20 April 2016
4QFY16 Results Update | Sector: Technology
Wipro
Neutral
BSE SENSEX
25,844
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
S&P CNX
7,915
WPRO IN
2,470.7
1,485.8 / 22.4
613 / 509
6/9/12
860
26.7
CMP: INR601
TP: INR600(0%)
Revenue growth turnaround will have to wait
1Q guidance again dampens full year prospects:
As has been the case in recent years,
WPRO’s dampener of a 1Q guidance yet again ruled out the likelihood of growth gap to
peers bridging in the full year. Its 1-3% QoQ CC guidance for revenue growth in 1QFY17
implies organic growth guidance of -1% to +1% as per our estimates. Assuming 0% at
the midpoint, even a 3% CQGR in the remainder of the year will leave the company
with 6% organic growth in CC in FY17.
Sluggish revenue performance ex-acquisitions:
This year’s weak 1Q guidance was
compounded by a tepid 4Q performance with CC revenue growth of 2.7%, which after
excluding acquisitions, was only 0.5% as per our estimates. IT Services EBIT margin of
20.1% was flattish QoQ (in line) and overall EBIT margin declined 50bp QoQ to 17.4%,
again below our estimate (of 18.4%), due to continued losses in the product segment.
PAT was INR22.35b, -0.4% QoQ, in line with our estimate of INR22.15b.
Payout up after adding buyback to dividends:
WPRO announced a total of INR6/share
in Dividends (pre-tax dividend of INR14.7b) and up to INR25b through the buyback.
Total payout of up to INR40b on PAT of INR89.22b in FY16 implies payout of ~45%,
compared to 34% in FY15. The company guided at sustaining ~40% payout going
forward.
Maintain Neutral on revenue underperformance:
Growth underperformance to peers
is only a part of revenue concern at WPRO. What is also notable is that the single digit
CC organic growth is lopsided in favor of India / Middle East (+20.7% YoY CC in FY16)
and APAC (+11% YoY CC), whereas Americas grew 8.5% and Europe was flat. Lest that is
addressed, even the margins will be at risk. We now expect USD revenue CAGR of 9.6%
over FY16-18 and earnings CAGR of 7.8%. Likely continued revenue underperformance
in FY17 curtails optimism at relatively lower valuation to INFO and TCS. Our target price
of INR600 discounts forward earnings by 14x. Maintain Neutral.
(INR Million)
FY15
FY16
3Q
4Q
1,795
1,775
1.3
-1.2
119,929 121,420
2.6
1.2
6.4
4.2
30.9
32.0
11.6
12.0
22.3
22.7
21.8
22.0
19.3
20.0
5,147
4,858
22.0
21.4
21,928 22,750
5.2
3.7
8.8
2.2
8.9
9.2
156,866 158,217
78.8
80.5
16.5
46.3
1814-
1850
55.5
1Q
1,794
1.1
122,376
0.8
9.9
30.7
12.2
21.3
21.0
18.5
5,286
21.2
21,877
-3.8
4.0
8.9
161,789
81.9
16.4
45.4
1821-
1857
54.5
2Q
1,832
2.1
125,135
2.3
7.1
31.4
12.4
21.8
20.7
19.0
5,138
22.4
22,354
2.2
7.2
9.1
168,396
82.3
16.4
46.1
1841-
1878
53.4
3Q
1,838
0.3
128,605
2.8
7.2
29.8
12.0
20.8
20.2
17.9
5,715
21.8
22,341
-0.1
1.9
9.1
170,664
78.0
16.3
46.2
1875-
1912
55.9
4Q
1,882
2.4
136,324
6.0
12.3
29.7
12.3
20.6
20.1
17.4
5,426
22.7
22,350
0.0
-1.8
9.1
172,912
77.5
45.8
FY16
7,346
3.7
512,440
9.1
30.4
12.2
21.1
20.5
18.2
21,565
22.1
88,922
2.7
36.1
172,912
74.9
45.9
FY17E
8,019
9.2
593,783
15.9
29.2
12.0
20.3
18.8
17.2
14,158
22.7
89,152
0.3
36.2
189,162
76.4
44.0
FY18E
8,820
10.0
675,310
13.7
29.9
11.9
21.0
19.5
18.0
11,107
22.7
101,653
14.0
42.0
207,812
76.7
44.2
Est.
4QFY16
1,910
3.9
137,354
6.8
13.1
30.2
11.8
21.3
19.9
18.4
3,158
21.8
22,153
-0.8
-2.6
9.0
175,709
80.0
45.0
Var.
(% / bp)
-1.5
-152bp
-0.7
-80bp
-85bp
-50bp
49bp
-73bp
-99bp
71.8
93bp
0.9
88bp
86bp
-1.6
-250bp
85bp
Financials & Valuation (INR b)
Y/E Mar
2016 2017E 2018E
Net Sales
512.4 593.8 675.3
EBITDA
108.1 120.6 141.6
PAT
88.9
89.2 101.7
EPS (INR)
36.1
36.2
42.0
Gr. (%)
2.9
0.3
15.9
BV/Sh (INR)
189.7 200.3 229.9
RoE (%)
20.3
18.6
19.4
RoCE (%)
16.7
16.4
18.6
P/E (x)
16.6
16.6
14.3
P/BV (x)
3.2
3.0
2.6
Estimate change
TP change
Rating change
Quarterly Performance (Consolidated)
Quarterly Performance (IFRS)
Y/E March
Revenue (USD m)
QoQ (%)
Revenue (INR m)
QoQ (%)
YoY (%)
GPM (%)
SGA (%)
EBITDA Margin (%)
IT Serv. EBIT (%)
EBIT Margin (%)
Other income
ETR (%)
PAT
QoQ (%)
YoY (%)
EPS (INR)
Headcount
Util excl. trainees (%)
Attrition (%)
Offshore rev. (%)
Rev Guidance (USDm)
Fixed Price (%)
E: MOSL Estimates
1Q
1,740
1.2
111,358
-4.4
14.5
32.7
12.3
22.9
22.8
20.4
4,449
21.9
21,032
-5.5
29.6
8.5
147,452
77.9
2Q
1,772
1.8
116,838
4.9
8.5
30.8
12.2
21.2
21.4
18.6
5,443
22.8
20,848
-0.9
7.9
8.5
154,297
79.4
16.1
16.5
16.5
45.7
46.3
45.7
1715-
1755 1770-1810 1808-1842
52.1
53.1
55.1
Ashish Chopra
(Ashish.Chopra@MotilalOswal.com); +91 22 3982 5424
Sagar Lele
(Sagar.Lele@MotilalOswal.com); +91 22 3982 5585
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on
www.motilaloswal.com/Institutional-Equities,
Bloomberg, Thomson Reuters, Factset and S&P Capital.

