WIPRO ANNUAL

REPORT 2020-2021
GROUP ASSIGNMENT

▪ NAME PRN

• ANJANI KUMAR 036

• AMIT KUMAR 026

• ANANYA KUMARI 030

• ASHISH KAUSHIK 056

• JOSEPH ARPITA 054

• SAURABH VERMA 317

• ANMOL AMAN 043

 INTODUCTION

Wipro Ltd. is a global information technology, consulting and

outsourcing company. It offers financial, retail, transportation,
manufacturing, healthcare, energy and utilities, technology,
telecom and media services. The company also offers business
process outsourcing, business technology and enterprise
application, infrastructure management, testing, product
engineering, engineering design and product support services.
It operates through the following segments: Information
Technology Services and Information Technology Products.
The Information Technology Services segment provides
information technology and information technology-enabled
services, which include information technology consulting,
custom application design and development, re-engineering
and maintenance, systems integration, package
implementation, technology infrastructure and business
process outsourcing and research and development services in
the areas of hardware and software design. The Information
Technology Products segment provides information technology
products, which include computing, storage, networking,
security and software products. Wipro was founded on
December 29, 1945, and is headquartered in Bangalore, India.“
WIPRO HISTORY

Milestones
Wipro, one of the world’s most trusted brands, is a name with a
long history. Here’s a snapshot of our journey to date:

▪ Established in 1945 as Western India Vegetable

Products Limited in Amalner, Maharashtra
▪ IPO for capital in February 1946
▪ Ventured into the fledgling IT industry in 1981
▪ Established software products and exports subsidiary,
Wipro Systems Ltd. in 1983
▪ Pioneers in marketing indigenous Personal Computers
in 1985
▪ Established a Joint venture with GE in 1989
▪ Entered IT services in the 1990s – we were among the
pioneers in developing the ODC (Offshore
Development Center) concept
▪ Software business assessed at SEI-CMM Level 5 in
1998
▪ Listed on NYSE in 2000 (NYSE:WIT)
▪ The first company in the world to be assessed at
PCMM Level 5 in 2001
▪ Entered the BPO business in 2002
▪ Entered the Eco-energy business in 2008″
 PROFIT AND LOSS
STATEMENTS 2020-2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change

Net Sales Rs m 611,376 619,430 1.3%
Other income Rs m 27,250 25,295 -7.2%
Total Revenues Rs m 638,626 644,725 1.0%
Gross profit Rs m 123,423 146,326 18.6%
Depreciation Rs m 20,855 27,634 32.5%
Interest Rs m 7,328 5,088 -30.6%
Profit before tax Rs m 122,490 138,899 13.4%
Tax Rs m 24,801 30,349 22.4%
Profit after tax Rs m 97,689 108,550 11.1%
Gross profit margin % 20.2 23.6
Effective tax rate % 20.2 21.8
Net profit margin % 16.0 17.5

WIPRO P&L Analysis

▪ Operating income during the year rose 1.3% on a year-on-
year (YoY) basis.

▪ The company's operating profit increased by 18.6% YoY

during the fiscal. Operating profit margins witnessed a fall
and down at 23.6% in FY21 as against 20.2% in FY20.

▪ Depreciation charges increased by 32.5% and finance costs

decreased by 30.6% YoY, respectively.

▪ Other income declined by 7.2% YoY.

 ▪ Net profit for the year grew by 11.1% YoY.

▪ Net profit margins during the year grew from 16.0% in FY20
to 17.5% in FY21.

BALANCE SHEET

WIPRO Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change

Networth Rs m 551,667 545,939 -1.0

Current Liabilities Rs m 216,393 230,040 6.3

Long-term Debt Rs m 4,840 7,458 54.1
Total Liabilities Rs m 806,784 825,658 2.3

Current assets Rs m 519,851 523,186 0.6

Fixed Assets Rs m 286,933 302,472 5.4
Total Assets Rs m 806,784 825,658 2.3

WIPRO Balance Sheet Analysis

▪ The company's current liabilities during FY21 stood at Rs 230
billion as compared to Rs 216 billion in FY20, thereby
witnessing an increase of 6.3%.
 ▪ Long-term debt stood at Rs 7 billion as compared to Rs 5
billion during FY20, a growth of 54.1%.

▪ Current assets rose 1% and stood at Rs 523 billion, while

fixed assets rose 5% and stood at Rs 302 billion in FY21.

▪ Overall, the total assets and liabilities for FY21 stood at Rs

826 billion as against Rs 807 billion during FY20, thereby
witnessing a growth of 2%.

