12 March 2015
Update | Sector: Technology
Wipro
BSE Sensex
28,930
S&P CNX
8,776
CMP: INR655
TP: INR640 (-2%)
Neutral
Focus on hyper automation, digital strategies
Change in incentive structure to drive better execution
n
Stock Info
Bloomberg
Equity Shares (m)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Free float (%)
WPRO IN
2,469.0
677/475
-1/5/-17
26.6
n
M.Cap.(INR b)/(USD b) 1,616.7/25.8
n
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Financial Snapshot (INR Billion)
Y/E Mar
2015E 2016E 2017E
Sales
469.2 520.9 582.8
EBITDA
PAT
EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
RoE (%)
RoCE (%)
P/E (x)
EV/EBITDA (x)
104.1 117.8 133.5
85.9
34.8
9.8
24.7
22.1
16.0
12.0
91.2 102.6
n
36.9 41.6
6.2
23.8
23.0
15.0
10.3
12.5
22.8
22.8
13.4
8.8
n
n
n
AvgVal(INRm)/Vol 000 1,161/2,067
Wipro (WPRO) unveiled its two-pronged strategy [1] to turbo charge the core
through scale, hyper automation and building IP assets and [2] securing the
future by servicing new buyers on the Digital agenda.
Execution will be measured on Digital being among the top three service line,
and efforts reducing by 35% for the current scope of work in the next three
years.
Farming was the main cause of underperformance in the last three years, while
hunting performed well.
Incentives for sales personnel, delivery manager and account manager will now
be linked to incremental growth, cross-sell of services from Apr 1, 2014.
Cross currency movement will impact USD revenue by 200-250bp for 4QFY15.
Oil & Gas vertical’s weakness remains a key headwind.
Growth to be driven by IMS and Digital, going forward. Maintain Neutral.
Strategy: Turbo charge the core and Secure the future
WPRO has a two-pronged strategy to tackle the evolving new digital world.
[1] Turbo charging the ‘Core’ (Run the Business) by
[a] Driving scale in core markets,
[b] Improving quality using hyper automation,
[c] Building up IP assets and capabilities.
[2] Securing the future (Change the Business) by
[a] Servicing new buyers (CMO, CFO, business heads) with a distinct agenda,
[b] Accelerate the Digital agenda,
[c] Re-imagine business with new themes – IoT, Open Source, AI.
Scale will be increased by investing in Australia, Canada, Continental Europe,
South Africa and a complete overhaul of Japan.
Hyper automation and artificial intelligence have multiple instances to impact
operations and productivity. For example, presently, 40% of the workforce is
directly involved in awaiting and resolving incidents on a case-to-case basis. This
can be done by hyper automation and artificial intelligence, with limited human
intervention.
Investments being made by WPRO in building IP assets and capabilities can be
seen from the fact that it has filed for 240+ patents in FY14-15, compared to 40-
70 five years ago. This number will almost double in FY16.
Company will try and build an ecosystem to be the Digital transformation
partner for clients by:
Ø
USD100m corporate venture capital fund to invest in start-ups,
Ø
M&A focused on Markets, Technology & Product areas in white spaces and,
Ø
Partnerships with a set of start-ups to enable flow of innovations and share
of best practices.
142.9 168.3 198.3
n
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Ashish Chopra
(Ashish.Chopra@MotilalOswal.com); +91 22 3982 5424
Siddharth Vora
(Siddharth.Vora@MotilalOswal.com); +91 22 3982 5585
Investors are advised to refer through disclosures made at the end of the Research Report.
Motilal Oswal research is available on
www.motilaloswal.com/Institutional-Equities,
Bloomberg, Thomson Reuters, Factset and S&P Capital.

Wipro
Measuring Execution
Execution of above strategy will be measured on two stated targets
1. ‘Digital’ will be among the top 3 service lines in the next 3 years.
2. Hyper automation will enable to reduce people deployment for current scope of
work by 35% in 3 years i.e revenue productivity per employee improvement of
35% in the next 3 years.
Performance in Farming disappointed
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Wipro has stated a strategy in FY12 with equal attention to both hunting and
farming, but sub-par execution meant continued underperformance in revenue
growth.
This was mainly led by
Farming –
as WPRO failed to grow accounts beyond a
particular threshold. Sharper target identification and accountability will be
adopted to drive farming.
