1QFY2017 Result Update | IT

July 25, 2016

Wipro

ACCUMULATE

CMP

`539

Performance Highlights

Target Price

`582

(` cr)

1QFY17 4QFY16

% chg (qoq)

1QFY16

% chg (yoy)

Investment Period

12 Months

Net revenue

13,599

13,742

(1.0)

12,238

11.1

EBITDA

2,653

2,914

(9.0)

2,606

1.8

Stock Info

EBITDA margin (%)

19.5

21.2

(170)bps

21.3

(323)bps

PAT

2,052

2,235

(8.2)

2,187

(6.2)

Sector

Source: Company, Angel Research

Market Cap (` cr)

1,33,073

Net Debt (` cr)

(21,460)

For 1QFY2017, Wipro posted a 2.6% sequential growth in its IT services revenues

to US$1,930.8mn (V/s our expectation of US$1,925mn), while in constant

Beta

0.6

currency (CC) terms the growth was of 2.2% qoq. In terms of geography, the

52 Week High / Low

613/509

growth was driven by the USA, which contributed ~53.5% of sales V/s 52.7% in

Avg. Daily Volume

1,37,423

4QFY2016. On the operating front, EBIT margins came in at 16.1% (V/s 17.1%

Face Value (`)

expected), a dip of 210bp qoq. The PAT for the quarter, at `2,052cr, came in

BSE Sensex

27,916

lower than our expectation of `2,174cr, and declined by 8.2% on a sequential

Nifty

8,566

basis. The company has given a revenue guidance of US$1,901-1,939mn for

Reuters Code

WIPR.BO

2QFY2017, which translates into a qoq CC growth of 0%-1.0%. We recommend

Bloomberg Code

WPRO@IN

an Accumulate on the stock.

Quarterly highlights: For 1QFY2017, the company posted a 2.6% sequential

Shareholding Pattern (%)

growth in its IT services revenues to US$1,930.8mn (V/s our expectation of

Promoters

73.3

US$1,925mn), while in constant currency (CC) terms the growth was of 2.2%

MF / Banks / Indian Fls

7.0

qoq. In terms of geography, the growth was driven by the USA, which contributed

FII / NRIs / OCBs

14.0

~53.5% of sales V/s 52.7% in 4QFY2016. In terms of industries, growth was led

Indian Public / Others

5.7

by Healthcare and Life Sciences & Services which contributed 15.3% of sales V/s

12.0% in 4QFY2016. On the operating front, the EBIT margin came in at 16.1%

(V/s 17.1% expected), a dip of 210bp qoq. Consequently, the PAT came in at

Abs.(%)

3m 1yr

3yr

`2,059cr (V/s `2,174cr expected), posting a qoq de-growth of 8.2%.

Sensex

8.0

(1.8)

38.5

Outlook and valuation: The Management has set a target of US$15bn of revenue

Wipro

(10.4)

(5.1)

37.8

and an EBIT margin of 23% by 2020. The company achieving the revenue target

would imply a CAGR of 20% in sales over the next four years. However the near term

3-year price chart

guidance suggests a moderate organic growth. We expect USD and INR revenue

CAGR for IT services to be at 8.4% and 7.9%, respectively, over FY2016-18E. We

recommend an Accumulate on the stock, given the valuations.

Key financials (Consolidated, IFRS)

Y/E March (` cr)

FY2015

FY2016

FY2017E

FY2018E

Net sales

46,955

51,631

55,188

60,155

% chg

8.1

10.0

6.9

9.0

Net profit

8,653

8,887

9,027

9,710

% chg

11.0

2.7

1.6

7.6

EBITDA margin (%)

22.3

21.7

17.9

Source: Company, Angel Research

EPS (`)

35.1

35.9

36.5

39.3

P/E (x)

15.3

15.0

14.8

13.7

P/BV (x)

3.3

2.8

2.9

2.6

RoE (%)

21.1

19.0

17.8

17.7

RoCE (%)

15.3

13.4

12.8

13.1

Sarabjit kour Nangra

EV/Sales (x)

2.4

2.2

1.9

1.7

+91 22-39357800 Ext: 6806

EV/EBITDA (x)

10.8

10.0

9.0

8.0

[email protected]

Source: Company, Angel Research; Note: CMP as of July 21, 2016

Please refer to important disclosures at the end of this report

Wipro | 1QFY2017 Result Update

Exhibit 1: 1QFY2017 performance (Consolidated, IFRS)

