MASTER OF BUSINESS ADMINISTRATION

2021-2023

EIC Analysis of Information Technology Sector

ICFAI BUSINESS SCHOOL (IBS)

Shankarapalli, Hyderabad, Telangana – 501203

Submitted to: Submitted By:

Group 8, Section C
Dr. Saumya Kapoor Sharma Seat Name Enrolment
86 Shreya Ralli 21BSPHH01C1181

33 Eliza Mittal 21BSPHH01C0385

38 sama deekshith reddy 21BSPHH01C1856

90 Rajvi Patel 21BSPHH01C0926

25 Sindhu Paduchuri 21BSPHH01C1230

74 Sanket Mohanty 21BSPHH01C1080

52 Sagar Kaushik 21BSPHH01C1832

87 Ridhima Arora 21BSPHH01C1678

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 Table of Contents
S.no Particulars Page No.
1. ECONOMIC ANALYSIS 3
2. Import 3
3. Export 3
4. FDI 4

5. Agriculture 6

6. Unemployment 6

7. IT INDUSTRY ANALYSIS 7

8. Market size 7

9. Investment / Development 8

10. Sectors of IT Industry 9

11. Road ahead 10

12. INFOSYS 11

13. History 11

14. Marketing Mix 12

15. CRS activities 14

16. Financial and future outlook 15
17. WIPRO 19
18. History 20
19. Marketing Mix 25
20. CRS activities 22
21. Financial and future outlook 27
22. HCL 29
23. History 30
24. Marketing Mix 30
25. CRS activities 33
26. Financial and future outlook 39

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 ECONOMIC ANALYSIS
The economic system of India is characterized as a center profits growing marketplace economic
system. It is the world's sixth-biggest economic system through nominal GDP and the third-biggest
through buying strength parity. According to the International Monetary Fund, on a in line with

capita profits basis, India ranked 145th.

IMPORTS
India predominant imports are: mineral fuels, oils and waxes and bituminous substances (27
percentage of overall imports); pearls, treasured and semi-treasured stones and jewelry (14
percentage); electric equipment and equipment (10 percentage); nuclear reactors, boilers, equipment
and mechanical appliances (eight percentage); and natural chemicals (four percentage). India’s
fundamental import companions are: China (sixteen percentage of overall imports), the United States
(6 percentage), United Arab Emirates (6 percentage), Saudi Arabia (five percentage) and Switzerland
(five percentage).

EXPORTS
In latest years, India exported mostly: pearls, treasured and semi-treasured stones and jewelry
(sixteen percentage of overall shipments); mineral fuels, oils and waxes and bituminous substances
(12 percentage); vehicles, components and accessories (five percentage); nuclear reactors, boilers,
equipment and mechanical appliances (five percentage); pharmaceutical merchandise (five
percentage); and natural chemicals (four percentage). India’s predominant export companions are:
United States (15 percentage of the whole exports), United Arab Emirates (eleven percentage), Hong

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Kong (five percentage), China (four percentage), Singapore (four percentage) and United Kingdom

(three percentage).

FDI
Apart from being a important driving force of monetary growth, Foreign Direct Investment (FDI) has
been a main non-debt economic useful resource for the monetary improvement of India. Foreign
agencies spend money on India to take benefit of incredibly decrease wages, unique funding
privileges like tax exemptions, etc. For a rustic in which overseas funding is being made, it
additionally method reaching technical knowledge and producing employment.
India is anticipated to draw overseas direct investments (FDI) of US$ 120-a hundred and sixty billion
in line with 12 months through 2025, in step with CII and EY record. Over the beyond 10 years, the
u. s. witnessed a 6. Eight % upward thrust in GDP with FDI growing to GDP at 1.eight%.
In phrases of attractiveness, buyers ranked India #three; ~80% buyers have plans to spend money on
India withinside the subsequent 2-three years, while ~25% stated investments worth >US$ 500
million, the Economic Times stated.
Further, as in line with a Deloitte record posted in September 2021, India stays an appealing
marketplace for worldwide buyers each in phrases of short-time period and long-time period
prospects.
India ranked43rd at the Institute for Management Development (IMD)’s annual World
Competitiveness Index 2021. According to the IMD, India's trends in authorities performance are
commonly because of incredibly strong public finances (notwithstanding COVID-19-brought about
challenges) and constructive sentiments amongst Indian commercial enterprise stakeholders with
admire to the investment and subsidies supplied through the authorities to personal firms.

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The Indian Government’s beneficial coverage regime and strong commercial enterprise surroundings
has ensured that overseas capital maintains flowing into the u . s .. The Government has taken many
projects in latest years which include enjoyable FDI norms throughout sectors which include
defence, PSU oil refineries, telecom, strength exchanges, and inventory exchanges, amongst others.
Effective January 1, 1982, the Exim Bank become hooked up to take duty of the commercial
enterprise of world finance department of the IDBI (Industrial Development Bank of India) and to
supply financial aid to importers and exporters and to function a prime economic basis for taking part
the functioning of different corporations worried withinside the financing of imports and exports of
merchandise and services.The sanctioned wealth of Exim Bank is Rs. two hundred crores and the
paid-up asset is Rs. one hundred crores absolutely encouraged through the Central Government.
The Export-Import Bank is run through a Board comprising of a Chairman, the Managing Director in
conjunction with 17 Directors signifying wonderful areas. They are the Commerce Secretary,
Secretary to Banking, Secretary to the Department of Industrial Board, Finance Secretary, Secretary
IDBI, Secretary RBI, Secretary ECGC, three administrators depicting extra scheduled business
banks, four Directors elected from the export society, and 3 extra symbolizing departments and
ministries.

The annual retail inflation price in India improved to four.48% in October of 2021 from four.35% in
September and barely better than marketplace forecasts of four.32% at the uptick in meals prices.
Food inflation went as much as 0.85% from 0.68 spite the price of greens falling 19.43%. Also,
fundamental charge will increase had been recorded for oils and fats (33.five%); gasoline and light
(14.35%); non-alcoholic beverages (eleven.four%); shipping and communication (10.9%); health
(7.57%); and garb and footwear (7.53%). Still, it become the fourth consecutive month inflation
stayed withinside the RBI's goal variety of 2%-6%, leaving the valuable financial institution room
for now to preserve hobby costs.