Hunting has done well with total TCV of deal wins in FY15 being 12x of the deal
wins in FY13.
Exhibit 1: Client mining performance in USD20m+ accounts has been below expectation
Client buckets
FY13
FY14
3QFY15
153
143
133
69
57 61
50 53 53
10 10 10
USD100M+
6 4 6
USD75-100M
10 15 15
USD50-75M
USD20-50M
USD10-20M
Upto USD10M
Source: Company, MOSL
Changes in Incentive structure to drive execution going forward
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Effective from 1
st
April 2015, Wipro is making changes to its incentive structure
sales personnel, account managers, delivery heads and employees to drive
better revenue growth in the coming years.
Sales and delivery managers’ incentive structure will be linked to incremental
growth and not gross targets.
To increase cross sell of service lines to existing clients, account managers too
will have fixed mandates for the same.
To drive the Digital agenda, promotions and pay packages will now be linked to
the value an employee brings mostly through technology. There will be a very
sharp reprocessing of employee salary in terms of technology value addition and
compensation levels will go up for the people who bring in the value add. This
will take precedence over rank in the organization and number of years of
experience.
Wipro has created a roadmap for next one year in every account on how to
drive savings through hyper automation, with defined exit rates.
Compared to peers WPRO cost of delivery is 3-4% higher due to lower
proportion of ADM business. Company plans to move contracts from time and
material basis to fixed price to improve productivity and reduce cost of delivery.
2
12 March 2015

Wipro
IMS will continue to be a growth driver
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IMS is expected to continue to grow the fastest among services within the
industry with significant opportunities coming up in the renewal market.
Wipro has missed the initial phase of the renewal market to grow its IMS service
line in spite of being the early mover in this space along with HCLT. WPRO is
now focused on USD190b of deals coming up in the renewal market in the next
two years.
Exhibit 2: Healthy renewal market will continue to drive growth for IMS
112.95
Renewal market size (USD b)
91.93
97.31
2014
2015
2016
Source: Company, MOSL
n
Currently the service line employees 32,000 employees for last twelve month
revenues of USD1.8b giving an effective per capita revenue productivity of
~USD57,350 which is much higher than company average USD45,000.
4QFY15 to be impacted by cross currency and headwinds in Energy vertical
n
Cross currency movements will impact USD revenue by 200-250bp for 4QFY15.
Company maintains its constant currency guidance of 1-3% for 4QFY15.
Exhibit 3: We expect CC growth rate of 2.5% for 4QFY15, with 220bp cross currency impact
IT Services (USD m)
4.6
2.2
0.5
2.0
-1.4
1,408 1,473 1,506 1,536 1,515 1,541 1,577 1,585 1,588 1,631 1,678 1,720 1,740 1,772 1,795 1,801
1.7
2.4
0.5
0.2
2.7
2.9
2.5
1.2
1.8
1.3
0.3
QoQ Growth (%)
Source: Company, MOSL
n
n
Healthy demand trends of 3QFY15 have continued on the quarter, supported by
Digital, Mobility and infrastructure services.
In terms of geography, Europe continues to see healthy demand and deal
momentum; there is increasing optimism about prospects in US.
12 March 2015
3

Wipro
Exhibit 4: Growth in Europe
Geographies – 3QFY15
US
Europe
India & Middle East business
Other emerging markets
Contri to
Rev. (%)
51.4
27.6
9.6
11.4
Growth -
QoQ (%)
2.1
0.6
5.8
-3.7
Contr to
incr. rev (%)
81.0
12.8
39.2
-33.1
4 Qtr
CQGR (%)
2.5
-0.1
0.4
2.3
Source: Company, MOSL
n
n
Among verticals, Oil & Gas is seeing the impact of plunge in crude prices in the
form of capex and discretionary spending cuts which will play out in 4QFY15 and
1QFY16.
Demand continues to be robust from Healthcare and Life Sciences, Retail and
Manufacturing verticals.
