A COMPARATIVE STUDY OF FINANCIAL PERFORMANCE OF

WIPRO LIMITED & INFOSYS

Reported Submitted by

Name: SWETA SAH

Roll No: 619

Institute: Bengal Institute of Business Studies

Registration No. VP225031637

Company Name: Rungta Advisors

Industry Mentor: Mr.

This Project is Submitted for the Partial Fulfilment Of Masters Of Business Administration
From Vidyasagar University

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 Preface
In today's dynamic business environment, the performance and financial stability of
companies play a crucial role in their success and growth. The Indian IT industry has
witnessed remarkable progress and has become a significant contributor to the country's
economy. Wipro Limited and Infosys are two prominent players in this industry, known for
their technological prowess and global presence.

The purpose of this study is to conduct a comparative analysis of the financial performance of
Wipro Limited and Infosys. By examining their financial indicators, such as revenue growth,
profitability, liquidity, and efficiency, we aim to gain insights into the overall financial health
and competitive position of both companies. This analysis will provide valuable information
to investors, analysts, and other stakeholders who are interested in making informed decisions
about their investments, partnerships, or collaborations with these organizations.

The study utilizes a combination of quantitative and qualitative research methods. Financial
statements, annual reports, and other relevant financial data from both Wipro Limited and
Infosys serve as primary sources of information. Additionally, secondary research involving
industry reports, scholarly articles, and market analysis will complement the primary data to
provide a comprehensive understanding of the financial performance of these companies.

It is important to note that this study is not intended to favour or promote any particular
company but rather to present an unbiased comparison based on objective financial metrics.
The findings of this study should be considered in conjunction with other factors, such as
market trends, competitive landscape, and industry dynamics, to form a holistic perspective
on the performance of Wipro Limited and Infosys.

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 Original Certificate of the company Guide

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 Acknowledgement

On the very out set of this report, I would like to extend my sincere and heartfelt obligation
towards all the personages who have helped me in this endeavour. Without their active
guidance, help, cooperation and encouragement, I would not have made head way in this
project.

I am ineffably indebted to my mentor & my research supervisor Mr. Shashank Kumar, from
BIBS for her conscientious guidance and encouragement to accomplish this assignment.

I am extremely thankful and pay my gratitude to my mentor Mr. Pinaki Bhattacharya, from
BIBS for his continuous guidance and accomplishment. Without their guidance and persistent
help this dissertation would not have been possible.

I extend my gratitude to “Bengal Institute of Business Study” for giving me this opportunity.

I also acknowledge with a deep sense of reverence, my gratitude towards my parents and
members of my family, who have always supported me morally as well as economically.

At last but not least gratitude goes to all my friends who directly or indirectly helped me to
complete this project.

Any omission in this brief acknowledgement does not mean lack of gratitude.

Thank you,

SWETA SAH

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 Declaration

I hereby declare that the dissertation titled “A COMPARATIVE STUDY OF FINANCIAL

PERFORMANCE OF WIPRO LIMITED & INFOSYS” Submitted for the MBA project at
BIBS Kolkata; is my original work and the dissertation has not formed the basis for the award
of any degree, associateship, fellowship or any other.

The material borrowed from similar titles other sources and incorporated in the dissertation
has been duly acknowledged.

This information and date given report is authentic to the best of my knowledge.

The research papers published based on the research conducted out of the course of the study
are also based on the study and not borrowed from other sources.

Date: 14/06/2023 SWETA SAH

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 Table of Contents

SR.NO PARTICULARS PAGE NO.

1. Executive summary 7
2. Introduction
2.1. Background 8-9
2.2. Tools for analysis 9
2.2.1. Ratio Analysis 9-12
2.2.2 Balance sheet 12-13

3. Company profile 14
4.1 Over view of the industry 15-19
Overview of Wipro limited 20-22
Overview of Infosys limited 23-26
4.2 Justification of the topic 27-29

5. Objective of the project 30

6. Research Methodology 31-33
7. Data Representation & Analysis 34-50
8. Observation & findings 51-54
9. Recommendation & suggestion 55
10. conclusion 56
11. Bibliography 56-57
12. ANNEXURE 58-63

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 I. Executive Summary
This executive summary provides an overview of a comparative study conducted on the
financial performance of Wipro Limited and Infosys, two leading companies in the global
information technology and consulting industry. The study aimed to evaluate and compare
various financial indicators to assess the companies' financial health and performance over a
specified period.

The study employed a comprehensive analysis of financial statements, including income

statements, balance sheets, and cash flow statements, for both Wipro Limited and Infosys.

Additionally, key financial ratios, such as profitability ratios, liquidity ratios, and solvency
ratios, EPS, common size balance sheet and comparative income were calculated and
compared to gain insights into the financial strength and stability of the two companies.

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 II. Introduction

2.1. Background –

Financial analysis is the process of examining a company’s performance in the context of its
industry and economic environment in order to arrive at a decision or recommendation.
Often, the decisions and recommendations addressed by financial analysts pertain to
providing capital to companies— specifically, whether to invest in the company’s debt or
equity securities and at what price. An investor in debt securities is concerned about the
company’s ability to pay interest and to repay the principal lent. An investor in equity
securities is an owner with a residual interest in the company and is concerned about the
company’s ability to pay dividends and the likelihood that its share price will increase.
Overall, a central focus of financial analysis is evaluating the company’s ability to earn a
return on its capital that is at least equal to the cost of that capital, to profitably grow its
operations, and to generate enough cash to meet obligations and pursue opportunities.
Fundamental financial analysis starts with the information found in a company’s financial
reports. These financial reports include audited financial statements, additional disclosures
required by regulatory authorities, and any accompanying (unaudited) commentary by
management. Basic financial statement analysis—as presented in this reading—provides a
foundation that enables the analyst to better understand other information gathered from
research beyond the financial reports. Financial statements are those statements which
provide information about profitability and financial position of a business. It includes two
statements, i.e. Statement of profit & loss or income statement and Balance sheet or financial
position statement. The income statement presents the summary of the income earned and the
expenses incurred during a financial year. Financial position statement presents the financial
position of the business at the end of the year. After preparation of the financial statements,
one may be interested in knowing the position of an enterprise from different points of view.
This can be done by analysing the financial statement with the help of different tools of
analysis such as ratio analysis, funds flow analysis, cash flow analysis, comparative statement
analysis, etc. Here I have done financial analysis by ratios. In this process, a meaningful
relationship is established between two or more accounting figures for comparison. Financial
ratios are widely used for modelling purposes both by practitioners and researchers. The firm
involves many interested parties, like the owners, management, personnel, customers,

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suppliers, competitors , regulatory agencies , and academics , each having their views in
applying financial statement analysis in their evaluations . Practitioners use financial ratios,
for instance, to forecast the future success of companies, while the researchers ' main interest
has been to develop models exploiting these ratios. Many distinct areas of research involving
financial ratios can be discerned. Historically one can observe several major themes in the
financial analysis literature. There is overlapping in the observable themes, and they do not
necessarily coincide with what theoretically might be the best-founded areas.

2.2. Tools Used for Analysis-

The tools used for financial analysis are-
• Ratio Analysis
• Balance sheet

2.2.1. Ratio Analysis-

Ratio analysis can be defined as the process of ascertaining the financial ratios that are used
for indicating the ongoing financial performance of a company using few types of ratios such
as liquidity, solvency, profitability, activity.

2.2.1.1. Liquidity Ratio-

The term liquidity refers to firm’s ability to pay its current liabilities out of its current assets. Liquidity
ratios are used to measure the liquidity position of the firm.

a) Current Ratio-
The current ratio is a liquidity ratio that measures a company's ability to pay short-term
obligations or those due at intervals one year. It tells investors and analysts however an
organization will maximize the current assets on its record to satisfy its current debt and other
liabilities.

