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Transcript of Wipro Result Updated
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8/2/2019 Wipro Result Updated
1/14
Please refer to important disclosures at the end of this report 1
(` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)Net revenue 9,869 9,997 (1.3) 8,302 18.9EBITDA 1,961 1,984 (1.2) 1,707 14.9
EBITDA margin (%) 19.9 19.8 2bp 20.6 (69)bp
PAT 1,481 1,456 1.7 1,375 7.7Source: Company, Angel Research
For 4QFY2012, Wipros results came in-line with our expectations.
The companys client base increased to seven in the US100mn+ bracket at the
end of FY2012 from three in FY2011, which was a positive sign. The major
disappointment came from managements 1QFY2013 USD revenue growth
guidance of -1 to 1%, which is very sluggish as 1Q is typically a good quarter for
IT companies. This guidance indicates that management is seeing further delays
in deal closures and ramp-up of projects. We recommend Neutral on the stock.Quarterly highlights: For 4QFY2012, Wipro registered a 1.3% qoq decline in itsrevenue to `9,869cr. Revenue from the IT services segment came in at
US$1,536mn, up 2.0% qoq. Revenue from the consumer care and lighting
segment grew strongly by 25.2% yoy, while the IT products segment reported
merely 2.9% yoy revenue growth. EBIT margin of the IT services, IT products and
consumer care and lighting business declined by 8bp, 60bp and 61bp qoq to
20.7%, 4.7% and 12.5%, respectively. Wipros overall EBIT margin declined by
8bp qoq to 17.2%.
Outlook and valuation: For 1QFY2013, Wipro has given USD revenue guidanceof US$1,520mn-1,550mn, which translates into qoq growth of -1 to 1% qoq,
which is extremely subdued. Now, managements endeavor is to grow at par with
industrys average revenue growth for FY2013. Nasscom has guided for 11-14%
yoy USD revenue growth for FY2013 to achieve this Wipro needs to record at
least 3.5% qoq USD revenue growth post 1QFY2013. This number indicates that
management is banking more on back-ended growth for FY2013, which makes
us slightly cautious about the companys growth outlook. We expect USD and INR
revenue CAGR for IT services to be at 10.3% and 11.0%, respectively, over
FY2012-14E. We expect EBIT margin of the IT services segment to slide down to
20.2% in FY2013 from 20.8% in FY2012. We expect a 12.1% and 12.3% CAGR
in EBITDA and PAT, respectively, over FY2012-14E. We value the stock at 15xFY2014E EPS of `28.6, which gives us a target price of `430. We recommendNeutral on the stock.Key financials (Consolidated, IFRS)Y/E March (` cr) FY2010* FY2011 FY2012 FY2013E FY2014ENet sales 27,124 31,099 37,525 41,918 46,879% chg 6.2 14.7 20.7 11.7 11.8
Net profit 4,594 5,297 5,573 6,152 7,030% chg 18.5 15.3 5.2 10.4 14.3
EBITDA margin (%) 21.9 21.2 19.8 19.4 19.9
EPS (`) 18.9 21.7 22.7 25.1 28.6P/E (x) 21.7 18.9 18.1 16.4 14.3
P/BV (x) 4.6 4.2 3.5 3.0 2.6
RoE (%) 23.4 22.0 19.5 18.6 18.3
RoCE (%) 15.6 15.5 14.7 13.9 13.9
EV/Sales (x) 3.4 2.9 2.4 2.1 1.7
EV/EBITDA (x) 15.7 13.9 12.3 10.6 8.6
Source: Company, Angel Research; Note: *Adjusted for 2:3 bonus
NEUTRALCMP `410
Target Price -
Investment Period -
Stock Info
Sector
Bloomberg Code
Shareholding Pattern (%)
Promoters 78.4
MF / Banks / Indian Fls 3.4
FII / NRIs / OCBs 6.7
Indian Public / Others 11.5
Abs. (%) 3m 1yr 3yr
Sensex 0.4 (12.4) 51.4
Wipro (2.0) (11.9) 119.2
Face Value (`)
BSE SensexNifty
Reuters Code
100,630
0.8
472/310
126,707
IT
Avg. Daily Volume
Market Cap (` cr)
Beta
52 Week High / Low
2
17,1515,202
WIPR.BO
WPRO@IN
Ankita Somani+91 22 3935 7800 Ext: 6819
WiproPerformance Highlights
4QFY2012 Result Update | IT
