FINANCIAL STATEMENT AND SWOT ANALYSIS:

WIPRO LIMITED

Submitted by:

SUMIT VASHISHTHA –

190401427089

NAKKERAN- 190401427081

Batch

2019-2024

Submitting to,

Prof. Sadaf Anwar

Alliance School of Law

Alliance University,
Bangalore
Date of Submission: 4th April 2022
DECLARATION

I declare that the project “SWOT ANALYSIS on WIPRO LIMITED" has been prepared by we both and it
is the original work carried out by us for the fulfillment of the requirements of B.B.A, LLB (Hons.) Degree
programme of School of Law, Alliance University.

Signature and Name of the

SUMIT VASHISHTHA
190401427089
NAKKERAN
190401427081

Batch: 2019-24

School of Law

Alliance University, Bengaluru.

Date: 4th April 2022

 INTRODUCTION:

Wipro Limited, formerly known as Western Indian Palm Refined Oil Limited, is a Bangalore-based Indian
multinational information technology services and consulting firm. The corporation has a presence in FMCG
and lighting in addition to its core information technology sector. According to the Fortune India 500, it is the
29th largest Indian firm in terms of total sales. With over 231,671(2021 year) employees, it is also India's 11th
largest employer.

HISTORY OF WIPRO:

Mohamed Premji founded the company on December 29, 1945, in Amalner, India, as Western India Vegetable
Products Limited, afterwards abbreviated to Wipro. It began as a maker of vegetable and refined oils under the
trade names Kisan, Sunflower, and Camel in Amalner, Maharashtra, and British India.
After Mohamed Premji's death in 1966, his son Azim Premji, then 21 years old, became the chairman of Wipro.
During the 1970s and 1975, the company changed its focus to new potential in the information technology and
computing industry, which was still in its infancy in India. The company's name was changed from Western
India Vegetable Products Limited to Wipro Products Limited on June 7, 1977. The name of the company was
changed once more in 1982, from Wipro Products Limited to Wipro Limited. With the launch of Ralak, a tulsi-
based family soap, and Wipro Jasmine, toilet soap, Wipro continues to expand in the consumer products area.

Year 2001-2011

Wipro was the first software technology and services firm in India to receive ISO 14001certification in February
2002. With the debut of a line of CFLs under the Wipro Smartlite brand, Wipro Consumer Care and Lighting
Group entered the compact fluorescent lamp industry. Wipro was the fastest wealth producer for five years
(1997–2002) according to a research as the company grew. Wipro Consumer Care Limited, a wholly owned
subsidiary, was formed to manufacture consumer care and lighting goods. Wipro became the first Indian
company to reach the billion-dollar mark in 2004. It also collaborated on i-shiksha with Intel. Wipro bought
cMango Inc., a technological infrastructure consulting firm based in the United States and a European retail
provider, in 2006. With Wipro Eco Energy, the company entered the clean energy market in 2008. In April
2011, the company announced the acquisition of Science Applications International Corporation's (SAIC) global
oil and gas information technology practice. Wipro hired over 70,000 temporary workers in the United States in
2012.

Year 2012-2018

Wipro split off its non-IT activities into a new company called Wipro Enterprises in 2012. Prior to the demerger,
these businesses provided around 10% of Wipro's overall revenues, mostly in the consumer care, lighting,
furniture, hydraulics, water treatment, and medical diagnostics sectors.
Wipro paid $35 million for Promax Applications Group (PAG), an Australian Trade Promotions Management
firm. ATCO, a Canadian Energy and Utilities organisation based in Calgary, Alberta, inked a ten-year $1.2
billion contract with the company in 2014. This was Wipro's largest transaction ever. Wipro announced in
October 2016 that it would purchase Appirio, an Indianapolis-based cloud services firm, for $500 million. The
company expanded its operations in London in 2017.
In 2017, the company stated it would open a new delivery centre in Bangladesh after winning a five-year IT
infrastructure and applications managed services contract with Grameenphone (GP), a major telecom provider
in Bangladesh.
Year 2019-20

Wipro Consumer Care and Ang-Hortaleza Corporation executed a share purchase agreement in 2019 for the sale
of the latter's whole investment in the personal care company Splash Corporation. Wipro joined Hedera's
Governing Council in March 2020, offering decentralized governance for the company's hashgraph distributed
ledger technology.
Wipro purchased Rational Interaction, a Seattle-based digital customer experience company, in February 2020.
Since March 2020, Wipro has been using a Work from Anywhere concept. Employees of Wipro can work from
anywhere around the globe under this paradigm, with the exception of Wipro's offices.
In India, Wipro employs 278,242 people. In India, each employee has their own office (home).
The company announced the introduction of its 5G edge services solutions package, which is built on IBM
software platforms, in July 2020.