A current ratio that's in line with the trade average or slightly higher is usually considered
acceptable. A current ratio that's below the trade average might indicate higher risk of distress
or default. Similarly, if an organization features a terribly high current ratio compared to their
contemporaries, it indicates that management might not be exploitation their assets
expeditiously.
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The current ratio is termed “current” as a result of, not like another liquidity ratios, it
incorporates all current assets and current liabilities this ratio is usually known as the capital
ratio.
The ideal ratio is 2:1.
Current ratio = Current assets/ Current liabilities.

b) Quick Ratio-
The quick ratio is an indicator of a company’s short company’s ability to fulfil its short-- term
liquidity position and measures a term obligation with its most liquid assets.

Since it indicates the company’s ability to instantly use its near converted quickly to cash) to
pay down test ratio its current liabilities, it's conjointly ref cash assets (assets that may be
erred to as the acid an "acid test" may be a slang term for a quick test designed to provide
instant results hence, the name.
The ideal ratio is 1:1.
Quick ratio= Quick assets/ Current liabilities

2.1.2. Solvency Ratio-

Solvency ratios are financial metrics that assess a company's ability to meet its long-term
obligations and remain financially stable in the long run. These ratios provide insights into a
company's financial health by evaluating its capacity to generate sufficient cash flows and
maintain a sustainable capital structure. There are several types of solvency ratios commonly
used by analysts and investors.

a) Debt-to-Equity Ratio:
The debt-to-equity ratio compares a company's total debt to its shareholders' equity. It
measures the proportion of debt financing relative to equity financing and indicates the level
of financial leverage used by the company. A higher ratio indicates a higher level of debt and
potentially higher financial risk, while a lower ratio suggests a more conservative capital
structure.

Debt-to-Equity Ratio = Total Debt / Shareholders' Equity

b) Interest Coverage Ratio:

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The interest coverage ratio measures a company's ability to meet its interest expenses with its
operating income. It demonstrates the extent to which a company's earnings can cover its
interest obligations. A higher interest coverage ratio indicates a better ability to handle
interest payments and suggests a lower risk of defaulting on debt.

Interest Coverage Ratio = Operating Income / Interest Expenses

c) Debt Ratio:

The debt ratio compares a company's total debt to its total assets. It evaluates the percentage
of a company's assets that are financed through debt. A higher debt ratio indicates a higher
degree of leverage and potentially higher financial risk, while a lower ratio signifies a lower
reliance on debt financing.

Debt Ratio = Total Debt / Total Assets

2.1.2. Profitability Ratios-

To the management, profit is the measure of efficiency and control of the business.
Profitability can be easily measured by profitability ratio.

a) Gross Profit Ratio:

This ratio shows the relationship between gross profit and net sales. The main objective of
gross profit ratio is to measure the efficiency with which a firm produces its product. The
ideal ratio is 20% to 25%.

Gross Profit ratio= Gross profit/net sales *100. (Gross profit= net sales- cost of goods
sold)

b) Operating Profit Ratio:

This ratio explains the relationship between operating profit and net sales. Operating profit
means profit from normal business operations. It measures the operational efficiency of the
company.

Operating profit ratio= operating profit/net sales*100.

c)Net Profit Ratio:

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Net profit ratio is the ratio of net profit earned by a business and its net sales. It measures
overall profitability.

Net profit ratio= Net profit/Net sales*100

d)Return on Capital Employed:

Return on Equity (ROE) is a financial metric that measures the profitability and efficiency of
a company in generating returns for its shareholders' equity. It provides insights into how
effectively a company utilizes its shareholders' investments to generate profits.

ROE is calculated by dividing the net income of a company by its average shareholders'
equity over a specific period. The net income represents the profit generated by the company
after deducting all expenses, including operating expenses, interest, and taxes. Shareholders'
equity, also known as net worth or book value, represents the residual interest in the
company's assets after deducting liabilities.

ROE = (Net Income / Average Shareholders' Equity) * 100

2.2.2. Balance Sheet-

The balance sheet is one of the three fundamental financial statements and is key to both
financial modelling and accounting. The balance sheet displays the company’s total assets
and how the assets are financed, either through either debt or equity. It can also be referred to
as a statement of net worth or a statement of financial position.
The balance sheet is based on the fundamental equation: Assets = Liabilities + Equity.

The 3 types of balance sheets are:

• Classified Balance Sheet

• Comparative Balance Sheet
• Common-Size Balance Sheet

2.2.2.1. Classified Balance Sheet:

A classified balance sheet categorizes assets and liabilities into current and non-current (long-
term) classifications. Current assets are those that are expected to be converted into cash or
used up within one year, while non-current assets are expected to be held for more than one

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year. Similarly, current liabilities are obligations expected to be settled within one year, while
non-current liabilities are due beyond one year. This classification provides a clearer
understanding of a company's short-term liquidity and long-term obligations.

2.2.2.2. Comparative Balance Sheet:

A comparative balance sheet presents the financial position of a company for multiple
periods, typically side by side, to facilitate year-over-year or period-over-period analysis. It
allows for the comparison of changes in assets, liabilities, and shareholders' equity between
two or more periods, providing insights into trends, growth, and financial stability over time.

2.2.2.3. Common – size Balance Sheet:

A common-size balance sheet expresses each item on the balance sheet as a percentage of the
total assets. This format allows for a more detailed analysis of the composition and relative
importance of various assets, liabilities, and shareholders' equity components. It enables
stakeholders to assess the relative size and proportion of different elements of the balance
sheet and identify potential areas of strength or concern.

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 III. Company Profile
Rungta Advisory Services Pvt. Ltd. was established in the year 2008. We are a Direct Tax
Consultant. We at Rungta Advisory Services Pvt. Ltd. make sure that we constantly upgrade
our technology as well as our capabilities.

Our company Practices in Income Tax matters. We also provide consultancy in financial
matters to our clients (corporate or non-corporate). We do the tax planning for our clients
guiding them to make proper deductions to save their hard-earned money.

Our part doesn’t end here as ‘saved money is of no use until invested wisely’. We further
guide them to make proper investments with the saved money too. We are always available to
our valuable clients for any consultancy and guidance over the phone or in personal meetings.
We don’t just file returns, rather we are readily available to solve any discrepancies that arise
after filing of the returns in a hassle-free manner.

Our company has dealt with around 40+ surveys in which we make sure that we are
physically present at our client’s business place to settle the matter as soon as possible. And
with our presence there, we try to satisfy the IT officers as well as boost up our client. Our
motto is to provide satisfactory services to all our clients.

Our Services

Direct Tax Consultancy

Quarterly TDS & TCS Return Filing

Handling

Scrutiny Cases

Income Tax Return Filing and its Compliances

Audit & Assurance

Tax Planning & Tax Preparation

Handling Survey Matters

Accounts Bookkeeping with Full Responsibility, Appeal Matters

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 IV. Over View of the Industry

Indian Information Technology (IT) enterprise has expected a crucial interest in setting India
on the sector manual. At gift, India aroused as a trend-setter in IT and ITES component in
anywhere sooner or afterward of the sector. IT&BPO department has gotten one of the
enormous change locales for the Indian monetary gadget.

Indian IT element urges the Indian economy to conclude up essentially. Regardless fueling
India's economic system, this division in addition earnestly impacting the way of life of its
family supporters thru a functioning straight away and underhanded commitment to the
special financial parameters, for instance, way of life, trade venture and to begin with rate
assortment.

IT element has expected a huge task in converting India's picture from a gentle shifting
bureaucratic economic machine to a work of brilliant trade organization human beings and a
international member in giving universal magnificence development preparations and
company organizations.

Nowadays IT and ITES factors lead the financial enhancement as a long way as earnings age,
methods of lifestyles, work, and fare advancement. Indian IT part is the primary wellspring of
obtaining the distant off cash through programming and its administrations. After the
Industrial strategy of 1991 have become advanced, there has been a sea of adjustments in
Indian joining of monetary system into spherical the arena. The progressions got here through
advancement, privatization and globalization.

