Motilal Oswal Financial Services

7 May 2019

Update

| Sector: Technology

Wipro

Neutral

BSE SENSEX

38,600

S&P CNX

11,598

CMP: INR294

TP: INR280 (-5%)

Trend of declining Legacy and expanding Digital is accelerating

We hosted Wipro’s CFO Mr Jatin Dalal for an interaction on the demand environment and

the company’s prospects. Key highlights:

Amid an otherwise healthy demand environment, there are pockets of slowness and

also instances of sales cycles elongating by 5-8 weeks.

The trend of slow Legacy and fast Digital is accelerating further.

Deal sizes in Digital have inched up to USD5-8m from USD2-5m. Small-sized deals are

not a bad phenomenon given the attractive price points.

Productivity demands in Legacy deals are only increasing (even more than 5%

annually), making it imperative to be Automation-ready.

Localization drive began around three years ago, helping WPRO operate stably in the

current supply crunch. The focus is on retaining lateral staff, as replacement is

costlier than higher wages for current employees.

Valuation view: We expect the IT Services EBIT to stabilize at 18-19% and the overall

margin to pick up as losses in smaller segments reduce. We expect a CAGR (FY19-21)

of 6.6% in USD revenue and 11% in earnings. The stock trades at 17.1/16.0x

FY20E/21E earnings. Our TP of INR280 discounts forward earnings by 15x and implies

that the stock is fairly valued. We maintain Neutral on the stock.

Stock Info

Bloomberg

Equity Shares (m)

M.Cap.(INRb)/(USDb)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

12M Avg Val (INR M)

Free float (%)

WPRO IN

5,701

1772.4 / 25.5

299 / 190

14/12/34

1653

26.2

Financials Snapshot (INR b)

2019 2020E

Y/E Mar

Net Sales

585.8 623.4

EBITDA

117.0 135.4

PAT

91.6

97.4

EPS (INR)

14.8

17.1

Gr. (%)

10.1

15.6

BV/Sh (INR)

94.5

86.4

RoE (%)

17.4

18.4

RoCE (%)

14.6

17.4

P/E (x)

25.5

17.1

P/BV (x)

4.0

3.4

2021E

677.1

147.1

104.7

18.4

7.5

92.7

20.6

20.1

16.0

3.2

Shareholding pattern (%)

As On

Mar-19 Dec-18 Mar-18

Promoter

73.9

74.3

DII

6.5

7.6

6.6

FII

9.4

8.9

9.8

Others

10.3

9.2

9.3

FII Includes depository receipts

Stock Performance (1-year)

Healthy demand environment, but pockets of slowness elongating deal

cycles

The demand environment remains healthy, though the trend of slowness in

traditional and high growth in Digital is accelerating further. With that, sales

cycles are also stretching and being elongated by 5 to 8 weeks on an average.

WPRO is likely to start the year (1QFY20) on a flattish note – more due to

seasonality of passing on productivity benefits.

Verticals: BFS, Consumer BU should continue to lead the growth charge

BFS – WPRO will continue looking for more large deals like Alight Solutions for

growth. These are likelier to be in the US, given that Europe has some labor

law challenges. Top-client slowdown will not impact much. Overall, this

vertical is likely to grow above the company growth rate in FY20 too. Residual

impact from the Alight deal is ~3% on BFSI growth.

Ashish Chopra

– Research analyst

(Ashish.Chopra@MotilalOswal.com); +91 22 6129 1530

Research Analyst: Anmol Garg

(Anmol.Garg@MotilalOswal.com); +91 22 7193 4271 /

Mohit Sharma

(Mohit.Sharma@MotilalOswal.com)

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

Exhibit 1: BFSI growth rate remains strong

Finance Solutions (YoY CC %)

14.5%

8.1%

10.8%

14.5%

14.4%

16.0%

17.5%

15.9%

Source: Company, MOFSL

Healthcare – This vertical will come back slowly as HPS revenue (USD30m) is

now less significant. ‘Payer’ segment is seeing some slowness (60-65% of

Healthcare revenues). ‘Provider’ segment continues to do well (generally

comprises IMS deals but ticket sizes are not large).