Wipro
4QFY16:
CC organic revenue growth <1% QoQ
Wipro’ 4QFY16 IT Services revenues at USD1,882m grew 2.4% QoQ v/s est. of
3.9% QoQ. CC revenue growth was 2.7% QoQ, implying that organic CC growth
was <1% QoQ, compared to our estimate of 2% QoQ CC.
In Rupee terms, overall revenues were INR136.3b, +6.0% QoQ, compared to our
estimate of INR137.4b, +6.8% QoQ.
Exhibit 1: Organic revenue growth of <1% QoQ CC was below our estimate of 2% QoQ CC
IT Services (USD m)
2.7
0.2
2.9
2.5
1.2
1.8
1.3
-1.2
QoQ Growth (%)
1.1
2.1
2.4
0.3
Source: Company, MOSL
Overall EBIT margin was 17.4%, -50bp QoQ, below our estimate of 18.4%. The
miss was largely on account of operating losses in the hardware business to the
tune of INR290m (-3.0% EBIT margin). This marks the third consecutive quarter
of losses in the product business.
IT Services EBIT was 20.1%, -10bp QoQ, above our estimate of 19.9%. During the
quarter, utilization (excluding trainees) declined to 77.5% from 78% in 3Q. The
tailwinds of INR depreciation and the absence of costs associated with the
Chennai floods were also offset by the part integration of HPS, which has a
margin lower than that of the company.
Exhibit 3: Utilization including trainees declined by 50bp
during the quarter
Utilization % (incl. trainees)
Utilization % (excl. trainees)
Exhibit 2: IT Services EBIT margin decline largely led by
lower utilization and HPS integration
IT Services EBIT margin (%)
IT Services SGA as % of Sales
Source: Company, MOSL
Source: Company, MOSL
20 April 2016
2

Wipro
PAT for the quarter was INR22.4b, flat QoQ, compared to our estimate of
INR22.2b, -0.8%. The beat was primarily led by Other income that was higher
than our expectation, INR5,426m, compared to our estimate of INR3,158m.
Guidance: 1% to 3% QoQ growth doesn’t signify pick-up in momentum
For 1QFY16, WPRO guided for revenues between USD1,901m-1,939m, +1-3%
QoQ in constant currency. This implies YoY growth of 6.8-8.9% in CC. For the full
year, the guidance implies revenue growth of 5.9-8.0% YoY CC.
The guidance includes the full integration of HPS, but doesn’t include the
acquisition of Viteos, as that is still to get approval. Given HPS’ USD57m
quarterly run-rate, this would imply contribution of 2pp from the acquisition,
hence suggesting organic revenue growth of -1.0% to 1%.
The guidance is in constant currency and is based on the average realized rates
during for 4QFY16, at GBP/USD at 1.42, Euro/USD at 1.12, AUD/USD at 0.74,
USD/INR at 67.31 and USD/CAD at 1.35.
Segmental
performance: Weakness in Financial Solutions continues
In constant currency Wipro saw flat revenues in Global Media & Telecom (0.1%
QoQ), and a decline in Finance Solutions (-0.3% QoQ), led by weakness in BFSI in
Continental Europe. Performance in Healthcare (13.1% QoQ) was driven by the
integration of HPS. Energy & Utilities continued to remain weak as it declined by
1.8% YoY CC.
Exhibit 4: Global Media and Telecom, Financial Solutions and Energy & Utilities remain
weak
Verticals
Global Media and Telecom
Finance Solutions
Manufacturing and Hi-Tech
Healthcare, Life Sciences and Services
Retail and Transportation
Energy and Utilities
Contri to
Rev. (%)
13.1
25.4
18.8
13.3
15.4
14.0
CC Growth -
QoQ (%)
0.1
-0.3
4.0
13.1
1.8
1.0
CC Growth -
YoY (%)
6.2
3.6
9.1
20.1
15.2
-1.8
Source: Company, MOSL
Among Services, Consulting declined by 8.2% QoQ, led by restructuring over the
last few quarters. Global Infrastructure Services showed strong growth of 5.5%
QoQ. Application services continued to face the pressure as it declined by 0.6%
QoQ, and grew a mere 0.2% YoY.
Exhibit 5: Continued flatness in Application Services
Services
Global Infrastructure Services
BPO
Product Engineering
Wipro Analytics
Application Services
Contri to
Rev. (%)
28.9
10.6
8.0
7.2
45.3
Growth –
QoQ (%)
5.5
10.6
1.8
-1.0
-0.6
Growth –
YoY (%)
9.9
19.9
11.5
6.7
0.2
Source: Company, MOSL
20 April 2016
3

Wipro
Among geographies, in CC terms, growth was led by India & Middle East (3.0%
QoQ). US picked up mildly compared to the previous quarter (1.8% QoQ versus
+0.3% QoQ in 3Q). However, excluding the one month integration of HPS,
growth would have been unimpressive. While growth in Europe reflected the
integration of Cellent, it was weighed upon by weakness in Financial Solutions.
Exhibit 6: India and Middle East continue to show strength
Geographies
US
Europe
India & Middle East business
Other emerging markets
Contri to
Rev. (%)
52.5
25.6
11.0
10.9
CC Growth -
QoQ (%)
1.8
6.6
3.0
-2.1
CC Growth -
YoY (%)
8.5
3.8
14.0
7.8
Source: Company, MOSL
Presented 6 themes that define strategic direction
CEO Abid Ali Neemuchwala presented six themes that represent the strategic
play for WPRO going ahead, in order to reach its ambition of USD15b revenue at
23% operating margin by 2020. The organization and leadership have been
structured to emphasize focus on these areas.
1.
Digital:
Offerings would include Advisory, Design and Technology execution.