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Information Technology (IT) is clarified since the plan, advancement, execution and the
administrators of PC based facts frameworks, uncommonly PC system and programming
packages. At gift, it has predominant to cowl maximum parts of processing and innovation.
The biggest worldwide businesses comprise Infosys, TCS, Deloitte, Cognizant and Amazon.

The information technology industry in India comprises information technology services

and business process outsourcing. The share of the IT-BPM sector in the GDP of India is
7.4% in FY 2022. The IT and BPM industries' revenue is estimated at US$ 245 billion in FY
2023. The domestic revenue of the IT industry is estimated at $51 billion, and export revenue
is estimated at $194 billion in FY 2022. The IT–BPM sector overall employs 5.4 million
people as of March 2023. In December 2022, Union Minister of State for Electronics and IT
Rajeev Chandrasekhar, in a written reply to a question in Rajya Sabha informed that IT units
registered with state-run Software Technology Parks of India (STPI) and Special Economic
Zones have exported software worth Rs 11.59 lakh crore in 2021-22.

HISTORY OF THE INDUSTRY

India's IT Services industry was born in Mumbai in 1967 with the creation of Tata practice
Services who in 1977 partnered with Burroughs that began India's export of IT services. The
initial software system export zone, SEEPZ – the precursor to the contemporary IT park –
was established in Mumbai in 1973.over 80 % of the country's software system exports were
from SEEPZ within the 1980s.

Within ninety days of its institution, the Task Force created an extensive background report
on the state of technology in India and an IT Action set up with 108 recommendations. The
Task Force may act quickly as a result of it designed upon the expertise and frustrations of
state governments, central government agencies, universities, and therefore the software
industry. a lot of what it projected was additionally in step with the thinking and suggestions
of international bodies just like the World Trade Organization (WTO), International
Telecommunications Union (ITU), and IBRD additionally, the Task Force incorporated the
experiences of Singapore and different nations, that enforced similar programs. it had been
less a task of invention than of sparking action on a agreement that had already evolved at
intervals the networking community and government.

Regulated VSAT links became visible in 1994. Desai (2006) describes the steps taken to
relax laws on linking in 1991.

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In 1991 the Department of electronics broke this impasse, making an organization known as
software Technology Parks of India (STPI) that, being owned by the govt, may offer VSAT
communications while not breaching its monopoly. STPI found out software system
technology parks in several cities, every of that provided satellite links to be employed by
firms; the native link was a wireless link. In 1993 the government began to permit individual
corporations their own dedicated link, that allowed work wiped out India to be transmitted
abroad directly. Indian corporations presently convinced their yank customers that a satellite
link was as reliable as a team of programmers operating within the clients’ workplace.

A joint EU-India group of scholars was formed on 23 November 2001 to further promote
joint research and development. On 25 June 2002, India and the European Union agreed to
bilateral cooperation in the field of science and technology. From 2017, India holds an
Associate Member State status at CERN, while a joint India-EU Software Education and
Development Center will be located in Bangalore.
In recent years there has been a boom in startups in India across all industries but especially
the Information Technology sector. This boom is in part due to various start up schemes such
as the Start Up India Scheme and T-Hub. Schemes like this provide resources to support the
creation of new startups in hopes to stimulate the economy and put India at the forefront of
innovation across all sectors. While the scheme has supported and incubated many companies
and helped them succeed, there has been a lack of active support for ST and SCs in the action
plans. This reflects a trend across the Information Technology sector as a whole with
marginalized communities having a harder time breaking into this booming industry.

STATE WISE REVENUE IN IT EXPORT

S.NO State Revenue in IT exports (US $ billion) Revenue in IT exports (₹ Cr)

1. Karnataka 53 billion 3.95 lakh

2. Maharashtra 33 billion 2.45 lakh

3. Telangana 32 billion 2.41 lakh

4. Tamil Nadu 32 billion 1.79 lakh

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Largest INDIAN IT Companies in INDIA based on Revenue

S.NO IT Services Company Name Revenue in 2022(us$) Revenue in 2022 (₹ Cr)

1. Tata Consultancy Services 27.5 195,772

2. Infosys 18.2 123,936

3. HCL Technologies 12.3 85,651

4. Wipro 11.2 79,093

5. Tech Mahindra 6.5 38,642

6. LTIMindtree 4.1 33,000

Major information technology hubs:

Bengaluru

Bengaluru is known because the "Silicon vale of India". Notable tech parks are electronics
town clinical trial & II, ITPL, Bagmane technical school Park, Embassy links, Manyata
technical school Park, international Village technical school Park, Embassy TechVillage.
except for these IT corporations are situated in many different components of the town.
Notable IT corporations of the realm embrace Infosys, Wipro, HCL Technologies, SAP Labs,
Accenture, TCS, Oracle, IBM India, FusionCharts, classical music software system, Strand
Life Sciences, Mindtree, and savvy India.

Hyderabad

Hyderabad – celebrated for the HITEC town or Cyberabad – could be a major international
IT hub, and therefore the largest bioinformatics hub in India. Hyderabad came into view
because the second largest town within the country for software system exports pipping
competitors Chennai and Pune. As of 2020, the IT exports from Hyderabad was ₹128,807
large integer (US $15 billion), the town homes 1500 IT and ITES corporations that offer
582,126 employment. Notable technical school and drug company parks area unit HITEC
town, ordination vale, and Hyderabad pharma town.

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Kolkata

Kolkata is that the money and business hub of eastern India. The tube town has seen a big
rise in IT services. In August 2018, the geographic region|state|province} Government has
declared that two hundred acres of land in Rajarhat Newtown are going to be used for the
event of Bengal geographical region, kind of like the California geographical region in port
of entry, USA. the most intention of this project is to make business-friendly surroundings for
IT corporations to line up their business within the town.

Chennai

As of 2012, Chennai is India's Largest bourgeois of knowledge technology (IT) and business
method outsourcing (BPO) services. Tidel Park in Chennai was beaked as Asia's largest IT
park once it had been designed. Notable technical school parks area unit International
technical school Park, DLF SEZ, Mahindra World town, SIPCOT IT Park, Olympia technical
school Park and Ramanujan IT town. town has AN superhighway known as because it
expressways and a most well-liked location for IT industries. Major software system
corporations have their offices found out here, with a number of them creating Chennai their
largest base.

Pune

The Rajiv Gandhi Infotech Park in Hinjawadi could be a ₹600-billion (US$8.9 billion)
project by the geographic region Industrial Development Corporation (MIDC).The IT Park
encompasses a vicinity of concerning a pair of,800 acres (11 km2) and is home to over 800
IT corporations of all sizes. Besides Hinjawadi, IT corporations are situated at Magarpatta,
Kharadi {and several and a number of different and several other} other components of the
town. As of 2017, the IT sector employs over 300,000 people.

Delhi NCR

Delhi NCR is one amongst the key IT hub in India. Cities like Gurugram and Noida have
many corporations that serves the native and international markets.

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 IV.I. OVERVIEW OF THE COMPANY

❖ WIPRO Limited-

Wipro is an Indian multinational corporation that provides information

technology, consultant and business process services. It is one of the leading Big
Tech companies. Wipro's capabilities range across cloud computing, computer
security, digital transformation, artificial intelligence, robotics, data analytics, and other
technology consulting services to customers in 167 countries.

• HISTORY
➢ Early Years

The company was incorporated on 29 December 1945 in Amalner, India, by Mohamed

Premji. In 1966, after Mohamed Premji's death, his son Azim Premji took over Wipro as
its chairperson at the age of 21.

➢ Shifting to IT Industry

During the 1970s and 1980s, 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.

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In 1999, Wipro was listed on the New York Stock Exchange. In 2004, Wipro became the
second Indian IT company to earn US$1 billion in annual revenue.

