO 7.11 DATA ANALYSIS AND 31
INTERPRETATION

6
 CHAPTER 1

INTRODUCTION
Investment analysis is a broad term that encompasses many different aspects of investing. It can
include analyzing past returns to make predictions about future returns, selecting the type of
investment vehicle that is best for an investor's needs or evaluating securities such
as stocks and bonds for valuation and investor specificity. The present study aims to analyze the
fundamental analysis of WIPRO LTD. for a period from F.Y. 2016-2017 and F.Y.2017-2018.

Western India Products Limited, Wipro Limited is a Global multinational IT consulting and
System Integration Services Company headquartered in Bangalore, India. The company
has 160,000 employees servicing over 900 large enterprise & Fortune 1000 corporations with a
presence in 61 countries. Wipro is one of India's largest publicly traded companies and seventh
largest IT services firm in the World. To focus on core IT Business, it demerged its non-IT
businesses into a separate company named Wipro Enterprises Limited with effect from 31 March
2013. The demerged companies are consumer care, lighting, healthcare and infrastructure
engineering which contributed approximately 10% of the revenues of Wipro Limited in previous
financial year. The Company is a provider of IT services to enterprises across the globe. The IT
Services segment primarily consists of IT Service offerings to its customers organized by
industry verticals, which include Banking, Financial Services and Insurance (BFSI), Healthcare
and Life Sciences (HLS), Retail, Consumer Goods, Transport and Government (RCTG), Energy,
Natural Resources and Utilities (ENU), Manufacturing and High-Tech (MFG), and Global
Media and Telecom (GMT). The Company provides a range of services, which include digital
strategy advisory, customer centric design, technology consulting, IT consulting, custom
application design, development, re-engineering and maintenance, systems integration, package
implementation, global infrastructure services, business process services, cloud, mobility and
analytics services, research and development and hardware and software design. It delivers end-
to-end services across the Oracle product spectrum, including E-Business suite, Oracle Cloud
Applications and Engineered Systems. Its Connected Enterprise Services include Digital
Customer Experience Management (DCxM) and Encore (Next Gen Commerce Solution).

7
 CHAPTER 2

INDUSTRY PROFILE

Introduction
Adoption of new liberal policies in India has given birth immense opportunities to its industries.
Success story of India's Software Industry is a step in the same direction. The Software Industry,
which is a main component of the Information technology, has brought tremendous success for
the emerging economy. India's young aged manpower is the key behind this success story.
Presently there are more than 500 software firms in the country. 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 centers in about 80 countries across the world.
More importantly, the industry has led the economic transformation of the country and altered
the perception of India in the global economy. India's cost competitiveness in providing IT
services, cost savings of 60–70 per cent over source countries, continues to be the mainstay of its
Unique Selling Proposition (USP) in the global sourcing market. However, India is also gaining
prominence in terms of intellectual capital with several global IT firms setting up their
innovation centers in India. India has become the digital capabilities hub of the world with
around 75 per cent of global digital talent present in the country.

Industry 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. India’s Personal Computer (PC) shipment advanced 11.4
per cent year-on-year to 9.56 million units in 2017 on the back of rise in the quantum of large
projects. Revenue from digital segment is expected to comprise 38 per cent of the forecasted
US$ 350 billion industry revenue by 2025.

8
Industry Growth

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 block chain, artificial intelligence to clients using
innovation hubs, research and development centers, in order to create differentiated offerings. It
is estimated that the Indian IT industry would grow to about $300 billion by 2020, with software
services and e-commerce leading the race.

Key drivers of growth in the IT sector:-

• Low cost of operation and tax advantages

• Supportive government policies
• Availability of technically skilled manpower
• Rapid introduction of IT technologies in major sectors such as telecom, BFSI.
• Strong growth in export demand
• use of new technologies like cloud computing
• Government established SEZs

Government Support and Policies

After the economic reforms that were introduced in 1991-1992, various incentives were provided
by both the state and central government for better emergence of the IT sector like liberalization
of external trade, removing duties on imports of IT products, setting up Export Oriented Units
(EOU), setting up of Software Technical Parks (STP) etc. Government of India has also set up
National Task Force on IT and Software development to investigate the possibility of

9
strengthening the economy. 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 realizing 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.