April 25, 2012
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8/2/2019 Wipro Result Updated
2/14
Wipro | 4QFY2012 Result Update
April 25, 2012 2
Exhibit 1:4QFY2012 performance (Consolidated, IFRS)
Y/E March (` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy) FY2012 FY2011 % chg (yoy)Net revenue 9,869 9,997 (1.3) 8,302 18.9 37,525 31,099 20.7Cost of revenue 6,580 6,710 (1.9) 5,512 19.4 25,304 20,464 23.7
Gross profit 3,289 3,287 0.1 2,790 17.9 12,220 10,635 14.9
SG&A expense 1,328 1,303 1.9 1,083 22.6 4,806 4,047 18.8
EBITDA 1,961 1,984 (1.2) 1,707 14.9 7,414 6,588 12.5Dep. and amortization 267 260 2.5 228 17.0 1,013 821 23.4
EBIT 1,694 1,724 (1.7) 1,479 14.6 6,401 5,767 11.0
Other income 198 113 149 541 472
PBT 1,893 1,849 2.4 1,642 15.3 6,975 6,303 10.7
Income tax 402 381 5.4 260 54.2 1,376 971 41.7
PAT 1,491 1,468 1.6 1,381 7.9 5,599 5,332 5.0Minority interest 10 11 (9.6) 6 74.6 26 35 (25.8)
Adj. PAT 1,481 1,456 1.7 1,375 7.7 5,573 5,297 5.2
Diluted EPS (`) 6.0 5.9 1.7 5.6 7.7 22.7 21.7 4.7Gross margin (%) 33.3 32.9 44bp 33.6 (28)bp 32.6 34.2 (163)bp
EBITDA margin (%) 19.9 19.8 2bp 20.6 (69)bp 19.8 21.2 (143)bp
EBIT margin (%) 17.2 17.2 (8)bp 17.8 (64)bp 17.1 18.5 (149)bp
PAT margin (%) 17.0 15.7 131bp 16.6 37bp 16.3 18.6 (226)bp
Source: Company, Angel Research
Exhibit 2:4QFY2012 Actual vs. Angel estimates
(` cr) Actual Estimate Variation (%)Net revenue 9,869 10,125 (2.5)
EBITDA margin (%) 19.9 19.9 (1)bp
PAT 1,481 1,522 (2.7)
Source: Company, Angel Research
Results in-line but guidance muted
For 4QFY2012, Wipros IT services revenue came largely in-line with expectations
at US$1,536mn, up 2.0% qoq, primarily led by 0.8% qoq volume growth in global
IT services and 1.1% qoq (constant currency basis) offshore pricing growth.
In constant currency (CC) terms, onsite pricing was flat on a qoq basis. Volume
growth of 0.8% qoq in global IT services came on the back of 1.1% offshore
volume growth and 0.2% onsite volume growth. In CC terms, the IT service
segments revenue grew by 1.3% qoq to US$1,525mn. In INR terms, revenue ofthe IT services segment came in at `7,590cr, down 0.2%, impacted by INR
appreciation against USD.
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Wipro | 4QFY2012 Result Update
April 25, 2012 3
Exhibit 3:Volume trend (Effort wise)
(0.4)
5.8
9.0
1.5
0.2
2.8
0.2
4.7
2.0
1.1
(2)
0
2
4
6
8
10
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
(%)
Onsite Offshore
Source: Company, Angel Research
Exhibit 4:Pricing trend (Effort wise, CC basis)
0.9
(1.7)
(0.4)
4.3
-0.4(1.2)
(4.1)
3.6 1.1
(6)
(4)
(2)
0
2
4
6
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
(%)
Onsite Offshore
Source: Company, Angel Research
Service wise, Wipros anchor service lines, business application services
(contributed 30.6% to revenue), application development and maintenance (ADM)
(contributed 23.6% to revenue) and technology infrastructure services (contributed22.6% to revenue) posted 1.3%, 0.7% and 6.4% qoq growth in revenue,
respectively. In addition, analytics and information management services posted
modest 5.4% qoq growth in revenue. However, revenue from other service verticals
such as BPO and product engineering and mobility declined by 2.0% and 1.5%
qoq, respectively. Service vertical wise, the company is now witnessing traction
from deals related to application management, application support, infrastructure
services and BPO. Revenue from BPO services has been declining since the last
three quarters and management indicated that revenue from BPO is expected to
come back to the growth path in the next couple of quarters.
