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Financial plan for

Wipro Company
Limited

Presented by
DIMA TEAM
Introduction of the
Company
 Industry –IT SECTOR
 Company Name- WIPRO LTD
 Incorporation year– 1945
 Chairman- Azim H Premji
 Headquarters-Bangalore, India
 Wipro is leading Indian based provider of IT services
including BPO services globally.
 ISO-Certified
Introduction of the
Company
The Company is certified globally and one of the
leader in providing IT solutions and services for the
corporate segment in India.
 Received Best Award from ASTD for 3 consecutive
years.
Acquisitions of Wipro
 mPower Software services Inc,a Princeton,Newjersey US headquartered-
USD 28 million
 New logic Technologies AG-Semiconductor IP business-Euro 26 million
 US Based Quantech Global services LLC-USD 3 million
 US based CMango Inc and India based CMango Inc-USD 20million.
 Finland based Sarware Oy Middle East & SAARC operations of 3D
Network.
 Hydrauto group AB for cash of USD 31 million
 Joint venture namely- WMNETSERV Ltd
Financial Planning
 The Company should be able to achieve its objectives by
minimizing the use of resources.

 The systematic approach of financial planning and budgeting


should be done effectively.

 This plan indicates the Firms growth , performance ,


investments and requirements of funds during the given period
of time.
Strategic Decision making &
Planning
High Stars
Industry Growth Rate

Low
High Low
Relative Market Share
Stars(High growth, high
market share)

 The business has high market share compared to competitors


and it is doing business in high-growth market

 Use large amounts of cash and are leaders in the business so


they should also generate large amounts of cash.

 Frequently roughly in balance on net cash flow. However if


needed any attempt should be made to hold share, because the
rewards will be a cash cow if market share is kept.
Financial planning to check
feasibility
 Turn around Strategy
Asset Sales and Closures
Acquisitions
Improving Profitability
 Portfolio Planning
 Identifying SBUs
 Assessing and Comparing SBUs
 Relative Market Share
 Relative Growth Rate
Cash Flow Statement
Particulars Yr-2009 Yr-2010 Increase Decrease
Operating Activity

Cash flow from operating 3750.1 4409.2 677.1 -------


activities
Operating Profit before -1135.75 585.8 550 -------
Working Capital

Financial Activity

Dividend Received 579.6 537.46 46 -------

Closing cash balance 1273.1


Ratio Analysis of the
Company
 Gross profit Ratio
= (Gross profit/Sales)*100

Mar ‘ 10 Mar ‘ 09 Mar ‘08 Mar ‘07 Mar’06

22.89% 20.90% 19.83% 23.21% 22.50%


Ratio Analysis of the
Company
 Net profit Ratio
= (Net profit/Sales)*100

Mar ‘ 10 Mar ‘ 09 Mar ‘08 Mar ‘07 Mar’06

19.44% 18.23% 17.51% 20.76% 19.71%


Ratio Analysis of the
Company
 Operating cost Ratio
= (Operating expenses/Net Sales)*100

Mar ‘ 10 Mar ‘ 09 Mar ‘08 Mar ‘07 Mar’06

15.19% 15.57% 15.75% 15.24% 15.14%


Conclusion
Sometimes Companies will like to achieve growth that their
current financial position could sustain. Sustainable growth is
the annual percentage growth in sales that is consistent with
the firms financial policies.
THANK YOU