Exhibit 2: Healthcare is making a comeback, albeit gradually, with HPS becoming

insignificant

0.0%

-2.0%

-4.0%

-6.0%

-8.0%

-10.0%

-12.0%

-10.5%

-8.5%

-6.3%

-7.7%

-4.4%

-4.1%

-2.3%

-0.6%

Healthcare, Life Sciences & Services

Source: Company, MOFSL

Communications – The segment should be able to mirror company average

growth this fiscal, with demand drivers led by 5G. Some client-specific issues

that marred FY19 are now behind.

Exhibit 3: Communications is reviving with client issues of FY19 largely behind

Communications (YoY CC %)

3.2%

-7.8%

-12.1%

-12.8%

-6.7%

-14.4%

-13.6%

-3.2%

Source: Company, MOFSL

7 May 2019

Wipro

Manufacturing and Technology: Headwinds exist and both verticals may remain

sluggish in the foreseeable future. 4QFY19 was affected by seasonality, but even

going forward, volumes may be impacted in the Technology vertical.

Exhibit 4: Manufacturing and Technology continue facing headwinds and growth challenges

Manufacturing (YoY CC %)

4.6%

-0.2%

-3.2%

-6.0%

-1.6%

7.2%

Technology (YoY CC %)

0.1%

-5.3%

Source: Company, MOFSL

Consumer and Energy & Utilities are expected to grow at normal company

growth rates.

Exhibit 5: Traction in Consumer business unit continues

Consumer Business Unit (YoY CC %)

14.8%

7.7%

2.2%

4.8%

10.0%

2.9%

4.5%

5.6%

Source: Company, MOFSL

Exhibit 6: Energy, Natural Resources & Utilities is growing in higher-single-digits

Energy, Natural Resources & Utilities (YoY CC %)

7.0%

9.8%

5.2%

-2.7%

-3.1%

0.0%

-4.3%

9.4%

Source: Company, MOFSL

Digital – smaller deals are healthy from the pricing standpoint

Digital contributes 35% of revenues and growing at a high growth rate (35% YoY

in FY19).

7 May 2019

Wipro

Digital services have lower deal sizes and deal duration when compared to

traditional IT services outsourcing deals. Average deal sizes were earlier in the

range of USD2-5m and have now increased to USD5-8m. They are expected to

remain low and management doesn’t see it increasing to USD20-30m in the

near future. Average deal duration is likely to be in the range of 9-15 months.

Smaller deal sizes are better for suppliers as it allows them to better price their

statement of work (SOW) component and is not complex like in large traditional

deals.

Wipro Digital’s acquisition of Cooper (SFO based) in Oct’17 was a USD5-7m deal.

Cooper is strongly connected to a large internet player’s marketing team. While

WIPRO was already connected to the CIO division through Apps and Infra, this

small acquisition is a way to expand in the account, and may help go beyond

traditional services like towards the engineering side.

Operating cash flow/EBTIDA ratio has considerably improved over the last four

years and will be 100% now with growth in Digital services (for Accenture, it is

115% mainly because it is 60% Digital already).

Exhibit 7: Digital revenues growing at high rate of 30%+ YoY

Digital as % of Total Revenue (%)

YoY (%)

Source: Company, MOFSL

Traditional deals remain under ever-increasing productivity pressure

Productivity demands in Legacy deals are increasing. Automation has now

become a key differentiator to win deals, as clients typically expect additional

5% productivity at the start of the deal itself. Hence, automation capability and

offerings like HOLMES are key.

WPRO is choosy when it comes to large deals and is chasing only the profitable

ones.

Margin outlook amid the supply situation

Margins are likely to remain at the current levels – the near-term range was

18.6%-19.8%. There is room to squeeze G&A further.

Localization:

WPRO has a good localization ratio. It has increased from 33% in

the US to 64% in three years. Supply situation overall has improved at onsite

locations.

Attrition:

Looking at retaining lateral employees by keeping salary hikes higher.

Salary hikes do not hurt the cost base as much as hiring of laterals from outside.