The company would focus on consultative selling across domain and
technology, and has combined its Consulting practice with Digital to enable
this. The DesignIt acquisition has been integrating well and has given WPRO
an edge because of its early investments in this area. In Digital, WPRO won 7
deals in 4Q indicating traction in its offerings. While it trained 10,000
employees in Digital in FY16; it plans to train an additional 20,000 people in
Digital in FY17. Additionally, investments also involve opening of Digital pods
in New York, London, etc. to drive innovation with clients.
2.
Client mining:
WPRO set up an integrated service unit for mining. It has
been integrating its service lines and proactively offering services to clients.
To further augment mining, it has also introduced design for delivery
managers that will cover 1,000 delivery managers by the end of the year.
3.
Markets:
Focus has been increased on growth markets like Latin America,
Canada, South Africa and Continental Europe. Along with opening of
delivery centres at these geographies, WPRO is also focusing on improving
the local composition in its overseas delivery,
4.
Non linearity:
To increase the non-linear component in WPRO’s revenues, it
will invest in IP, in the form of products, platforms, frameworks and
solutions. HOMES has seen strong adoption so far with 18 projects across
verticals, of which 6 new pilots kicked off in 4Q itself. During the year 514
patents were filed across 9 jurisdictions, with 24 being filed on HOLMES
alone.
5.
Hyper-automation:
WPRO is already working on POCs across 42 clients on
driving hyper-automation. Focus will be on scaling these roll outs going
ahead. In FY16, 4,500 people were released because of automation.
6.
Leveraging the partner ecosystem:
The partner ecosystem has been a key
enabler to building capability and scale in Digital and in areas of strategic
4
20 April 2016

Wipro
Announced buy-back of shares taking payout higher
importance. M&A, alliances and partnerships will continue. During FY16,
mergers and acquisitions were focused on filling capability gaps and gaining
market access. WPRO Ventures made 6 investments worth USD20m in the
areas of Artificial Intelligence, Big data and analytics, Internet of Things and
Cyber security.
The Board approved a buyback proposal for the purchase of 40m shares,
representing 1.62% of total equity through a tender offer. The buyback price
would be INR625 per share payable in cash for an aggregate amount not
exceeding INR25b.
The Board also recommended a final dividend of INR1 per share, taking the
year’s total to INR6 per share. Combined with the buyback, this would imply a
total payout ratio of 45% for FY16, compared to 34% in FY15 and 25% in FY14.
Takeaways from Management Commentary
Demand environment:
Demand environment has been stable. Although client
spend is increasing minimally, the velocity of shift in budgets from ‘Run’ to
‘Change’ has been rapid. The reallocation is coupled with a change in focus in
WPRO’s offerings, where it is increasingly partnering with clients on their
transformation.
Vertical-wise commentary:
The Financial Solutions has seen some weakness on
account of softness in Continental Europe. Energy & Utilities continued to face
headwinds. However, WPRO has market leadership in this vertical, and expects
to gain disproportionately when discretionary spend revives in the sector. In
Telecom, clients continue to face their bit of transformation, and WPRO has won
some deals here.
Top account issues:
In the previous quarter, WPRO guided for continued in its
top account. Although it has won consolidation deals, and is responsible for
~85% of the technology needs, growth is yet to revive. The weakness has been
stemming out of a shift in the client’s budget from ‘Run’ to ‘Change’. WPRO has
accordingly moved people to pilot projects on the ‘Change’ side. Once these
pilots start ramping up, revenues are expected to pick-up.
Margins to be impacted negatively in 1QFY17:
There are a couple of headwinds
in 1Q, which are expected to weigh upon margins. HPS, which was integrated for
one quarter in 4Q will see full integration in 1Q. This would result in margins
being impacted by 2/3
rd
of the 60-80bp negative impact articulated at the time
of acquisition. Moreover, the impact of wage hikes in 1Q would be more than
usual as the company intends to rewards high-performers better.
Significant progress in strategy planning:
Since the CEO succession, WPRO has
made significant progress in aligning itself towards its strategy. The areas that
are in place are the leadership team, design services and work in the area of
hyper-automation. The company is in progress towards setting up a team in its
non-linear focus, local hiring in growth markets and gaining market access in
geographies like Germany.
Estimates factor in miss in 4Q and subdued 1Q guidance
Factoring in lower-than-expected organic revenue in 4QFY16 and weak organic
guidance for 1QFY17, we have cut our revenue estimates for FY17/18 by
5
20 April 2016

Wipro
2.2/1.3%. For FY17 we expect 9.2% USD revenue growth, which would be a
factor of 6% organic revenue growth and 4.2% contribution from acquisitions.
We expect 10% revenue growth in FY18E.
With additional pressure on margins due to losses in the product business,
greater impact of wage hike in 1Q, lack of material revival in organic revenue
growth and impact of full integration of lower-margin acquisitions, we have cut
our overall EBIT margin estimates for FY17/18 by 47/42bp. We now expect a
decline of 100bp in FY17 EBIT margins and an expansion of 80bp in FY18E.
Exhibit 7: Change in estimates
Revised
FY16E FY17E FY18E
USD Revenue - m
7,346 8,019 8,820
Growth (%)
3.7
9.2 10.0
EBIT Margin - Overall (%)
18.2 17.2 18.0
EBIT Margin - IT Services (%)
20.5 18.8 19.5
EPS - INR (IT Serv & Products) 36.1 36.2 42.0
FY16E
7,374
4.1
18.4
20.4
36.0
Earlier
FY17E
8,199
11.2
17.7
19.1
37.4
FY18E
8,940
9.0
18.4
19.7
43.5
Change
FY16E FY17E
-0.4% -2.2%
-39bp -203bp
-26bp -47bp
5bp -23bp
0.2% -3.1%
FY18E
-1.3%
96bp
-42bp
-19bp
-3.6%
Source: Company, MOSL
Valuation and view - No structural turnaround on the anvil just yet
The change in leadership will drive a tweak to the organization structure, and
role redundancies and senior exits are a natural part of the process. WPRO to its
credit is through with most of those changes already, so that FY17 is more about
execution on the strategy than the distraction from getting the team in place.
As WPRO’s new leader, Mr. Abid Ali has chalked out an aggressive plan for
WPRO, targeting to reach USD15b revenues with 23% EBIT margin. That implies
revenue CAGR of ~20% over the next four years, and if the margins attain the
300bp expansion, then even higher CAGR for earnings.