Market Share

No. Name Market Share (in crore)

1. TCS 719350.91
2. INFOSYS 289185.82
3. WIPRO 146150.39
4. HCL TECH 133786.52
5. TECH MAHINDRA 67714.41
6. ORACLE FIN SERV 32654.98
7. L&T INFOTECH 30115.95
8. MPHASIS 20682.09
9. MINDTREE 13337.92
10. HEXAWARE TECH 11243.61
Table no.1

10
 Market Share (in crore)

2% 2% 1% 1% 1% TCS
5%
INFOSYS
9% WIPRO
49% HCL TECH
10%
TECH MAHINDRA
ORACLE FIN SERV
20% L&T INFOTECH
MPHASIS
MINDTREE
HEXAWARE TECH

Fig.No.2.1

11
 CHAPTER 3

COMPANY PROFILE

HISTORY
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, India
under the trade names of Kisan, Sunflower, and Camel.

During the 1970s and 1980s, the company shifted its focus to new business opportunities in the
IT and computing industry, which was at a nascent stage in India at the time. On 7 June 1977, the
name of the company changed from Western India Vegetable Products Limited, to Wipro
Products Limited.

The year 1980 marked the arrival of Wipro in the IT domain. In 1982, the name was changed
from Wipro Products Limited to Wipro Limited. Meanwhile, Wipro continued to expand in the
consumer products domain with the launch of "Ralak" a Tulsi based family soap and "Wipro
Jasmine", a toilet soap. In 1988 Premji took a loan of 1 million dollars from Sonkar and Sons to
set up the project. Later the entire loan amount was waived.

In 1988, Wipro diversified its product line into heavy-duty industrial cylinders and mobile
hydraulic cylinders. In 2000 Wipro launched Wipro OSS Smart and Wipro WAP Smart. In the
same year, Wipro got listed on New York Stock Exchange.

In February 2002, Wipro became the first software technology and services company in India to
be ISO 14001 certified. Wipro Consumer Care and Lighting Group entered the market
of compact fluorescent lamps, with the launch of a range of CFL, under the brand name of Wipro
Smart lite.

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 acquired Australian Trade Promotions Management firm Pro max
Applications Group (PAG) for $35 million.

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MANAGEMENT TEAM

NO. NAME DESIGNATION

1. Azim H Premji Executive Chairman
2. Rishad Premji Chief Strategy Officer And Member Of Board
3. Abidali Z Neemuchwala CEO And Member Of Board
4. M K Sharma Independent Director
5. Narayanan Vaghul Independent Director
6. Ireena Vital Independent Director
7. Dr. Ashok S Ganguly Independent Director
8. Dr. Patrick J Ennis Independent Director
9. Patrick Dupuis Independent Director
10. William Arthur Owens Independent Director
Table no.2

AWARDS

• In March 2017, Wipro was recognized as one of the world’s most ethical companies by US-
based Ethisphere Institute for the sixth consecutive year.
• In May 2016, it was ranked 755th on the Forbes Global 2000 list
• Wipro won Gold Award for ‘Integrated Security Assurance Service (iSAS)’ under the
‘Vulnerability Assessment, Remediation and Management’ category of the 11th Annual
2015 Info Security PG’s Global Excellence Awards.
• Wipro won 7 awards, including Best Managed IT Services and Best System Integrator in the
CIO Choice Awards 2015, India.
• In 2014, Wipro was ranked 52nd among India's most trusted brands according to the Brand
Trust Report, a study conducted by Trust Research Advisory.
• Wipro was ranked 2nd in the Newsweek 2012 Global 500 Green companies.

13
• Wipro received the 'NASSCOM Corporate Award for Excellence in Diversity and Inclusion,
2012', in the category 'Most Effective Implementation of Practices & Technology for Persons
with Disabilities'.
• In 2012, it was awarded the highest rating of Stakeholder Value and Corporate Rating 1
(SVG 1) by ICRA Limited.
• It received National award for excellence in Corporate Governance from the Institute of
Company Secretaries of India during the year 2004.

MILESTONE

1945
• Incorporation of WIPRO

1982
• Entry into IT products business

1990
• Entered into 3rd party R&D services and IT services

2000
• Listed into NYSE and enters the BPO business

2015
• Launched "Wipro Digital" key capabilities acquired through Designlt and
Appirio

2017
• Launched a new brand identity and rearticulated 'Spirit of Wipro'to
underscore Wipro's commitment to transformation & evovling client
expectations

Fig.No.3.1

14
 CHAPTER 4

REVIEW OF LITERATURE

CURRENT RATIO:-

The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-
term obligations. To gauge this ability, the current ratio considers the current total assets of a
company (both liquid and illiquid) relative to that company's current total liabilities.