7 May 2019

Wipro

Exhibit 8: EBIT margin improved in 2HFY19, should remain range-bound

IT Services. EBIT Margin (%)

16.8

17.3

17.2

16.0

17.2

19.8

15.0

19.0

Valuation view

A foreword on the long-term industry view:

Growth for Indian IT should gradually

pick up from current 6-7% as Digital services proliferate, which today are still small

to move the needle on the overall performance. India will remain the hotbed for

talent supply en masse, making a case for increasing shift of Digital business from

onsite. That said, with Automation the top priority of every Board, without

exceptions, delineation of revenue growth with headcount growth appears obvious

– and the only lever to stem the decline in profitability witnessed in recent years.

WPRO against that industry backdrop

New leadership:

The change in leadership at WPRO has been followed by some

tweaks to the organization structure, while role redundancies and senior exits

are a natural consequence of the process. WPRO to its credit got through with

most of those changes swiftly – to shift the focus on execution of the strategy

than the distraction from getting the team in place.

Several changes to realign organization:

It laid out six themes that define its

strategic direction.

[1] Digital

– now 35% of total revenue and growing significantly above company

average.

[2] Client mining

– growth in the top 10 customers has been picking up for

WPRO, with it bettering company average.

[3] Markets

– the company has ramped up its localization efforts and added

several sites across key markets.

[4] Non linearity

– focusing on R&D efforts, applying for patents and further

augmenting capabilities of HOLMES.

[5] Hyper-automation

– while significant progress was seen in automating L1

tasks, it has also started seeing productivity improvement in L2 activities.

[6] Partner ecosystem

– significant ramp-up seen in acquisitions, investments

and partnerships.

Despite these changes, WPRO has failed to lift overall growth because of industry-

and client-specific issues. As these near-term headwinds end, the company would

be able to see higher revenue and earnings growth – a convergence to industry

growth rates.

7 May 2019

Wipro

Valuation and view – performance lacking broad-based traction

As WPRO’s new leader, Mr Abid Ali has chalked out an aggressive plan for the

company, 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. However, as is

the case with INFO, this is far-fetched and they will do well to get anywhere

near these levels given the current momentum in the bread-n-butter business.

Much before that, WPRO expected to catch up with industry growth by 4QFY18.

However, revenue growth YoY has decelerated over the last six quarters. The

guidance of 2.6-4.7% YoY CC growth for 2QFY19 finally shows a reversal in

trajectory. However, issues continue to haunt WPRO and there’s more pain,

although lesser than earlier (as indicated from 1QFY20 guidance). A clean chit is

therefore still a while away.

Growth underperformance at WPRO is an outcome of persistent issues with the

portfolio mix, while Healthcare has turned the corner and Energy & Utilities has

started to stabilize (minus Utilities); performance in India and Middle East is

being impacted by restructuring. These issues make it difficult to make a case

for an immediate recovery in the performance.

WPRO has been active on the investment front, with spending aimed toward

building capabilities, training and incentivizing people, acquiring businesses, and

investing in strategic accounts. This has dragged margins over the past few

years. Although some benefits are expected to kick in with Automation stepping

in, the recovery in the near term can be ruled out because of the lack of revenue

growth and the continued weakness in certain pockets.

Valuation view:

We expect the IT Services EBIT to stabilize at 18-19% and the

overall margin to pick up as losses in smaller segments reduce. We expect a

CAGR (FY19-21) of 6.6% in USD revenue and 11% in earnings. The stock trades at

17.1/16.0x FY20E/21E earnings. Our TP of INR280 discounts forward earnings by

15x and implies that the stock is fairly valued. We maintain

Neutral

on the stock.

Key triggers

Seizure of issues in India and Middle East.

Broad-basing of growth across verticals.

Uptick in margins from automation and productivity initiatives.

Key risk factors

Prolonged weakness in Healthcare/Manufacturing verticals.

Weakness in top accounts.

Softness in the Americas and Europe.