That said, given the exit in FY16, guidance for 1QFY17 and commentary on
margins, we don’t see the company taking strides towards that target in terms
of output metrics (revenues and operating margins), thereby making the goal
post steeper for the remainder of the period.
Growth underperformance to peers is only a part of WPRO’s problems. What is
also notable is that the single digit CC organic growth is lopsided in favor of India
/ Middle East (+20.7% YoY CC in FY16) and APAC (+11% YoY CC), whereas
Americas grew 8.5% and Europe was flat. Lest that is addressed, even the
margins will be at risk. Among verticals Retail / CPG and Healthcare have held
fort, while other segments continue to struggle to get past single digits.
WPRO’s segment-wise performance was encouraging in 2HCY15 – with no single
vertical acting as a significant drag, and Energy / Natural Resources also having
seemingly bottomed out. While that is only the first step, turnaround needs
contribution from segments like Telecom and Financial Services in the form of
higher growth. Financial Services for now is hurting in Continental Europe,
potentially a key drag in the near term.
WPRO trades at 16.6x FY17E and 14.3x FY18E EPS. WPRO’s valuation discount to
peers like TCS and INFO suggests attractive upside potential in the event of
growth revival. However, the growth gap is not seen converging in the
foreseeable future in organic terms, which will keep the multiple in check. Our
20 April 2016
6

Wipro
target price of INR600 discounts forward EPS by 14x, implying an upside of 0%.
Maintain Neutral.
Key triggers
Significant uptick in YoY CC growth guidance beyond 1QFY17
Broad-basing of growth across verticals
Uptick in margins from automation and productivity initiatives
Key risk factors
Prolonged weakness in Financial Services / Energy & Utilities vertical
Margin decline from acquisitions’ integration
Continued lopsided growth from segments like India / Middle East and APAC
Exhibit 9: 1-year forward PB band
Avg(x)
Min(x)
7.5
6.5
5.5
4.5
3.5
2.5
1.5
0.5
PB (x)
Peak(x)
Avg(x)
6.6
3.5
1.4
2.6
Min(x)
Exhibit 8: 1-year forward PE band
32
25
18
11
4
6.0
PE (x)
Peak(x)
25.1
15.6
14.4
Source: Company, MOSL
Source: Company, MOSL
Exhibit 10: Comparative Valuation
Company
Mkt cap
(USD b)
TCS
Infosys
Wipro
HCL Tech
TECHM
Cognizant
72.6
42.8
22.2
17.9
7.0
37.0
Neutral
Buy
Neutral
Buy
Neutral
Not Rated
2,650
1,350
600
1,000
550
Rating
TP (INR) Upside
(%)
8.2
8.5
-0.2
18.9
13.6
EPS (INR)
P/E (x)
RoE (%)
FY16-18E CAGR
(%)
USD rev.
11.4
13.3
9.6
14.7
9.0
12.5
EPS
12.3
14.0
7.8
12.7
11.3
13.3
33.3
24.9
19.4
26.2
17.6
17.2
FY16 FY17E FY18E FY16 FY17E FY18E FY16 FY17E FY18E
123.2 135.0 155.4
59.0
36.1
39.8
33.2
2.7
66.9
36.2
59.7
36.7
3.0
76.7
42.0
67.4
41.1
3.4
19.9
21.1
16.6
21.2
14.6
22.8
18.1
18.6
16.6
14.1
13.2
20.4
15.8
16.2
14.3
12.5
11.8
17.7
37.1
24.7
20.3
21.2
22.0
19.1
34.0
24.6
18.6
27.4
20.7
17.8
Source: Company, MOSL
20 April 2016
7

Wipro
Story in charts
Exhibit 11: Growth guidance not picking up materially…
Midpoint of QoQ CC growth guidance (%)
3.0
2.7
3.0
2.9 3.0
2.0
0.6
0.9
0.3
2.5
1.5
3.0
2.0
18.9
13.4
6.4
7.0
3.7
9.2
10.0
Exhibit 12: …limiting confidence of growth closer to industry
average
Revenue (USD m)
Growth (%)
5.0
5,221 5,921 6,218 6,618 7,082 7,346 8,019 8,820
FY11
Source: Company, MOSL
FY12
FY13
FY14
FY15 FY16E FY17E FY18E
Source: Company, MOSL
Exhibit 13: E&U continues to weigh upon performance
Revenue from E&U (USDm)
17.4
10.8
13.5 14.2
10.3
15.5
9.0
(1.3) (2.1)
253 258 270 279 278 298 294 275 273
269 265
(9.5)(10.1)
(4.2)
263
Growth (YoY, %)
Exhibit 14: Utilisation fell during the quarter
Utilization % (incl. trainees)
Utilization % (excl. trainees)
Source: Company, MOSL
Source: Company, MOSL
Exhibit 15: S&M spend acting as a lever (indexed at 100)
120
110
100
90
80
S&M (IT Serv)
USD revenues
Exhibit 16: Lever of FPP continues to play…
Revenue proportion fron Fixed price contracts (%)
Source: Company, MOSL
Source: Company, MOSL
20 April 2016
8

Wipro
Operating metrics
Exhibit 17: Operating metrics
4QFY14
Services Composition (%)
IMS
BPO
Product Engg and Mobility
Wipro Analytics
Application Services
Total
R&D
Consulting
Verticals (%)
Global Media & Telecom
Finance Solutions
Manufacturing & Hitech
Healthcare Lifescience
Retail & Transportation
Energy, Natural Resources & Utilities
Geography (%)
Americas
Europe
India & Middle East business
APAC and Other Emerging Markets
Customer size distribution (TTM)
> $100M
> $75M
> $50M
> $20M
> $10M
> $5M
> $3M
> $1M
Customer metrics