In 2012, Wipro demerged its non-IT businesses into a separate company called Wipro
Enterprises.[15][16][17] Prior to this demerger, these businesses, mainly in the consumer care,
lighting, furniture, hydraulics, water treatment, and medical diagnostics, contributed about
10% of Wipro's total revenues.

In March 2023, Wipro opened its American international Headquarters at Tower Center
in East Brunswick, Middlesex County, New Jersey.

• Notable Acquisitions
➢ In 2006, Wipro acquired California-based technology company cMango in an all cash
deal.
➢ In 2012, Wipro acquired Australian analytics company, Promax Applications Group
for A$35 million in an all cash deal.
➢ In 2015, Wipro acquired Denmark-based design consultancy Designit for €85 million.
➢ In 2016, Wipro acquired cloud services consultancy Appirio for $500M.
➢ In April 2019, Wipro acquired Filipino personal care company Splash Corporation.
➢ In February 2020, Wipro acquired Rational Interaction, a Seattle-based digital
customer experience consultancy.
➢ In March 2021, Wipro acquired Capco, a 22-year-old global technology and
management consultancy specializing in driving digital transformation in the financial
services industry.[28][29] Wipro has signed an agreement to acquire Ampion for a cash
consideration of $117 million, according to an exchange filing.
➢ In April 2022, Wipro signed a definitive agreement to acquire the Stamford,
Connecticut-headquartered Systems Applications and Products (SAP) consulting
company, Rizing Intermediate Holdings.
➢ In 2021, Wipro invested in Soulflower, a Farm-to-Face beauty brand.
➢ Wipro has committed to achieving net-zero emissions by 2040, with an intermittent
goal of reducing emissions 55% by 2030.

• Listing & shareholding

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Wipro's equity shares are listed on Bombay Stock Exchange, where it is a constituent of
the BSE SENSEX index and the National Stock Exchange of India where it is a constituent of
the NIFTY 50. The American Depositary Shares of the company are listed on the New York
Stock Exchange (NYSE) since October 2000.

Shareholders (as on March 31, 2022) shareholding

Promoter group led by Azim Premji 72.92 %

Retails and other 12.86%

Foreign Institutions 6.39%

Other domestic institutions 5.04%

Mutual Funds 2.79%

• Employees

Wipro has over 240,000 dedicated employees serving clients across six continents and is
known for its extensive range of services, strong dedication to sustainability, and good
corporate citizenship. They come up with fresh ideas and link the dots to create a stronger
and more adventurous future.

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 ❖ INFOSYS

Infosys Limited is an Indian multinational information technology company that

provides business consulting, information technology and outsourcing services. The company
was founded in Pune and is headquartered in Bangalore. infosys is the second-largest Indian
IT company, after Tata Consultancy Services, by 2020 revenue figures, and the 602nd largest
public company in the world, according to the Forbes Global 2000 ranking.

On 24 August 2021, Infosys became the fourth Indian company to reach

US$100 billion in market capitalization. It is one of the top Big Tech (India) companies.

• History

Infosys was founded by seven engineers in Pune, Maharashtra, India. Its initial capital was
$150. It was registered as Infosys Consultants Private Limited on 2 July 1981. In 1983, it
relocated to Bangalore, Karnataka.

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
renamed Infosys Limited in June 2011.

An initial public offering (IPO) was floated in February 1993 with an offer price
of ₹95 (equivalent to ₹580 or US$7.30 in 2020) per share against a book value
of ₹20 (equivalent to ₹120 or US$1.50 in 2020) per share. The IPO was undersubscribed but
it was "bailed out" by US investment bank Morgan Stanley, which picked up a 13% equity
stake at the offer price. Its shares were listed in June 1993 with trading opening
at ₹145 (equivalent to ₹890 or US$11 in 2020) per share.

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Infosys shares were listed on the Nasdaq stock exchange in 1999 as American depositary
receipts (ADR). It became the first Indian company to be listed on Nasdaq. The share price
surged to ₹8,100 (equivalent to ₹30,000 or US$370 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.

In July 2010, then-British Prime Minister David Cameron visited Infosys HQ in Bangalore
and addressed Infosys employees.

Its annual revenue reached US$100 million in 1999, US$1 billion in 2004 and US$10 billion
in 2017.

In 2012, Infosys announced a new office in Milwaukee, Wisconsin, to serve Harley-

Davidson. Infosys hired 1,200 United States employees in 2011 and expanded the workforce
by 2,000 employees in 2012. In April 2018, Infosys announced expansion in Indianapolis,
Indiana.

In July 2014, Infosys started a product subsidiary called EdgeVerve Systems, focusing on
enterprise software products for business operations, customer service, procurement and
commerce network domains. In August 2015, assets from Finacle Global Banking Solutions
were transferred from Infosys, thus becoming part of the product company EdgeVerve
Systems' product portfolio.

• Products & Services

Infosys provides software development, maintenance and independent validation services to

companies in finance, insurance, manufacturing and other domains.

Its key products and services are:

➢ NIA – Next Generation Integrated AI Platform (formerly known as Mana)

➢ Infosys Consulting – a global management consulting service
➢ Cloud-based enterprise transformation services.
➢ Infosys Information Platform (IIP), an analytics platform
➢ EdgeVerve Systems, which includes Finacle, a global banking platform
➢ Panaya Cloud Suite

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 ➢ Skava (now Infosys Equinox)
➢ Engineering Services
➢ Digital Marketing
➢ Blockchain

• Geographical Presence
Infosys has 82 sales and marketing offices and 123 development centres across the world as
of 31 March 2018, with major presence in India, United States, China, Australia, Japan,
Middle East and Europe.

In 2019, 60%, 24%, and 3% of its revenues were derived from projects in North America,
Europe, and India, respectively. The remaining 13% of revenues were derived from the rest
of the world.

In 2022, Infosys's presence in Russia came under scrutiny. Infosys issued a clarification
stating that they don't have active relationships with Russian firms. By November, 2022; the
only people working there were administrative staff helping with transferring the existing
contracts to other contractors.

• Listing & share holding pattern

In India, shares of Infosys are listed on the BSE where it is a part of the BSE SENSEX and
the NSE where it is a NIFTY 50 Constituent.[51] Its shares are listed by way of American
depositary receipts (ADRs) at the New York Stock Exchange.

Over a period of time, the shareholding of its promoters has gradually reduced, starting from
June 1993 when its shares were first listed. The promoters' holdings reduced further when
Infosys became the first Indian-registered company to list Employees Stock Options Schemes
and ADRs on NASDAQ on 11 March 1999. As of 29 July 2021, the promoter holding was
12.95%, foreign institutional investors (FIIs) hold 33.39%, and domestic institutional
investors (DIIs) hold 21.98%.

Infosys shareholding and stakeholders pattern (as of 29 July 2021) :

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 Shareholders Shareholding

Promoters group 12.95%

Foreign Institutional Investors (FII) 33.39%

Domestic Institutional Investors (DII) 21.96%

Public 31.32%

Others 0.36%

TOTAL 100.00%

• Employees

Infosys had a total of 259,619 employees (generally known as "Infoscions") as of 2021, out
of which 38.6% were women. Out of its total workforce, 229,658 are software professionals
and remaining 13,796 work for support and sales. In 2016, 89% of its employees were based
in India.

During the financial year 2019, Infosys received 2,333,420 applications from prospective
employees, interviewed 180,225 candidates and had a gross addition of 94,324 employees, a
4% hiring rate. These numbers do not include its subsidiaries.

In its Q3FY22 results in January, Infosys has reported that attrition has risen to 25.5%, from
20.1% in the September quarter. It has announced a profit of Rs 5,809 crore for the third
quarter and said it is planning to hire 55,000 freshers for FY22 as part of its global graduate
hiring program.