Exhibit 5: Healthcare and Retail & Transp. vertical grew 5%+ in CC terms in 3QFY15
Verticals – 3QFY15
Global Media and Telecom
Finance Solutions
Manufacturing and Hi-Tech
Healthcare, Life Sciences and Services
Retail and Transportation
Energy and Utilities
Contri to
Rev. (%)
13.8
25.7
18.3
11.7
14.1
16.4
Growth -
QoQ (%)
0.6
0.2
1.9
5.9
2.8
-1.1
Contr to
incr. rev (%)
6.4
3.5
25.7
48.8
28.9
-13.2
4 Qtr
CQGR (%)
1.9
1.0
1.3
4.2
0.8
2.2
Source: Company, MOSL
Valuation and view
1QFY16 guidance and broad-based growth crucial
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WPRO’s investments in growth during FY12-13 have yielded few results. It had
increased its S&M (reflected in 6.8% of IT Services revenues 2 years ago) and
dropped its utilization (to 74.8% in 3QFY13) to be growth ready. Two years on,
growth has still languished in high single digits. Also, utilization is up ~300bp,
SGA in IT Services is down 160bp and currency has depreciated 17%, but EBIT
margin in IT Services at 21.8% is only 80bp higher.
Growth at WPRO has been driven by select segments – Healthcare, and Energy
and Utilities among verticals and IMS among services. Healthcare grew around
20% YoY CC for the third consecutive quarter in 3QFY15 and Energy & Utilities
grew 13.4% YoY CC, on the back of 15% in the previous quarter. IMS, even after
factoring the impact of cross currencies, grew 20.5% YoY.
Going forward, while WPRO’s commentary on lagging verticals like Retail and
Manufacturing has improved, the bets on Energy are off, at least over the near
term. This could keep WPRO’s hopes of reviving growth to industry average at
bay in the foreseeable future.
We would measure the extent of change in revenue traction by 1QFY16 YoY CC
guidance and the level to which 4Q growth is broad based.
The stock trades at 15.8x FY17.7E and 15.8x FY17E EPS. WPRO’s valuation
discount to peers has narrowed significantly after last quarter’s broad-based
revenue growth. However, while deal signings have remained healthy, it has
been attributed to only a limited portion of the company portfolio (28% of
4
12 March 2015

Wipro
revenues from Healthcare and Energy & Utilities). Lest more verticals start
contributing, recovery to industry average growth will remain elusive. Our target
price of INR640 discounts FY17E EPS by 15x. Maintain Neutral.
Key triggers
Ø
Double digit YoY CC growth guidance for 1QFY16.
Ø
Improved performance in Retail, Manufacturing and BFSI.
Ø
Repeat of broad-based growth in 4QFY15.
Key risk factors
Ø
Prolonged weakness in Energy & Utilities vertical due to fall in crude prices.
Ø
Rapid appreciation in INR.
Ø
Return of growth from few segments.
Exhibit 6: 1-year forward PE band
32
25
18
11
4
PE (x)
Median(x)
Peak(x)
Min(x)
25.1
16.2
16.2
6.0
17.7
Avg(x)
12.0
9.5
7.0
4.5
2.0
2.7
4.8
5.2
3.9
Exhibit 7: 1-year forward PB band
PB (x)
Median(x)
Peak(x)
Min(x)
Avg(x)
9.7
Exhibit 8: Comparative Valuation
Company
TCS
Infosys
Wipro
HCL Tech
TechM
Cognizant
Tier-I Agg
Mkt cap Rating TP (INR) Upside
EPS (INR)
P/E (x)
RoE (%)
(USD b)
(%)
FY15E FY16E FY17E FY15E FY16E FY17E FY15E FY16E
82.2 Neutral 2650
1.2
108.6 123.7 145.6 24.1
21.2