Revenue from Existing customers %
Number of new customers
Total Number of active customers
Customer Concentration (%)
Top customer
Top 5
Top 10
25.0
9.5
7.6
1QFY15
25.5
9.7
6.9
7.1
50.8
100.0
9.5
2.0
14.3
26.7
18.2
10.8
14.0
16.0
49.8
29.6
9.1
11.5
10
14
29
84
143
224
293
511
99.6
35
1022
3.7
13.4
21.8
2QFY15
27.2
9.2
7.0
7.2
49.4
100.0
9.7
2.0
13.9
26.0
18.2
11.2
13.9
16.8
51.0
27.8
9.2
12.0
10
15
30
85
150
225
292
524
98.6
50
1018
3.5
12.9
21.5
3QFY15
27.7
9.5
7.1
7.0
48.7
100.0
9.8
1.9
13.8
25.7
18.3
11.7
14.1
16.4
51.4
27.6
9.6
11.4
10
16
31
84
153
226
300
526
97.7
44
1018
3.8
12.7
21.0
4QFY15
27.9
9.4
7.6
7.1
48.0
100.0
10.2
1.8
13.5
26.5
18.3
11.7
14.5
15.5
51.7
26.3
10.7
11.3
11
15
31
86
150
231
311
542
96.7
65
1054
3.8
12.6
20.6
1QFY16 2QFY16 3QFY16 4QFY16
28.0
9.3
7.7
7.5
47.5
100.0
10.3
1.7
13.2
26.8
18.6
11.2
15.0
15.2
52.5
25.6
10.6
11.3
10
17
30
86
151
244
314
537
99.6
36
1071
3.3
12.2
20.1
28.0
9.8
7.9
7.5
46.8
100.0
10.5
1.9
13.4
26.7
18.7
11.4
15.1
14.7
53.0
25.2
10.6
11.2
10
17
31
85
154
244
321
533
98.5
67
1100
3.1
11.7
19.8
28.1
9.8
8.0
7.4
46.7
100.0
10.4
1.6
13.4
26.2
18.4
12.0
15.6
14.4
52.8
24.8
11.0
11.4
9
17
32
85
154
247
325
536
97.9
39
1105
3.2
11.5
19.3
28.9
10.6
8.0
7.2
45.3
100.0
10.3
1.4
13.1
25.4
18.8
13.3
15.4
14.0
52.5
25.6
11.0
10.9
9
18
33
89
160
248
331
550
96.5
119
1223
2.7
11.0
18.2
100.0
9.8
2.2
13.9
26.8
18.0
10.6
14.5
16.2
50.0
30.0
8.8
11.2
10
14
29
82
143
220
278
501
97.0
59
986
3.7
13.9
22.6
Source: MOSL, Company
20 April 2016
9

Wipro
Exhibit 18: Operating metrics
4QFY14
EMPLOYEE METRICS
Closing Headcount - IT Services
146,053
Sales & Support staff - IT Services (average)
11,172
Utilization (IT Services excl. BPO, IFOX and I&ME)
Gross Utilization (%)
67.7
Net Utilization (excl support) (%)
74.9
Net Utilization (excl trainees) (%)
76.5
Attrition
IT Services excluding BPO and I&ME
Voluntary TTM
15.1
Voluntary Quarterly Annualized
15.7
Involuntary Quarterly Annualized
4.2
BPO - Quarterly
11.6
BPO - Post training
8.9
IT SERVICES (EXCL INFOX, BPO, I&ME)
Service Delivery
Revenue from FPP
51.3
% of onsite revenue
54.1
% of offshore revenue
45.9
IMS
2.9
BPO
11.9
Product Engg and Mobility
2.5
Wipro Analytics
Application Services
R&D
Consulting
Vertical wise
Global Media and Telecom
Finance Solutions
Manufacturing and Hi-Tech
Healthcare, Life Sciences and Services
Retail and Transportation
Energy and Utilities
Geography wise
US
Europe
India & Middle East business
Other Emerging markets
Client Concentration
Top client
top 2-5 clients
Top 6-10 clients
Non top 10 clients
-2.0
-1.2
4.0
4.0
-0.8
2.5
1.8
3.1
2.7
3.9
6.1
-4.3
2.5
-0.4
1.3
3.0
1QFY15
147,452
11,174
68.7
76.0
77.9
2QFY15
154,297
11,328
70.0
77.5
79.4
3QFY15
156,866
11,603
68.5
75.9
78.8
4QFY15
158,217
11,629
70.5
78.0
80.5
1QFY16
161,789
12,517
71.3
79.4
81.9
2QFY16
163,396
13,068
69.5
77.2
82.3
3QFY16
170,664
13,239
66.4
73.8
78.0
4QFY16
172,912
13,737
68.1
76.1
77.5
16.1
17.0
-
11.8
10.1
16.5
16.9
-
12.0
10.0
16.5
16.4
-
13.1
9.1
16.5
15.6
-
13.3
9.6
16.4
16.4
-
12.0
9.3
16.4
16.8
-
10.2
8.5
16.3
16.3
-
9.9
8.8
16.1
14.9
-
11.1
9.9
52.1
54.3
45.7
3.2
3.3
-8.2
0.0
0.0
-0.6
-6.1
4.1
0.8
2.3
3.1
-2.3
-0.1
0.8
-0.2
4.6
3.9
1.2
-3.8
-2.3
2.2
53.1
53.7
46.3
8.6
-3.4
3.3
3.2
-1.0
-1.9
-8.0
-1.0
-0.9
1.8
5.6
1.1
6.9
4.3
-4.4
2.9
6.2
-3.7
-1.3
4.2
2.2
55.1
54.3
45.7
3.2
4.7
2.8
-1.5
-0.1
3.9
1.8
0.6
0.2
1.9
5.9
2.8
-1.1
2.1
0.6
5.8
-3.7
10.0
-4.0
-2.2
2.0
55.5
53.7
46.3
-0.5
-2.2
5.8
0.2
-2.6
2.4
-3.7
-3.3
1.9
-1.2
-1.2
1.6
-6.6
-0.6
-5.8
10.2
-2.0
-1.2
-2.3
-4.7
-0.7
54.5
54.6
45.4
1.5
0.0
2.4
6.8
0.1
2.9
-6.4
-1.1
2.2
2.8
-3.2
4.6
-0.9
2.7
-1.6
0.2
1.1
-12.2
2.3
-0.2
1.7
53.4
53.9
46.1
2.1
7.6
4.8
2.1
0.6
4.1
14.1
3.7
1.7
2.7
3.9
2.8
-1.3
3.1
0.5
2.1
1.2
-4.1
-1.3
4.7
2.5
55.9
53.8
46.2
0.7
0.3
1.6
-1.0
0.1
-0.6
-15.5
0.3
-1.5
-1.3
5.6
3.7
-1.7
0.0
-1.2
4.1
2.1
3.6
-3.2
-3.4
1.0
56.9
54.2
45.8
5.3
10.7
2.4
-0.4
-0.7
1.4
-10.4
0.1
-0.7
4.6
13.5
1.1
-0.5
1.8
5.7
2.4
-2.1
-13.6
2.4
-5.5
3.8
Source: MOSL, Company
20 April 2016
10

Wipro
Financials and Valuation
Key assumption
Y/E March
INR/USD Rate
Revenues (USD m)
Offshore Revenue (%)
Total Headcount
Net Addition
Per Capita Productivity (USD)
Gross Utilization (%)
IT Services EBIT Margin (%)
2011
45.0
5,221
48.3
122,385
14,314
42,658
71.6
22.7
2012
48.0
5,921
46.2
135,920
13,535
43,563
69.0
20.8
2013
54.3
6,218
46.4
145,812
9,892
42,643
66.7
20.5
2014
60.4
6,618
45.9
146,053
241
45,312
66.4
22.6
2015
62.2
7,082
46.0
158,217
12,164
44,759
68.7
22.0
2016
66.3
7,346
45.9
172,912
14,695
42,486
68.9
20.5