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Wipro | 4QFY2012 Result Update
April 25, 2012 4
Exhibit 5:Revenue growth (Service wise)
Service verticals % to revenue % growth (qoq) % growth (yoy)Technology infrastructure services 22.6 6.4 14.7
Analytics and information management 6.8 5.4 24.9Business application services 30.6 1.3 13.0
BPO 8.2 (2.0) (8.4)
Product engineering and mobility 8.2 (1.5) 8.5
ADM 23.6 0.7 5.1
R&D business 12.0 (2.9) 1.3
Consulting 2.9 (1.1) 0.3
Source: Company, Angel Research
Industry wise, Wipros growth was led by retail and transportation (contributed
15.4% to revenue) and energy and utilities (contributed 14.0% to revenue), which
reported revenue growth of 5.2% and 5.1% qoq (CC terms), respectively. Revenue
from the companys anchor vertical, financial services (contributed 26.6% to
revenue) reported a 1.1% qoq decline (CC terms) due to challenges and delays
seen from investment banking and insurance firms. Revenue from healthcare, life
sciences and services (contributed 10.0% to revenue) and manufacturing and
hi-tech (contributed 19.1% to revenue) grew by 1.7% and 2.4% qoq (CC terms),
respectively. Management indicated that equipment manufacturers space in the
telecom industry is still challenged in terms of IT spend; service provider
companies, especially small companies, are looking for new opportunities in
Europe and Asia Pacific. Other than telecom, management indicated that the deal
pipeline in financial services and healthcare looks promising.
Exhibit 6:Revenue growth (Service wise CC basis)
% to revenue % growth (qoq) % growth (yoy)Global media and telecom 14.9 (2.9) (2.8)
Financial solutions 26.6 (1.1) 10.5
Manufacturing and hi-tech 19.1 2.4 8.2
Healthcare, life sciences and services 10.0 1.7 6.7
Retail and transportation 15.4 5.2 10.2
Energy and utilities 14.0 5.1 50.4
Source: Company, Angel Research
Geography wise, Wipro reported revenue growth across all its geographies, except
Japan. Revenue from APAC and other emerging markets grew by 6.2% qoq (CC
terms). Revenue from America and India and Middle East posted 1.0% and 4.1%
qoq (CC terms) growth, respectively.
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Wipro | 4QFY2012 Result Update
April 25, 2012 5
Exhibit 7:Revenue growth (Geography wise, CC basis)
% to revenue % growth (qoq) % growth (yoy)America 52.1 1.0 6.1
Europe 27.7 0.4 11.3Japan 1.1 (16.7) (21.3)
India and Middle East 9.6 4.1 27.7
APAC and other emerging markets 9.5 6.2 36.3
Source: Company, Angel Research
Segmental performance
During the quarter, the IT services segments revenue came in at US$1,536mn, up
2.0% qoq, with India and Middle East business being the major growth driver,
posting 6.4% qoq growth. Revenue from global IT services came in at
US$1,159mn, up 1.5% qoq, while revenue from BPO services declined by 1.6%qoq to US$126mn.
Exhibit 8:IT services Revenue growth (qoq)
2.7 2.3
4.7 4.3
1.5
7.7
(4.4)
7.5
(5.0)
6.4
9.8
(4.6)
(1.0) (1.2)
(1.6)
4.2
0.5
4.6
2.22.0
(8)
(4)
0
4
8
12
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
(%)
Global IT India and Middle East BPO IT services
Source: Company, Angel Research
Exhibit 9:Global IT services revenue trend
1.9 1.8
6.0
1.8
0.8
4.2
0.5
4.6
2.2 2.0
0
1
2
3
4
5
6
7
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
(%)
Global IT volume growth IT services revenue growth (in USD)
Source: Company, Angel Research
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Wipro | 4QFY2012 Result Update
April 25, 2012 6
The IT products segment reported merely 2.9% yoy growth in revenue to `937cr
during the quarter. The consumer care and lighting segment posted another strong
quarter with 25.2% yoy growth in revenue to `907cr, with brands like Yardley,
Santoor and Chandrika bolstering growth. In the lighting business, Wipro isgaining traction in its eco-energy business, which involves managing energy
through the use of renewable products.