Year 2021

Wipro bought Capco, a 22-year-old British computer consultant firm, in March 2021. In April, the transaction
was completed. According to a filing with the New York Stock Exchange, Wipro has agreed to buy Ampion for
$117 million in cash. Pierre Bruno is named CEO of Wipro's European business in March 2021. Wipro paid $31
million for Boeing supplier TECT Aerospace Group Holdings in June 2021. Wipro signed a binding deal to buy
LeanSwift, a system integrator of Infor solutions for customers in the Americas and Europe, in December 2021.
According to a BSE filing, the acquisition is subject to customary closing conditions and is scheduled to close
by the end of the quarter ending March 31, 2022.

Shareholding Pattern

SHAREHOLDING

0%
15%

3% Promoters
FII
DII
9%
Public
Others

73%
SWOT ANALYSIS

 Strengths

1. Rising Net Cash Flow and Cash from Operating activity

2. Effectively using its capital to generate profit - RoCE improving in last 2 years
3. Efficient in managing Assets to generate Profits - ROA improving since last 2 year
4. Increasing Revenue every Quarter for the past 4 Quarters
5. Book Value per share Improving for last 2 years
6. FII / FPI or Institutions increasing their shareholding
7. Bullish Engulfing Pattern (Bullish Reversal)
8. Effectively using Shareholders fund - Return on equity (ROE) improving since last 2 year
9. Company with Low Debt
10. Annual Net Profits improving for last 2 years
11. Company with Zero Promoter Pledge
12. Through mergers and acquisitions, they have a proven track record of successfully merging
complementary businesses. In recent years, it has effectively integrated a number of technology
businesses to streamline operations and develop a trustworthy supply chain.
13. Successful training and learning programmes have resulted in a highly competent workforce. Wipro
Limited invests a significant amount of money in employee training and development, resulting in
staffs that are not just highly skilled but also driven to achieve more.
14. Portfolio of Strong Brands – Wipro Limited has spent time and money developing a strong brand
portfolio. Wipro Limited's SWOT analysis exemplifies this point. If the company wants to branch out
into new product categories, this brand portfolio might be highly valuable.
15. Strong dealer community - It has fostered a culture among distributors and dealers in which dealers not
only market the company's products, but also spend in educating salespeople to explain to customers
how they may get the most out of the items.
16. Wipro Limited's goods have become more consistent as a result of automation, and the company has
been able to scale up and down in response to market demand.
17. Reliable raw material suppliers — The company has a strong base of reliable raw material suppliers,
allowing it to overcome any supply chain bottlenecks.

 Weakness

1. Promoters decreasing their shareholding.

Promoters have decreased holdings from 73.02% to 73.01% in Dec 2021 qtr.
2. Low operating margin of other groups of companies.
3. There are some gaps in the company's product line. This scarcity of options may allow a new
competitor to get a foothold in the market.
4. The product's marketing leaves a lot to be desired. Even if the product is a sales success, its positioning
and unique selling proposition are not well defined, which could lead to competitor attacks in this
segment.
5. When compared to competitors, day’s inventory is high, forcing the company to acquire more capital to
spend in the channel. This may have an influence on Wipro Limited's long-term growth.
6. Investment in R&D is lower than that of the industry's fastest-growing companies. Despite spending
more on research & development than the industry average, Wipro Limited has been unable to compete
in terms of innovation with the industry's leading firms. It appears to be a well-established company
eager to release products with market-proven characteristics.
7. More money should be put into innovative technology. Wipro Limited has to invest more in technology
to integrate processes across the board, given the magnitude of its expansion and the various locations
it plans to enter. Currently, technology investment is not keeping pace with the company's objectives.
8. Wipro Limited's profitability ratio and Net Contribution Percentage are both lower than the industry
average.
9. Because the company was unable to meet the challenges posed by new entrants into the industry, it lost
minor market share in specialist sectors. To address these issues, Wipro Limited must develop an
internal feedback structure that is directly linked to the sales force on the ground.
 Opportunities

1. In the last three months, brokers have increased their rating or target price.
2. Street Favorite: A stock with a high analyst rating and at least a 20% upside potential.
3. First Resistance Positive Breakout (LTP > R1)
4. Price strength is shown by the RSI.
5. Company has good opportunity since the sector is growing.
6. Huge potential in domestic market.
7. Can diversify in brand product category and consulting services.
8. The new taxation policy has the potential to have a substantial impact on how businesses are
conducted, as well as provide new opportunities for established companies like Wipro Limited to grow
their profits.
9. In the field of similar other products, an organization's core capabilities can be a success. For instance,
GE healthcare research aided the company in manufacturing better oil drilling machines.

