Bajaj Finserv Limited

Bajaj Finserv Limited, a part of Bajaj Holdings & Investments Limited, is an Indian financial
services company focused on lending, asset management, wealth management and insurance.
The company employs over 20,154 employees at 1,409 locations, and is engaged in consumer
finance businesses, life insurance, and general insurance. Apart from financial services, Bajaj
Finserv is also active in wind–energy generation with an installed capacity of 65.2 MW. Bajaj
Finserv was ranked among The Economic Times 500 in 2014. Bajaj Finance Limited (BFL),
participates in the financial business and is a company listed on The Stock Exchange, Mumbai
(BSE) and the National Stock Exchange (NSE)X

Economic factors that can affect the business of Bajaj Finserv Limited

 Deep understanding of the Customers segment:

NBFC’s have strongly focused on unorganized & Under-served segments of the economy, which
led the companies to create a niche for themselves through frequent interactions with their
customer segments & deeply understanding needs. They are ensuring last-mile delivery &
enhanced customer experience of products & services.

 Customized product offerings by NBFC’s:

Several NBFCs have focused on a limited line (or often a mono-line set of products) to serve the
target customer segment. Armed with a thorough comprehension of their target segment, NBFCs
have customized product offerings to address unique characteristics of the customer segment and
focus on meeting the right needs. Several NBFCs are adopting non-standard pricing models for
product lines, in-line with the customer profile and inherent risk of lending.

 Leveraging Technology for Improved Efficiency and Enhanced Experience:

The use of technology is helping nbfc Companies customize credit assessment models and
optimize business processes, thereby reducing the time to market and helping improve customer
experience. NBFCs are investing in data analytics and artificial intelligence to build robust
relationships with their target customer segments.

 Wider and Effective reach:

NBFCs are now reaching out to Tier-2, Tier-3 and Tier-4 markets, distributing loans across
several customer touch-points, building a connected channel experience, that provides an
omnichannel seamless experience with 24/7 sales and service, as the consumers of today
evolving and accessing digital media like never before, NBFCs have embarked on new and
better ways to engage with the customer.

 Co-lending Arrangements:
NBFCs have been tying up with multiple alternative lenders with digital platforms and
commercial banks as well, which has been adding to their targeted customer base.

 Robust Risk Management:

Given their focus on lending to the sub-prime customer segment, and regulatory disadvantage
(SARFEASI, DRT, and capital adequacy requirements) in comparison to commercial bank
lenders, NBFCs are ensuring enhanced governance through a proactive, robust and agile risk
management model.

Financial Services Industry

The growth of financial sector in India at present is nearly 8.5% per year. The rise in the
growth rate suggests the growth of the economy. The financial policies and the monetary policies
are able to sustain a stable growth rate. The reforms pertaining to the monetary policies and the
macroeconomic policies over the last few years has influenced the Indian economy to the core.
The major step towards opening up of the financial market further was the nullification of the
regulations restricting the growth of the financial sector in India. To maintain such a growth for a
long term the inflation has to come down further.

The financial sector in India had an overall growth of 15%, which has exhibited stability
over the last few years although several other markets across the Asian region were going
through a turmoil. The development of the system pertaining to the financial sector was the key
to the growth of the same. With the opening of the financial market variety of products and
services were introduced to suit the need of the customer. The Reserve Bank of India (RBI)
played a dynamic role in the growth of the financial sector of India.

Company Data
Open 17,787.50
Previous Close 17,614.75
Volume 712,551
Value (Lacs) 131,849.37
Beta 1.31
52 Week High 18,750.00
52 Week Low 5,400.00
Face Value 5
Mkt Cap (Rs. Cr.) 294,465
Dividend Yield 0.02

Holder's Name % Share Holding

No Of Shares 100%
Promoters 60.80%
Foreign Institutions 9.55%
Banks Mutual Funds 2.96%
Others 7.13%
General Public 16.36%
Financial Institutions 3.05%
GDR 0.16%