7 May 2019

Wipro

Story in charts

Exhibit 9: Growth guidance subdued on 1Q seasonality

Midpoint of QoQ CC growth guidance (%)

3.0

2.0

1.3

1.0

0.5

Exhibit 10: Expect revenue growth to accelerate in FY20

Revenue (USD m)

18.9

13.4

5.0

6.4

7.0

3.7

4.9

2.5

2.9

6.0

7.4

Growth (%)

0.0

-1.0

Source: Company, MOFSL

Exhibit 11: IT Services EBIT margin expected to be in 19%

range

IT Services EBIT margin (%)

IT Services SGA as % of Sales

Exhibit 12: Improvement in margins supported by higher

utilization

Utilization % (incl. trainees)

Utilization % (excl. trainees)

Source: Company, MOFSL

Exhibit 13: Digital revenues growing at high rate of 30%+

Digital as % of Total Revenue (%)

YoY (%)

Exhibit 14: OCF/EBITDA ratio has improved on the back of

digital growth…

OCF/EBITDA (%)

85%

99%

77%

70%

75%

73%

Source: Company, MOFSL

7 May 2019

Wipro

Exhibit 15: Operating metrics

Services Composition (%)

IMS

BPO

Product Engg and Mobility

Wipro Analytics

Application Services

Total

Verticals (%)

Finance Solutions

Manufacturing

Healthcare & LifeScience

Energy, Natural Resources & Utilities

Communications

Consumer

Technology

Geography (%)

Americas

Europe

ROW

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

EMPLOYEE METRICS

Closing Headcount - IT Services

Sales & Support staff - IT Services (average)

Utilization

Gross Utilization (%)

Net Utilization (excl. support) (%)

Net Utilization (excl. trainees) (%)

Attrition

Voluntary TTM

Voluntary Quarterly Annualized

BPO - Quarterly

BPO - Post training

Customer Concentration (%)

Top customer

Top 5

Top 10

2QFY18

27.2

12.4

7.1

7.2

46.1

100.0

27.6

8.9

14.0

13.5

6.60

15.10

14.30

54.80

25.60

19.60

170

261

358

591

99.1

1167

1,59,300

14,880

72.9

81.8

82.5

16.0

16.9

13.5

11.9

3.2

11.2

18.4

3QFY18

27.3

12.9

7.0

7.1

45.7

100.0

28.3

8.8

14.3

12.7

6.50

15.10

14.30

54.10

36.50

19.40

167

263

352

599

98.1

1201

1,58,865

14,881

71.0

80.0

81.9

16.1

16.2

12.8

11.1

3.2

11.5

18.2

4QFY18

27.6

12.4

7.4

7.1

45.5

100.0

28.7

8.9

14.2

12.7

5.90

15.00

14.60

53.80

27.50

18.70

171

268

357

595

97.4

1178

1,59,923

15,215

73.1

82.4

83.4

16.8

17.7

11.3

9.8

3.6

12.2

18.8

1QFY19

26.3

12.4

7.4

7.2

46.7

100.0

29.8

8.4

13.6

12.7

5.70

15.30

14.50

56.00

26.10

17.90

171

268

359

595

99.5

1184

1,60,846

15,076

74.5

83.9

85.2

17.1

17.8

10.8

9.5

3.7

11.9

18.7

2QFY19

25.6

12.9

7.4

7.8

46.3

100.0

30.5

8.3

13.0

12.8

5.80

15.70

13.90

56.10

25.70

18.20

177

265

348

584

98.6

1131

1,71,451

14,862

74.4

83.2

85.5

17.5

18.5

12.3

11.2

3.7

12.2

19.1

3QFY19

25.0

14.7

7.1

7.6

45.6

100.0

31.4

8.1

13.1

13.0

5.80

15.60

13.00

57.10

25.50

17.40

171

269

339

578

97.9

1132

1,72,379

14,575

73.4

81.9

83.2

17.9

17.5

10.5

9.4

3.7

13.0

19.7

4QFY19

25.2

14.9

7.2

7.6

45.1

100.0

31.5

8.0

13.2

12.8

5.82

16.2

12.6

58.2

24.6

17.2

172

262

339

571

97.6

1115

1,71,425

14,360

75.4

84.1

85.4

17.6

16.6

11.8

10.8

3.7

13.7

20.4

Source: MOFSL, Company

7 May 2019

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 (%)