FORMULA – Current Asset/Current Liabilities

LIQUID RATIO

In finance, the quick ratio, also known as the acid-test ratio [1] is a type of liquidity ratio [2]
which measures the ability of a company to use its near cash or quick assets to extinguish or
retire its current liabilities immediately. Quick assets include those current assets that
presumably can be quickly converted to cash at close to their book values. It is the ratio between
quickly available or liquid assets and current liabilities.

A normal liquid ratio is considered to be 1:1. A company with a quick ratio of less than 1 cannot
currently fully pay back its current liabilities.

This ratio is considered to be much better and reliable as a tool for assessment of liquidity
position of firms.

FORMULA - (Current Assets-Inventory)/(Current Liabilities-Bank Overdraft)

DEBT TO EQUITY RATIO

Debt/Equity (D/E) Ratio, calculated by dividing a company's total liabilities by its stockholders'
equity, is a debt ratio used to measure a company's financial leverage. The D/E ratio indicates
how much debt a company is using to finance its assets relative to the value of shareholders'
equity.
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FORMULA - Total Debt/Shareholders Funds

FIXED ASSETS TO CAPITAL EMPLOYED RATIO

Fixed Assets/ Capital Employed Ratio indicate the extent to which the long term funds are sunk
in fixed assets which are supplied by creditors and owners of the firm.

FORMULA - Tangible Fixed Assets/Total Capital Employed

NET PROFIT RATIO (%)

For the purpose of this ratio, net profit is equal to gross profit minus operating expenses and
income tax. All non-operating revenues and expenses are not taken into account because the
purpose of this ratio is to evaluate the profitability of the business from its primary operations.

FORMULA - EAT*100/Sales

GROSS PROFIT RATIO

Gross profit ratio (GP ratio) is a profitability ratiothat shows the relationship between gross
profit and total net sales revenue. It is a popular tool to evaluate the operational performance of
the business .Theratio is computed by dividing the gross profit figure by net sales.

FORMULA - Gross Profit*100/Sales

RETURN ON TOTAL ASSETS RATIO

The return on assets ratio formula is calculated by dividing net income by average total assets.
This ratiocan also be represented as a product of the profit margin and the total asset turnover.
Either formula can be used to calculate the return on total assets.

FORMULA - EAT*100/Total Assets

RETURN ON EQUITY RATIO

Return on Equity (ROE) Ratio. The return on equity ratio or ROE is a profitability ratio that
measures the ability of a firm to generate profits from its shareholders investments in the

16
company. In other words, the return on equity ratio shows how much profit each dollar of
common stockholders' equitygenerates.

FORMULA - EAT*100/Shareholders Funds

RETURN ON CAPITAL EMPLOYED RATIO (ROI)

Return on capital employed (ROCE) and return on investment (ROI) are two profitability ratios
that go beyond a company's basic profit margins to provide more detailed assessments of how
successfully a company conducts its business and returns value to investors.

FORMULA - EBIT*100/Total Capital Employed

EARNINGS PER SHARE (EPS)

'Earnings Per Share (eps)' Definition:Earnings per share or EPS is an important financial
measure, which indicates the profitability of a company. It is calculated by dividing the
company's net income with its total number of outstandingshares.

FORMULA - (EAT-Pref. Dividend)/No. of Equity Shares

P/E RATIO (PRICE TO EARNINGS RATIO)

In essence, the price-earnings ratio indicates the dollar amount an investor can expect to invest in
a company in order to receive one dollar of that company's earnings. This is why the P/E is
sometimes referred to as the price multiple because it shows how much investors are willing to
pay per dollar of earnings.

FORMULA - Market Price Per Share/EPS

BOOK VALUE

The price-to-book ratio, or P/B ratio, is a financial ratio used to compare a company's current
marke tprice to its book value. ... In the first way, the company's market capitalization can be
divided by the company's total book value from its balance sheet.

FORMULA - Shareholders Funds/No of equity shares

17
MARKET VALUE TO BOOK VALUE

The book-to-market ratio is used to find the value of a company by comparing the book value of
a firm to its market value. Book value is calculated by looking at the firm's historical cost, or
accounting value.Market value is determined in the stock marketthrough its market
capitalization.

FORMULA - Market value/book value

FIXED ASSETS TURNOVER RATIO

Fixed-asset turnover is the ratio of sales (on the profit and loss account) to the value of fixed
assets (on the balance sheet). It indicates how well the business is using its fixed assets to
generate sales. ... A declining ratio may indicate that the business is over-invested in plant,
equipment, or other fixed assets.

FORMULA - Sales/Fixed Assets

SALES TO WORKING CAPITAL

The working capital turnover ratio is also referred to as net sales to working capital. It indicates a
company's effectiveness in using its working capital. The working capital turnover ratio is
calculated as follows: net annual sales divided by the average amount of working capital during
the same 12 month period.