Exhibit 10:IT products Revenue growth (yoy)
911
1,006 1,001
900
9372.3
20.9
(6.4)
2.42.9
(15)
(5)
5
15
25
700
800
900
1,000
1,100
1,200
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
(%)
(`cr)
IT products yoy growth (%)
Source: Company, Angel Research
Exhibit 11:Consumer care and lighting Revenue growth (yoy)
724
755
800
879
907
19.1
17.6
20.3
26.4
25.2
15
17
19
21
23
25
27
29
600
650
700
750
800
850
900
950
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
(%)
(`cr)
Consumer care and lightening yoy growth (%)
Source: Company, Angel Research
On a consolidated level, Wipros revenue came in at `9,869cr, down 1.3% qoq.
Hiring and utilization
Wipro reported net reduction of 814 employees in its IT services employee base,
which was a negative surprise with its employee base now standing at 135,920.
Management attributed this to the transition going on in the company, which is
leading to people shifting offshore. Gross hiring during the quarter was healthy at
~7,000. Voluntary attritions (annualized) in global IT business increased slightly to
14.4% in 4QFY2012 from 14.2% in 3QFY2012. Also, attrition rate (quarterly) in
BPO increased to 15.1% in 4QFY2012 from 13.9% in 3QFY2012.
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Wipro | 4QFY2012 Result Update
April 25, 2012 7
Exhibit 12:Employee pyramid
Employee pyramid 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12Utilization Global IT (%) 68.9 69.7 69.3 67.1 67.4
Attrition (%)Global IT 20.9 23.2 18.5 14.2 14.4
BPO 15.5 15.3 14.1 13.9 15.1
Net additions 2,894 4,105 5,240 5,004 (814)
Source: Company, Angel Research
Utilization rate of the global IT business improved slightly by 30bp qoq to 67.4%.
As per management, of the total hiring to be done in FY2012, ~70% was of
freshers, which in turn did not give utilization level much headroom to scale up.
Going ahead, increased utilization level will be an important margin lever.
Margins decline slightlyDuring 4QFY2012, Wipro reported a decline in EBIT margin across all its business
segments. EBIT margin of the IT services segment declined slightly by 8bp qoq to
20.7%. EBIT margin of the IT products business segment and consumer care and
lighting business segment declined by 60bp and 61bp qoq to 4.7% and 12.5%,
respectively. On a consolidated level, Wipros EBIT declined by 8bp qoq to 17.2%.
Exhibit 13:Segment-wise EBIT margin trend
22.1 22.0
20.020.8 20.7
3.64.2 4.5
5.3 4.7
12.0 11.911.0
11.9 12.5
17.8 17.516.4
17.2 17.2
0
5
10
15
20
25
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
(%)
IT services IT products Consumer care and lightening Consolidated
Source: Company, Angel Research
Client pyramid
Wipro added 41 new clients in 4QFY2012 but its active client base reduced to 943
in 4QFY2012 from 953 in 3QFY2012. The companys client pyramid witnessed
qualitative improvement, with one client getting added in the US$100mn plus
revenue bracket and one client in the US$75mn-100mn revenue bracket. Two
clients from the US$10mn-20mn bracket moved to the US$20mn-50mn revenue
bracket. The company witnessed addition of 11 clients in the US$5mn-10mn
revenue bracket.
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8/2/2019 Wipro Result Updated
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Wipro | 4QFY2012 Result Update
April 25, 2012 8
Exhibit 14:Client metrics
Particulars 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12US$100mn plus 3 4 5 6 7
US$75mn$100mn 9 8 8 8 9US$50mn$75mn 10 12 11 11 9
US$20mn$50mn 46 45 46 48 50
US$10mn$20mn 49 49 50 48 46
US$5mn$10mn 63 77 72 76 87
US$3mn$5mn 75 63 75 87 84
US$1mn$3mn 174 180 195 178 183
New clients 68 49 44 39 41
Active customers 904 937 930 953 943
Source: Company, Angel Research
Outlook and valuation
As per management, the company witnessed pressure from clients in India
business, which led to delays in project closures. For 1QFY2013, management has
given USD revenue guidance of US$1,520mn-1,550mn, which translates into qoq
growth of -1 to 1% qoq, which is extremely subdued. Now, managements
endeavor is to grow at par with industrys average revenue growth in FY2013.