2017E
68.5
8,019
44.0
189,162
16,250
42,390
70.1
18.8
2018E
70.5
8,820
44.2
207,812
18,650
42,443
70.4
19.5
Income Statement
Y/E Mar
Net Sales
Change (%)
EBITDA
EBITDA Margin (%)
Depreciation
EBIT
Interest
Other Income
Extraordinary items
PBT
Tax
Tax Rate (%)
Min. Int. & Assoc. Share
Reported PAT
Adjusted PAT
Change (%)
2011
310,986
14.7
74,091
23.8
8,211
65,880
0
4,718
182
70,780
9,896
14.0
345
61,187
61,005
14.1
2011
4,908
234,772
239,680
52,802
0
293,173
99,346
44,252
55,094
0
49,282
208,698
9,707
85,776
61,141
52,074
78,270
78,270
0
130,428
293,173
2012
318,747
2.5
66,713
20.9
10,129
56,584
0
8,939
0
65,523
12,955
19.8
243
52,325
52,325
-14.2
2012
4,917
280,397
285,314
58,958
0
345,121
113,369
54,381
58,988
0
41,961
262,886
10,662
110,353
77,666
64,205
90,880
90,880
0
172,006
345,121
2013
374,256
17.4
77,996
20.8
10,650
67,346
0
11,250
0
78,596
16,912
21.5
322
61,362
61,362
17.3
2013
4,926
278,886
283,812
63,816
0
348,799
115,556
65,031
50,525
0
69,222
263,513
3,263
108,623
87,869
63,758
90,931
90,931
0
172,582
348,799
2014
434,269
16.0
97,099
22.4
11,106
85,993
0
15,012
0
101,005
22,601
22.4
438
77,966
77,966
27.1
2014
4,932
338,567
343,499
51,592
0
396,478
127,586
76,137
51,449
0
60,843
324,654
2,293
124,726
117,862
79,773
105,826
105,826
0
218,828
396,478
2015
469,545
8.1
104,609
22.3
12,823
91,786
0
19,897
0
111,683
24,594
22.0
531
86,558
86,558
11.0
2015
4,937
403,045
407,982
78,913
0
488,541
143,166
88,960
54,206
0
57,775
412,043
4,849
133,869
164,017
109,308
111,492
111,492
0
300,551
488,541
2016
512,440
9.1
108,119
21.1
14,965
93,154
0
21,565
0
114,719
25,305
22.1
492
88,922
88,922
2.7
2016
4,941
461,137
466,078
125,221
0
593,523
168,877
103,925
64,952
0
137,851
404,286
5,390
150,653
104,724
143,519
131,398
131,398
0
272,888
593,523
2017E
593,783
15.9
120,567
20.3
18,371
102,197
0
14,158
0
116,355
26,431
22.7
772
89,152
89,152
0.3
2017E
4,861
487,289
492,150
113,295
0
607,669
209,396
122,296
87,100
0
112,851
429,955
2,930
165,678
140,785
120,562
140,069
140,069
0
289,886
607,669
(INR Million)
2018E
675,310
13.7
141,642
21.0
20,218
121,423
0
11,107
0
132,530
30,105
22.7
772
101,653
101,653
14.0
Balance Sheet
Y/E Mar
Share Capital
Reserves
Net Worth
Debt
Deferred Tax
Total Capital Employed
Gross Fixed Assets
Less: Acc Depreciation
Net Fixed Assets
Capital WIP
Investments
Current Assets
Inventory
Debtors
Cash & Bank
Loans & Adv, Others
Curr Liabs & Provns
Curr. Liabilities
Provisions
Net Current Assets
Total Assets
(INR Million)
2018E
4,861
550,942
555,803
101,310
0
659,337
242,994
142,514
100,480
0
112,851
483,645
3,333
188,343
162,690
129,280
155,471
155,471
0
328,174
659,337
20 April 2016
11

Wipro
Financials and valuation
Ratios
Y/E Mar
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation(x)
P/E
Cash P/E
Price / Book Value
EV/Sales
EV/EBITDA
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
Turnover Ratios (%)
Asset Turnover (x)
Debtors (No. of Days)
Inventory (No. of Days)
Creditors (No. of Days)
Net Debt/Equity (x)
2011
21.6
28.2
98.2
4.4
20.3
0.0
21.3
0.0
0.0
0.0
0.0
28.0
23.0
5.8
90
0
0
0.0
2011
74,091
-5,264
-12,374
0
0
56,453
-9,847
46,606
-28,775
0
-38,622
3,386
-4,592
0
-20,361
-21,568
-3,737
64,878
61,141
2012
21.3
25.4
116.5
6.0
28.2
0.0
0.0
0.0
0.0
0.0
0.0
19.9
17.1
5.7
112
0
0
-0.1
2012
66,713
3,998
-16,462
0
0
54,249
-14,023
40,226
-11,691
0
-25,714
10,663
2,780
0
-25,454
-12,010
16,525
61,141
77,666
2013
24.9
29.3
115.6
7.0
28.1
0.0
0.0
0.0
0.0
0.0
0.0
21.6
18.9
7.0
107
0
0
-0.1
2013
77,996
2,872
7,501
0
0
88,369
-2,187
86,182
-8,949
0
-11,136
-42,436
4,368
0
-28,962
-67,030
10,203
77,666
87,869
2014
31.7
36.2
139.9
8.0
25.3
19.0
16.6
4.3
3.1
13.9
1.3
24.9
22.5
8.8
98
0
0
-0.2
2014
97,099
-57
-11,909
0
0
85,133
-12,030
73,103
-5,753
0
-17,783
4,919
-11,324
0
-30,952
-37,357
29,993
87,869
117,862
2015
35.1
40.3
166.1
12.0
34.2
17.1
14.9
3.6
2.8
12.7
2.0
23.0
20.2
9.3
101
0
0
-0.2
2015
104,609
-24,594
-40,250
0
0
39,765
-15,580
24,185
41,476
0
25,896
0
30,937
0
-50,443
-19,506
46,155
117,862
164,017
2016
36.1
42.2
189.7
6.0
16.6
16.6
14.2
3.2
2.7
12.6
1.0
20.3
16.7
9.0
101
0
0
0.0
2016
108,119
-7,970
-36,478
0
0
63,671
-25,711
37,960
-124,079
0
-149,790
-12,421
53,336
0
-14,088
26,826
-59,293
164,017
104,724
2017E
36.2
43.7
200.3
12.8
35.3
16.6
13.8
3.0
2.3
11.1
2.1
18.6
16.4
8.0
97
0
0
-0.1
2017E
120,567
10,797
25,400
0
0
156,764
-40,519
116,246
18,663
0
-21,856
-25,080
-11,926
0
-61,841
-98,848
36,061
104,724
140,785
2018E
42.0
50.3
229.9
13.0
31.0
14.3
11.9
2.6
1.9
9.0
2.2
19.4
18.6
7.3
96
0
0
-0.1