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AGRICULTURE
The Government of India set out of their Resolution dated 6 April, 1948 the coverage which they
proposed to pursue withinside the commercial discipline. The Resolution emphasized the
significance to the economic system of securing a non-stop boom in manufacturing and its equitable
distribution, and talked about that the State should play of gradually lively position withinside the
improvement of Industries. It laid down that except hands and ammunition, atomic strength and
railway shipping, which will be the monopoly of the Central Government, the State could be
completely liable for the status quo of latest undertakings in six fundamental industries-besides in
which, withinside the countrywide hobby, the State itself found it vital to steady the cooperation of
personal company. The relaxation of the commercial discipline become left open to personal
company aleven though it become made clean that the State could additionally gradually take part on
this discipline. Eight years have surpassed considering that this announcement on commercial
coverage. These 8 years have witnessed many crucial adjustments and trends in India. The charter of
India has been enacted, making sure sure Fundamental Rights and enunciating Directive Principles
of State Policy. Planning has proceeded on an organised basis, and the First Five Year Plan has these
days been completed. Parliament has ordinary the socialist sample of society because the goal of
social and monetary coverage. These crucial trends necessitate a clean declaration of commercial
coverage, greater especially because the Second Five Year Plan will quickly be located earlier than
the u . s .. This coverage should be ruled through the concepts laid down withinside the Constitution,
the goal of socialism, and the enjoy received in the course of those years.
UNEMPLOYMENT
Unemployment is a main social difficulty in India. As of September 2018, in step with the Indian
authorities, India had 31 million jobless people.[35] The numbers are extensively disputed.The
makes use of of virtual production and equipment in factories and clothes are main to unemployment
in India, Unemployment is the most important difficulty in India. There are unemployment costs
declined to 6.five% in January 2021.As the pandemic’s 2nd catastrophic wave battered the u . s .,
unemployment shot as much as 14.forty five in line with cent withinside the week finishing May
sixteen, 2021, and remained at an multiplied stage of 13.sixty two in line with cent withinside the
week finishing June 6. As India prepares herself for turning into an monetary superpower, it should
expedite socio-monetary reforms and take steps for overcoming institutional and infrastructure
bottlenecks inherent withinside the system. Availability of each bodily and social infrastructure is
valuable to sustainable monetary growth.

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Since independence Indian economic system has thrived tough for enhancing its tempo of
improvement. Notably withinside the beyond few years the towns in India have passed through
remarkable infrastructure up gradation however the scenario in now no longer comparable in
maximum a part of rural India.
The international restoration has been fueling inflation throughout the world. This has caused
growing speculations approximately whether or not commercial countries will opposite their
financial coverage stance. Over the beyond decade, the valuable banks of the United States,
European Union, and Japan, amongst others, have launched into ultralow hobby costs and were
unexpectedly increasing their stability sheets, greater so after the pandemic, to inject liquidity and
stimulate their economies.

IT INDUSTRY ANALYSIS
India's global sourcing market continues to grow at a higher rate than the IT-BPM industry. With a
market share of roughly 55 percent of the US$ 200-250 billion global services sourcing industry in
2019-20, India is the most popular sourcing destination on the planet.
According to STPI (Software Technology Park of India), software exports by its registered units
increased by 7% YoY to Rs. 5 lakh crore (US$ 67.40 billion) in FY21, up from Rs. 4.66 lakh crore
(US$ 62.82 billion) in FY20, owing to rapid digitization and the IT industry's timely transition to
remote working environments, which helped the industry maintain its growth amid the coronavirus
pandemic.
Market Size
In FY21, the IT & BPM industry is expected to generate sales of US$ 194 billion, up 2.3 percent
year on year. In FY21, the IT industry is expected to generate US$ 45 billion in domestic revenue
and US$ 150 billion in export income. IT spending in India is expected to reach US$ 93 billion in
2021 (7.3 percent YoY growth) and US$ 98.5 billion in 2022, according to Gartner forecasts.

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By 2025, the Indian software product industry is expected to be worth $100 billion. In accordance
with this, Tata Consultancy Services said in February 2021 that it would hire 1,500 technology
employees in the UK over the next year.
In FY20, the Indian data annotation market was valued at US$ 250 million, with the US market
accounting for 60% of the total. Due to increased local demand for AI, the market is estimated to
reach US$ 7 billion by 2030.
Investments/ Developments
The key competencies and characteristics of Indian IT have attracted substantial investment from
major countries. Between April 2000 and March 2021, India's computer software and hardware
business attracted a total of US$ 71.05 billion in foreign direct investment (FDI). In FY21, computer
software and hardware accounted for 44 percent of overall FDI inflows of US$ 81.72 billion,
accounting for 44 percent of total FDI inflows.
Through innovation hubs and R&D centres, leading Indian IT businesses like Infosys, Wipro, TCS,
and Tech Mahindra are expanding their products and presenting cutting-edge ideas like blockchain
and artificial intelligence to clients.
Some of the major developments in the Indian IT sector are as follows
• Tata Consultancy Services was named a leader in the NelsonHall NEAT for Customer
Experience Services in Banking, Financial Services, and Insurance in August 2021. (BFSI).
• Wipro said in July 2021 that it would invest $1 billion over the following three years to
strengthen its cloud technology capabilities through acquisitions and partnerships.
• Infosys announced the establishment of an Automotive Digital Technology and Innovation
Centre in Stuttgart, Germany, in July 2021. As part of Infosys' engagement with Daimler,
automotive IT infrastructure employees stationed in Germany will shift to the new Digital
Technology and Innovation Centre.
• TCS expanded its strategic collaboration with Royal London, the UK's largest mutual life
insurance, pensions, and investment organisation, in July 2021, to assist Royal London in
transforming its pension.
• Tata Technologies and Stratasys, a 3D printing technology business, announced a partnership
in July 2021 to bring innovative additive manufacturing technologies to the Indian
manufacturing sector.
• Tech Mahindra Foundation and Wipro GE Healthcare teamed forces in July 2021 to offer
students and healthcare technicians skilling and upskilling courses.
• In July 2021, HCL announced a multi-year digital transformation partnership with Fiskars
Group, a collection of lifestyle brands that includes Fiskars, Gerber, Iittala, Royal
Copenhagen, Waterford, and Wedgwood.
• TCS released Jile 5.0 in July 2021, a major update to their Enterprise Agile, on-the-cloud
services, planning, and delivery platform that enables businesses to fulfil the large-scale
development requirements of several distributed teams.

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Sectors of IT Industries
The information technology industry has evolved as one of India's most important industries,
contributing significantly to the country's economic growth.
India's IT industry benefited greatly from the country's economic liberalisation. Since 1991, India's
software exports have increased at an annual average rate of more than 50%. The IT industry differs
significantly from the rest of the Indian economy in terms of structure. India's IT industry is heavily
reliant on skilled labour. Primarily a knowledge-based economy, India's IT industry has seen
substantial growth because to the country's large pool of skilled workers.
The industry structure has four major categories
• IT services
• IT enabled services
• Software products
• Hardware
IT services make up a significant portion of India's IT business. Client, server, and web-based IT
services are all available. Consulting services, management services, internet services, and
application maintenance are all viable options in the IT services market.
• The major users of IT services are –
• Government
• Banking
• Financial services
• Retail and distribution
• Manufacturing

IT enabled services
IT enabled services are services that make heavy use of information and telecommunications
technologies. The most important component to India's IT industry's growth is IT enabled services.
The ITES sector in India provides a variety of critical services.
• Customer-interaction services including call-centers
• Back-office services
• Revenue accounting
• Data entry and data conversion
• HR services
• Transcription and translation services
• Content development and animation
• Remote education,
• Data search
• GIS
• Market research

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 • Network consultancy
India's software products are among the most widely exported goods. In India, the software business
began in the 1970s and has grown rapidly in the last ten years. The Indian software sector grew more
than five times between 1996-1997 and 2002-2003, from 2630 crores to 13200 crores. During the
same time period, India's software and service exports increased by nearly a factor of twelve.
The manufacturing and assembly of computer hardware is the focus of the hardware sector of the IT
industry. In the domestic market, computer gear is in high demand. Sales of PCs, laptops, servers,
routers, and other IT equipment have increased in recent years as the number of IT organisations has
increased..
The market is another classification in the structure of India's IT sector. The domestic market and the
export market are the two major market classifications. The IT industry is dominated by the export
market, which accounts for 75% of revenue.
Government Initiatives
• The Arun Jaitley National Institute of Financial Management (AJNIFM) and Microsoft
announced a strategic agreement in July 2021 to establish an AI and new technologies.
• The Indian government announced plans to launch Biotech-PRIDE (Promotion of Research
and Innovation via Data Exchange) in June 2021, which will allow biological data to be
deposited in the country's national repository.
• MyGov, the government of India's public engagement platform, partnered with the
Department of Higher Education to announce an innovation challenge to design an Indian
language learning app in May 2021..
• The government issued "Simplified Other Service Provider" (OSP) guidelines in 2020 to
make doing business in the IT industry, BPO, and IT-enabled services easier.