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 IV.II. Justification of the topic

Comparison between Infosys and Wipro Limited are-

1)Brand Ranked-Infosys's brand is ranked #502 in the list of Global Top 1000 Brands, as
rated by customers of Infosys. Their current market cap is $80.98B.

Wipro Limited's brand is ranked #726 in the list of Global Top 1000 Brands, as rated by
customers of Wipro Limited. Their current market cap is $16.33B.

2)Overall culture-Employees at Infosys rate their Overall Culture a 62/100, with Product
and HR as the two departments that rate their experience the highest.

Employees at Wipro Limited rate their Overall Culture a 63/100, with Product and HR as the
two departments that rate their experience the highest.

3)Perk & Benefits-Employees at Infosys rate their Perk and Benefits Score a 48/100,
with Product and HR as the two departments that rate their experience the highest.

Employees at Wipro Limited rate their Perk and Benefits Score a 66/100, with Product and
Business Development as the two departments that rate their experience the highest.

4)Professional Development -Employees at Infosys rate their Professional

Development Score a 47/100, with Product and IT as the two departments that rate their
experience the highest.

Employees at Wipro Limited rate their Professional Development Score a 57 /100, with IT
and Engineering as the two departments that rate their experience the highest.

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5)Diversity-Employees at Infosys rate their Diversity Score a 60/100, with Product and HR
as the two departments that rate their experience the highest.

Employees at Wipro Limited rate their Diversity Score a 66 /100, with Product and HR as the
two departments that rate their experience the highest.

Awards and Recognitions –

• Wipro Limited Awards & Recognitions-
➢ It received National award for excellence in company Governance from the Institute
of Company Secretaries of India throughout the year 2004.
➢ Wipro honoured as 2010 Microsoft Country Partner of the Year Award for India.
➢ In 2012, it had been awarded the best rating of neutral price and company Rating one
(SVG 1) by ICRA restricted.
➢ Wipro received the 'NASSCOM company Award for Excellence in Diversity and
Inclusion, 2012', within the class. 'Most Effective Implementation of Practices &
Technology for Persons with Disabilities'.
➢ Wipro was hierarchal ordinal within the Newsweek 2012 world five hundred
inexperienced firms.
➢ In 2014, Wipro was hierarchal 52nd among India's most trustworthy brands consistent
with the whole Trust Report, a study conducted by Trust analysis consultatory.
➢ Wipro won seven awards, together with Best Managed IT Services and Best System
measuring device within the federation alternative Awards 2015, India.
➢ Wipro won Gold Award for ‘Integrated Security Assurance Service (iSAS)
underneath the ‘Vulnerability Assessment, remedy and Management’ class of the
eleventh Annual 2015 data Security PG's world Excellence Awards.
➢ In may 2016, it had been hierarchal 755th on the Forbes world 2000 list
➢ In March 2017, Wipro was recognized joined of the world's most moral firms by US-
based Ethisphere Institute for the sixth consecutive year.
➢ In 2018, Wipro received ATD's better of the most effective Award.
➢ Wipro’s AI Solutions won the Confederation of Indian Industry (CII) Supply Chain
and Logistics Excellence (SCALE) Awards 2022 in the "Technology Solution
Providers for Logistics - Software Solutions" category.

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 ➢ Wipro AI won awards for “Best Firm for Women in Tech” and “Best women in
Tech” Leadership in the AI and Analytics domain at the Rising 2023 hosted by
Analytics India Magazine (AIM).
• Infosys Awards & Recognition –
➢ In 2020, Infosys was hierarchal No. one within the HFS prime ten Agile
computer code Development 2020 report.
➢ In 2020, Infosys was recognized as a pacesetter in Retail and CPG Digital
Services by Avasant.
➢ In 2019, Infosys was a winner of the world organization world Climate Action
Award in 'Climate Neutral Now' class.
➢ In 2019, Infosys was hierarchal because the third Best Regarded Company within
the World by Forbes.
➢ In 2017, HfS analysis enclosed Infosys in country of HfS Blueprint for Managed
Security Services, Industry 4.0 services and Utility Operations.
➢ In 2013, Infosys was hierarchal eighteenth largest IT services supplier within the
world by HfS analysis within the same year, it had been hierarchal 53rd in Forbes
list of World's Most Innovative firms.
➢ In 2012, Infosys was hierarchal No. nineteen amongst the world's most innovative
firms by Forbes within the same year, Infosys was within the list of prime twenty
inexperienced firms in Newsweek's inexperienced Rankings for 2012.
➢ In 2006, Institute of hired Accountants of India enclosed Infosys into Hall of
Fame for being the winner of Best given Accounts for eleven consecutive years.
➢ Infosys won the Asset Triple A ESG Awards 2022 for Diversity and Inclusion.
➢ Infosys won the Economic Times Best Organisations for Women Award,2023.
➢ Infosys has been rated as “Most Noteworthy” Company by DiversityInc, USA.

29 | P a g e
 V. Objective of the Project

The key objective of the project are –

• To identify and analyse changes in financial performance and position over the time.
• To identify trends ,patterns, and relationship between different financial data points.
• To know about how a company is performanig to meet their expected return .
• To know how much interest,profit,sales etc. a company is generating over the periods.
• To know about the factors which are influencing the sector and how they are facing
that over the periods .
• To know how the companies are competing their competitors.
• To know about the key products and serives they are providing .
• To know about how much revenue is generated from that sector.

VI. Research Methodology

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Qualitative research has been used in this work. The financial values are taken
from Balance sheet, Profit & loss account and cash flow statement have been
procured for the selected period of study.

6.1. Sources of Data-

The primary data is taken from the books and websites of the relevant information. The
financial statement and other related data to the secondary study is taken from the official
websites of Infosys and Wipro Limited and other relevant sites.

6.2. Period of study-

To study the financial performance of the companies I have taken the financial statement of 5
consecutive years (2018-2019 to 2022-2023).

6.3. Research Testing Tools

Tools like descriptive statistics, frequency, analysis and graphs have been used to understand
the ratios.

6.4. Objective of the study-

The main objectives of this study are as under-

• To analyse the short-term funds of companies i.e. Infosys ltd. and Wipro ltd.
• To analyse the profitability position of chosen IT companies in the study.

31 | P a g e
 • To analyse the return on shareholder’s funds and to know the utilization power of
value reserves in both the companies.
• To propose the financial management effectiveness to the companies in the study.

6.5. Scope of the study-

1. Data used in the study is for 5 years only, for superior results it can be taken more than five
a long time.

2. More ratios can be used to measure the by and large execution of the companies.

3. Any other companies can be used for the study and in conclusion the complete IT sector
can be chosen to check the by and large execution of IT sector in India.

4. This study empowers us to have access to different realities of the companies.

5. It makes a difference in understanding the requirements for the significance and advantage
of materials within the organizations.

6. The study moreover makes a difference to provide exposure to our minds to the integrated
materials management the various methods, methods and technique embraced by the
organizations.

7. The study gives information about how the hypothetical perspectives are put within the
organizations.

6.6. Limitation of the study-

1. The ratios are based on historical numbers. Therefore, these ratios invariably remain same
though performance of the corporate changes.

2. If researchers are using the ratios for analysing trends, throughout the amount inflationary
rate has modified then accuracy of the analysis gets affected.

3. The knowledge from the financial plan that researchers are using for the study might have
been collective in several proportion within the past and so doing a analytic thinking
supported that data doesn’t show a real image.

4. Due to the distinction in accounting period, analysis of the companies becomes difficult.

32 | P a g e
5. A business will do forceful changes in its operations thanks to certain unexpected needs
and therefore using the info of the past and creating a judgment supported which will not
invariably give a fruitful conclusion.

6. Ratio analysis could ignore the qualitative read of the firm.

7. The study was solely restricted to data technology IT sector and additionally to specific
corporations. 8. In this study the researchers has taken specific two corporations, findings and
suggestions are restricted to solely these corporations.