WIPRO CASH FLOW STATEMENT 2020-21

No. of
12 12 %
Particulars months
Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating
Rs m 100,643 147,550 46.6%
Activities
Cash Flow from Investing
Rs m 34,012 7,739 -77.2%
Activities
Cash Flow from Financing - -
Rs m -
Activities 150,998 128,840
Net Cash Flow Rs m -14,421 25,559 -

WIPRO Cash Flow Statement Analysis

▪ WIPRO's cash flow from operating activities (CFO) during
FY21 stood at Rs 148 billion, an improvement of 46.6% on a
YoY basis.
 ▪ Cash flow from investing activities (CFI) during FY21 stood at
Rs 8 billion on a YoY basis.

▪ Cash flow from financial activities (CFF) during FY21 stood at

Rs -129 billion, an improvement of 15% on a YoY basis.

▪ Overall, net cash flows for the company during FY21 stood at
Rs 26 billion from the Rs -14 billion net cash flows seen
during FY20.

KEY RATIO ANALYSIS

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 2.4 2.3
Debtors’ Days Days 62 56
Interest coverage x 17.7 28.3
Debt to equity ratio x 0.0 0.0
Return on assets % 13.0 13.8
Return on equity % 17.7 19.9
Return on capital employed % 23.3 26.0

Ratio Analysis for WIPRO

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood

at 2.3x during FY21, from 2.4x during FY20. The current ratio
measures the company's ability to pay short-term and long-term
obligations.
 Interest Coverage Ratio: The company's interest coverage ratio
improved and stood at 28.3x during FY21, from 17.7x during FY20.
The interest coverage ratio of a company states how easily a
company can pay its interest expense on outstanding debt. A higher
ratio is preferable.
• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and
stood at 19.9% during FY21, from 17.7% during FY21. The ROE
measures the ability of a firm to generate profits from its
shareholders capital in the company.
Return on Capital Employed (ROCE): The ROCE for the company
improved and stood at 26.0% during FY21, from 23.3% during
FY20. The ROCE measures the ability of a firm to generate profits
from its total capital (shareholder capital plus debt capital) employed
in the company.
Return on Assets (ROA): The ROA of the company improved and
stood at 13.8% during FY21, from 13.0% during FY20. The ROA
measures how efficiently the company uses its assets to generate
earnings.

PER SHARE DATA/VALUATIONS

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 107.0 113.1
TTM Earnings per share Rs 17.1 19.8
Diluted earnings per share Rs 17.8 19.8
Price to Cash Flow x 9.1 12.9
TTM P/E ratio x 11.0 20.9
Price / Book Value ratio x 2.4 3.2
Market Cap Rs m 1,316,929 1,756,612
Dividends per share (Unadj.) Rs 1.0 1.0

Current Valuations for WIPRO

 ▪ The trailing twelve-month earnings per share (EPS) of the
company stands at Rs 19.8, an improvement from the EPS of
Rs 17.1 recorded last year.

▪ The price to earnings (P/E) ratio, at the current price of Rs

414.2, stands at 20.9 times its trailing twelve months
earnings.
▪ The price to book value (P/BV) ratio at current price levels
stands at 4.2 times, while the price to sales ratio stands at
3.7 times.
▪ The company's price to cash flow (P/CF) ratio stood at 12.9
times its end-of-year operating cash flow earnings.

WIPRO Share Price Performance

▪ Over the last one year, WIPRO share price has moved up from Rs
196.6 to Rs 414.2, registering a gain of Rs 217.6 or around 110.7%.
▪ Meanwhile, the S&P BSE IT Index is trading at Rs 26,543.2 (down
0.7%). Over the last one year it has moved up from 12,842.7 to
26,543.2, a gain of 13,701 points (up 106.7%).
▪ Overall, the S&P BSE SENSEX is up 74.1% over the year.

FAQ OF WIPRO ANNUAL REPORT 2020-21

1 What is the current share price of WIPRO?
WIPRO currently trades at Rs 393.0 per share. You can check out the
latest share price performance of WIPRO here...
What was the revenue of WIPRO in FY21? How does it compare to earlier
years?
The revenues of WIPRO stood at Rs 644,725 m in FY21, which was up
1.0% compared to Rs 638,626 m reported in FY20.
WIPRO's revenue has grown from Rs 580,710 m in FY17 to Rs 644,725
m in FY21.

Over the past 5 years, the revenue of WIPRO has grown at a CAGR of
2.6%.

2 What was the net profit of WIPRO in FY21? How does it compare to
earlier years?
The net profit of WIPRO stood at Rs 108,550 m in FY21, which was up
11.1% compared to Rs 97,689 m reported in FY20.