Nasscom has guided for 11-14% yoy USD revenue growth for FY2013 to
achieve this Wipro needs to record at least 3.5% qoq USD revenue growth post
1QFY2013. This number indicates that management is banking more on back-
ended growth for FY2013, which makes us slightly cautious about the companys
growth outlook. We expect USD and INR revenue CAGR for IT services to be at
10.3% and 11.0%, respectively over FY2012-14E.At the operating front, Wipro has tailwinds of improving utilization level and
headwinds such as wage inflation and moderate volume growth, which are
expected to pull down its margins to some extent. We expect EBIT margin of the IT
services segment to slide down to 20.2% in FY2013 from 20.8% in FY2012.
We expect a 12.1% and 12.3% CAGR in EBITDA and PAT over FY2012-14E.
We value the stock at 15x FY2014E EPS of `28.6, which gives us a target price of`430. We recommend Neutral on the stock.Exhibit 15:Key assumptions
FY2013 FY2014Revenue growth IT services (USD) 9.5 11.0
USD-INR rate (realized) 49.0 49.0
Revenue growth Consolidated (`) 11.7 11.8
EBITDA margin (%) 19.4 19.9
Tax rate (%) 21.0 24.0
EPS growth (%) 10.5 14.3
Source: Company, Angel Research
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Wipro | 4QFY2012 Result Update
April 25, 2012 9
Exhibit 16:Change in estimates
FY2013E FY2014EParameter Earlier Revised Variation Earlier Revised Variation(` cr) estimates estimates (%) estimates estimates (%)Net revenue 43,249 41,918 (3.1) 48,043 46,879 (2.4)
EBITDA 8,507 8,118 (4.6) 9,254 9,320 0.7
Other income 960 819 (14.7) 1,627 1,216 (25.2)
PBT 8,327 7,812 (6.2) 9,610 9,276 (3.5)
Tax 1,665 1,641 (1.5) 2,162 2,226 3.0
PAT 6,641 6,152 (7.4) 7,427 7,030 (5.3)
Source: Company, Angel Research
Exhibit 17:One-year forward PE chart
50
200
350
500
650
800
950
A
pr-06
O
ct-06
A
pr-07
O
ct-07
A
pr-08
O
ct-08
A
pr-09
O
ct-09
A
pr-10
O
ct-10
A
pr-11
O
ct-11
A
pr-12
(`)
Price 34x 28x 21x 14x 7x
Source: Company, Angel Research
Exhibit 18:Recommendation summary
Company Reco. CMP Tgt. price Upside FY2014E FY2014E FY2011-14E FY2014E FY2014E(`) (`) (%) EBITDA (%) P/E (x) EPS CAGR (%) RoCE (%) RoE (%)
HCL Tech Accumulate 508 560 10.3 17.4 11.8 17.0 20.4 21.3
Hexaware Neutral 130 - - 18.3 12.6 53.4 24.1 21.6
Infosys Buy 2,349 2,792 18.9 30.6 13.5 13.4 22.8 20.8
Infotech Enterprises Accumulate 159 177 11.1 16.6 8.6 13.9 16.9 13.2KPIT Cummins Buy 83 98 18.7 14.9 7.6 (1.4) 20.0 18.0
Mahindra Satyam Buy 74 89 19.5 15.0 9.0 25.3 11.4 13.0
MindTree Accumulate 548 585 6.8 15.5 9.4 32.9 19.8 17.0
MphasiS Buy 356 433 21.6 17.9 8.6 1.7 14.1 13.7
NIIT Buy 45 61 36.0 16.9 4.9 18.0 11.5 19.0
Persistent Neutral 354 - - 22.4 8.8 4.7 17.0 14.5
TCS Accumulate 1,172 1,276 8.8 28.7 16.5 16.8 28.8 27.7
Tech Mahindra Accumulate 688 750 9.1 15.7 7.9 20.8 12.9 18.0
Wipro Neutral 410 - - 19.9 14.3 9.7 13.9 18.3Source: Company, Angel Research
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Profit & Loss account (Consolidated, IFRS)
Y/E March (` cr) FY2010* FY2011 FY2012 FY2013E FY2014ENet revenue 27,124 31,099 37,525 41,918 46,879Cost of revenues 18,630 21,285 26,317 29,390 32,740Gross profit 8,494 9,814 11,207 12,529 14,139% of net sales 31.3 31.6 29.9 29.9 30.2