9. The researchers have taken solely those corporations that are having their offices in Pune
additionally.

10. The researchers could have created miscalculation in any of the magnitude relation
calculation in spite of double checking.

33 | P a g e
 VII. DATA REPRESENTATION AND ANALYSIS

7.1. INTODUCTION –

In order to get meaningful information from the data collected, data analysis is carried out.
The data collected is to be edited, coded, tabulated, for the purpose of analysis. Analysis of
data means processing of collected data and studying tabulated material in order to determine
in inherent factors or meanings. After the data collection, data is coded and tabulated so as to
express it in quantitative form. Tabulation is the process of putting classified data in the form
of tables. Analysis work after tabulation is generally based on computation of percentage.
The term analysis refers to computation of certain measures along with searching for patterns
of relationship or difference supporting or conflicting with original or new hypothesis should
be subjected to statistical tests of significance to determining with what validity data can be
used to indicate any conclusions. The analysis is basically aimed at giving influence of
association or difference between the various variables present in the research. The data
collected may be analysed by using tables, graphs and so on.

7.2. Tools for Study –

• Ratio Analysis &

• Balance Sheet.

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7.2.1. Liquidity Ratio-

a) Current Ratio:

Particulars 2019 2020 2021 2022 2023

INFOSYS 3.00 2.88 2.74 2.10 1.90

WIPRO LTD. 2.96 2.78 2.50 2.23 2.86

Current Ratio
3.5

2.5

1.5

0.5

0
2019 2020 2021 2022 2023

INFOSYS WIPRO LTD.

A ratio under 1.0 indicates that the company’s debts due during a year or less are bigger than
its assets (cash or alternative short less.) term assets expected to be converted to cash at
intervals a year or less.

On the opposite hand, in theory, the higher the current ratio, the more capable an organization
is of paying its obligations because it's a larger proportion of short value of its short-- term
asset value relative to the term liabilities. However, while a high ratio, say over 3, may
indicate the corporate will cover its current liabilities 3 times, it's going to indicate that it is
not using its current assets expeditiously, isn't securing funding very well, or isn't managing
its working capital. In the above comparison Infosys ltd shows better, current ratio status than
quick ratio.

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b) Quick Ratio:

Particulars 2019 2020 2021 2022 2023

INFOSYS 3.00 2.88 2.74 2.10 1.90

WIPRO LTD. 2.94 2.77 2.50 2.23 2.86

Quick Ratio
3.5

2.5

1.5

0.5

0
2019 2020 2021 2022 2023

INFOSYS WIPRO LTD.

The quick ratio measures the dollar quantity of liquid assets out there against the dollar
amount of current liabilities of a corporation. quick assets are those current assets that may be
quickly converted into money with marginal impact on the value received within the open
market, whereas current liabilities are a company's debts or obligations that are due to be paid
to creditors at intervals one year.

A result of 1 is taken into account to be the normal quick ratio. It implies that the corporate is
totally equipped with precisely enough assets to be instantly liquidated to pay off its current
liabilities. a corporation that contains a quick ratio of less than one might not be ready to
totally pay off its current liabilities within the short term, whereas a corporation having a
quick ratio higher than 1 will instantly get obviate its current liabilities for example, a quick
ratio of 1.5 indicates that a corporation has $1.50 of liquid assets out there to cover every $ 1
of its current liabilities. The quick ratio of Wipro in the current year is better than that of
Infosys.

36 | P a g e
7.2.2. Solvency Ratio-

a) Debt to Equity Ratio:

Particulars 2019 2020 2021 2022 2023

INFOSYS 0.00 0.00 0.06 0.06 0.11

WIPRO LTD. 0.08 0.09 0.12 0.10 0.08

Debt to Equity Ratio

0.14

0.12

0.1

0.08

0.06

0.04

0.02

0
2019 2020 2021 2022 2023

INFOSYS WIPRO LTD.

Changes in long term debt and assets tend to possess the best impact on the D/E ratio as a
result of they tend to be larger accounts compared to short need to judge a company’s short--
term debt and short run assets. If investors term leverage and its ability to fulfil debt
obligations that has to be paid over a year or less, alternative ratios are going to be used.

As per the table Infosys has no debts capital in its capital structure as compared to Wipro.

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b) Interest Coverage Ratio:

Particulars 2019 2020 2021 2022 2023

INFOSYS - 130.45 137.55 168.93 133.21

WIPRO LTD. 19.83 45.72 33.27 21.30 28.19

Interest Coverage Ratio

180
160
140
120
100
80
60
40
20
0
2019 2020 2021 2022 2023

INFOSYS WIPRO LTD.

The lower the interest coverage ratio, the greater the company’s debt and the possibility
of bankruptcy. From the above chart we can see that Wipro limited is having lower ICR as
compared to INFOSYS.

INFOSYS is having a good financial health as compared to it. It also indicates that a
company is overlooking opportunities to magnify their earnings through leverage.

38 | P a g e
c)Asset Turnover Ratio:

Particulars 2019 2020 2021 2022 2023

INFOSYS 92.62 97.53 91.45 1.08 1.24

WIPRO LTD. 71.82 77.18 0.77 0.82 0.82

Asset Turnover Ratio

120

100

80

60

40

20

0
2019 2020 2021 2022 2023

INFOSYS WIPRO LTD.

The asset turnover ratio is a measurement that shows how efficiently a company is using its
owned resources to generate revenue or sales. The ratio compares the company's gross
revenue to the average total number of assets to reveal how many sales were generated from
every dollar of company asset.

From the chart we can see that from the last two years the companies are having better asset
turnover ratio as compared to the previous years.

39 | P a g e
7.2.3. Profitability Ratio-

a) Gross Profit Ratio:

Particulars 2019 2020 2021 2022 2023

INFOSYS 23.35 22.63 25.76 24.43 22.53

WIPRO LTD. 16.26 17.98 21.28 18.33 15.56

Gross Profit Ratio

30

25

20

15

10

0
2019 2020 2021 2022 2023

INFOSYS WIPRO LTD.

If a company's gross profit margin wildly fluctuates, this might signal poor management
practices and/or inferior products. On the opposite hand, such fluctuations is also even in
cases wherever a corporation makes sweeping operational changes to its business model,
within which case temporary volatility ought to be no cause for alarm.

The study shows higher gross profit margin of Infosys than Wipro.

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b) Operating Profit Ratio:

Particulars 2019 2020 2021 2022 2023

INFOSYS 25.54 25.34 28.46 26.77 24.75

WIPRO LTD. 18.20 20.24 23.96 20.83 17.91

Operating Profit Ratio

30

25

20

15

10

0
2019 2020 2021 2022 2023

INFOSYS WIPRO LTD.

Highly variable operating margins are a main indicator of business risk. By an equivalent
token, viewing a company’s past operating margins could be a great way to measure whether
or not a company's performance has been getting better operating margin will improve
through higher management controls, more efficient use of resources, improved valuation,
and more effective selling.

In its essence, operating margin is what proportion profit a corporation makes from its core
business in relevancy its total revenues. This permits investors to ascertain if a corporation is
generating income primarily from its core operations or from different means that, like
investing.

The study shows better operating margin of Infosys as compared to Wipro.

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c) Net Profit Ratio:

Particulars 2019 2020 2021 2022 2023

INFOSYS 20.11 19.66 21.00 20.43 18.76

WIPRO LTD. 15.82 17.22 20.00 20.36 13.54

Net Profit Ratio

25

20

15

10

0
2019 2020 2021 2022 2023

INFOSYS WIPRO LTD.

Investors will assess if a company's management is generating enough make the most of its
sales and whether or not operating prices and overhead prices area unit being contained. for
instance, a corporation will have growing revenue, however if its operating prices are
increasing at a quicker rate than revenue, its income margin can shrink. Ideally, investors
need to see a track record of increasing margins that means that income margin is rising over
time.