18.0
35.2
33.3
40.6
Buy
2500
12.7
108.7 120.0 137.7 20.4
18.5
16.1
26.2
24.8
25.8 Neutral
640
-2.3
34.8
36.9
41.6
18.8
17.7
15.8
24.7
23.8
23.2
Buy
2150
4.8
105.5 117.0 132.5 19.5
17.5
15.5
33.3
30.7
10.7
Buy
3200
12.0
130.4 160.4 197.7 21.9
17.8
14.4
27.0
26.2
37.2 Not Rated
2.3
2.7
3.2
25.9
22.6
18.9
20.7
19.3
219.8
21.8
19.2 16.5
27.9
26.3
FY17E
32.4
24.6
22.8
29.2
26.4
19.0
25.7
Source: Company, MOSL
FY15-17E CAGR (%)
USD rev. EPS
13.4
15.8
12.5
12.6
11.0
9.3
14.4
12.0
21.1
23.1
17.7
17.0
12 March 2015
5

Wipro
Story in charts
Exhibit 9: Growth guidance not picking up materially…
Midpoint of QoQ CC growth guidance (%)
3.0
2.2
1.0 1.2
1.8
0.6
0.9
5.0
5,221
FY11
Source: Company, MOSL
5,921
FY12
6,218
FY13
2.7
3.0
2.9 3.0
2.0
18.9
13.4
6.4
6,618
FY14
7.4
7,108
FY15E
Exhibit 10: …limiting confidence of growth closer to industry
average
Revenue (USD m)
Grwoth (%)
Source: Company, MOSL
Exhibit 11: Exercising levers of utilization (up in the last 4
quarters)…
Utilization % (incl. trainees)
Utilization % (excl. trainees)
Exhibit 12: …and S&M spending (indexed at 100)
180
160
140
120
100
S&M (IT Serv)
USD revenues
Source: Company, MOSL
Source: Company, MOSL
Exhibit 13: Lever of FPP continues to play…
Revenue proportion fron Fixed price contracts (%)
52.1 53.1
50.6 51.3
55.1
Exhibit 14: …and gradual improvement
proportion is a potential lever
in
offshore
Revenue proportion from offshore in FY14 (%)
53
48.9
45.9
45.4
48
45.6 45.8 46.2
48.1 47.4 48.2
Wipro
TCS
Infosys
HCL Tech
(last
reported)
Tech
Mahindra
Source: Company, MOSL
Source: Company, MOSL
12 March 2015
6

Wipro
Exhibit 15: Operating metrics
3QFY13
Services Composition (%)
IMS
Analytics and Information Management
Business Application Services
BPO
Product Engg and Mobility
ADM
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
23.7
7.1
31.4
8.8
7.5
21.5
100.0
10.4
2.3
14.3
26.9
18.7
9.9
15.1
15.1
49.9
29.6
8.8
11.7
10
16
26
73
132
214
293
484
4QFY13
24.5
7.1
31.4
8.8
7.5
20.7
100.0
10.4
2.4
13.8
26.3
19.3
10.1
15.1
15.4
50.1
28.5
9.4
12.0
10
16
26
76
133
213
291
490
1QFY14
24.2
7.5
31.3
8.8
7.5
20.7
100.0
10.2
2.5
13.6
26.5
19.1
9.8
15.1
15.9
49.7
29.0
8.8
12.5
10
15
27
76
133
218
281
492
2QFY14
24.2
7.4
31.9
8.6
7.6
20.3
100.0
10.6
2.5
13.9
26.4
19.0
10.1
14.8
15.8
49.8
28.9
8.3
13.0
10
15
27
78
137
220
282
487
3QFY14
24.9
7.2
31.7
8.7
7.6
19.9
100.0
10.1
2.4
13.7
26.4
18.6
10.6
14.6
16.1
49.9
29.6
8.5
12.0
11
15
28
80
136
218
280
495
4QFY14
25.0
7.1
31.8
9.5
7.6
19.0
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
1QFY15
25.3
11.3
28.7
9.7
7.0
18.0
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
2QFY15
26.8
11.5
29.1
9.2
7.0
16.4
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
3QFY15
27.3
11.2
28.9
9.5
7.1
16.0
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
97.6
50
966
3.2
13.2
22.4
96.2
52
978
3.6
13.1
21.9
99.6
28
946
3.7
13.7
22.5
99.1
45
942
3.8
13.9
22.8
98.1
42
966
3.7
14.2
23.0
97.0
59
986
3.7
13.9
22.6
99.6
35
1022
3.7
13.4
21.8
98.6
50
1018
3.5
12.9
21.5
97.7
44
1018
3.8
12.7
21.0
Employee metrics
Closing Headcount - IT Services
142,905 145,812 147,281 147,216 146,402 146,053 147,452 154,297 156,866