Road ahead
For IT organisations, India is the most preferred outsourcing destination on the planet. After showing
its ability to provide both on-shore and off-shore services to global clients, India's best IT firms now
have access to a whole new world of opportunities thanks to developing technologies. The sector is
expected to be valued US$ 350 billion by 2025, with BPM contributing for US$ 50-55 billion.

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 COMPANY ANALYSIS

Infosys

Infosys Limited is an Indian multinational information technology company WHICH provides services
like business consulting, information technology and outsourcing services. the corporate was found in
Pune and has its headquarter in Bangalore. Infosys is that the second-largest Indian IT company after
Tata Consultancy Services by 2020 revenue figures and therefore the 602nd largest public company
within the world in line with Forbes Global 2000 ranking. The credit rating of the corporate is CRISIL
AAA / Stable / CRISIL A1+ (rating by CRISIL). On 24 August 2021, Infosys became the fourth Indian
company to cross $100 billion in capitalisation.

History

Infosys was founded by seven engineers in Pune,

Maharashtra, 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
Bangalore, Karnataka, India.

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

Infosys shares were listed on the Nasdaq stock exchange in 1999 as American depositary receipts. It
became the first Indian company to be listed on Nasdaq. The share price surged to ₹8,100 (equivalent
to ₹30,000 or US$390 in 2020) 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 European investors better access to the
company's shares.

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Infosys Product Portfolio-
Infosys Ltd is a global technology IT services firm. The company provides end-to-end business
solutions for their clients, such as:
• Technical consulting
• Design
• Development
• Product engineering
• Maintenance
• Systems integration
• Package-enabled consulting
• Implementation and infrastructure management services
Infosys also offers software products to the banking industry. They have developed ‘Finacle’, a
universal banking solution for large and medium-sized banks.
Infosys BPM is a majority-owned business process management subsidiary of Infosys set up in April
2002, that provides business process management services like:
• Finance and Accounting
• Offsite customer relationship management
• Administration and sales order processing
Now that we understand the company’s business, let us discuss their marketing mix.

Marketing Mix
The service marketing mix is a collection of
factors used by businesses to express their
organisational and brand messages to
customers. The Seven Ps, or Product, Pricing,
Place, Promotion, People, Physical Evidence, and
Process, make up the mix. Most modern
marketing techniques and company activities are
built on this foundation. We'll now break down
Infosys' marketing mix.

Product Development

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Infosys' product strategy is to provide business and consulting solutions to a wide range of industries,
including pharmacy, insurance, media, transportation, retail, manufacturing, banking, defence, and
energy.

Infosys also provides corporate governance data, as well as analytics such as sentiment analysis of
various organisations to evaluate how their customers react to their products.

Strategy for Pricing

Infosys offers a wide range of services and solutions, and pricing is determined by criteria such as
customer, area, industry, currencies, and the solutions desired by businesses.

With a strong skill base, Infosys benefits from reduced labour costs in India. In the 2000s, the
corporation took advantage of the growing need for engineers by hiring low-cost, high-skilled
labour.

Infosys' key goal is to expand into more and more industries. As a result, it employs a penetration
pricing approach, which entails providing services at a cheap cost while maintaining precision and
quality.

Distribution & Placement Strategy

Infosys is a multinational company with a presence in over 50 countries and over 1000 clients. It is
India's largest IT corporation, with operations in the United States and Europe. Aside from China,
Germany, Sweden, Australia, and Belgium, the corporation has offices in China, Germany, Sweden,
Australia, and Belgium. In addition, Infosys operates training and development centres in a variety of
locales. Their operations are on a global scale. It is, in fact, the largest employer of H-1B visa holders
in the United States.

Promotional Plan

Infosys organises and performs promotional activities on a regular basis to generate interest and
retain goodwill. Through business-sponsored vacations, case studies, speaker sessions, and other
academic activities, the organisation has provided opportunity for workers to manage working and
learning together. Infosys has been recognised as one of the top twenty green corporations thanks to
an effort called the Infosys Foundation, which focuses on the company's environmental aspects.
Infosys also awards the Infosys Prize to an Indian scientist, engineer, researcher, or other
professional, which includes a cash prize of Rs. 65 lakh, a certificate, and a gold medal.
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 People
In India's IT and consulting sectors, Infosys is one of the top recruiters. Employees must have abilities
such as advisory skills, communication skills, management skills, technical language skills, and so on.
Infosys has 200,000 people who work all around the world.

Physical Evidence
As of March 31, 2018, the company had 82 sales and marketing offices and 123 development centres
throughout the world, with key operations in India, the United States, China, Australia, Japan, the
Middle East, and Europe.

Projects in North America, Europe, and India contributed 60 percent, 24 percent, and 3 percent of
company revenues in 2019, respectively. The balance of the revenue came from the rest of the world,
which accounted for 13% of total revenue.

Process
Infosys is involved in client-specific software development, Internet service providers, interactive data
access, analytics, and online database administration. At Infosys, clients are classified into units such
as BPOs and LPOs, for example, based on their functional requirements. At Infosys, we use a
framework called Zero Distance, which aims to close any gaps between the client, his demands, and
the employee who is working on them. So that the procedures are more responsive to the needs of the
clients, they are faster, more accurate, and streamlined. As a result, client satisfaction rises. Infosys is
thought to be a corporation that only hires and rewards top achievers.

CSR Activities
Focus areas and modes of implementation
Focus areas on accordance with the requirements under the Companies Act, 2013 and the rules /
regulations framed there under, and circulars / clarifications issued there under, Infosys CSR activities,
amongst others, will focus on:
• Hunger, poverty, malnutrition, and health: Eradicating extreme hunger, poverty and malnutrition,
promoting preventive healthcare and sanitation and making available safe drinking water

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• Education: Promoting education, including special education and employment-enhancing vocational
skills, especially among children, women, the elderly and the differently abled, and livelihood
enhancement projects; monetary contributions to academic institutions for establishing endowment
funds, chairs, laboratories, etc., with the objective of assisting students in their studies, this also includes
skilling and reskilling initiatives for those who are in need.
• Rural development projects: Strengthening rural areas by improving accessibility, housing, drinking
water, sanitation, power and livelihoods, thereby creating sustainable villages.
• Gender equality and empowerment of women: Promoting gender equality and empowering women;
setting up homes, hostels and day care centres for women and orphans; setting up old age homes and
other similar facilities for senior citizens; and adopting measures for reducing inequalities faced by
socially and economically backward groups.
• Environmental sustainability: Ensuring environmental sustainability, ecological balance,
protection of flora and fauna, animal welfare, agro-forestry, conservation of natural resources and
maintaining the quality of soil, air, and water.
• National heritage, art, and culture: Protecting national heritage, art and culture, including the
restoration of buildings, sites of historical importance, and works of art; setting up public libraries;
reviving, promoting and developing traditional arts and handicrafts

Infosys financial analysis and future outlook

Infosys is a global Indian company that specialises in business consulting, information technology,
and outsourcing. In nearly four decades, the corporation has expanded from a $ 250 start-up capital
to a $ 35 billion enterprise. Infosys is a global leader in digital services and consulting for the future
generation. The company also has 13 subsidiaries throughout the world and has strategic
collaborations with other large technological companies. The stock has a 52-week high of INR 847
and a total market capitalization of INR 2.7 trillion, classifying it as a Large-Cap firm. The
company's stock has a P/E ratio of 16.7 and a dividend yield of 2.91%.