10. Wipro Limited will be able to use differential pricing strategies in the new market thanks to the new
technology. It will allow the company to keep its existing consumers by providing excellent service
while also attracting new customers through various value-added offerings.

11. The ability to invest in neighboring product sectors is made possible by stable free cash flow. With
greater cash on hand, the corporation will be able to invest in new technologies and product sectors.
This should provide Wipro Limited with new opportunities in other product categories.
12. Environmental regulations that are new – The new opportunities will level the playing field for all
industry participants. It is a fantastic chance for Wipro Limited to capitalize on its technological edge
and earn market share in a new product category.
13. Wipro Limited products are now available for purchase by state and federal government contractors as
part of the government's green initiative.
14. Reduced transportation costs as a result of decreased shipping costs can cut the cost of Wipro Limited's
products, giving the company the option of either increasing profitability or passing on the savings to
customers to win market share.

 Threats

1. Nifty500 Expected Results with Declining Share Price Over the Week.
2. Slowdown in US economy as major client base is from US.
3. Increasing cost of Human capital.
4. The demand for highly profitable products is seasonal, and any unforeseen event during the peak
season could have a short- to medium-term impact on the company's profitability.
5. Intense competition - Over the last two years, stable profitability has expanded the number of players in
the business, putting downward pressure on both profitability and overall sales.
6. No consistent supply of creative items — The Company has developed various products over the years,
but they are frequently in response to the development of other players. Second, the supply of new
products is irregular, resulting in high and low swings in sales numbers over time.
7. The profitability of Wipro Limited may be jeopardized by rising raw material costs.
8. An increasing trend toward isolationism in the American economy may prompt a similar response from
other governments, reducing foreign sales.
9. A shortage of skilled workers in some worldwide marketplaces poses a challenge to Wipro Limited's
ability to maintain consistent profit growth in certain areas.
10. Wipro Limited's product is also vulnerable to counterfeit and low-quality imitation, particularly in
emerging and low-income regions.

 Competitors

1. TCS
2. Infosys
3. Mphasis
4. Accenture
FINANCIAL STATEMENT ANNALYSIS (2020-21)

 Profit & Loss Account

The company's sales grew at a yearly rate of 3.57 % during the last five years, compared to an
industry average of 8.76 percent. Furthermore, its market share has dropped from 15.51 % to 12.32 %
over the years. Moreover, as previously indicated, the company's net income increased at a rate of
3.92 % per year, compared to the industry average of 7.28 %. In 2021, Wipro Limited increased its
sales by 1.5 percent to Rs. 622,425 million, while its net income increased by 11.22 % to Rs. 10,680
million. Other expenses increased by 28.84 %, partially offsetting net income. Total sales for the
fiscal year 2020-21 climbed by 1.51%, to'619,430 million for the current year, up from'610,232
million the previous year.

Expenses

The total expenses of the company decreased from 50880 million (2020) to 49926 million (2021). The
major reason for the decrease in expenses is the pandemic lockdown and due to the repayment of
foreign currency loans.

As we can see in the P&L statement:

1. Communication expenses increased from 3784 million to 4189 million.

2. Employee benefit expenses increased from 32657.10 million to 33237.10 million
3. Depreciation and amortization expense increased from 2085.50 million to 2763.40 million
4. Legal and professional charges increased from 1066 million to 3537 million

Meanwhile,

1. Travel expenses decreased from 15373 million to 4358 million

2. Other cost reduced from 4685 million to 3966 million (while expenses such as repairs and
maintenance, power and fuel, short-term leases decreased expenses such as insurance, rates
and taxes increased) Income
3. The total income of the company increased from 63862 million to 64325 million.

Earnings per share

Increased from 16.55 to 19.29

Balance sheet

The company's reserves and surplus have decreased over the last five years, from 46219.50 crores in
2017 to 44145.80 crores in 2021, indicating that the company's internal strength is deteriorating and
that the company may have difficulty sustaining damage in the future.
However, the firm's reliance on long-term borrowings has dropped over the last five years, from
1146.30 crores in 2017 to 14.10 crores in 2021, indicating that the company has entirely erased its
reliance on loans.
Furthermore, the company's fixed assets and net profit have both climbed to 5056.30 - 9136.10,
respectively. This means that increasing the company's fixed assets has an impact on earnings,
resulting in better asset utilization and higher profits.
It should also be noticed that the firm's cash and cash equivalents climbed from 3516.60 crores to
9783.20 crores between 2017 and 2021, indicating that the company has been keeping a high level of
liquid cash.