Selling and mktg exp. 1,861 2,218 2,778 3,240 3,627
% of net sales 6.9 7.1 7.4 7.7 7.7
General and admin exp. 1,482 1,829 2,029 2,315 2,472
% of net sales 5.5 5.9 5.4 5.5 5.3
Depreciation and amortization 783 821 1,013 1,144 1,280
% of net sales 2.9 2.6 2.7 2.7 2.7
EBIT 5,151 5,767 6,401 6,974 8,040% of net sales 19.0 18.5 17.1 16.6 17.2
Other income, net 337 472 541 819 1,216
Share in profits of eq. acc. ass. 53 64.8 33.3 20 20
Profit before tax 5,541 6,303 6,975 7,812 9,276
Provision for tax 929 971 1,376 1,641 2,226
% of PBT 16.8 15.4 19.7 21.0 24.0
PAT 4,612 5,332 5,599 6,172 7,050Share in earnings of associate - - - - 1Minority interest 18 35 26 20 20
Adj. PAT 4,594 5,297 5,573 6,152 7,030Diluted EPS (`) 18.9 21.7 22.7 25.1 28.6
Note: *Adjusted for 2:3 bonus
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Balance sheet (Consolidated, IFRS)Y/E March ( cr) FY2010* FY2011 FY2012 FY2013E FY2014EAssetsGoodwill 5,380 5,482 6,794 6,794 6,794
Intangible assets 401 355 423 500 500
Property, plant & equipment 5,346 5,509 5,899 5,954 5,875
Investment in equ. acc. investees 235 299 323 400 400
Derivative assets 120 298 346 500 500
Non-current tax assets 346 924 1,029 1,338 1,234
Deferred tax assets 169 147 260 300 300
Other non-current assets 878 898 1,178 1,469 1,477
Total non-current assets 12,875 13,913 16,251 17,255 17,079Inventories 793 971 1,066 1,034 1,156
Trade receivables 5,093 6,163 8,033 8,039 8,990
Other current assets 2,111 1,974 2,574 2,632 2,700
Unbilled revenues 1,671 2,415 3,003 3,101 3,468Available for sale investments 3,042 4,928 4,196 9,411 12,799
Current tax assets 660 496 564 780 800
Derivative assets 262 171 147 247 250
Cash and cash equivalents 6,488 6,114 7,767 7,700 10,421
Total current assets 20,118 23,231 27,349 32,943 40,584Total assets 32,993 37,144 43,600 50,199 57,663EquityShare capital 294 491 492 492 492
Share premium 2,919 3,012 3,046 3,046 3,046
Retained earnings 16,579 20,325 24,191 28,620 33,928
Share based payment reserve 314 136 198 198 198
Other components of equity (440) 58 659 659 659
Shares held by controlled trust (54) (54) (54) (54) (54)
Equity attrib. to shareholders of Co. 19,611 23,968 28,531 32,960 38,268
Minority interest 44 69 85 85 85
Total equity 19,655 24,037 28,616 33,045 38,353LiabilitiesLong term loans and borrowings 1,811 1,976 2,251 2,401 2,551
Deferred tax liability 38 30 35 70 80
Derivative liabilities 288 259 31 350 370
Non-current tax liability 307 502 540 700 850
Other non-current liabilities 323 271 352 400 450
Provisions 10 8 6 16 15Total non-current liabilities 2776.7 3045.3 3215.3 3937 4316Loans and bank overdraft 4,440 3,304 3,645 3,978 4,350
Trade payables 3,875 4,405 4,726 5,636 6,369
Unearned revenues 746 660 957 750 900
Current tax liabilities 485 734 723 780 850
Derivative liabilities 138 136 635 635 635
Other current liabilities 650 591 970 1,220 1,620
Provisions 227 232 112 216 270
Total current liabilities 10,561 10,062 11,769 13,216 14,994
Total liabilities 13,338 13,107 14,984 17,153 19,310
Total equity and liabilities 32,993 37,144 43,600 50,199 57,663Note: *Adjusted for 2:3 bonus
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April 25, 2012 12