Sales & Support staff - IT Services (average)
11,418 11,574 11,447 11,328 11,225 11,172 11,174 11,328 11,603
Utilization (IT Services excl. BPO, IFOX and I&ME)
Gross Utilization (%)
64.8
64.9
64.7
66.1
66.0
67.7
68.7
70.0
68.5
Net Utilization (excl support) (%)
71.7
71.7
71.4
73.0
72.9
74.9
76.0
77.5
75.9
Net Utilization (excl trainees) (%)
74.8
74.6
73.3
74.3
74.3
76.5
77.9
79.4
78.8
Source: MOSL, Company
12 March 2015
7

Wipro
Exhibit 16: Operating metrics
3QFY13
Employee metrics
Closing Headcount - IT Services
142,905
Sales & Support staff - IT Services (average)
11,418
Utilization (IT Services excl. BPO, IFOX and I&ME)
Gross Utilization (%)
64.8
Net Utilization (excl support) (%)
71.7
Net Utilization (excl trainees) (%)
74.8
Attrition
IT Services excluding BPO and I&ME
Voluntary TTM
Voluntary Quarterly Annualized
Involuntary Quarterly Annualized
BPO - Quarterly
BPO - Post training
IT Services (EXCL INFOX, BPO, I&ME)
Service Delivery
Revenue from FPP
% of onsite revenue
% of offshore revenue
QoQ - growth (%)
Service line wise
IMS
Analytics and Information Management
Business Application Services
BPO
Product Engg and Mobility
ADM
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
4QFY13
145,812
11,574
64.9
71.7
74.6
1QFY14
147,281
11,447
64.7
71.4
73.3
2QFY14
147,216
11,328
66.1
73.0
74.3
3QFY14
146,402
11,225
66.0
72.9
74.3
4QFY14
146,053
11,172
67.7
74.9
76.5
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
14.2
12.9
4.0
12.5
9.2
13.7
12.5
3.7
12.8
9.9
13.2
13.0
4.9
12.3
10.6
13.5
15.4
5.6
12.1
9.0
14.3
16.3
4.2
12.6
9.3
15.1
15.7
4.2
11.6
8.9
16.1
17.0
-
11.8
10.1
16.5
16.9
-
12.0
10.0
16.5
16.4
-
13.1
9.1
46.2
53.8
46.2
48.1
53.4
46.6
47.4
53.9
46.1
48.2
54.2
45.8
50.6
54.1
45.9
51.3
54.1
45.9
52.1
54.3
45.7
53.1
53.7
46.3
55.1
54.3
45.7
4.6
2.4
4.7
3.5
-6.4
-0.4
-8.2
-1.9
3.9
0.5
0.5
0.5
0.5
-3.2
0.5
4.9
-1.0
5.8
-0.1
0.2
0.2
0.2
-1.7
4.4
2.7
1.3
4.7
0.4
4.1
0.7
6.7
2.7
5.9
0.1
2.3
4.1
2.9
0.9
-2.0
-1.2
2.9
1.1
2.8
11.9
2.5
-2.1
-0.6
-6.1
2.4
61.0
-8.7
3.3
-6.8
-4.2
-1.9
-8.0
7.8
3.6
3.2
-3.4
1.8
-7.3
3.9
1.8
3.2
-1.3
0.7
4.7
2.8
-1.1
2.4
-3.7
1.7
2.0
0.8
6.7
3.1
2.4
-0.8
7.5
4.7
3.3
-6.4
7.8
1.3
2.2
-3.0
-1.7
3.7
2.5
0.5
2.5
0.9
-3.2
7.4
12.7
13.1
-4.5
-3.9
1.1
-1.3
1.0
-0.8
-2.8
0.2
3.5
-0.6
2.0
-6.2
4.4
3.0
5.5
0.2
-0.6
5.0
2.3
2.2
5.8
0.7
2.0
2.9
2.3
-3.1
6.8
5.5
3.7
3.9
2.3
1.4
2.9
0.7
8.0
1.5
4.9
3.1
5.4
5.4
-5.0
0.2
7.0
1.7
2.6
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
4.1
0.8
2.3
3.1
-2.3
-0.1
0.8
-0.2
4.6
3.9
-1.0
-0.9
1.8
5.6
1.1
6.9
4.3
-4.4
2.9
6.2
0.6
0.2
1.9
5.9
2.8
-1.1
2.1
0.6
5.8
-3.7
1.2
-3.7
10.0
-3.8
-1.3
-4.0
-2.3
4.2
-2.2
2.2
2.2
2.0
Source: MOSL, Company
12 March 2015
8

Wipro
Financials and valuations
Key Assumptions
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 (%)
2010
46.1
4,391
41.1
108,071
10,261
40,630
74.3
23.4
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
2015E
62.0
7,108
45.8
158,681
12,628
44,797
68.3
22.1
2016E
62.5
7,759
46.5
176,011
17,330
44,083
71.0
22.3
2017E
62.0
8,765
47.0
195,861
19,850
44,753
72.3
22.4
Income Statement
Y/E March
Sales
Change (%)
Operating Costs
SG&A
EBITDA
% of Net Sales
Depreciation & Amort.