FORMULA - Sales/Working capital

WORKING CAPITAL

Working capital is calculated as current assetsminus current liabilities. If current assets are less
than current liabilities, an entity has a working capital deficiency, also called a working
capitaldeficit.

FORMULA: – CURRENT ASSET – CURRENT LIABILITIES

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CORPORATE SOCIAL RESPONSIBILITIES

“We need to go out and look for opportunities to help those less fortunate than ourselves, even it
that service demands sacrifice. It is an unselfish will to serve should be our moto.” Wipro ltd
started Wipro Cares for this purpose. An important step took during the year was to create
a separate entity, Wipro Foundation, which will serve to channelize and consolidate all social
initiatives. Wipro Cares is focused on certain key developmental issues faced by communities,
such as, but not limited to, primary health care, education, environment, disability and providing
rehabilitation to communities affected by natural calamities. It is a trust formed in the year 2003
that seeks to work with communities proximate to Wipro’s center of operations. Wipro Cares is
currently engaged in 16 projects across India. Through seven of its health care projects in four
states of India Wipro Cares is providing more than 75000 people in 53 villages access to primary
health care.
More than 47000 children benefit from the five education projects in five Indian cities. Our
project in social forestry has helped plant more than a lakh trees, and has at the same time
provided livelihood to around 80 farmers. Their projects in disaster rehabilitation have helped
rebuild the lives of people affected by Karnataka Floods, Bihar Floods, Japan Tsunami,
Hurricane Sandy, Philippines Cyclone, Uttarakhand Floods, Odisha Floods and many more.
Employee engagement is an integral part of Wipro Cares where we encourage employees to
volunteer with partners, acting thus as catalysts in bringing about positive change.

19
 CHAPTER 5

OBJECTIVES

COMPANY OBJECTIVES

• To develop and integrate innovative solutions that enable clients to leverage IT to achieve
their business objectives at competitive costs.
• The vision is ‘To earn clients trust and maximize the value of their businesses by
providing solutions that integrate our deep industry insights, our leading technology and
best-in-class execution.’
• To act as information technology consultants and to operate a high technology data
processing centers for providing information processing, analysis, development,
accounting and business information and data to customer in India and internationally.
• To manage a market risk through a corporate treasury department, which evaluates and
exercises independent control over the entire process of market risk management.

RESEARCH OBJECTIVES

• To understand the financials of the company for the last three financial years.
• To study the qualitative background i.e. the history, background or analysis of the
WIPRO LTD.
• To calculate & Interpret the performance of the company using ratio analysis.
• To know about the IT sector in India

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 CHAPTER 6

RESEARCH METHODOLOGY

To conduct the market research first of all it is necessary to create a research design.

A research design is basically a blue print of how a research is to be conducted, it may include;

1. Choosing the approach.

2. Determining the types of data needed.

3. Locating the source of data.

4. Choosing the method of data.

Research Design:

Basically there are 3 types of approaches used during the research:

• Exploratory

It is one of the well known scientific method where the researcher has to explore various facts by
trial and error method. Exploratory method is useful when the researcher does not have a clear
idea of problem. Exploratory research design may be useful when a company is doing some
project for first time, when company is going for new venture.

• Descriptive

A descriptive research means a study which is concern with describing the characteristics of
particular individual or of a group. It estimates the proportion of population and association
among different variables.

• Experimental

Experimental research design is one where the researcher tests the hypothesis of causal
relationship between variables. In such type of studies one variable is manipulated or controlled
and then we observed the effect of this variable on some other variable. This type of research
design helps in reducing the bias and increases the reliability.
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Type of Data Collection:

The collection method involved is Secondary Data i.e. the data which already exists and is
collected from the published sources. The source from which secondary data is collected are
internet, website of the company, money control site.

Scope of Research:

The scope of the research is limited to one company sticking to 3 years of data, only analyzing
the financial statement of 3 financial years.

Limitation:

The duration of the session was limited to 20 hours.

The way things are measured may change over time and makes historical comparisons difficult.