Cash flow statement (Consolidated, IFRS)
Y/E March (` cr) FY2010* FY2011 FY2012 FY2013E FY2014EPre tax profit from operations 5,204 5,832 6,434 6,994 8,060
Depreciation 783 821 1,013 1,144 1,280Expenses (deferred)/written off (18) (35) (26) (20) (20)
Pre tax cash from operations 5,969 6,618 7,422 8,118 9,320
Other income/prior period ad 337 472 541 819 1,216
Net cash from operations 6,306 7,090 7,962 8,937 10,536
Tax (929) (971) (1,376) (1,641) (2,226)
Cash profits 5,377 6,119 6,586 7,296 8,310(Inc)/dec in current assets (1,076) (1,601) (3,197) (447) (1,531)
Inc/(dec) in current liab. 237 (499) 1,707 1,448 1,778
Net trade working capital (840) (2,101) (1,490) 1,001 247
Cashflow from oper. actv. 4,537 4,018 5,096 8,297 8,557(Inc)/dec in fixed assets (1,150) (985) (1,402) (1,200) (1,200)
(Inc)/dec in intangibles 182 (56) (1,380) (77) -
(Inc)/dec in investments (1,455) (1,951) 708 (5,291) (3,389)
(Inc)/dec in net def. tax assets 268 22 (113) (40) -
(Inc)/dec in derivative assets (120) (178) (48) (154) -
(Inc)/dec in non-current tax asset (346) (578) (105) (310) 104
(Inc)/dec in minority interest 20 25 16 - -
Inc/(dec) in other non-current liab (436) 103 (105) 572 229
(Inc)/dec in other non-current ast. (70) (20) (280) (290) (8)
Cashflow from investing activities (3,107) (3,616) (2,709) (6,791) (4,263)Inc/(dec) in debt (157) 165 275 150 150
Inc/(dec) in equity/premium 982 617 713 0 0
Dividends (679) (1,558) (1,723) (1,723) (1,723)
Cashflow from financing activities 146 (775) (735) (1,573) (1,573)Cash generated/(utilized) 1,576 (374) 1,653 (67) 2,721Cash at start of the year 4,912 6,488 6,114 7,767 7,700
Cash at end of the year 6,488 6,114 7,767 7,700 10,421
Note: *Adjusted for 2:3 bonus
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8/2/2019 Wipro Result Updated
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Wipro | 4QFY2012 Result Update
April 25, 2012 13
Key Ratios
Y/E March FY2010* FY2011 FY2012 FY2013E FY2014EValuation ratio(x)P/E (on FDEPS) 21.7 18.9 18.1 16.4 14.3
P/CEPS 9.3 9.1 8.4 7.7 6.7
P/BVPS 4.6 4.2 3.5 3.0 2.6
Dividend yield (%) 1.0 1.5 1.5 1.5 1.5
EV/Sales 3.4 2.9 2.4 2.1 1.7
EV/EBITDA 15.7 13.9 12.3 10.6 8.6
EV/Total assets 2.8 2.5 2.1 1.7 1.4
Per share data (`)EPS (Fully diluted) 18.9 21.7 22.7 25.1 28.6
Cash EPS 44.3 45.1 48.8 53.5 61.4
Dividend 4.0 6.0 6.0 6.0 6.0
Book value 89.3 98.0 116.6 134.7 156.3
DuPont analysisTax retention ratio (PAT/PBT) 0.8 0.8 0.8 0.8 0.8
Cost of debt (PBT/EBIT) 7.1 7.7 6.9 6.8 7.2
EBIT margin (EBIT/Sales) 0.0 0.0 0.0 0.0 0.0
Asset turnover ratio (Sales/Assets) 0.8 0.8 0.9 0.8 0.8
Leverage ratio (Assets/Equity) 1.7 1.5 1.5 1.5 1.5
Operating ROE 23.5 22.2 19.6 18.7 18.4
Return ratios (%)RoCE (pre-tax) 15.6 15.5 14.7 13.9 13.9
Angel RoIC 28.5 28.0 25.8 26.5 29.1RoE 23.4 22.0 19.5 18.6 18.3
Turnover ratios (x)Asset turnover(fixed assets) 0.9 0.9 0.9 0.9 0.9
Receivables days 67 66 69 70 66
Payable days 79 71 63 64 67
Note: *Adjusted for 2:3 bonus
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8/2/2019 Wipro Result Updated
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Wipro | 4QFY2012 Result Update
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