PROFIT & LOSS ACCOUNT OF BAJAJ Mar- Mar- Mar-19 Mar-18 Mar-17
 FINSERV (in Rs. Cr.) 21 20
INCOME          
779.8
REVENUE FROM OPERATIONS [GROSS] 323.73 6 423.05 241.9 153.9
Less: Excise/Sevice Tax/Other Levies 0 0 0 0 0
779.8
REVENUE FROM OPERATIONS [NET] 323.73 6 423.05 241.9 153.9
779.8
TOTAL OPERATING REVENUES 323.73 6 423.05 241.9 153.9
Other Income 68.3 35.3 25.51 10.36 11.1
815.1
TOTAL REVENUE 392.03 6 448.56 252.26 165
EXPENSES          
Cost Of Materials Consumed 0 0 0 0 0
Operating And Direct Expenses 0 0 0 0 0
Changes In Inventories Of FG,WIP And
Stock-In Trade 0 0 0 0 0
Employee Benefit Expenses 101.88 84.72 53.53 26.91 20.35
Finance Costs 0 0 0 0 0
Depreciation And Amortisation Expenses 4.68 2.9 1.55 1.36 1.46
Other Expenses 40.37 45.66 67.49 56.78 39.19
133.2
TOTAL EXPENSES 146.93 8 122.57 85.05 61
PROFIT/LOSS BEFORE EXCEPTIONAL, 681.8
EXTRAORDINARY ITEMS AND TAX 245.1 8 325.99 167.21 104
Exceptional Items 0 0 0 0 0
681.8
PROFIT/LOSS BEFORE TAX 245.1 8 325.99 167.21 104
TAX EXPENSES-CONTINUED
OPERATIONS          
Current Tax 67.84 13.94 18.02 27.6 35.23
Less: MAT Credit Entitlement 0 0 0 0 0
Deferred Tax -1.52 1.08 0.8 -2.01 -1.25
Tax For Earlier Years 0 0 0 0 0
TOTAL TAX EXPENSES 66.32 15.02 18.82 25.59 33.98
PROFIT/LOSS AFTER TAX AND BEFORE 666.8
EXTRAORDINARY ITEMS 178.78 6 307.17 141.62 70.02
PROFIT/LOSS FROM CONTINUING 666.8
OPERATIONS 178.78 6 307.17 141.62 70.02
666.8
PROFIT/LOSS FOR THE PERIOD 178.78 6 307.17 141.62 70.02

BALANCE SHEET OF BAJAJ

FINSERV (in Rs. Cr.) Mar-21 Mar-20 Mar-19 Mar-18 Mar-17
EQUITIES AND LIABILITIES          
SHAREHOLDER'S FUNDS          
Equity Share Capital 79.57 79.57 79.57 79.57 79.57
TOTAL SHARE CAPITAL 79.57 79.57 79.57 79.57 79.57
3,721.3 3,455.8 2,686.4
Reserves and Surplus 5 6 3,081.34 2,800.18 5
3,721.3 3,455.8 2,686.4
TOTAL RESERVES AND SURPLUS 5 6 3,081.34 2,800.18 5
3,800.9 3,535.4 2,766.0
TOTAL SHAREHOLDERS FUNDS 2 3 3,160.91 2,879.75 2
NON-CURRENT LIABILITIES          
Long Term Borrowings 0 0 0 0 0
Deferred Tax Liabilities [Net] 6.63 0 0 0 9.49
Other Long Term Liabilities 20.51 21.31 19.02 20.35 1.87
Long Term Provisions 6.36 8.8 9.86 11.24 7.64
TOTAL NON-CURRENT
LIABILITIES 33.5 30.11 28.88 31.59 19
CURRENT LIABILITIES          
Short Term Borrowings 0 0 0 0 0
Trade Payables 2.31 2.1 4.69 2.85 1.54
Other Current Liabilities 31.8 32.52 24.42 12.54 8.32
Short Term Provisions 0 0 0 0 19.25
TOTAL CURRENT LIABILITIES 34.11 34.62 29.11 15.39 29.11
TOTAL CAPITAL AND 3,868.5 3,600.1 2,814.1
LIABILITIES 3 6 3,218.90 2,926.73 3
ASSETS          
NON-CURRENT ASSETS          
Tangible Assets 153.19 152.88 67.79 67.4 68.06
Intangible Assets 0 0 0 0 0
Capital Work-In-Progress 2.29 0 33.34 8.19 1.19
Other Assets 5.37 5.5 5.63 5.76 0
FIXED ASSETS 160.85 158.38 106.76 81.35 69.25
2,489.7
Non-Current Investments 0 0 2,177.53 2,107.53 1
Deferred Tax Assets [Net] 0 7.94 8.08 8.36 0
Long Term Loans And Advances 0 0 0 0 34.86
Other Non-Current Assets 49.67 26.92 29.35 18.41 0
2,593.8
TOTAL NON-CURRENT ASSETS 210.52 193.24 2,321.72 2,215.65 2
CURRENT ASSETS          
3,494.9 3,340.0
Current Investments 7 0 759.87 650.59 182.25
Inventories 0 0 0 0 0
Trade Receivables 0.52 0.43 0.29 3.96 0.63
Cash And Cash Equivalents 124.67 4.96 60.27 12.4 1.55
Short Term Loans And Advances 0 0 25.85 0 1.17
Other Current Assets 37.85 61.53 50.9 44.13 34.71
3,658.0 3,406.9
TOTAL CURRENT ASSETS 1 2 897.18 711.08 220.31
3,868.5 3,600.1 2,814.1
TOTAL ASSETS 3 6 3,218.90 2,926.73 3