This compares to a net profit of Rs 90,222 m in FY19 and a net profit of

Rs 80,020 m in FY18.

Over the past 5 years, WIPRO net profit has grown at a CAGR of 6.2%.

3 What does the cash flow statement of WIPRO reveal?

The cash flow statement is the financial statement that presents the cash
inflows and outflows of a company during a given period of time.
This statement is one of the most useful tools for judging a company's
liquidity position. The ratios and parameters in this statement helps test a
company's financial health.

The cash flow statement of WIPRO reveals:

▪ Cash flow from operations increased in FY21 and stood at Rs

147,550 m as compared to Rs 100,643 m in FY20.

▪ Cash flow from investments decreased in FY21 and stood at

Rs 7,739 m as compared to Rs 34,012 m in FY20.

▪ Cash flow from financial activity increased in FY21 and stood

at Rs -128,840 m as compared to Rs -150,998 m in FY20.

Here's the cash flow statement of WIPRO for the past 5 years.
 (Rs m) FY17 FY18 FY19 FY20 FY21
From Operations 92,773 84,233 116,316 100,643 147,550
-
From Investments 35,578 50,126 34,012 7,739
116,283
From Financial - - -
-22,752 -49,369
Activity 129,978 150,998 128,840
Net Cashflow -47,674 -9,792 117,599 -14,421 25,559

4 What does the Key Ratio analysis of WIPRO reveal?

Be it the company's profitability, operations effectiveness or utilization of
funds, ratio analysis is an important tool which helps in making investment
decisions.

The ratio/financial analysis of WIPRO reveals:

▪ Operating profit margins witnessed a fall and down at 23.6%

in FY21 as against 20.2% in FY20.

▪ Net profit margins grew from 16.0% in FY20 to 17.5% in

FY21.

▪ Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0

in FY20.

Here's the ratio/financial analysis of WIPRO for the past 5 years.

 FY17 FY18 FY19 FY20 FY21
Operating Profit Margin (%) 20.4 19.0 19.7 20.2 23.6
Net Profit Margin (%) 15.4 14.7 15.3 16.0 17.5
Debt to Equity Ratio (x) 0.0 0.1 0.1 0.0 0.0
KEY AWARDS & RECOGNITIONS
Your Company is one of the most admired and recognized
companies in the IT industry. Your Company has won several
awards and accolades, out of which key recognitions are given
below:
1. Wipro was included in the Dow Jones Sustainability Index
(DJSI) - World and Emerging Markets for the 11th time in
succession.
2. Wipro has been recognized as one of the World’s Most
Ethical Companies for the 10th successive year by the
Ethisphere Institute.
3. Wipro has received the award for “Leadership” category in
corporate governance practices for the 4th consecutive year
under corporate governance scorecard developed by BSE
Limited (BSE), International Finance Corporation (IFC) and
IiAS.
4. Wipro was positioned as a leader in Gartner''s Magic
Quadrant for Data Center Outsourcing and Hybrid
Infrastructure Managed Services, Asia Pacific.
5. Wipro has won the Data Estate Modernization 2020
Microsoft Partner of the Year Award.
6. Wipro was recognized as leader in Everest Group PEAK
Matrix™ for Healthcare Payer Operations Service Providers
2020.
7. Wipro has won the ‘Oracle UK & Ireland Partner of the Year
2020’ award in ‘Customer Experience’ category.
8. Wipro has won the Application Innovation 2020 Microsoft
Partner of the Year Award for demonstrating excellence in
innovation and implementation of customer solutions based on
Microsoft technology.
9. Wipro was positioned as a Leader and Star Performer in
Everest Group PEAK Matrix for Open Banking IT Service
Providers 2020.
10. Wipro was positioned as a Leader in Everest Group’s BFS
Risk and Compliance IT Services PEAK Matrix Assessment
2020.
 CONCLUSION

Financial statement analysis is the process of analyzing a

company's financial statements for decision-making purposes.
External stakeholders use it to understand the overall health of
an organization as well as to evaluate financial performance
and business value. Internal constituents use it as a monitoring
tool for managing the finances. The financial statements of a
company record important financial data on every aspect of a
business’s activities. As such they can be evaluated on the
basis of past, current, and projected performance.

According to this research we find that the company’s overall

position is good. The company achieves sufficient profit in the
last 1 years. Fixed assets are efficiently utilised due to which
the profits of the company are increasing every year. The long
term solvency of the company is good. The company maintains
low liquidity to achieve high profitability. The company earned
sufficient profit during the period. So, from this study we
understood that the company has good liquidity, solvency and
profitability position and has good overall financial performance.
The management of the company has done a good job and
must try to maintain the good performance of the company.