1.Economic Moat
Scale, technological know-how, digital infrastructure, and manpower are used to attain market
domination in the IT and technology business. Infosys has a presence in more than 46 countries and
delivers digital services to more than 180 Fortune 500 firms around the world. Eight of the top ten
US banks, six of the top ten global insurance companies, and nine of the top ten worldwide
pharmaceutical corporations are among the company's clients. In addition to a 5G lab in Sydney,
Infosys operates a Cyber Defense Center in Romania.

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 The organisation is an innovative leader in automation, digital transformation, agile, and big data
when it comes to technological know-how. In addition, the corporation operates eight Innovation
Hubs in the United States and the European Union, as well as nine global digital studios. On the
employment front, the company employs about 2.42 lakh people and is working to localise its staff.
They also employ over 60,000 people in digital business, which includes chatbots, artificial
intelligence, apps, and platforms. Because of its size, market presence, innovation, and employees,
the corporation has a wide economic moat, yet it is not a monopoly.

2. Business Model and Management

The financial services industry accounts for 31.3 percent of revenue, while retail accounts for 15.5
percent, communications for 13%, manufacturing for 10%, hi-tech for 7.9%, and life sciences and
other industries account for the remaining 7.9%. The geographical breakdown is as follows: 61.6
percent from North America, 24.4 percent from Europe, 2.6 percent from India, and 11.4 percent
from other 20+ nations across the world. The corporation, on the other hand, has 87 percent public
shareholding and 63 percent independent directors, indicating that it has solid corporate governance.

3. Growth Ratios

Over the last ten years, revenue has increased at a CAGR of 10.5 percent. Operating income and net
income have both increased at a CAGR of 7.21 percent and 5.9 percent, respectively. This reflects
the company's decreasing efficiency and profitability. Working capital is similarly positive, with a
linear increase. Despite the expanded magnitude, capital spending has remained flat.

4. Profitability Ratios
The gross margin has been declining over the years due to wage inflation and increased cost of
services delivered. Other margins, as well as return on assets, have decreased. This is due to the
nature of the IT industry, where certain inevitable expenditures rise as the company grows. Over the
years, the company's profitability has declined, and this trend is unlikely to change in the near future.

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5. Cash Flow Ratios
Along with Cap-Ex as a percentage of sales, the net income margin has dipped slightly over the
years. This also demonstrates that growth is primarily driven by inorganic techniques like as joint
ventures and acquisitions. Over the years, the free cash flow as a percentage of net income has been
positive and consistent. The development of free and operating cash flow has been inconsistent, but
that is to be expected in this industry. In general, the corporation has demonstrated a strong cashflow
position.

6. Liquidity and Solvency Ratios

Because the company has no debt in its capital structure, its financial leverage and debt to equity
ratio have remained constant over time. The profitability margins have decreased over time, although
this does not pose a substantial threat to the company's stability. The current and quick ratio has
decreased over time, but it is still significantly higher than the minimum level, indicating a strong
liquidity position.

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7. Valuation Ratios
Due to the bull rally in the Indian IT sector, which was led by the digitalization of the finance
industry, the company has traded at a greater valuation since 2013. TCS increased by 60% that year,
whereas HCL increased by 70%. Due to conservative cash production and deployment, as well as
expansion into other areas, the company has been able to maintain the multiples throughout time.
The multiples, on the other hand, are expected to remain unchanged in the following years.

8. Future Prospects

• The following are some predictions for the coming years based on management discussion
and analysis (MD&A) and conference calls.
• The revenue guidance for FY 2020 was in line with the Q4 results. However, because to the
business uncertainties caused by Covid-19, management stated that it is unable to provide
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 sales and margin forecasts for FY 2021 at this time. Once visibility improves, it will provide
direction.
• The matter of the whistleblower is almost settled. There was no proof of misconduct by the
corporation or its management, according to the investigation. As a result, the company does
not believe it is necessary to restate previous financial results. While the SEC investigation
and a class-action lawsuit in the United States on this topic are still ongoing, the company is
cooperating fully with all regulators.
• Due to higher-than-normal furloughs, slow organic growth in the BFSI category continues.
Growth in European banks is still sluggish, but North American banks are doing well.
Softness is projected to persist for a few more quarters, however BFSI continues to lead in
terms of significant deal wins.
• The focus of management is on increasing margins. Currency (+10bps), cost optimization
(+50bps), and a drop in utilisation all impacted margin in FY 2020. (-40bp). As the
corporation focuses on automation, pyramid rationalisation, and onsite-offshore mix, cost
optimization has been yielding dividends.
• Overall, the company has strong fundamentals, efficient cash management, and promising
future growth possibilities. In the coming years, margins are likely to improve along with
efficiency.

Wipro Limited is an Indian multinational corporation that provides information technology,

consulting and business process services. The Fortune India 500 ranks it the 29th largest Indian
company by total revenue. It is also ranked the 9th largest employer in India with over 2,21,000
employees.
• Founded: 29 Dec 1945 · India
• Revenue: ₹750 billion (2021)
• Headquarters: Bengaluru, India
• CEO: Thierry Delaporte (Since 2020)
• Founders: Azim Premji · Mohamed Premji

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History
Early year
The company was incorporated on 29 December
1945 in Amalner, Maharashtra by Mohamed
Premji as "Western India Products", 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.
In 1966, after Mohamed Premji's death, his son
Azim Premji took over Wipro as its chairman at
the age of 21.
During the 1970s and 1975 the company shifted
its focus to new 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. In 1982, the name was changed again, from
Wipro Products Limited to Wipro Limited. 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.
1986–1992
In 1988, Wipro added mobile hydraulic cylinders and heavy-duty industrial cylinders to its line of
products. A joint venture company with the United States' General Electric in the name of Wipro GE
Medical Systems Pvt. Ltd. was set up in 1989 for the manufacture, sales, and service of diagnostic
and imaging products. In 1991, tipping systems and Eaton hydraulic products were launched. The
Wipro Fluid Power division, in 1992, developed the capability to offer standard hydraulic cylinders
for construction equipment and truck tipping systems. The "Santoor" talcum powder and "Wipro
Baby Soft" range of baby toiletries were launched in 1990.
1994–2000
In 1995, Wipro set up an overseas design centre, Odyssey 21, for the projects of overseas clients.
Wipro Infotech and Wipro Systems were amalgamated with Wipro in April that year. Five of
Wipro's manufacturing and development facilities secured the ISO 9001 certification during 1994–
95.
In 1999, Wipro acquired Wipro Acer, and released new products such as the Wipro SuperGenius
personal computers (PCs). In 1999, it was the one Indian PC range to obtain US-based National
Software Testing Laboratory (NSTL) certification for the Year 2000 (Y2K) compliance in hardware
for all models.
Wipro joined with KPN (Royal Dutch telecom) to form a joint venture company "Wipro Net
Limited" to provide internet services in India. In 2000 Wipro launched Wipro OSS Smart and Wipro
WAP Smart. In the same year, Wipro was listed on the New York Stock Exchange.