CASH FLOW OF BAJAJ Mar- Mar- Mar-

FINSERV (in Rs. Cr.) 21 20 Mar-19 Mar-18 17
NET PROFIT/LOSS BEFORE
EXTRAORDINARY ITEMS AND 681.8
TAX 245.1 8 325.99 167.21 104
Net CashFlow From Operating 169.3 638.8
Activities 6 3 286.45 141.92 41.51
- - -
149.2 575.4 263.8
Net Cash Used In Investing Activities 8 8 -210.82 -103.52 1
-
Net Cash Used From Financing 118.9
Activities -0.18 7 -27.77 -27.59 -0.69
Foreign Exchange Gains / Losses 0 0 0 0 0
Adjustments On Amalgamation Merger
Demerger Others 0 0 0 0 0
-
NET INC/DEC IN CASH AND CASH - 222.9
EQUIVALENTS 19.9 55.62 47.86 10.81 9
Cash And Cash Equivalents Begin of 224.2
Year 4.35 59.97 12.11 1.3 9
Cash And Cash Equivalents End Of
Year 24.25 4.35 59.97 12.11 1.3

KEY FINANCIAL RATIOS OF

BAJAJ FINSERV (in Rs. Cr.) Mar-21 Mar-20 Mar-19 Mar-18 Mar-17
PER SHARE RATIOS          
Basic EPS (Rs.) 11.2 41.9 19.3 8.9 4.4
Diluted EPS (Rs.) 11.2 41.9 19.3 8.9 4.4
Cash EPS (Rs.) 11.53 42.09 19.4 8.98 4.49
Book Value
[ExclRevalReserve]/Share (Rs.) 238.84 222.16 198.62 180.96 173.81
Book Value
[InclRevalReserve]/Share (Rs.) 238.84 222.16 198.62 180.96 173.81
Dividend / Share(Rs.) 3 5 2.5 1.75 1.75
Revenue from Operations/Share 20.34 49 26.58 15.2 9.67
 (Rs.)
PBDIT/Share (Rs.) 15.7 43.03 20.58 10.59 6.63
PBIT/Share (Rs.) 15.4 42.85 20.48 10.51 6.54
PBT/Share (Rs.) 15.4 42.85 20.48 10.51 6.54
Net Profit/Share (Rs.) 11.23 41.9 19.3 8.9 4.4
PROFITABILITY RATIOS          
PBDIT Margin (%) 77.15 87.8 77.42 69.68 68.52
PBIT Margin (%) 75.71 87.43 77.05 69.12 67.57
PBT Margin (%) 75.71 87.43 77.05 69.12 67.57
Net Profit Margin (%) 55.22 85.51 72.6 58.54 45.49
Return on Networth / Equity (%) 4.7 18.86 9.71 4.91 2.53
Return on Capital Employed (%) 6.39 19.12 10.21 5.74 3.73
Return on Assets (%) 4.62 18.52 9.54 4.83 2.48
Total Debt/Equity (X) 0 0 0 0 0
Asset Turnover Ratio (%) 8.36 21.66 13.14 8.26 5.46
LIQUIDITY RATIOS          
Current Ratio (X) 107.24 98.41 30.82 46.2 7.57
Quick Ratio (X) 107.24 98.41 30.82 46.2 7.57
Inventory Turnover Ratio (X) 0 0 0 0 0
Dividend Payout Ratio (NP) (%) 0 17.89 9.06 19.66 0
Dividend Payout Ratio (CP) (%) 0 17.82 9.02 19.47 0
Earnings Retention Ratio (%) 0 82.11 90.94 80.34 0
Cash Earnings Retention Ratio (%) 0 82.18 90.98 80.53 0
VALUATION RATIOS          
153,728.7 73,036.3 111,901.8 82,399.0 65,051.7
Enterprise Value (Cr.) 0 2 8 4 0
EV/Net Operating Revenue (X) 474.87 93.65 264.51 340.63 422.69
EV/EBITDA (X) 615.46 106.66 341.64 488.81 616.84
MarketCap/Net Operating Revenue
(X) 475.25 93.66 264.65 340.68 422.7
Retention Ratios (%) 0 82.1 90.93 80.33 0
Price/BV (X) 40.48 20.66 35.42 28.62 23.52
Price/Net Operating Revenue 475.26 93.66 264.65 340.69 422.71
Earnings Yield 0 0.01 0 0 0