22
 CHAPTER 7

DATA ANALYSIS AND INTERPRETATION

PRODUCT PROFILE

Wipro is a well-recognized global company that integrates technical know-how, business

knowledge, and industry expertise to design some of the best products and solutions in IT
industry. It is one of the largest conglomerates which has a varied and diversified product
portfolio that spreads over sectors like automotive, aerospace, energy, consumer goods, retail,
media, analytics, professional services, product engineering and several more. The company
works on technologies like Python, Agile, Dot Net, SAP, and Java. The product portfolio of
Wipro Technologies include

IT Services

• Service Offerings – Analytics, Consulting

• Applications – Cloud and Infrastructure Services
• Client Themes – Product Lifecycle Management, Internet of Things, Enterprise
Architecture, Cloud, As a Service
• Big Data – Software Defined Everything, Mobility, Enterprise Ops Transformation, Cyber
Security & Enterprise Risk
• Block chain – Open Source, Industry 4.0, Dev Ops
• Business Process – Product Engineering

IT Products

• Hardware products including Security, Networking, Storage, Computing, Servers

• Related Software Products including Operating Systems and Databases and Integration
• Third-Party IT Products- Software Products, Networking Solutions, Enterprise Platforms,
Contact Center Infrastructure, Data Storage, IT Optimization Technologies, Enterprise
Security, End-User Computing Solutions and Video Solutions.

23
Digital Services

• Technology – Platforms and Solutions, Internet of things, Digitized Enterprise Operations,

Digital Engineering, Digital Asset Management, Digital Architecture
• Design – User Research, User Experience, Service Design, Product Design, Interaction
Design, Innovation Strategy, Brand Design
• Strategy – Digital Strategy, Digital Organization Design, Digital Fitness
• Customer Journey Engineering
• Integration
• Interaction
• Insights

Industries

• Utilities
• Securities and Capital Markets
• Professional Services
• Pharmaceutical & Life Sciences
• Natural Resources
• Insurance
• Consumer Packaged Goods
• Banking
• Travel and Transportation
• Retail Industry
• Process & Industrial Manufacturing
• Oil and Gas
• Medical Devices
• Healthcare
• Consumer Electronics
• Automotive Industry
• Semiconductors

24
 • Public Sector
• Platforms and Software Products
• Network Equipment Providers
• New Age, Media and Education
• Engineering and Construction
• Communications
• Aerospace and Defense

SUBSIDIARIES

Wipro Insurance Solutions LLC Wipro Information Technology Kazakhstan

LLP
Wipro Information Technology Austria GmbH Wipro Holding Investment Kft
Wipro Europe Limited Wipro Do Brasil Technologia Ltda
Wipro Do Brasil Sistemas De Informarica Ltda Wipro Digital Aps
Wipro Dalian Limited Wipro Corporate Technologies Ghana Limited
Wipro UK Ltd Wipro Technologies Austria GmbH
Wipro Shanghai Limited Wipro Chengdu Limited
Wipro BPO Phillipines Ltd. Inc Wipro Arabia Company Limited
Wipro Airport IT Services Ltd New Logic Technologies SARL
LLC Wipro Technologies Limited FRONTWORX Informations technologie
GmbH
Designit Sweden Ab Designit Germany GmbH
Designit Denmark AS Designit AS
Cellent Mittelstandsberatung GmbH Cellent GmbH (Germany)
Cellent GmbH (Austria) Appirio GmbH
Appirio GmbH Appirio Inc
Appirio KK Appirio Limited (Ireland)
Appirio Limited (UK) Appirio Singapore Pte Ltd
Cooper Software Inc Designit Oslo AS

25
Designit Peru SAC
Designit TLV Ltd
Healthplan Holding Corp
Topcoder LLC
Wipro Holdings Hungary Kft
Wipro Outsourcing Services (Ireland) Limited
Wipro Technologies SDN BHD
Wipro Doha LLC
Wipro Gulf LLC
Wipro Technologies GmbH
Wipro Travel Services Limited
Healthplan Services, Inc
Wipro Cyprus Private Limited
Wipro Information Technology Netherlands
Wipro Trademarks Holding
Wipro IT Services Inc
Wipro Japan KK
Wipro SA Broad Based Ownership Scheme
Wipro IT Serv Bangladesh
Wipro Technologies Peru SAC
Wipro Technologies SA
Wipro Technologies WT Sociedad Anonima
Wipro Networks Pte Limited
Wipro Technologies Australia Pty Limited
PT WT Indonesia
Wipro Financials Services UK Limited
Infocrossing Inc
Wipro Technologies Nigeria Limited
Table no.3
26
Designit Spain Digital AS
Designit Tokyo Ltd
Rainbow Software LLC
Wipro Do Brasil Servicos De Tecnologia SA
Wipro IT Services Poland Sp Zoo
Wipro Poland Sp Zoo
Designit Columbia S.A.S
Wipro Gallagher Solutions Inc
Wipro Overseas IT Services Pvt Limited
Wipro Technologies SRL
Healthplan Services Insurance Agency, Inc
Opus Capital Markets Consultants LLC
Wipro Data Centre and Cloud Services Inc
Wipro Solutions Canada Limited
Wipro Thailand Co Ltd
Wipro IT Services Ukraine LLC
Wipro Portugal S.A
Wipro Information Technology Egypt SAE
Wipro Promax Analytics Solutions LLC
Wipro Technologies SA DE C V
Wipro Technologies VZ, CA
Wipro Bahrain Ltd W.L.L
Wipro Outsourcing Services (Ireland) Limited
Wipro Technologies South Africa Limited
Wipro Holdings UK Limited
Wipro LLC
Wipro Technology Chile SPA
ADVERTISEMENT AND BRANDING STRATEGIES
Product:

Wipro is one of the biggest companies in India with widespread services. Wipro being a global
IT player combines the business knowledge and industry expertise and technical knowledge and
implementation skills to ultimately design their products and solutions to make their clients
satisfied in the outmost level. Although Wipro being one of the largest conglomerate in India is
present in myriad of businesses spreading across various sectors, their primary product width in
their marketing mix includes Aerospace, Automotive, Consumer goods, energy, healthcare,
insurance, media, retail, professional services, Analytics, Business processes, Cloud computing,
consulting, Information management, infrastructure services, Internet of things, product
engineering and many more. Wipro work on various technologies like Java, SAP, Dot Net,
Agile, Python which gives competitive advantage to their client with their services. Master Data
Management and Enterprise Data Warehouse are a few niche domains where Wipro is present.
Catering to today’s demand Wipro services forms a part of Big Data Services, which is in
highest demand.

Price:

Wipro’s products and services pricing policies in its marketing mix is as widespread as its
offerings. Wipro manufactures various consumer goods like LED Bulbs, emergency lights, iron,
incandescent lights in the retail segment. Such products are priced in nominal range. The above
referred products are primarily catering to the B2C segment just like in Fast Moving Consumer
Goods market. In the B2B segment, which caters to the largest market for Wipro primarily
includes Information Technology and Services. Price effectiveness is a major concern in such a
segment where competition in the market decides the price. For IT service projects like SAP
Implementation and services, JAVA development, Wipro quotes price of projects which tends to
be lower than MNCs like Accenture, Oracle, Capgemini but higher than those quoted by national
players like Infosys, Tech Mahindra, Cognizant Technologies Solutions.

Place:

Wipro is one of the leading companies with a huge geographic reach. Products of FMCG sector
pertaining to the consumer goods are easily available in any retail store across India. Wipro has a

27
vast distribution and retail network both in rural and in the urban area. This helps them to
leverage the benefit for making greater sales and earn revenues. Wipro’s offices are located
across all major cities in India and also in the offshore areas. The sales persons can be easily
reached out by any customer or business enterprise to make arrangements of future deals. Also,
due to the outsourcing of technology or services across various continents it has become very
easy to reach out to Wipro about any project. The place of the project is not a matter of concern
for BPO and ITES companies such as Wipro.

Promotion:

Wipro spends good amount of their revenues on promotional activities. These promotions in its
marketing mix primarily includes advertisements on Television for the consumer durable goods.
Billboards and placards are also sometimes put up at strategic locations. Wipro takes part in a lot
of corporate social responsibility projects in order to increase their goodwill and makes their
presence felt in the industry. Project Wipro Cares focuses on key problems faced by
communities like rehabilitation due to natural calamities, especially in the state of Odisha. Wipro
take up activities like teaching in government school at rural areas where the quality of teaching
is very bad. They also undertake in skill development especially for the engineering graduates.
This indirectly benefits the industry and the country as a whole.

Process:

A blend of expertise and experience helps Wipro make a smooth process so as to make customer
satisfied as per its promises. From winning a bet on a project to blueprint of a project to final
implementation of it and go live with support every step is itself further subdivided into further
many steps which enable Wipro roll out any project very easily and comfortably. Wipro makes
sure that both its employees and customers do not face any issues while using its services. This is
achieved only by maintaining high standards and ensuring step by step processes are met out.

People:

Wipro focuses a lot on its people i.e. customers & employees. The Information Service industry
is choked up by fierce competition; due to the presence of both national players and various
Multi National Organizations playing with the outsourcing advantage. Thus, in order to be ahead
in the competition Wipro ensures that they are able to tap onto the best of the talent in the

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Information Technology industry. It recruits from top engineering and management colleges
across India otherwise lateral hiring from top human resource consultancy services. Thus,
ensuring the quality of work is never compromised. This becomes a great advantage for Wipro as
being a highly-coveted organization to work for, they are easily able to attract quality talent.