EBIT
Margins
Other Income
PBT
Tax
Rate (%)
PAT
Minority Interest
Net Income
Change (%)
2010
271,242
5.6
179,373
32,822
66,581
24.5
7,534
59,047
21.8
3,369
62,946
9,293
14.8
53,653
-184
53,469
17.2
2011
310,986
14.7
204,639
40,467
74,091
23.8
8,211
65,880
21.2
4,718
71,246
9,896
13.9
61,350
-345
61,187
14.4
2012
318,747
2.5
215,665
36,369
66,713
20.9
10,129
56,584
17.8
8,939
65,523
12,955
19.8
52,568
-243
52,325
-14.5
2013
374,256
17.4
250,015
46,245
77,996
20.8
10,650
67,346
18.0
11,250
78,596
16,912
21.5
61,684
-322
61,362
17.3
2014
434,269
16.0
284,383
52,787
97,099
22.4
11,106
85,993
19.8
15,012
101,005
22,601
22.4
78,404
-438
77,966
27.1
2015E
469,213
8.0
308,869
56,231
104,112
22.2
13,208
90,904
19.4
20,071
110,975
24,631
22.2
86,344
-489
85,855
10.1
2016E
520,945
11.0
342,022
61,119
117,805
22.6
15,381
102,424
19.7
15,045
117,469
25,889
22.0
91,580
-412
91,168
6.2
(INR Million)
2017E
582,836
11.9
382,530
66,792
133,514
22.9
16,626
116,888
20.1
15,249
132,136
29,122
22.0
103,015
-412
102,603
12.5
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Minority Interest & others
Loans
Capital Employed
Gross Block
Less : Depreciation
Net Block
Investments
Intangible Assets
Other non current assets
Curr. Assets
Debtors
Inventories
Cash & Bank Balance
Adv., Other Current Assets
Current Liab. & Prov
Net Current Assets
Application of Funds
E: MOSL Estimates
12 March 2015
2010
2,936
193,176
196,112
8,339
62,511
266,962
89,499
36,041
53,458
30,420
57,813
13,143
175,094
67,636
7,926
64,878
34,654
62,966
112,128
266,962
2011
4,908
234,772
239,680
13,710
52,802
306,192
99,346
44,252
55,094
49,282
58,369
22,682
186,016
85,776
9,707
61,141
29,392
65,251
120,765
306,192
2012
4,917
280,397
285,314
10,492
58,958
354,764
113,369
54,381
58,988
41,961
72,166
27,897
234,989
110,353
10,662
77,666
36,308
81,237
153,752
354,764
2013
4,926
278,886
283,812
10,324
63,816
357,952
115,556
65,031
50,525
69,171
56,470
25,332
238,232
108,623
3,263
87,869
38,477
81,778
156,454
357,952
2014
4,932
338,567
343,499
11,440
51,592
406,531
127,586
76,137
51,449
63,233
65,358
28,135
294,129
124,726
2,293
117,862
49,248
95,773
198,356
406,531
2015E
4,932
346,238
351,170
11,440
51,756
414,365
156,383
89,345
67,038
60,843
65,358
31,076
291,073
132,158
2,315
106,323
50,276
101,023
190,050
414,365
2016E
4,932
408,652
413,584
11,440
51,527
476,551
191,764
104,726
87,038
60,843
65,358
33,528
340,727
145,646
2,571
136,567
55,943
110,943
229,784
476,551
(INR Million)
2017E
4,932
482,501
487,433
11,440
51,472
550,345
228,390
121,352
107,038
60,843
65,358
36,481
404,640
162,623
2,876
176,371
62,769
124,015
280,625
550,345
9

Wipro
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Book Value
DPS
Payout %
Valuation (x)
P/E
EV/EBITDA
EV/Sales
Price/Book Value
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
Turnover Ratios
Debtors (Days)
Asset Turnover (x)
Leverage Ratio
Debt/Equity Ratio(x)
2010
18.8
80.7
2.4
12.8
2011
21.6
98.2
4.4
20.3
2012
21.3
116.5
6.0
28.2
2013
24.9
115.6
7.0
28.1
2014
31.7
139.9
8.0
25.3
2015E
34.8
142.9
10.0
28.8
2016E
36.9
168.3
10.0
27.1
2017E
41.6
198.3
10.0
24.1
26.3
19.4
4.0
5.7
1.1
20.7
15.2
3.4
4.7
1.2
18.8
14.3
3.2
4.6
1.5
17.7
12.4
2.8
3.9
1.5
15.8
10.7
2.4
3.3
1.5
31.2
24.8
28.0
23.0
19.9
17.1
21.6
18.9
24.9
22.5
24.7
22.1
23.8
23.0
22.8
22.8
88
5.3
90
5.8
112
5.7
107
7.0
98
8.8
100
8.3
97
7.0
97
6.2
0.3
0.3
0.2
0.2
0.2
0.1
0.1
0.1
Cash Flow Statement
Y/E March
CF from Operations
Cash for Wkg. Capital
Net Operating CF
Net Purchase of FA
Net Pur. of Investments
Net Cash from Invest.