Bajaj Finserv 's Cash or Cash Equivalents are the most liquid of all assets found on the
company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good
indicator of the overall financial health of a company. Companies with a lot of cash are usually
attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported
using currency printed on notes. Most of Bajaj Finserv's fundamental indicators, such as Cash
and Equivalents, are part of a valuation analysis module that helps investors searching for stocks
that are currently trading at higher or lower prices than their real value. If the real value is higher
than the market price, Bajaj Finserv is considered to be undervalued, and we provide a buy
recommendation. Cash equivalents represent current assets that are easily convertible to cash
such as short-term bonds, savings account, money market funds, or certificate of deposits (CDs).
One of the important consideration companies make when classifying assets as cash equivalent is
that investments, they report on their balance sheets under current assets should have almost no
risk of change in value over the next few months (usually three months).

Bajaj Finserv Ltd. fundamentals help investors to digest information that contributes to
Bajaj Finserv's financial success or failures. It also enables traders to predict the movement of
Bajaj Stock. This fundamental analysis module provides a way for investors to measures Bajaj
Finserv's intrinsic value by examining all of its available economic and financial indicators and
drivers, including the cash flow records, the balance sheet account changes, the income statement
patterns, and various microeconomic indicators and financial ratios related to Bajaj Finserv
stock. Please note, this module does not cover all equities due to inconsistencies in global equity
categorizations. Continue to Equity Screeners to view more equity screening tools.

WIPRO
Wipro Limited operates as information technology (IT), consulting, and business process
services company worldwide. It operates through three segments: IT Services, IT Products, and
India State Run Enterprise Services (ISRE). The IT Services segment offers IT and IT-enabled
services, including digital strategy advisory, customer-centric design, technology consulting, IT
consulting, custom application design, development, re-engineering and maintenance, systems
integration, package implementation, infrastructure, analytics, business process, research and
development, and hardware and software design services to enterprises. It serves customers in
various industry sectors, such as healthcare and medical devices, consumer goods and life
sciences, retail, transportation and services, communications, media and information services,
technology products and platforms, banking, financial services and insurance, manufacturing, hi-
tech, energy, and utilities. The IT Products segment provides a range of third-party IT products
comprising enterprise platforms, networking solutions, software and data storage products,
contact center infrastructure, enterprise security, IT optimization technologies, video solutions,
and end-user computing solutions. It serves enterprises in various industries primarily in the
India market, which comprise the government, defense, IT and IT-enabled services,
telecommunications, manufacturing, utilities, education, and financial services sectors.

The ISRE segment offers IT services to entities and/or departments owned or controlled
by the Government of India and/or various Indian State Governments. Wipro Limited has a
collaboration agreement with FEV Europe GmbH to develop and market software defined
vehicles; and IP Infusion to deliver validated disaggregated networking solutions, as well as has
a strategic partnership with DataRobot, Inc. The company was incorporated in 1945 and is based
in Bengaluru, India. Wipro Limited is an Indian multinational corporation that
provides information technology, consulting and business process services. The Fortune India
500 ranks it the 29th largest Indian company by total revenue. [4] It is also ranked the 9th largest
employer in India with over 200,000 employees. It is headquartered
in Bangalore, Karnataka, India.

ECONOMIC FACTORS THAT AFFECT THE BUSINESS OF WIPRO

The Macro environment factors such as – inflation rate, savings rate, interest rate, foreign
exchange rate and economic cycle determine the aggregate demand and aggregate investment in
an economy. While micro environment factors such as competition norms impact the
competitive advantage of the firm. Wipro Limited can use country’s economic factor such as
growth rate, inflation & industry’s economic indicators such as Information Technology Services
industry growth rate, consumer spending etc to forecast the growth trajectory of not only –
sectory name-- sector but also that of the organization. Economic factors that Wipro Limited
should consider while conducting PESTEL analysis are -

 Type of economic system in countries of operation – what type of economic system there
is and how stable it is.