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2001–2011
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. As
the company grew, a study revealed that Wipro was the fastest wealth creator for 5 years (1997–
2002). It set up a wholly owned subsidiary company (Wipro Consumer Care Limited) to
manufacture consumer care and lighting products. In 2004 Wipro joined the billion-dollar club. It
also partnered with Intel for i-shiksha. In 2006, Wipro acquired cMango Inc., a US-based technology
infrastructure consulting firm, and a Europe-based retail provider. In 2007, Wipro signed a deal with
Lockheed Martin. It also agreed to acquire Oki Techno Centre Singapore Pte Ltd (OTCS) and signed
an R&D partnership contract with Nokia Siemens Networks in Germany.
In 2008, the firm entered the clean energy business with Wipro Eco Energy.
In April 2011, the firm 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 temporary workers in the United States.
2012–2018
In 2012, Wipro demerged its non-IT businesses into a separate company called Wipro Enterprises.
Prior to these demergers, these businesses, mainly in the consumer care, lighting, furniture,
hydraulics, water treatment, and medical diagnostics, contributed about 10% of Wipro's total
revenues.
In the same year, Wipro acquired Australian Trade Promotions Management firm Promax
Applications Group (PAG) for $35 million.
In 2014, the firm signed a 10-year $1.2 billion contract with ATCO, a Canadian Energy and 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, the firm won a five-year IT infrastructure and applications managed services engagement
with Grameenphone (GP), a major 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.
2019–2020

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In 2019, Wipro Consumer Care and the Ang-Hortaleza Corporation signed a share purchase
agreement for sale of 100% of the latter’s stake in the personal business Splash Corporation. Wipro
has shifted to work from anywhere model since 2020. As per this model Wipro employees can work
from anywhere in the world except Wipro office premises. Wipro has 215,876 employees in India.
Each employee in India works from his own office (home).
In July 2020, the firm announced the launch of its 5G edge services solutions suite built with IBM
software systems.
2021
In March 2021, Wipro acquired Capco, a 22-year-old British tech consultancy firm. The deal was
completed in April.
Wipro has signed an agreement to acquire Ampion for a cash consideration of $117 million,
according to an exchange filing.
In March 2021, Wipro appoints Pierre Bruno as CEO of European operations.
In June 2021, Wipro acquired Boeing supplier TECT Aerospace Group Holdings for $31 million.
Wipro product- Wipro consumer care business mainly includes soaps, toiletries, personal care
products, baby care products, wellness products, electrical wire devices, domestic and commercial
lighting and modular office furniture.

CSR Activities
The CSR (Corporate Social Responsibility) activities of Wipro are carried out by Wipro Foundation.
Their initiatives are spread mainly across Education, Healthcare, Ecology and Disaster response.

Education

Source: Google images

Wipro believes education is the enabler of social change and for that they build capacities of important
actors in education system for bringing the reforms.

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Key programs
1. Systemic reforms in school education
They started school education program in 2001 to support the diverse Civil Society
Organizations (CSOs) towards bringing a reform in Education system. Currently they are
working with three categories of organizations which are: organizations working in school
education, community-based organizations and established organizations not in education
sector and support them through: financial grants, opportunities for capacity building,
mentoring support and partner network.

2. Education for underprivileged children

This program addresses some key issues faced by some of the most vulnerable and
disadvantaged communities in our society- urban slums, migrant labor families, street children
etc. and provide them- enrolment in schools, counseling service, nutrition requirement and
remedial education.

3. Sustainability Education
Through this initiative they encouraged students to investigate different types of stresses
present in their respective city, village etc. and also find out how pandemics changed lives of
people.

4. Talent Next
This program offers latest digital tech courses to faculty members of engineering colleges who
in turn train the students of 6th semester students and they receive certifications at the end and
also get eligible to Wipro campus selection process.

Some Key highlights of different programs

➢ More than 50,000 children were supported through 97 fellowship and grant partners
across 23 states and UTs by both online and direct engagement.
➢ The community program helped around 8800 underprivileged children by 22 education
projects.
➢ Wipro Science Education Fellowship program USA partnered with 7 universities and
working with 600 teachers in India.
➢ Trained more than 60,000 students through TalentNext program.
➢ The Wase, Wista and WIMS programs supported 37,000 students to pursue higher
education in engineering.
➢ Supported the educational and rehabilitative needs of 2200+ underprivileged children
with disabilities, through 14 projects in 5 states.

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Healthcare
They aim to address some of the common issues faced by disadvantaged communities which are lack
of awareness of healthcare, poor sanitation and health practices and difficulties in availing primary
healthcare services.
The community healthcare program which includes 14 different projects across different states
provides primary healthcare to more than 3,50,000 people.
Ecology
Wipro has been involved in multiple environment-related programs from many decades. The four
pillars of this program are: Energy efficiency & carbon mitigation, responsible water, waste
management and biodiversity.
Through their community ecology initiative under Wipro Cares which involves employees, customers,
suppliers, govt, communities and education system they try to create ecological balance in proximate
communities by taking up different projects which benefits underprivileged society by helping their
livelihood, education, health and also positively affect environment.
Some programs are:
1. Urban ecology small grants program
2. Urban water program
3. Community ecology program

Disaster response
By assessing the disaster, they provide relief aid and rehabilitation support to the affected communities
by effective partnerships with credible organizations.

Some key highlights of this program

➢ More than 4500 families affected by cyclone Amphan were provided shelter and utilities.
➢ Provided fishing equipment and gears to affected fisherman during cyclone Fani and livelihood
training to women SHGs to Bhoi community in Puri, Odisha.

Key highlights of integrated response along with Azim Premji Foundation

Over the past 12 months the foundation has supported more than 1500 projects covering humanitarian
aid, healthcare support and livelihood generation helping more than 10 million people during Covid19
pandemic and committed 1125 Cr for this purpose.

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Azim Premji founder and chairman of Wipro has donated 22 Cr per day towards Covid 19 response
which makes him the most generous Indian billionaire.
➢ 10.2 million people received food, dry rations and personal hygiene kits across 26 states and 3
UTs.
➢ 3,96,000 PPE kits and N95 masks donated across states.
➢ 330 million meals distributed.
➢ Converted the Pune IT facility to fully functioning and equipped 450 bed Covid-19 hospital.
➢ More than 500 non-profit partners were involved in humanitarian and healthcare aid.

Marketing Mix
Product
Wipro is a global IT, consulting and business process services company.
They offer variety of products and services across industries like:
Aerospace and defense, Banking, Engineering, constructions and operation, medical device,
Communication, Oil and gas, capital markets, consumer packaged goods, healthcare, natural resources,
automotive, education, communication, insurance, new age markets, retail etc.
Their product offerings: delivered in as-a-service and outcome-based models. Some of their offerings
are as follows: Wipro Holmes, Wipro Base, Wipro Harmony, Wipro AssureNXT, SearchNXT.