Assets

The total Assets increased from 65306.40 crores to 65736.30 crores

Breakdown:
 Total non-current assets increased from 19593.10 crores to 20356.80 crores
 Property, plant and equipment increased from 50473 crore to 56758 crores
 Capital work in progress decreased from 18735 crores to 18480 crores
 Total current assets decreased from 457133 crores to 453795 crores
 Cash and cash equivalents decreased from 104440 crores to 97832 crores
 Trade receivables decreased from 92570 crores to 804824 crores.
 Other financial assets decreased from 6807 crores to 51876 crores

Equities and Liabilities

Equity

1. The total Equity decreased from 464537 crores to 452416 crores.

2. Equity share capital decreased from 11427 crores to 10958 crores.
3. Other equity decreased from 453110 crores to 441458 crores.

Liability
1. The total Liability increased from 188527 crores to 204947 crores.
2. Non-current liabilities decreased from 24089 crores to 23623crores
3. Current liabilities increased from 164438 crores to 181324 crores.

Cash flow statement

 Operating activities
Net Cash generated from operating activities increased from 10064.30 crores to 14755.00 crores.
 Investing activities
Net cash used in investing activities decreased from 3593.40 crores to 684.90 crores
 Financing activities
Net cash used in financing activities decreased from 15099.80 crores to 12884.00 crores

Balance sheet
 ------------------- in Rs. Cr.
Standalone Balance Sheet
-------------------
Mar 21 Mar-20

12 months 12 months

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 1,095.80 1,142.70
Total Share Capital 1,095.80 1,142.70
Reserves and Surplus 44,145.80 45,311.00
Total Reserves and Surplus 44,145.80 45,311.00
Total Shareholders’ Funds 45,241.60 46,453.70
NON-CURRENT LIABILITIES
Long Term Borrowings 14.1 25.1
Deferred Tax Liabilities [Net] 130.5 0
Other Long Term Liabilities 2,129.20 2,170.50
Long Term Provisions 88.5 213.3
Total Non-Current Liabilities 2,362.30 2,408.90
CURRENT LIABILITIES
Short Term Borrowings 5,791.20 5,001.90
Trade Payables 4,348.50 4,542.60
Other Current Liabilities 6,705.30 5,769.10
Short Term Provisions 1,287.40 1,130.20
Total Current Liabilities 18,132.40 16,443.80
Total Capital And Liabilities 65,736.30 65,306.40
ASSETS
NON-CURRENT ASSETS
Tangible Assets 6,578.70 5,863.30
Intangible Assets 709.4 776.1
Capital Work-In-Progress 1,848.00 1,873.50
Fixed Assets 9,136.10 8,512.90
Non-Current Investments 8,206.70 7,735.00
Deferred Tax Assets [Net] 47.4 433.3
Other Non-Current Assets 2,966.60 2,911.90
Total Non-Current Assets 20,356.80 19,593.10
CURRENT ASSETS
Current Investments 17,495.20 18,963.50
Inventories 91 174.1
Trade Receivables 8,046.20 9,257.00
Cash And Cash Equivalents 9,783.20 10,444.00
Short Term Loans And Advances 4,201.50 947.2
OtherCurrentAssets00 5,762.40 5,927.50
Total Current Assets 45,379.50 45,713.30
Total Assets 65,736.30 65,306.40
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES, COMMITMENTS
Contingent Liabilities 1,999.00 2,693.50
CIF VALUE OF IMPORTS
EXPENDITURE IN FOREIGN EXCHANGE
Expenditure In Foreign Currency 21,329.50 22,949.10
REMITTANCES IN FOREIGN CURRENCIES FOR DIVIDENDS
Dividend Remittance In Foreign Currency - - -
EARNINGS IN FOREIGN EXCHANGE
FOB Value Of Goods - - -
Other Earnings 46,344.70 46,079.40
BONUS DETAILS
Bonus Equity Share Capital 1,094.34 1,141.18
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted Market Value - - -
Non-Current Investments Unquoted Book Value 8,206.70 7,735.00
CURRENT INVESTMENTS
Current Investments Quoted Market Value 13,138.20 13,546.10
Current Investments Unquoted Book Value 4,357.00 5,417.40