Above table clearly shows that Net profit is always placed better in Infosys Ltd. than Wipro
Ltd.

42 | P a g e
 d) Return on Capital Employed:

Particulars 2019 2020 2021 2022 2023

INFOSYS 31.38 31.28 32.23 38.46 43.03

WIPRO LTD. 20.44 23.62 27.49 27.32 19.40

Return on Capital Employed

50
45
40
35
30
25
20
15
10
5
0
2019 2020 2021 2022 2023

INFOSYS WIPRO LTD.

The return on capital employed of Infosys Ltd. is higher than Wipro throughout the study
period because of better management of assets and dividend choices it's steered to Wipro to
manage funds within the same means as managed by the Infosys in order that return on
capital employed is increased on Equity: come back on Equity is another enlarged parameter
for testing the capital utilization for profit generation. The ratio could be a strong indicator of
economical fund management for profit generation from the equity shareholder’s purpose of
view. It reflects a relationship between the profit after tax and preference share dividends and
also the equity share capital invested within a business the higher ratio represents an
economical management of equity funds.

Infosys ltd. Is a lot more economical than Wipro ltd.as shown.

43 | P a g e
 e) Return on Equity:

Particulars 2019 2020 2021 2022 2023

INFOSYS 23.44 24.97 25.23 30.63 34.34

WIPRO LTD. 15.41 18.68 22.23 22.32 14.62

Return on Equity
40
35
30
25
20
15
10
5
0
2019 2020 2021 2022 2023

INFOSYS WIPRO LTD.

A high return on investment (ROI) indicates that a company's management team is more
effective when it comes to using investment capital to expand the company (and is more
likely to provide better returns to investors). A low ROE, on the other hand, may mean that a
company is mismanaged and is reinvesting earnings in ineffective as sets.

A higher return on investment (ROI) is typically preferable, while a declining ROE may
imply inefficient use of equity capital.

As shown above, in comparison to Wipro Ltd, Infosys has better return on equity structure.

44 | P a g e
f) Return on Asset:

Particulars 2019 2020 2021 2022 2023

INFOSYS 18.62 19.17 19.21 21.36 22.96

WIPRO LTD. 11.36 13.29 15.30 15.09 10.75

Return on Asset
25

20

15

10

0
2019 2020 2021 2022 2023

INFOSYS WIPRO LTD.

Return on assets (ROA) is a calculation of a company's profitability in relation to its total

assets. The return on assets (ROA) tells a manager, investor, or analyst how effectively a
company's management is using its assets to produce profits. The ROA is expressed as a
percentage; the higher the ROA, the better.

As clearly shown Infosys has better return on assets as compared to Wipro.

45 | P a g e
g) Earnings per Share

Particulars 2019 2020 2021 2022 2023

INFOSYS 33.64 36.34 42.37 50.27 55.48

WIPRO LTD. 14.17 17.19 20.82 24.85 19.62

Equity per share

60

50

40

30

20

10

0
2019 2020 2021 2022 2023

INFOSYS WIPRO LTD.

EPS is one of the various indicators you may use to choose stocks. If you have got an interest
available trading or investing, your next step is to settle on a broker that works for your
investment style.

Comparing EPS in absolute terms might not have a lot of meaning to investors as a result
ordinary shareholder don't have direct access to the earnings. Instead, investors can compare
EPS with the share worth of the stock to determine the worth of earnings and the way
investors feel regarding future growth.

In all these years Infosys has better EPS than Wipro.

46 | P a g e
7.2.2. Balance sheet

a) Common size Balance sheet of Wipro limited for the year 2021-
2011,2022-2023:

Particulars Absolute amounts Percentage

2021-2022 2022-2023 2021-2022 2021-2023

Assets

Non-current 454,302 510,241 42.25% 44.00%

Assets

Current Assets 620,752 661,096 57.74% 56.00%

Total Assets 1,075,054 1,171,337 100% 100%

Equity

Total Equity 654,545 777,268 100% 100%

Liabilities

Non-Current 112,180 126,316 26.67% 32.10%

liabilities

Current 308,329 267,753 73.33% 68.00%

Liabilities

Total 420,509 394,069 100% 100%

Liabilities

Total Equity & 1,075,054 1,171,337 100% 100%

Liabilities

47 | P a g e
b) Common size Balance sheet of INFOSYS limited for the year 2021-
2011,2022-2023:

Particulars Absolute amounts Percentage

2021-2022 2022-2023 2021-2022 2021-2023

Assets

Non-current 46,950 49,255 47.24% 48.60%

Assets

Current Assets 52,437 52,082 52.76% 51.40%

Total Assets 99,387 1,01,337 100% 100%

Equity

Total Equity 69,306 67,745 100% 100%

Liabilities

Non-Current 5,105 6,150 16.97% 18.30%

liabilities

Current 24,976 27,442 83.03% 81.70%

Liabilities

Total 30,081 33,592 100% 100%

Liabilities

Total Equity & 99,387 1,01,337 100% 100%

Liabilities

48 | P a g e
c) Comparative Income Statement of INFOSY limited for the year 2021-
2011,2022-2023:

Particulars 2022 2023 Absolute change Percentage

change

I. Revenue from 1,03,940 1,24,014 20,074 19.31%

operation

II. Other Income 3,224 3,859 632 19.60%

III. Total Revenue 1,07,164 1,27,873 20,706 38.91%

IV. Total Expenses 78,669 96,230 17,561 22.32%

V. Profit Before 28,495 31,643 6,852 24.04%

Tax

VI. Profit After 21,235 23,268 2033 9.57%

Tax

49 | P a g e
c) Comparative Income Statement of WIPRO limited for the year 2021-
2011,2022-2023:

Particulars 2022 2023 Absolute change Percentage

change

I. Revenue from 5,95,744 6,77,534 81,790 13.72%

operation

II. Other Income 47,061 23,542 (23,510) (49.95) %

III. Total Revenue 6,42,805 7,01,076 58,271 63.67%

IV. Total Expenses 4,90,163 5,78,387 88,224 17.99%

V. Profit Before 1,52,642 1,22,689 (29,953) (19.62) %

Tax

VI. Profit After 91,767 121,353 29,586 32.24%

Tax

50 | P a g e
 VIII. Observation and Findings

• Major Findings

The study is case method of research and comparative analysis in nature, the study used
solely secondary data that was collected from research articles and thesis works already done
on the subject and conjointly took the assistance from the annual reports of five information
Technology corporations. These corporations are Infosys and Wipro. the information of these
corporations was taken for the quantity of 2019 to 2023 i.e. 5 years. For this study 12
common ratios, common size balance sheet and comparative income statement are used to
measure profitability level in regard to sales, assets investment and shareholders. The
findings for the study are as follows:

1. Current Ratio:

With the help of this ratio company’s ability to meet short term obligation can be measured.
Current ratio of Wipro is fluctuating and of Infosys is decreasing from 2019 to 2023. When
we compare both companies, we can observe that current ratio of Wipro is good compared to
Infosys from the last 5 years.

2. Quick Ratio:

The quick ratio calculates a company’s capacity to pay off its current liabilities without
needing to sell its inventory or obtain addition financing. When we compare both the
companies, we can observe that the quick ratio of Wipro is better than Infosys in the current
year.

3. Debt to Equity Ratio:

As per the table in comparison to Wipro Ltd, Infosys has less debts capital in its capital
structure. As a result, the debts equity ratio in Infosys Ltd. In the beginning were 0.00 and in
the current year it is 0.11 and in the current year it is having more debt compare to Wipro
limited. However, Wipro Ltd is using its debts capital in its capital structure. Although it's
conjointly making an attempt to cut back a part of capital supported through long term debts

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which is additionally reflected in its ratio, the debts equity magnitude relation that was 0.12
in the year 2021 reached 0.08 in the year 2023.