Cash Flow Statement
Y/E Mar
Adjusted EBITDA
Non cash opr. exp (inc)
(Inc)/Dec in Wkg. Cap.
Tax Paid
Other operating activities
CF from Op. Activity
(Inc)/Dec in FA & CWIP
Free cash flows
(Pur)/Sale of Invt
Others
CF from Inv. Activity
Inc/(Dec) in Net Worth
Inc / (Dec) in Debt
Interest Paid
Divd Paid (incl Tax) & Others
CF from Fin. Activity
Inc/(Dec) in Cash
Add: Opening Balance
Closing Balance
(INR Million)
2018E
141,642
7,122
-14,372
0
0
134,392
-33,598
100,793
-2,011
0
-35,610
0
-11,985
0
-64,892
-76,877
21,905
140,785
162,690
20 April 2016
12

Wipro
Corporate profile
Company description
Exhibit 1: Sensex rebased
Wipro is the third largest Indian IT services company
and the largest third-party BPO operator in India. It is
the largest third-party R&D services provider
globally, employing over 156,000 employees. It
offers among the widest range of IT and ITeS services
and its corporate governance and transparency are
at the highest level in the industry.
Source: MOSL/Bloomberg
Exhibit 2: Shareholding pattern (%)
Promoter
DII
FII
Others
Dec-15
73.4
4.4
11.8
10.5
Sep-15
73.4
4.6
12.6
9.4
Dec-14
73.4
4.7
10.8
11.1
Exhibit 3: Top holders
Holder Name
LIC of India
NA
NA
NA
NA
% Holding
1.9
0.0
0.0
0.0
0.0
Source: Capitaline
Note: FII Includes depository receipts
Source: Capitaline
Exhibit 4: Top management
Name
Azim H Premji
T K Kurien
Suresh C Senapaty
M Sanaulla Khan
Designation
Chairman
&
Managing
Director
Executive Director & CEO
Executive Director & CFO
Company Secretary
Exhibit 5: Directors
Name
Ashok S Ganguly
Henning Kagermann
M K Sharma
Shyam Saran
William Arthur Owens
Jagdish N Sheth
Name
B C Prabhakar
Ireena Vittal
Narayanan Vaghul
Vyomesh Joshi
Rishad Azim Premji
Source: Capitaline
*Independent
Exhibit 6: Auditors
Name
BSR & Co LLP
Type
Statutory
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY16
FY17
FY18
MOSL
forecast
36.1
36.2
42.0
Consensus
forecast
36.6
39.9
43.8
Variation (%)
-1.5
-9.2
-4.2
Source: Bloomberg
Source: Capitaline
20 April 2016
13

Disclosures
This document has been prepared by Motilal Oswal Securities Limited (hereinafter referred to as Most) to provide information about the company (ies) and/sector(s), if any, covered in the report and may be distributed by it and/or its
affiliated company(ies). This report is for personal information of the selected recipient/s and does not construe to be any investment, legal or taxation advice to you. This research report does not constitute an offer, invitation or
Wipro
inducement to invest in securities or other investments and Motilal Oswal Securities Limited (hereinafter referred as MOSt) is not soliciting any action based upon it. This report is not for public distribution and has been furnished to
you solely for your general information and should not be reproduced or redistributed to any other person in any form. This report does not constitute a personal recommendation or take into account the particular investment
objectives, financial situations, or needs of individual clients. Before acting on any advice or recommendation in this material, investors should consider whether it is suitable for their particular circumstances and, if necessary, seek
professional advice. The price and value of the investments referred to in this material and the income from them may go down as well as up, and investors may realize losses on any investments. Past performance is not a guide for
future performance, future returns are not guaranteed and a loss of original capital may occur.
MOSt and its affiliates are a full-service, integrated investment banking, investment management, brokerage and financing group. We and our affiliates have investment banking and other business relationships with a some
companies covered by our Research Department. Our research professionals may provide input into our investment banking and other business selection processes. Investors should assume that MOSt and/or its affiliates are
seeking or will seek investment banking or other business from the company or companies that are the subject of this material and that the research professionals who were involved in preparing this material may educate investors
on investments in such business . The research professionals responsible for the preparation of this document may interact with trading desk personnel, sales personnel and other parties for the purpose of gathering, applying and
interpreting information. Our research professionals are paid on twin parameters of performance & profitability of MOSt.