 Government intervention in the free market and related Technology

 Exchange rates & stability of host country currency.

 Efficiency of financial markets – Does Wipro Limited needs to raise capital in local
market?
 Infrastructure quality in Information Technology Services industry

 Comparative advantages of host country and Technology sector in the particular country.

 Skill level of workforce in Information Technology Services industry.

 Education level in the economy

 Labor costs and productivity in the economy

 Business cycle stage (e.g. prosperity, recession, recovery)

 Economic growth rate

 Discretionary income

 Unemployment rate

 Inflation rate

 Interest rates

WIPRO LTD-IT INDUSTRY

The IT industry is one which is not limited to software development alone. Technology

can be applied in libraries, hospitals, banks, shops, prisons, hotels, airports, train stations
and many other places through database management systems, or through custom-made
software as seen fit. Information Technology in India is an industry consisting of two
major components: IT services and business process outsourcing (BPO).[1] The sector
has increased its contribution to India's GDP from 1.2% in 1998 to 7.7% in
2017.According to NASSCOM, the sector aggregated revenues US$180 billion in 2019,
[3][4]
 with export revenue of standing at US$99 billion and domestic revenue at US$48
billion, growing by over 13%. As of 2020, India's IT workforce accounts for 4.36 million
employees. The United States accounts for two-thirds of India's IT services exports. The
global sourcing market in India continues to grow at a higher pace compared to the IT-
BPM industry. India is the leading sourcing destination across the world, accounting for
 approximately 55% market share of the US$ 200-250 billion global services sourcing
business in 2019-20.

The IT industry accounted for 8% of India’s GDP in 2020. Exports from the Indian IT
industry are expected to increase by 1.9% to reach US$ 150 billion in FY21. In 2020, the
IT industry recorded 138,000 new hires. According to STPI (Software Technology Park
of India), the software exports by its registered units increased by 7% YoY to reach Rs. 5
lakh crore (US$ 67.40 billion) in FY21 from Rs. 4.66 lakh crore (US$ 62.82 billion) in
FY20, driven by rapid digitization and the IT industry's timely transition to remote
working environments that helped to keep up the industry’s growth amid corona

FINANCIAL STATEMENTS
1. Profit &loss Account

PROFIT & LOSS MAR 21 MAR 20 MAR 19 MAR 18 MAR 17  

ACCOUNT OF WIPRO (in
Rs. Cr.)

  12 mths 12 mths 12 mths 12 mths 12 mths  

INCOME  

REVENUE FROM 50,299.40 50,387.70 48,029.80 44,710.00 45,639.60  

OPERATIONS [GROSS]

Less: Excise/Sevice 0.00 0.00 0.00 0.00 0.00  

Tax/Other Levies

REVENUE FROM 50,299.40 50,387.70 48,029.80 44,710.00 45,639.60  

OPERATIONS [NET]