Physical Evidence:

The presence of being in all major Selective Economic Zones across India, is itself a testimonial
to Wipro’s presence across India. Its onshore and offshore offices work in collaboration with
each other to provide the best quality of projects being executed simultaneously at different
locations across the globe. This is because the work in Information technology sector is not
affected due to location as in other industries. Being one of the greater players of IT in the world,
Wipro’s offices are primarily concentrated in major cities and metropolis. Wipro’s physical
evidence is also found from its website where it lists out every detail based on which a
prospective customer can make a decision whether to approach them for a project or not.

BRAND
Wipro, the global information technology, consulting, and business process services company
unveiled its new brand identity. The new brand identity signifies a higher level of engagement
and brand permission that helps clients leverage. The new brand identity marks Wipro’s
emergence as a trusted digital transformation partner to clients, delivering at a global scale with
increasingly localized capabilities, and leveraging hyper-automation, robotics, cloud, analytics,
cognitive, and emerging technologies. This new brand identity also mirrors two key attributes
cited by clients as unique to Wipro’s brand: the integrated perspective that Wipro brings across
multiple industries, technologies and geographies; and its ability to deliver innovation in ways
that are most relevant for clients. As part of the identity, Wipro unveiled a new logo. The new
logo represents the way the company “connects the dots” for its clients: integrating deep
technology and domain expertise, applying insights from across industries, and consistently
delivering world-class integrated, end-to-end capabilities and services. The logo also highlights
Wipro’s strong technology heritage and reflects its capabilities for the future. The styling of the
brand mark gives it a sense of fluidity, resourcefulness, optimism, and a connected world. The
individual elements in the logo represent ideas, insights, technologies, industries, and
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geographies. The expanding pattern symbolizes a boundless Wipro. The four circles represent
the Wipro Values, Employees, Clients & partners, and Communities. The blue of the word mark
creates a sense of reliability and authority. Along with its new identity, Wipro has also
rearticulated the Spirit of Wipro, its core values: Be passionate about clients’ success, Treat each
person with respect, Be global and responsible, and Unyielding integrity in everything we do.

FINANCIAL TRENDS

Financial trend analysis is a technique used in technical analysis that attempts to predict the
future stock price movements based on recently observed trend data. Trend analysis is based on
the idea that what has happened in the past gives traders an idea of what will happen in the
future. A financial trend is the general direction the market is taking during a specified period of
time. Financial trend analysis is the process of trying to look at current financial trends in order
to predict future ones and is considered a form of comparative analysis.

CURRENT RATIO

The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-
term obligations. The current ratio considers the current total assets of a company relative to that
company’s current total liabilities. A current ratio less than one indicates the company might
have problems meeting short-term financial obligations. If the ratio is too high, the company may
not be efficiently using its current assets or short term financing facilities.

Year 2015-2016 2016-2017 2017-2018

Current Ratio 2.975 3.520 2.857

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 Fig.No.7.1

Current ratio of Wipro Ltd for 2017-2018 is 2.875 which shows GOOD Short term financial
growth.

LIQUIDITY RATIO

It has been an important indicator of the firm’s liquidity position and is used as complementary
ratio to current ratio. It establishes the relationship between quick asset and current liabilities.
Quick assets are those current assets, which can be converted into cash immediately or within
reasonable short time without a loss value. These include cash and cash equivalents, sundry
debtors, bills receivables and short term marketable securities.

Year 2015-2016 2016-2017 2017-2018

Liquidity ratio 2.94073 3.49505 2.83807

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 Fig.No.7.2

In 2017-2018 the ratio is favorable and company is in position to meet its immediate obligations
in all years. Liquidity ratio was at its peak in 2016-2017 i.e 3.495.

DEBT TO EQUITY RATIO

This ratio indicates the degree of financial leverage being used by the business and includes
both short-term and long-term debt. A rising debt-to-equity ratio implies higher interest
expenses, and beyond a certain point, it may affect a company's credit rating, making it more
expensive to raise more debt.

Year 2015-2016 2016-2017 2017-2018

Debt to equity ratio 0.0603 0.0559 0.0324

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 Fig.No.7.3

It shows company accumulated more equity than required company has to refocus to its strategic
policies and plans and try to accumulate more debt funds in future so as to make the balance
between debt and equity. As lower debt to equity ratio indicates lower degree of leverage and
lower financial risk.