2014

60.4

6,618

45.9

1,46,053

241

45,312

66.4

22.6

2015

62.2

7,082

46.0

1,58,217

12,164

44,759

68.7

22.0

2016

66.3

7,346

45.9

1,72,912

14,695

42,486

68.9

20.5

2017

68.6

7,705

46.4

1,81,482

8,570

42,453

71.6

17.9

2018

66.9

7,895

46.8

1,59,923

-21,559

49,369

72.3

16.8

2019

70.5

8,120

47.7

1,71,425

11,502

47,369

74.4

17.8

2020E

70.5

8,604

47.7

1,82,675

11,250

47,098

73.3

18.5

2021E

71.5

9,240

48.1

1,92,625

9,950

47,971

74.8

18.5

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

Adjusted PAT

Extraordinary items

Reported PAT

Change (%)

2014

4,34,269

16.0

2,84,383

52,787

97,099

22.4

11,106

85,993

19.8

15,012

1,01,005

22,601

22.4

78,404

27.1

2015

4,69,545

8.1

3,08,460

56,476

1,04,609

22.3

12,823

91,786

19.5

19,897

1,11,683

24,594

22.0

87,089

11.1

2016

5,12,440

9.1

3,41,759

62,562

1,08,119

21.1

14,965

93,154

18.2

21,565

1,14,719

25,305

22.1

89,414

2.7

2017

5,50,402

7.4

3,71,288

70,325

1,08,789

19.8

20,256

88,533

16.1

20,254

1,08,787

25,213

23.2

83,574

-1,702

81,872

-8.4

2018

5,44,871

-1.0

3,64,035

71,651

1,09,185

20.0

21,124

88,061

16.2

19,657

1,07,718

22,390

20.8

85,328

85,339

-4,612

80,727

-1.4

2019

5,85,845

7.5

3,93,559

75,320

1,16,966

20.0

19,474

97,492

16.6

20,578

1,18,070

26,379

22.3

91,691

-43

91,648

-2,612

89,036

10.3

2020E

6,23,422

6.4

4,06,933

81,085

1,35,404

21.7

22,850

1,12,555

18.1

13,242

1,25,796

28,304

22.5

97,492

-68

97,424

9.4

(INR Million)

2021E

6,77,113

8.6

4,38,196

91,846

1,47,071

21.7

24,143

1,22,928

18.2

12,252

1,35,180

30,416

22.5

1,04,765

-68

1,04,697

7.5

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

Closing Cash Bal.

2014

4,932

3,38,567

3,43,499

11,440

51,592

4,06,531

1,27,586

76,137

51,449

60,843

65,358

30,525

2,94,129

1,24,726

2,293

1,17,862

49,248

95,773

1,98,356

4,06,531

1,17,862

2015

4,937

4,03,045

4,07,982

15,315

78,913

5,02,210

1,43,166

88,960

54,206

57,775

76,009

29,459

3,82,584

1,33,869

4,849

1,64,017

79,849

97,823

2,84,761

5,02,210

1,64,017

2016

4,941

4,61,137

4,66,078

22,921

1,25,221

6,14,220

1,68,877

1,03,925

64,952

1,37,851

1,17,832

31,639

3,72,647

1,50,653

5,390

1,04,724

1,11,880

1,10,701

2,61,946

6,14,220

1,04,724

2017

4,861

5,15,443

5,20,304

24,058

1,42,412

6,86,774

1,93,975

1,24,181

69,794

2,99,133

1,41,718

36,003

2,46,868

1,39,941

3,915

62,457

40,555

1,06,742

1,40,126

6,86,774

62,457

2018

9,048

4,73,888

4,82,936

25,141

1,38,259

6,46,336

2,09,748

1,45,305

64,443

2,56,762

1,35,697

73,877

2,29,861

1,43,476

3,370

46,157

36,858

1,14,304

1,15,557

6,46,336

46,157

2019

12,068

5,56,048

5,68,116

22,337

99,469

6,89,922

2,35,380

1,64,779

70,601

2,27,632

1,30,742

53,246

3,50,950

1,23,369

3,951

1,63,460

60,170

1,43,251

2,07,699

6,89,920

1,63,460

2020E

11,402

4,79,646

4,91,048

22,337

87,469

6,00,854

2,54,602

1,64,779

89,823

2,27,632

1,30,742

73,789

2,11,663

1,63,183

3,856

7,678

36,945

1,32,795

78,867

6,00,854

7,678

(INR Million)