➢ Under Cyber security they have Wipro cyber security defense platform for securing
enterprise against evolving threats.
➢ Wipro cloud migration studio for modernizing and migrating applications to hybrid cloud
with ease.
➢ TopCoder utilizes the designer and technologists’ community to deliver multi-skill projects
with ease.
➢ In Analytics Wipro has Wipro Data Discovery platform for getting business insights using
data and also Wipro Smart i-connect which is a multi-domain, IoT based platform.
➢ Wipro virtualdesk for hybrid office and WFH kind of situation.
Some other Industry platforms include: Wipro Promax, NetOxygen by Wipro Gallagher solutions,
Wipro AutoInsights, Wipro Croamis.

Price
Wipro follows a diversified and widespread pricing policy across its products offerings.
In B2C segment where they have FMCG products via Wipro consumer goods they follow a nominal
pricing strategy.

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In B2B segment which is the highest revenue generator for the company price effectiveness is
important because of high competition in the market. In IT service projects like JAVA, C# and other
projects the quoted price of the company tends to be lower than MNCs like Accenture and Capgemini
but somewhat higher than Infosys, TCS etc.
Place
Wipro has operations across various geographies, here is a snapshot of its location-wise revenues:

Promotion
Wipro spends a significant amount of money in marketing its products especially for its B2C segment
like newspaper, billboards, magazines etc.
It also undertakes CSR activities through Wipro foundation for increasing its goodwill and brand value.
People
Wipro values its customer and employees. They hire top talents from different engineering colleges
and B-schools across India and also, they hire from several HR outsourcing industries to fulfill their
project requirement. However, there is a fierce competition among several other IT companies like
TCS, Infosys, HCL etc. for retaining top talents and Wipro’s attrition rate for the current quarter is
among the highest among its peers i.e., 20.5%.
Process
Wipro maintains high standard while providing services to their clients which is done mainly by its
talented and experienced managers and workforce. They follow Agile methodologies throughout the
process of implementing any services for their client.
Physical Evidence
Wipro is present across many SEZs (Special Economic Zones) across India and also spread across
many geographies around the world. Their onshore and offshore development centers work with great
synchronization for delivering best in class value to their clients as well as employees.

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Financial Analysis
Wipro on Oct 2021 became the third IT company in India to hit market cap of Rs 4 trillion.
The revenue of the company grew from 55448 Cr in 2017 to 61934 Cr in 2021 which is close to 11%
growth in 4 years.
The net profit of the company grew from 8517 Cr in 2017 to 10855 Cr in 2021 growing 27.4% in 4
years which a great sign as the revenue grew by 11% during the same period which means there is
continuous rise in IT and ITes all over world.

Financial Ratios
Operational Ratios

The Quick ratio of the company grew till 2019 and then declined which means the company’s ability
to utilize its quick assets/cash to pay its immediate liabilities declined which can be attributed to the
fact that the company made some significant acquisitions in year 2020. For similar reasons the
company’s Current ratio also declined.

Profitability Ratios

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The ROE (Return on Equity) which measures how well a company manages and gives return on the
capital that its shareholders have invested in it. Wipro’s ROE increased till 2014 and then declined till
2019 and from there on it is increasing continuously which is a good sign. The EPS i.e., Earnings per
share which measures the value that shareholders have earned from single share of the company is also
rising continuously from the year 2019 till date which means we can invest in the company considering
other factors.

Valuation Ratios

The P/E ratio which determines how much times the investors are ready to pay to company for every
one rupee increase in earnings per share of the company was declining constantly but from 2020 it
started to increase. The industry P/E is 40 which means currently share price of Wipro is
undervalued as compared to the industry.

Financial Outlook
➢ In October 2021 Wipro surpassed $10 billion annualized revenue run rate under the leadership
of Thierry Dela Porte, who completely restructured the complex organizational hierarchies
after assuming office in 2020.
➢ In the quarter which ended September 2020 the company’s revenue went up by 7.8% QoQ and
31% YoY and the net income also saw an increase of 19% YoY.
➢ Thierry Dela Porte said that the quarterly results shows that their business strategy is working
well and the CFO said that this quarter they sustained their operating margin in narrow band
due to their recent acquisition and also investing significantly across business verticals.
➢ The company forecast to grow between 2-4% sequentially and 27-30% YoY basis in the range
$2.63-$2.68 billion in the quarter ending Dec 31 2021.

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 HCL
Introduction - Company profile
HCL Technologies Limited (formerly Hindustan Computers Limited) is an Indian multinational
technology corporation based in Noida, Uttar Pradesh. It is an HCL Enterprise subsidiary. It began as
a research and development division of HCL before becoming an independent firm in 1991 when
HCL entered the software services industry. Applications, Infrastructure, Engineering, R&D, and
BPO are among HCL's services. The firm has offices in 32 countries throughout the world.
Aerospace and defence, automotive, consumer electronics, energy and utilities, financial services,
government, independent software vendors, industrial manufacturing, mining and natural resources,
life sciences and healthcare, media and entertainment, retail and consumer, oil and gas, telecom,
public services, semiconductors, server and storage, travel, transportation and logistics, and
hospitality are some of the industries in which it operates.

History
In 1976, a group of six engineers led by Shiv Nadar, all former workers of Delhi Cloth & General
Mills, formed a firm to manufacture personal computers.
Nadar and his team began selling tele-digital calculators to raise funds for their main product when
Microcomp Limited was first listed on the stock exchange.
The company was renamed Hindustan Computers Limited on August 11, 1976. (HCL).
HCL Overseas Limited, a provider of technology development services, was formed on November
12, 1991. It began operations after receiving the certificate of establishment of business on February
10, 1992.
The company was renamed HCL Consulting Limited in July 1994, and then HCL Technologies
Limited in October 1999.
HCL Technologies is one of four firms that make up HCL Corporation; the other two are HCL
Infosystems and HCL Technologies. HCL Healthcare was founded in February 2014 by HCL.
HCL Talent Care is the company's fourth and most recent endeavor.

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HCL Technologies originated as the R&D division of HCL Enterprise, a business that contributed to
India's IT and computer industry's development and growth. In 1978, HCL Enterprise created an in-
house microcomputer, followed by a networking operating system and client-server architecture in
1983.HCL Technologies was set off as a distinct business to provide software services on November
12, 1991.

Marketing Mix

HCL's marketing strategy examines the brand using the marketing mix framework, which includes
the four Ps (Product, Price, Place, Promotion). Product innovation, pricing strategy, promotion
planning, and so on are all examples of marketing strategies. These business methods, which are
based on the HCL marketing mix, aid in the success of the brand.

HCL's marketing strategy aids the brand's/competitive company's positioning in the market as well
as the achievement of its business goals and objectives.

Marketing Strategy of HCL analyses the brand with the marketing mix framework which covers the
4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product
innovation, pricing approach, promotion planning etc. These business strategies, based on HCL
marketing mix, help the brand succeed.

HCL marketing strategy helps the brand/company to position itself competitively in the market and
achieve its business goals & objectives.