NET PROFIT RATIO

It measures the relationship between net profit and sales of a company. It indicates
management’s efficiency in manufacturing, administrating and selling the products and services.

Year 2015-2016 2016-2017 2017-2018

Net profit ratio 17.3037 16.7874 16.3654

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 Fig.No.7.4

After observing the figures the ratio is declining, because total revenue is decreasing and total
expenses are increasing.

GROSS PROFIT RATIO

It measures the relationship between gross profit and sales. It is calculated by dividing gross
profit by sales. It is a useful indication of the profitability of business.

Year 2015-2016 2016-2017 2017-2018

Gross profit ratio 22.3546 21.9818 21.2638

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 Fig.No.7.5

Gross profit ratio is decreasing due to higher production cost.

RETURN ON EQUITY RATIO

Return on equity shows what percentage of profit is earned on capital invested by ordinary
shareholders. Return on equity measures how efficiently a firm can use the money from
shareholders to generate profits and grow the company.

Year 2015-2016 2016-2017 2017-2018

ROE 0.1935 0.1705 0.1824

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 Fig.No.7.6

As a result shareholders are getting higher return in 2017-2018 and investment portfolio scheme
selection was a judicious decision taken by the company.

RETURN ON CAPITAL EMPLOYED RATIO

The return on capital employed ratio shows how much profit each rupee of employed capital
generates. ROCE is a long-term profitability ratio because it shows how effectively assets are
performing while taking into consideration long-term financing.

Year 2015-2016 2016-2017 2017-2018

ROCE 25.0027 22.3337 23.7021

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 Fig.No.7.7

ROCE shows positive growth in year 2017-2018 as compare to 2016-2017.Rs.23 was the return
for investors who invested Rs.100.

EARNINGS PER SHARE (EPS)

Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share
of common stock. Earnings per share serves as an indicator of a company's profitability. Earning
per share is the same as any profitability or market prospect ratio.

Year 2015-2016 2016-2017 2017-2018

EPS 33.3820 16.8037 16.2583

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 Fig.No.7.8

In 2017-2018 company distributed lower profits as compared to 2015-2016.

P/E RATIO

The price to earnings ratio indicates the expected price of a share based on its earnings. As a
company’s earnings per share being to rise, so does their market value per share. A company
with a high P/E ratio usually indicated positive future performance and investors are willing to
pay more for this company’s shares.

Year 2015-206 2016-2017 2017-2018

P/E Ratio 9.7357 19.3409 19.9896

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 Fig.No.7.9

In this case high P/E ratio suggests higher earning growth in future.

FIXED ASSETS TURNOVER RATIO

A higher ratio is indicative of greater efficiency in managing fixed-asset investments, but there is
not an exact number or range that dictates whether a company has been efficient at generating
revenue from such investments.

Year 2015-2016 2016-2017 2017-2018

Fixed asset turnover 3.2698 3.1628 2.8470
ratio

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 Fig.No.7.10

Fixed asset turnover ratio is decreasing because sales as well as assets both are equally increased.

SALES TO WORKING CAPITAL

Working capital turnover is a ratio which measures how efficiently a company is using
its working capital to support a given level of sales. Also referred to as net sales to
working capital, it shows the relationship between the funds used to finance a
company's operations and the revenues a company generates as a result.

Year 2015-2016 2016-2017 2017-2018

Sales to working 1.4869 1.3082 1.6007
capital

40
 Fig.No.7.11

Higher working capital turnover ratio shows management efficiently using company’s short term
assets and liabilities for supporting sales.

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 CHAPTER 8

OBSERVATION AND FINDINGS

• A company shown positive trend in year 2016-2017 and slight decline in year 2017-
2018.
• Strong liquidity ratio suggest growth in future.
• Wipro’s position in IT sector remains secure because of its significant global presence,
industry expertise, proprietary intellectual property and established client relationship.
• Wipro’s debt to equity ratio indicates that the Company is operating with very low levels
of debt.
• Book value and Market value had substantially shown growth.

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 CHAPTER 8

SUGGESTIONS

• The study of Ratios should be elaborative.

• The basic concept of investing money in any company should be explained to the
students.

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 CHAPTER 9

CONCLUSION

The study of the company was very good. I got to know how the capital is raised, various
compliances followed by company and different policies of company. The study also
revealed that how internal & external factors affect the company profits and sales. The
overall study of company through website and annual report is challenging as well as
interesting. Overall the EADR as elective subject was interesting.
I, further like to work on this topic in any sector of company.

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BIBLIOGRAPHY

• Annual report of company

• www.wipro.com
• www.moneycontrol.com
• Notes of Business Research Methodology

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