2021E

11,402

5,15,516

5,26,918

22,337

75,469

6,24,724

2,67,982

1,64,779

1,03,203

2,27,632

1,30,742

75,924

2,29,935

1,77,198

4,188

10,244

38,304

1,42,711

87,223

6,24,724

10,244

7 May 2019

Wipro

Financials and Valuations

Ratios

Y/E March

Basic (INR)

EPS

Cash 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)

2014

11.9

13.6

52.5

3.0

25.1

31.6

24.1

5.4

7.2

0.8

25.0

22.5

8.8

0.2

2015

13.2

15.2

62.3

4.5

34.0

28.5

22.2

5.0

6.1

1.2

23.2

20.2

101

9.3

0.2

2016

13.6

15.9

71.1

2.2

16.5

27.7

21.8

4.6

5.3

0.6

20.5

16.7

101

9.0

0.2

2017

12.5

15.8

79.4

0.7

5.9

30.2

20.7

4.1

4.7

0.2

16.9

13.6

8.5

0.3

2018

13.4

17.7

80.4

0.8

6.0

28.1

19.2

3.9

4.7

0.2

17.0

13.2

8.4

0.3

2019

14.8

18.4

94.5

1.0

6.8

25.5

16.9

3.4

4.0

0.3

17.4

14.6

9.0

0.2

2020E

17.1

21.1

86.4

10.0

58.5

17.1

14.7

3.2

3.4

2.7

18.4

17.4

7.9

0.2

2021E

18.4

22.6

92.7

10.0

54.5

16.0

13.5

2.9

3.2

2.7

20.6

20.1

7.1

0.2

Cash Flow Statement

Y/E March

CF from Operations

Cash for Wkg. Capital

Net Operating CF

2014

78,034

-10,134

67,900

-7,800

4,958

-2,842

-11,776

-23,289

-35,065

60,100

29,993

87,869

29,993

1,17,862

2015

85,633

-7,229

78,404

-11,413

-13,955

-25,368

22,609

-29,490

-6,881

66,991

46,155

1,17,862

46,155

1,64,017

2016

84,861

-5,988

78,873

-13,172

-1,24,435

-1,37,607

34,935

-35,494

-559

65,701

-59,293

1,64,017

-59,293

1,04,724

2017

88,262

4,511

92,773

-15,274

-1,02,421

-1,17,695

-8,611

-8,734

-17,345

77,499

-42,267

1,04,724

-42,267

62,457

2018

85,110

-877

84,233

-20,699

56,652

35,953

-1,31,066

-5,420

-1,36,486

63,534

-16,300

62,457

-16,300

46,157

2019

90,587

25,161

1,15,748

-25,632

20,631

-5,001

55,639

-41,821

-7,263

6,555

90,116

1,17,303

46,157

1,17,303

1,63,460

2020E

1,07,100

-26,950

80,150

-42,072

-20,543

-62,615

(INR Million)

2021E

1,16,655

-5,790

1,10,865

-37,523

-2,134

-39,657

12,109

-12,000

-68,752

-68,643

73,343

2,566

7,678

2,566

10,244

Net Purchase of FA

Net Pur. of Investments

Dividend from Subsidiary

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.

12,435

-12,000

-1,73,752

-1,73,316

38,078

-1,55,781

1,63,460

-1,55,781

7,678

7 May 2019

Wipro

Explanation of Investment Rating

Investment Rating

Expected return (over 12-month)

BUY

>=15%

SELL

< - 10%

NEUTRAL

< - 10 % to 15%

UNDER REVIEW

Rating may undergo a change

NOT RATED

We have forward looking estimates for the stock but we refrain from assigning recommendation

*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within

following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.

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10 MOSL has not engaged in market making activity for the subject company

****************************************************************

7 May 2019

Wipro

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7 May 2019