Let us start the HCL Marketing Strategy & Mix to understand its product, pricing, advertising &
distribution strategies:
HCL Product Strategy:

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In HCL's marketing strategy, the product strategy and mix are as follows:

HCL Technologies is a large IT business established in India that serves clients all over the world.
HCL's marketing mix portfolio includes a diverse range of business lines, products, and services.
HCL's services include HR outsourcing, inventory network management, monetary administrations,
customer connection management, legal administrations, and bookkeeping, among others. Capital
markets, money-keeping technologies, human services, media, distribution, telecom, security,
stimulation, assembly, transportation, and coordination initiatives are all taken into consideration.
Custom application administrations involve development, movement, upkeep, support,
modernization, and mix. Life sciences, retail and media, distributing, and protection are among areas
where HCL provides services. Upkeep, asset management, human capital technologies, major
business resource management, and business knowledge are all covered by other application support
systems. End-client registration, data security, distributed computing, server farm change,
administration of coordinated operations, and framework combinations are all included in HCL's IT
Infrastructure. Desktops, laptops, portable workstations, and tablets are also manufactured and sold
by HCL.

HCL Price/Pricing Strategy:

The price approach of HCL's marketing strategy is as follows:

HCL provides pricing based on the service, product, customer requirement, timing, and other factors.

HCL creates its own evaluating arrangements that are priced near to competition costs using an
administration data structure that collects item costs from competitors and a careful break down. The
organization's sensible assessment for expenses of its products, administrations, and services, as
opposed to the chase of apparent profits, is HCL's primary goal. Although HCL has been able to
match the value expectations of discriminating buyers through deliberate cost cutting, technology
disruptions, and recruiting efficient staff, the HCL brand has never compromised the quality of its
services in return for outright profitability.

HCL Place & Distribution Strategy:

The distribution strategy in the HCL marketing mix is as follows:

HCL Technologies has a large geographic footprint. HCL is truly a worldwide company, with offices
in Brazil, Denmark, Sweden, Belgium, China, Singapore, India, the Netherlands, Australia,
Malaysia, and Germany. This demonstrates how HCL has become a global brand because to its
strong location strategy in its marketing mix. HCL has made significant investments in the SSO
(Support Service Organization) and PSO (Professional Services Organization) as well as assembling
plants in Pondicherry and Noida in India.

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HCL Promotion & Advertising Strategy:

The following is the HCL marketing strategy's promotional and advertising strategy:

The focus of HCL is on excellent 'top of mind' recall and concentrated attention. Its above-the-line
and below-the-line marketing has helped it leave an unforgettable impression on existing and
potential clients. HCL, as a technology business, makes use of television, the internet, magazines,
and daily newspapers. To ensure that potential clients are aware of your brand, launch a multimedia
assault. HCL uses Indian actresses and celebrities as the face of its company in order to boost brand
recognition and recall. HCL provides offers to end customers, corporate houses, and establishments
as part of the company's business development and promotional strategies. It has launched the
"Practice environmental safety" programme, as part of which HCL has built a Green Edge
framework that will meet the needs of the assembling industry in the long run while also advancing
its CSR initiatives.

Because this is a service marketing brand, the remaining three Ps make up HCL's 7Ps marketing mix.

People:

HCL is a tech corporation that values its customers and is pleasant to them. People are at the heart of
HCL's success as a technology behemoth. With over 110,000 employees and offices in 32 countries,
the company is a global leader. This has aided the organization's ability to guide the company from
large to small demands for specialised operations or business needs. The SSO has 800 employees
operating in 150 areas across the country, making it one of the largest in the IT industry. HCL has a
large divisional structure, with roughly 300 urban regions and 800 affiliates aiming to promote PC
and software sales in a variety of settings, including the home, schools, and workplaces. In terms of
customers, HCL has always been customer-focused, which explains its high brand value. HCL is a
pro employee and a pro client because of its dedicated hotlines and customer-friendly approach to
solving complicated business difficulties for discerning customers.

Physical Evidence:

Offices, computers, tablets, and other technology goods are the main tangible proof of HCL. HCL
Technologies is featured in the Forbes Global 2000 resource and is one of India's top 20 publicly
traded companies, with a market capitalization of $22 billion. The organization's overall revenue,
including its auxiliaries, was $6 billion. HCL recently announced a partnership with Intel and
Microsoft with the goal of transforming the "Indian Digital Entertainment" business. In addition, the
HCL brand has partnered with Apple to provide administrations and sales assistance for their iPod-
related technology support.

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Process:

The service industry process, in which HCL plays a vital part, encompasses all of the systems that
enable services to be delivered efficiently and on schedule. These include the administrative portfolio
linked with Enterprise transformation, which includes innovation change, business knowledge and
information warehousing, IT administration, SOA, and middleware. A portfolio that includes
equipment development, R&D Services and Engineering, programming enhancement, mechanical
design, and programming item design. HCL also offers services in the areas of telecommunications
and systems, mechanical assembly, administration and capacity, and server management.

CSR Activities

HCL Technologies is a next-generation multinational technology firm that assists organisations in

reimagining their operations for the digital age. Sustainability ideas and activities are ingrained in the
company's strategy, culture, and day-to-day operations. HCL CSR aspires to improve the lives of
people all around the world by bringing together our employees, clients, stakeholders, and the
communities in which we live.

CSR Policy

The company's CSR policy's goal is to establish rules for the appropriate implementation of the
company's CSR operations in order to assist society's long-term growth. HCL Foundation was
established by the company to focus on the company's CSR efforts. The Company's CSR activities,
projects, and programmes will be approved by the CSR committee and will fall under the areas listed
in Schedule VII of the Companies Act, 2013. Education, Infrastructure, Women's Development,
Health, Environmental Sustainability, Promoting Gender Equality, and Disaster Management are all
areas where the company invests in CSR.

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HCL Grant

The HCL Grant is one of India's largest and most desired institutionalised CSR grants, with the goal
of recognising the rise of Non-Governmental Organizations (NGOs) and supporting their ground-
breaking programmes that reach out to the country's rural populations.

Bal Raksha Bharat (Save The Children India) won the Education Category, Operation Asha won the
Health Category, and Under The Mango Tree Society won the Environment Category in the fifth
edition of the HCL Grant. So far, the HCL Grant has contributed 68 crores (US$9.46 million)
through ongoing HCL Grant Projects, with the goal of reaching 17,20,028 individuals in 8,598
villages in 70 districts (11 aspirational) throughout 18 Indian states and two union territories. So far,
575,244 people have profited from the campaign.

HCL Samuday

HCL Samuday is a rural development programme that began in 2015 with the goal of creating a
model for rural economic and social development that is sustainable, scalable, and replicable. The
programme, which is now being conducted in three blocks of Uttar Pradesh's Hardoi district, covers
164 Gram Panchayats, 765 villages, and 90,000 homes, with a total population of 6,00,000 people.

HCL Samuday has been able to make the following changes on the ground through its interventions
across six verticals for holistic rural development - agriculture, education, health, infrastructure,
livelihood, and WASH (Water, Sanitation, and Hygiene).

Agriculture: Through different agriculture-related activities, the programme has benefited over
39,000 farmers. It has expanded access to nutritional food security by building Nutrition Gardens in
over 2,700 households, serving over 13,000 people. In addition, it has aided in the formation of a
Farmer Producer Company with 2,129 shareholders and a business turnover of $6,850,000 thus far.

Education: The initiative has enhanced the school education of more than 55,000 youngsters in the
project region. It has developed 326 Happy Schools with an effective educational environment, ICT-
enabled learning, assertive community participation, and enhanced teaching learning procedures as
part of its Happy School Intervention. In addition, the initiative has enrolled over 48,000 persons in
adult literacy classes.