Issue of Shares/Other adj
Proceeds from LTB/STB
Dividend Payments
Net CF from Finan.
Free Cash Flow
Net Cash Flow
Opening Cash Bal.
Add: Net Cash
Closing Cash Bal.
E: MOSL Estimates
2010
53,172
-25,743
27,429
-11,198
-12,742
-23,940
24,047
8,742
-13,678
19,111
16,231
22,600
42,278
22,600
64,878
2011
68,827
-12,374
56,453
-9,847
-28,775
-38,622
3,386
-4,592
-25,079
-21,568
46,606
-3,737
64,878
-3,737
61,141
2012
70,711
-16,462
54,249
-14,023
-11,691
-25,714
10,663
2,780
-34,393
-12,010
40,226
16,525
61,141
16,525
77,666
2013
80,868
7,501
88,369
-2,187
-8,949
-11,136
-42,436
4,368
-40,212
-67,030
86,182
10,203
77,666
10,203
87,869
2014
97,042
-11,909
85,133
-12,030
-5,753
-17,783
4,919
-11,324
-45,964
-37,357
73,103
29,993
87,869
29,993
117,862
2015E
79,482
-3,233
76,248
-28,797
-21,718
-50,515
0
164
-57,507
-37,272
47,452
-11,539
117,862
-11,539
106,323
2016E
120,257
-9,489
110,768
-35,381
-2,451
-37,833
0
-229
-57,507
-42,691
75,387
30,245
106,323
30,245
136,567
(INR Million)
2017E
132,734
-11,037
121,696
-36,626
-2,953
-39,579
0
-55
-57,507
-42,313
85,070
39,804
136,567
39,804
176,371
12 March 2015
10

Wipro
Corporate profile
Company description
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.
Exhibit 17: Sensex rebased
Exhibit 18: Shareholding pattern (%)
Dec-14
Promoter
DII
FII
Others
73.4
4.7
10.8
11.1
Sep-14
73.4
4.6
11.0
11.0
Dec-13
73.5
3.8
12.0
10.7
Exhibit 19: Top holders
Holder Name
LIC of India
% Holding
1.7
Note: FII Includes depository receipts
Exhibit 20: Top management
Name
Azim H. Premji
T K Kurien
Suresh C Senapaty
Saurabh Govil
Satishchandra D
Designation
Chairman
CEO
CFO
Global Head, HR
COO
Exhibit 21: Director
Name
Azim H Premji
M K Sharma*
Shyam Saran*
B C Prabhakar*
Ireena Vittal*
Vyomesh Joshi*
Jagdish N Sheth*
*Independent
Name
Ashok S Ganguly*
Narayanan Vaghul*
Henning Kagermann*
William Arthur Owens*
T K Kurien
Suresh C Senapaty
Exhibit 22: Auditors
Name
BSR & Co LLP
Type
Statutory
Exhibit 23: MOSL forecast v/s consensus
EPS (INR)
FY15
FY16
FY17
MOSL forecast
34.8
36.9
41.6
Consensus
forecast
35.1
38.8
43.6
Variation (%)
-1.0
-4.8
-4.6
12 March 2015
11

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Wipro
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