TOTAL OPERATING 50,299.40 50,407.00 48,123.80 44,710.00 46,047.80  

REVENUES

Other Income 2,382.90 2,476.60 2,568.60 2,479.60 2,645.90  

TOTAL REVENUE 52,682.30 52,883.60 50,692.40 47,189.60 48,693.70  

EXPENSES  

Cost Of Materials Consumed 0.00 0.00 0.00 0.00 0.00  

Operating And Direct 10,675.40 12,378.40 12,505.10 0.00 0.00  

Expenses

Changes In Inventories Of 34.50 159.90 -55.30 57.70 164.00  

FG,WIP And Stock-In Trade

Employee Benefit Expenses 26,467.30 26,171.80 23,808.50 21,756.20 21,854.40  

Finance Costs 402.60 535.20 524.90 384.30 468.00  

Depreciation And 1,349.30 1,141.10 934.30 1,014.80 1,047.70  

Amortisation Expenses

Other Expenses 480.50 691.20 1,962.40 12,472.70 12,285.60  

TOTAL EXPENSES 39,997.50 41,875.90 40,821.90 37,155.30 38,006.60  

PROFIT/LOSS BEFORE 12,684.80 11,007.70 9,870.50 10,034.30 10,687.10  

EXCEPTIONAL,
EXTRAORDINARY
ITEMS AND TAX

Exceptional Items 0.00 0.00 0.00 0.00 0.00  

PROFIT/LOSS BEFORE 12,684.80 11,007.70 9,870.50 10,034.30 10,687.10  

TAX

TAX EXPENSES-  
CONTINUED
OPERATIONS

Current Tax 2,243.00 2,206.70 2,272.50 2,434.50 2,430.40  

Less: MAT Credit 0.00 0.00 0.00 0.00 0.00  

Entitlement
Deferred Tax 380.90 120.30 -16.00 -123.00 95.00  

Tax For Earlier Years 0.00 0.00 0.00 0.00 0.00  

TOTAL TAX EXPENSES 2,623.90 2,327.00 2,256.50 2,311.50 2,525.40  

PROFIT/LOSS AFTER 10,060.90 8,680.70 7,614.00 7,722.80 8,161.70  

TAX AND BEFORE
EXTRAORDINARY
ITEMS

PROFIT/LOSS FROM 10,060.90 8,680.70 7,614.00 7,722.80 8,161.70  

CONTINUING
OPERATIONS

PROFIT/LOSS FOR THE 10,060.90 8,680.70 7,614.00 7,722.80 8,161.70  

PERIOD

OTHER ADDITIONAL  
INFORMATION

EARNINGS PER SHARE  

Basic EPS (Rs.) 17.81 14.88 12.67 16.26 16.80  

Diluted EPS (Rs.) 17.77 14.84 12.67 16.23 16.75  

2. CHANGE IN ESTIMATES

Year to 31-Mar FY21E FY22E FY23E

IT Services revenue (US$ m) –
New 8,121 8,910 9,603
Old 8,085 8,725 9,284
 Change 0.4% 2.1% 3.4%
USD Revenue growth - 1.6% 9.7% 7.8%
EBIT Margins –
New 20.0% 20.1% 19.6%
Old 18.5% 18.5% 18.6%
Change 149 bps 165 bps 99 bps
EPS - Fully diluted (Rs)
New 18.4 21.8 23.5
Old 17.0 19.7 21.7
Change 8.0% 10.5% 8.3%

3. BALANCE SHEET

BALANCE SHEET OF MAR 21 MAR 20 MAR 19 MAR 18 MAR 17  

WIPRO (in Rs. Cr.)