Health: To enhance the healthcare situation in the project region, the programme has offered
improved care to over 20,000 pregnant women and 17,000+ children. It has also conducted
malnutrition screenings on 12,482 children aged 6 months to 5 years.
Infrastructure Development: As part of the programme, the foundation has developed infrastructure
to deliver renewable energy to the area, which will provide electricity to 39 communities via 30 solar

34
mini-grids. It has also helped 125 schools by installing rooftop solar PV systems to provide them
with the necessary energy infrastructure. The foundation has installed 860 kWp of renewable energy
infrastructure in the area in total.

Improving Livelihoods: The organisation has helped roughly 9,000 dairy farmers in the area by
procuring an average of 11,800 litres of milk each day. It has helped over 2,300 people establish
backyard poultry units, providing them with a source of income. The initiative has helped to build
995 Self-Help Groups, which are made up of roughly 11,500 women, with 4,000 of them being
involved in economic activities in the area. In addition, it has aided the skill development of over 900
youth in a variety of trades.

WASH Efforts: The organization's many WASH initiatives have resulted in about 60,500 households
using safe sanitation. It has also provided safe, piped water to more than 11,000 families.

Clean Noida – HCL initiative CSR

Clean NOIDA is a project of the HCL Foundation that began in 2019. In collaboration with the
Noida Development Authority, the programme carries out works and services to achieve effective
solid waste management in Noida. This effort attempts to make the city a litter-free zone by cleaning
garbage vulnerable sites (GVPs) and distributing cloth bags, among other things. With a strong focus
on capacity building of important stakeholders, intensive behaviour change campaigns, awareness
drives, and technology solutions, the initiative has encompassed 90 Residential Welfare Associations
(RWAs) and 64 urban villages. Through various activities, a total of 3,375 volunteers and 13,776
participants have been engaged to date.

Gender Diversity Programs of HCL

• HCL Women Connect

HCL Women Connect strives to engage and progress women through development programmes,
advocate for a gender-neutral workplace by advocating relevant policies, and position HCL as a
preferred employer for women all around the world. This group also mentors and counsels
aspiring young women professionals, discusses work/life priorities, and offers services such as
life coaching, on-site daycare, concierge services, and policies like longer maternity leave, work
from home, flexible professions, and flexible work hours.

• Feminspiration
Feminspiration is a forum supported by the HCL Women Connect Affinity Network in which
successful female leaders are invited to speak to employees and share insights into successful
leadership as well as gain a better understanding of gender issues.

• BlogHer

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 Many facets of gender-neutral rules are explored on BlogHer, the organization's internal forum.
These conversations are positive and non-hierarchical, and they help both HCL and workers
debunk workplace assumptions and preconceptions about gender, culture, and other topics.

Financial analysis of HCL

On a year-over-year (YoY) basis, the company's operating income climbed 11.1 percent during the
quarter. During the same time span, expenses increased by 16.0 percent year on year.

During the third quarter, the company's operating profit fell 1.9 percent year over year. As a result,
operational profit margins fell to 24.3 percent in 2QFY22, down from 27.5 percent in the previous
quarter.

The quarter's net profit was up 3.7 percent year over year. During the period, net profit margins fell
from 16.7% in the second quarter of FY21 to 15.6 percent in the second quarter of FY22.

Depreciation charges fell 1.3 percent year over year, but finance costs rose 3.8 percent.

During the quarter, other income climbed by 20.6% year over year.

1) Economic Moat

Technical know-how, technological collaborations, and workforce are all used to gain market
dominance in this industry. Google, IBM, Cisco, HP, Microsoft, and Dell are among the worldwide
heavyweights with which the organisation has strategic collaborations. HCL just completed the $1.8
billion purchase of IBM security, marketing, commerce, and digital solution technologies. They also
introduced HCL Software, a new business entity that supplies organisations with modernised software
to aid in their digital transition. In FY 2020, the company additionally secured 53 transformational
deals. Overall, the firm has the workforce, technical expertise, and digital infrastructure to carry out
large-scale IT projects all over the world. However, certain organisations in the industry have more
resources and infrastructure at their disposal.

2) Growth Ratios

In the September quarter, HCL Technologies reported a 12.7 percent increase in net profit to $424
million, compared to the same period previous year. The income increased by 9.7% sequentially.

36
 Year-over-year (YoY) revenue growth was unchanged at 0.8 percent, while sequential revenue
increase was 6.4 percent to $2.5 billion.
The company, which is the third largest software services firm, has kept its revenue growth forecast
for the third and fourth quarters of FY'21 at 1.5 percent to 2.5 percent in constant currency.
However, for FY'21, it has boosted its EBIT margin to between 20.0 and 21.0 percent.

3) Profitability Ratios

Return on Equity (ROE): The Company’s ROE fell to 18.6 percent in FY21, down from 21.6 percent
the previous year. The return on equity (ROE) is a metric that assesses a company's capacity to create
profits from the money invested by its shareholders.
Return on Capital Employed (ROCE): The Company’s ROCE fell to 25.7 percent in FY21, down
from 26.8 percent the previous year. The return on capital employed (ROCE) gauges a company's
capacity to create profits from its total capital (shareholder capital plus debt capital) employed.
Return on Assets (ROA): The Company’s return on investment (ROI) fell to 13.7 percent in FY21,
down from 14.3 percent in FY20. The return on assets (ROA) is a metric that assesses how effectively
a company utilises its assets to create profits.

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4) Valuation Ratios
The company's trailing twelve-month earnings per share (EPS) are Rs 41.2, up from Rs 40.7
last year. At the present price of Rs 1,232.3, the price to earnings (P/E) ratio is 28.9 times trailing
twelve months earnings. At present prices, the price to book value (P/BV) ratio is 3.3 times,
while the price to sales ratio is 2.7 times. The company's price to cash flow (P/CF) ratio was
21.2 times its operational cash flow earnings at the end of the year.

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5) Liquidity and Solvency Ratios

The current ratio is significantly higher than the minimum requirement of 1, indicating that
current assets are more than sufficient to satisfy short-term obligations. In recent years, the
quick ratio has also improved significantly. This shows that the corporation has plenty of cash
on hand. Financial leverage and debt-to-equity ratios have also decreased over time, indicating
healthy levels of solvency.

Future Prospects

Some insights for the coming years from the analysis, management discussions and con calls are as
follows.

• HCL's annual results for FY 2020 showed revenue growth of 16.7% YoY in constant currency
and a 9.3% YoY increase in net income. During this time, the company's ROE has increased
somewhat to 23.6 percent. The company's overall growth continues to remain linear.

• With the exception of some unusual expenses, COVID-19 would have no significant influence
on existing company. The company's Business Continuity Plan has been triggered, with 96 percent
of workers working from home and 2.5 percent working at client locations.

• Organic growth and acceleration of Mode 2 and Mode 3 business are driving robust revenue
growth. On a constant currency basis, Products and Platform increased by 60.5 percent YoY, IT
and Business grew by 12.7 percent, and ERS business expanded by 12.8 percent YoY.

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• Order bookings for FY 2020 were strong, notwithstanding the absence of significant orders
valued at $100 million or more. The coming year could be difficult for the corporation in terms of
gaining new business. As a result, revenue growth guidance may be lowered in the coming years.

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