4. Interest Coverage Ratio:

The lower the interest coverage ratio, the greater the company’s debt and the possibility
of bankruptcy. From the above chart we can see that Wipro limited is having lower interest
coverage ratio as compared to INFOSYS.

5. Asset Turnover Ratio:

In the current year the asset turnover ratio of both the companies has decreased ,as we know
that the higher the asset ratio, the more efficient the use of the company's assets.

6. Gross Profit Ratio:

Gross profit margin is an inquisitive measure expressed as a company's net sales minus the
cost of goods sold - out (COGS). It is usually shown as the margin as a percentage of net
sales. The gross profit margin shows the quantity of profit made before deducting selling,
general, and administrative prices, that is that the firm's net profit margin. In the above study
it is found that Average Gross profit ratio of Infosys and Wipro are 22.53 and 15.56
respectively. GP of Infosys in the last 5 years greater than Wipro limited.

7. Operating Profit Ratio:

An operating profit ratio that's going up is viewed as a negative sign, as this means that
operating expenses are increasing relative to sales or revenue. Contrarily, if the operating
profit ratio is decreasing, expenses are decreasing, or revenue is increasing, or some
combination of each. In the above table operating ratio of Infosys is constantly decreasing
and that of Wipro the operating ratio decreased from 2022-2023. A corporation might have to
implement cost controls for margin improvement if its operative ratio will increase over time.

8. Net Profit Ratio:

Net profit margin measures how much net income is generated as a proportion of revenues
received. It helps investors assess if a company's management is generating enough cash in
on its sales and whether or not operating costs and overhead prices are being contained. It is
one in all the foremost necessary indicators of a company's overall financial health.

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In the above study the net profit ratio in Wipro Ltd was decreased to 13.54 in 2023 and net
profit ratio of Infosys was decreased to 13.54 in 2023. Above table is clearly showing that
NPR is always placed better in Infosys Ltd. than Wipro Ltd. Infosys had always succeeded in
maintaining a handsome margin of net profit over the Wipro Ltd.

9. Return on Capital Employed:

It is represented from the table that the roc in Wipro Ltd was 27.32 in the year 2022, it
reached at 19.40 in the year 2023 though it got increased. On the other hand, Infosys Ltd.
constants were high within the starting at 31.38 and there from it got continuously increased
until the year 2023. As explicit earlier the roc Company mirrored reflected potency of
generating profit by the optimum utilization of capital utilized thus from the table it's clear
that the Infosys Ltd. is a lot of economical than Wipro Ltd., within the context of utilization
of capital for generating profits.

10. Return on Equity:

Return on equity (ROE) is a metric that calculates a company's profitability in relation to its
stockholders' equity. If a ROE is deemed satisfactory, it will be determined by what is
considered common in the industry or among company peers. As per the above table in
comparison to Wipro Ltd, Infosys has better Return on Equity in its capital structure. As a
clear result ROE of Wipro is cutting back.

11. Return on Asset:

Return on Assets (ROA) is a metric that measures how profitable a company's assets are
used. When comparing related companies or a company's previous results, ROA is the most
useful metric. Unlike other related metrics like Return on Equity, ROA considers a
company's debt (ROE). Through the above table it is clear that Infosys has better working
capital than Wipro.

12. Earnings Per share:

EPS indicates how much money widely used metric t y an organization makes for each share
of its stock, and could be a o estimate company worth. A higher EPS indicates greater worth
as a result of investors will pay more for a company's shares if they assume the corporate has
higher profits relative to its share price. Here, we can observe that in all the 5 years Infosys is
having better Earnings per Share as compared to Wipro.

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 13. Common size Balance Sheet of Wipro Limited:

From the balance sheet we can see that the non -current assets of the company increased from
42.25% in the year 2022 to 44.00% and current assets decreased from 57.74% in the year
2022 to 56.00% in the year 2023.On the other hand, non -current liabilities increased to
32.10% from 26.67% and current liabilities decreased from 73.33% to 68.00% in the year
2023.

14. Common size Balance Sheet of Infosys Limited:

From the balance sheet we can see that the non -current assets of the company increased from
47.24% in the year 2022 to 48.60% and current assets decreased from 52.76% the year 2022
to 51.40% in the year 2023.On the other hand, non -current liabilities increased to 18.30%
from 16.97% and current liabilities decreased from 83.03% to 81.70% in the year 2023.

15. Comparative Income Statement of Wipro Limited:

From the statement of profit and loss we can see that revenue from operation increased to
13.72% and other income of the company decreased to 49.25% in the year 2023.On the other
hand, total expenses of the company increased to 17.99% and profit before tax decreased to
19.62% while profit after tax of the company was increased to 32.24% in the year 2023.

16. Comparative Income Statement of Infosys Limited:

From the statement of profit and loss we can see that revenue from operation increased to
19.31% and other income of the company increased to 19.60% in the year 2023.On the other
hand, total expenses of the company increased to 22.32% and profit before tax increased to
24.04%. The profit after tax of the company was increased to 9.57% in the year 2023.

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 IX. Recommendation & Suggestions

1. The companies’ future plans for expansion seem clear due to increased investments.
2. Companies should try their best to increase sales and profit.
3. Companies should try to increase profit after tax.
4. The companies should improve their management efficiency in utilizing the
proprietor’s fund.
5. The fixed assets are efficiently utilized by both the companies and the long-term
solvency is good.
6. For competing with Infosys limited, Wipro Limited has to focus more on their ideas
and future approaches.

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 X. Conclusion
Wipro and Infosys Ltd. both are leading companies within the information and technology
industry. Both the companies have a critical part to play for the economy as well as investors.
With reference to the above examination the budgetary position of Infosys Ltd. can be said as
way better than that of Wipro Ltd. As seen within the over examination, nearly on every
parameter the execution of Infosys Ltd. Outperformed the Wipro Ltd. In spite of the fact that
it isn't an alarm warning circumstance for Wipro Ltd but in comparison to Infosys Ltd. it
should improve its management productivity in utilizing the proprietors fund. Besides Infosys
should also give their emphasis on utilizing debts capital in order to extend its esteem and
getting optimum capital structure.

XI. Bibliography

Websites & Articles:

• (n.d.). Retrieved from equity master:

https://www.equitymaster.com/detail.asp?date=06/27/2003&story=2&title=Software-
InfosysVs-Wipro
• (n.d.). Retrieved from money control:
https://www.moneycontrol.com/financials/wipro/ratiosVI/W
• (n.d.). Retrieved from eha: https://ehamanagementconsultancy.com/a-study-on-financial
analysis-of-selective-indian-it-companies-based-on-specific-ratios-research-paper/
• (n.d.). Retrieved from Rediff: https://money.rediff.com/companies/Infosys-
Ltd/13020007/ratio
• (n.d.). Retrieved from value stocks: https://stock-financials.valuestocks.in/en/wipro-ratio
analysis
• (n.d.). Retrieved from research gate:
https://www.researchgate.net/publication/340816198_Financial_Analysis_of_Selected_It_
Companies in India
• Investopedia. (n.d.). Retrieved from https://www.investopedia.com/
• Wikipedia. (n.d.). Retrieved from https://en.wikipedia.org/wiki/Infosys
• Wikipedia. (n.d.). Retrieved from https://en.wikipedia.org/wiki/WiprO

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 • https://www.wipro.com/content/dam/nexus/en/investor/annual-reports/2022-
2023/integrated-annual-report-2022-23.pdf
• https://www.infosys.com/investors/reports-filings/annual-
report/annual/documents/infosys-ar-23.pdf
• Bhargava, D. P. (n.d.). Retrieved from http://oaji.net/artic les/2017/1817 1500142497.pdf.
• (n.d.). Retrieved from ndtv profit: https://www.ndtv.com/business/stock/wipro
ltd_wipro/reports#:~:text=Wipro%20Ltd.%2C%20the%20flagship%20company,diversified%2
0i nto%20various%20other%20businesses

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 XII. ANNEXURE

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