  12 mths 12 mths 12 mths 12 mths 12 mths  

EQUITIES AND  
LIABILITIES

SHAREHOLDER'S  
FUNDS

Equity Share Capital 1,095.80 1,142.70 1,206.80 904.80 486.10  

TOTAL SHARE CAPITAL 1,095.80 1,142.70 1,206.80 904.80 486.10  

Reserves and Surplus 53,498.10 54,024.00 55,215.80 47,021.50 51,184.10  

TOTAL RESERVES AND 53,498.10 54,024.00 55,215.80 47,021.50 51,184.10  

SURPLUS
TOTAL SHAREHOLDERS 54,901.00 55,321.70 56,422.60 47,926.30 51,670.20  
FUNDS

Minority Interest 149.80 187.50 263.70 241.00 239.10  

NON-CURRENT  
LIABILITIES

Long Term Borrowings 745.80 484.00 2,836.80 4,526.80 1,961.10  

Deferred Tax Liabilities [Net] 460.60 279.30 338.40 302.50 657.80  

Other Long Term Liabilities 3,165.30 2,990.30 1,419.90 1,166.60 1,081.20  

Long Term Provisions 305.70 376.80 208.40 179.40 424.10  

TOTAL NON-CURRENT 4,677.40 4,130.40 4,803.50 6,175.30 4,124.20  

LIABILITIES

CURRENT LIABILITIES  

Short Term Borrowings 6,036.30 5,402.00 6,808.50 7,959.80 11,674.10  

Trade Payables 5,417.40 5,840.00 6,266.00 5,120.30 4,867.30  

Other Current Liabilities 10,002.50 9,061.00 7,254.80 7,300.30 5,652.80  

Short Term Provisions 1,547.80 1,336.30 1,105.70 970.30 754.30  

TOTAL CURRENT 23,004.00 21,639.30 21,435.00 21,350.70 22,948.50  

LIABILITIES

TOTAL CAPITAL AND 82,732.20 81,278.90 82,924.80 75,693.30 78,982.00  

LIABILITIES

ASSETS  
NON-CURRENT ASSETS  

Tangible Assets 8,217.10 7,736.50 4,766.50 4,910.80 6,066.70  

Intangible Assets 1,308.50 1,636.20 1,376.20 1,811.30 1,592.20  

Capital Work-In-Progress 1,853.20 1,881.10 2,141.80 1,377.70 737.70  

FIXED ASSETS 11,378.80 11,253.80 8,284.50 8,099.80 8,396.60  

Non-Current Investments 1,204.00 1,068.50 815.10 887.40 710.30  

Deferred Tax Assets [Net] 166.40 600.50 560.40 690.80 309.80  

Long Term Loans And 0.00 0.00 0.00 0.00 0.00  

Advances

Other Non-Current Assets 4,149.70 3,681.60 4,752.20 3,995.10 3,447.90  

TOTAL NON-CURRENT 30,413.60 29,293.80 25,734.20 25,077.70 25,092.20  

ASSETS

CURRENT ASSETS  

Current Investments 17,570.70 18,963.50 22,071.60 24,909.40 29,203.00  

Inventories 106.40 186.50 395.10 337.00 391.50  

Trade Receivables 9,429.80 10,447.40 10,048.90 10,099.00 9,484.60  

Cash And Cash Equivalents 16,979.30 14,449.90 15,852.90 4,492.50 5,271.00  

Short Term Loans And 0.00 0.00 0.00 0.00 0.00  

Advances

OtherCurrentAssets 8,232.40 7,937.80 8,822.10 10,777.70 9,539.70  

TOTAL CURRENT 52,318.60 51,985.10 57,190.60 50,615.60 53,889.80  

ASSETS

TOTAL ASSETS 82,732.20 81,278.90 82,924.80 75,693.30 78,982.00  

OTHER ADDITIONAL  
INFORMATION

CONTINGENT  
LIABILITIES,
COMMITMENTS

Contingent Liabilities 11,606.30 17,275.00 22,587.50 16,891.70 9,278.80  

BONUS DETAILS  

Bonus Equity Share Capital 1,094.34 1,141.18 1,205.19 885.67 468.12  

NON-CURRENT  
INVESTMENTS

Non-Current Investments 0.00 0.00 0.00 0.00 0.00  

Quoted Market Value

Non-Current Investments 1,057.60 930.20 691.60 766.80 710.30  

Unquoted Book Value

CURRENT  
INVESTMENTS

Current Investments Quoted 13,138.20 13,546.10 17,768.60 22,575.10 22,675.00  

Market Value

Current Investments 4,432.50 5,417.40 4,303.00 2,334.30 6,528.00

Unquoted Book Value

4. CASH FLOW
CASH FLOW OF MAR 21 MAR 20 MAR 19 MAR 18 MAR 17  
WIPRO (in Rs. Cr.)

  12 mths 12 mths 12 mths 12 mths 12 mths  

NET PROFIT/LOSS 10,868.00 9,771.80 9,017.90 8,003.10 8,517.90  

BEFORE
EXTRAORDINARY
ITEMS AND TAX

Net CashFlow From 14,755.00 10,064.30 11,631.60 8,423.30 9,277.30  

Operating Activities

Net Cash Used In Investing 773.90 3,401.20 5,012.60 3,557.80 -  

Activities 11,628.30

Net Cash Used From - - -4,936.90 - -2,275.20  

Financing Activities 12,884.00 15,099.80 12,997.80

Foreign Exchange Gains / -89.00 192.20 52.60 37.50 -141.20  

Losses

Adjustments On 0.00 0.00 0.00 0.00 0.00  

Amalgamation Merger
Demerger Others

NET INC/DEC IN CASH 2,555.90 -1,442.10 11,759.90 -979.20 -4,767.40  

AND CASH
EQUIVALENTS

Cash And Cash Equivalents 14,410.40 15,852.50 4,092.60 5,071.80 9,839.20  

Begin of Year

Cash And Cash Equivalents 16,966.30 14,410.40 15,852.50 4,092.60 5,071.80

End Of Year

5. RATIO
KEY FINANCIAL MAR 21 MAR 20 MAR 19 MAR 18 MAR 17  
RATIOS OF
WIPRO (in Rs. Cr.)

PER SHARE RATIOS  

Basic EPS (Rs.) 19.11 16.67 14.99 16.85 34.98  

Diluted EPS (Rs.) 19.07 16.63 14.99 16.82 34.87  

Cash EPS (Rs.) 24.86 20.75 18.18 22.36 44.55  

Book Value 100.48 97.15 93.94 106.47 213.57  

[ExclRevalReserve]/Shar
e (Rs.)

Book Value 100.48 97.15 93.94 106.47 213.57  

[InclRevalReserve]/Share
(Rs.)

Revenue from 113.04 107.01 97.81 120.44 228.14  

Operations/Share (Rs.)