MOSt generally prohibits its analysts, persons reporting to analysts, and members of their households from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover. Additionally, MOSt
generally prohibits its analysts and persons reporting to analysts from serving as an officer, director, or advisory board member of any companies that the analysts cover. Our salespeople, traders, and other professionals or affiliates
may provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein, and our proprietary trading and investing businesses may make investment
decisions that are inconsistent with the recommendations expressed herein. In reviewing these materials, you should be aware that any or all of the foregoing among other things, may give rise to real or potential conflicts of interest.
MOSt and its affiliated company(ies), their directors and employees and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and buy or sell the securities or derivatives thereof of companies
mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an
advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing
whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the affiliates of MOSt even though there might exist an inherent
conflict of interest in some of the stocks mentioned in the research report
Reports based on technical and derivative analysis center on studying charts company's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not
match with a report on a company's fundamental analysis. In addition MOST has different business segments / Divisions with independent research separated by Chinese walls catering to different set of customers having various
objectives, risk profiles, investment horizon, etc, and therefore may at times have different contrary views on stocks sectors and markets.
Unauthorized disclosure, use, dissemination or copying (either whole or partial) of this information, is prohibited. The person accessing this information specifically agrees to exempt MOSt or any of its affiliates or employees from,
any and all responsibility/liability arising from such misuse and agrees not to hold MOSt or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOSt or any of its affiliates or employees free
and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays. The information contained herein is based on publicly available data or other
sources believed to be reliable. Any statements contained in this report attributed to a third party represent MOSt’s interpretation of the data, information and/or opinions provided by that third party either publicly or through a
subscription service, and such use and interpretation have not been reviewed by the third party. This Report is not intended to be a complete statement or summary of the securities, markets or developments referred to in the
document. While we would endeavor to update the information herein on reasonable basis, MOSt and/or its affiliates are under no obligation to update the information. Also there may be regulatory, compliance, or other reasons that
may prevent MOSt and/or its affiliates from doing so. MOSt or any of its affiliates or employees shall not be in any way responsible and liable for any loss or damage that may arise to any person from any inadvertent error in the
information contained in this report. MOSt or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the
implied warranties of merchantability, fitness for a particular purpose, and non-infringement. The recipients of this report should rely on their own investigations.
This report is intended for distribution to institutional investors. Recipients who are not institutional investors should seek advice of their independent financial advisor prior to taking any investment decision based on this report or for
any necessary explanation of its contents.
Most and it’s associates may have managed or co-managed public offering of securities, may have received compensation for investment banking or merchant banking or brokerage services, may have received any compensation
for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months.
Most and it’s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report.
Subject Company may have been a client of Most or its associates during twelve months preceding the date of distribution of the research report
MOSt and/or its affiliates and/or employees may have interests/positions, financial or otherwise of over 1 % at the end of the month immediately preceding the date of publication of the research in the securities mentioned in this
report. To enhance transparency, MOSt has incorporated a Disclosure of Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the report.
Motilal Oswal Securities Limited is registered as a Research Analyst under SEBI (Research Analyst) Regulations, 2014. SEBI Reg. No. INH000000412
Pending Regulatory inspections against Motilal Oswal Securities Limited:
SEBI pursuant to a complaint from client Shri C.R. Mohanraj alleging unauthorized trading, issued a letter dated 29th April 2014 to MOSL notifying appointment of an Adjudicating Officer as per SEBI regulations to hold inquiry and
adjudge violation of SEBI Regulations; MOSL replied to the Show Cause Notice whereby SEBI granted us an opportunity of Inspection of Documents. Since all the documents requested by us were not covered we have requested to
SEBI vide our letter dated June 23, 2015 to provide pending list of documents for inspection.
List of associate companies of Motilal Oswal Securities Limited -Click
here to access detailed report
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or
indirectly related to the specific recommendations and views expressed by research analyst(s) in this report. The research analysts, strategists, or research associates principally responsible for preparation of MOSt research receive
compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors and firm revenues
Disclosure of Interest Statement
Analyst ownership of the stock
Served as an officer, director or employee
WIPRO
No
No
A graph of daily closing prices of securities is available at www.nseindia.com and http://economictimes.indiatimes.com/markets/stocks/stock-quotes
Regional Disclosures (outside India)
For U.S.
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which
would subject MOSt & its group companies to registration or licensing requirements within such jurisdictions.
Motilal Oswal Securities Limited (MOSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition MOSL is not a
registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the
absence of specific exemption under the Acts, any brokerage and investment services provided by MOSL, including the products and services described herein are not available to or intended for U.S. persons.
This report is intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This
document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document relates is only available to major institutional investors and will be
engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by
the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal
Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities and Futures Commission (SFC)
pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with
Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of research report in Kong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any
investment or investment activity to which this document relates is only available to professional investor and will be engaged only with professional investors.”
Nothing here is an offer or solicitation of these securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not located in
Hong Kong & are not conducting Research Analysis in Hong Kong.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer, MOSIPL, and therefore,
may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research analyst account.
Motilal Oswal Capital Markets Singapore Pte Limited is acting as an exempt financial advisor under section 23(1)(f) of the Financial Advisers Act(FAA) read with regulation 17(1)(d) of the Financial Advisors Regulations and is a
subsidiary of Motilal Oswal Securities Limited in India. This research is distributed in Singapore by Motilal Oswal Capital Markets Singapore Pte Limited and it is only directed in Singapore to accredited investors, as defined in the
Financial Advisers Regulations and the Securities and Futures Act (Chapter 289), as amended from time to time.
In respect of any matter arising from or in connection with the research you could contact the following representatives of Motilal Oswal Capital Markets Singapore Pte Limited:
Kadambari Balachandran
Email : kadambari.balachandran@motilaloswal.com
Contact : (+65) 68189233 / 65249115
Office Address : 21 (Suite 31),16 Collyer Quay,Singapore 04931
For Singapore
20 April 2016
Motilal Oswal Tower, Level 9, Sayani Road, Prabhadevi, Mumbai 400 025
Phone: +91 22 3982 5500 E-mail: reports@motilaloswal.com
Motilal Oswal Securities Ltd
14