PBDIT/Share (Rs.) 31.32 26.37 23.58 28.59 57.37  

PBIT/Share (Rs.) 26.28 22.72 20.36 23.93 47.86  

PBT/Share (Rs.) 25.35 21.44 19.14 22.64 45.42  

Net Profit/Share (Rs.) 19.81 17.10 14.95 17.69 35.05  

NP After MI And SOA / 19.71 17.02 14.92 17.69 34.94  

Share (Rs.)

PROFITABILITY  
RATIOS

PBDIT Margin (%) 27.70 24.64 24.11 23.74 25.14  

PBIT Margin (%) 23.24 21.23 20.81 19.86 20.98  

PBT Margin (%) 22.42 20.03 19.56 18.79 19.90  

Net Profit Margin (%) 17.52 15.97 15.28 14.68 15.36  

NP After MI And SOA 17.43 15.90 15.25 14.68 15.31  

Margin (%)

Return on 19.66 17.57 15.95 16.69 16.43  

Networth/Equity (%)

Return on Capital 24.10 21.76 19.97 19.91 20.76  

Employed (%)

Return on Assets (%) 13.04 11.96 10.85 10.57 10.75  

Total Debt/Equity (X) 0.12 0.11 0.17 0.26 0.26  

Asset Turnover Ratio (%) 74.86 75.21 71.17 71.98 70.20  

LIQUIDITY RATIOS  

Current Ratio (X) 2.27 2.40 2.67 2.37 2.35  

Quick Ratio (X) 2.27 2.39 2.65 2.35 2.33  

Inventory Turnover Ratio 582.09 327.82 149.38 161.68 141.63  

(X)

Dividend Payout Ratio 5.05 7.05 6.03 5.62 8.53  

(NP) (%)

Dividend Payout Ratio 4.02 5.81 4.96 4.44 6.71  

(CP) (%)

Earnings Retention Ratio 94.95 92.95 93.97 94.38 91.47  

(%)
Cash Earnings Retention 95.98 94.19 95.04 95.56 93.29  
Ratio (%)

COVERAGE RATIOS  

Interest Coverage Ratios 28.30 17.72 16.66 18.57 19.58  

(%)

Interest Coverage Ratios 28.30 17.72 16.66 18.57 19.58  

(Post Tax) (%)

VALUATION RATIOS  

Enterprise Value (Cr.) 216,892.7 103,951.0 147,772.2 135,563.0 133,859.1  

8 1 5 8 2

EV/Net Operating 3.50 1.70 2.50 2.49 2.41  

Revenue (X)

EV/EBITDA (X) 12.64 6.90 10.38 10.48 9.60  

MarketCap/Net 3.66 1.84 2.60 2.34 2.26  

Operating Revenue (X)

Retention Ratios (%) 94.94 92.94 93.96 94.37 91.46  

Price/BV (X) 4.13 2.03 2.72 2.66 2.42  

Price/Net Operating 3.66 1.84 2.60 2.34 2.26  

Revenue

Earnings Yield 0.05 0.09 0.06 0.06 0.07

ANALYISIS AND INTERPRETATION

 The business model is such that 30% of the revenue comes from the financial
services industry, 17% from consumer business industry, 14% from the healthcare
industry, 8% from manufacturing and 13% comes from Energy and Utility
industry. 
 The operating income and net income has also grown at 7.17% and 7.7% CAGR
respectively. The working capital is also positive and has shown a steady increase.
 The other margins along with return on assets have also remained flat over the
years. The margins are also expected to deteriorate due to extraordinary expenses
like work from home setups, sanitization costs etc due to Covid-19 outbreak.
 The free cash flow as a percentage of net income has been high and stable over
the years. The free and operating cash flow growth has also improved in recent
years.
 The profitability margins have been stable over the years and hence there is no
concern to the solvency of the company. The current and quick ratios have
improved and are way above the minimum threshold.
 The Inventory is related to products and platforms business and it is only a small
portion of the revenue. The cash conversion cycle has only seen a small decline
from 53 days to 45 days but it is still positive.
 The valuation and price multiples may see further correction due to the pandemic
and its effect on the business.

 Most of the contracts are long term in nature and the company does not have any
significant exposure to Industries which are severely impacted by Covid-19
outbreak. Hence the impact will mostly be on profitability due to extraordinary
expenses.
 Overall the company has good fundamentals but the new management comes in
the times of uncertainty. The financial position of the company will also
deteriorate due to increased expenses and revenue losses.
REFERENCE: https://www.moneycontrol.com