Y/E March (` cr)

1QFY17

4QFY16

% chg (qoq)

1QFY16

% chg (yoy)

FY2016

FY2015

% chg (yoy)

Net revenue

13,599

13,742

(1.0)

12,238

11.1

51,631

47,315

9.1

Cost of revenue

9,172

8,879

3.3

8,142

12.7

32,829

30,846

6.4

Gross profit

4,427

4,863

(9.0)

4,096

8.1

18,802

16,469

14.2

SGA expense

1,774

1,949

(9.0)

1,490

19.1

6,107

5,643

8.2

EBITDA

2,653

2,914

(9.0)

2,606

1.8

11,199

10,826

3.4

Dep. and amortisation

467

430

8.4

337

38.4

1,497

1,282

16.7

EBIT

2,186

2,484

(12.0)

2,269

(3.6)

9,702

9,544

1.7

Other income

485

433

11.9

529

1,770

1,626

8.8

PBT

2,671

2,917

(8.4)

2,798

(4.5)

11,472

11,170

2.7

Income tax

612

663

(7.6)

595

2.9

2,531

2,462

2.8

PAT

2,059

2,254

(8.7)

2,203

(6.5)

8,941

8,706

2.7

Minority interest

Adj. PAT

2,052

2,235

(8.2)

2,187

(6.2)

8,892

8,653

2.8

Diluted EPS

8.4

9.1

(8.0)

8.8

(5.1)

35.9

35.1

2.3

Gross margin (%)

32.6

35.4

(283)bps

33.5

(92)bps

36.4

34.8

(161)bps

EBITDA margin (%)

19.5

21.2

(170)bps

21.3

(179)bps

21.7

22.9

(119)bps

EBIT margin (%)

16.1

18.2

(212)bps

18.5

(246)bps

18.8

20.2

(138)bps

PAT margin(%)

15.1

16.3

(118)bps

17.9

(278)bps

17.2

18.3

(107)bps

Source: Company, Angel Research

Exhibit 2: 1QFY2017 - Actual vs Angel estimates

(` cr)

Actual

Estimate

Variation (%)

Net revenue

13,599

14,154

(3.9)

EBIT margin (%)

16.1

17.1

(100)bp

PAT

2,052

2,174

(5.6)

Source: Company, Angel Research

The company posted a 2.6% sequential growth in its USD IT services revenues for

the quarter to US$1,930.8mn, marginally outperforming our expectation of

US$1,925mn. The revenue is in line with the company’s guidance of US$1,912-

1,950mn (in terms of the actual currency realized) issued earlier. In INR terms, the

consolidated revenues came in at `13,599cr V/s our expectation of `14,154cr. On

constant currency basis, the company posted a sequential revenue growth of 2.2%.

In terms of geography, growth was driven by the USA which contributed ~53.5%

of sales V/s 52.7% in 4QFY2016; while in terms of industries, growth was led by

Healthcare and Life Sciences & Services which contributed ~15.3% of sales V/s

12.0% in 4QFY2016. Energy, Natural Resources & Utilities, a key domain of the

company contributed 13.2% of sales V/s 14.6% in 4QFY2016. The contribution of

Finance Solutions also dipped, ie to 25.6% of sales V/s 26.3% in 4QFY2016.

Further, Manufacturing and hi-tech accounted for 22.5% of sales V/s 23.2% of

sales in 4QFY2016.

During the quarter, revenue from the Energy vertical declined by 4.1% qoq (CC).

The pressure is expected to continue until oil prices stabilize, post which, customers

would tend to resume their discretionary spends. Finance Solutions saw good

July 25, 2016

Wipro | 1QFY2017 Result Update

growth and the environment in Healthcare and Life sciences is now robust post the

integration of recent acquisitions.

Exhibit 3: Trend in IT Services revenue

2,000

1,931

1,950

2.6

1,882

1,900

1,832

2.1

2.4

1,838

1,850

1,794

1,800

1,750

1,700

1.1

1,650

1,600

0.3

1,550

1QFY16

2QFY16

3QFY16

4QFY16

1QFY17

IT services

qoq growth (%)

Source: Company, Angel Research

Exhibit 4: Revenue growth (Industry wise - CC basis)

% to revenue

% growth (QoQ)

% growth (yoy)

Global media and telecom

7.6

(0.4)

14.6

Financial solutions

25.6

2.9

5.5

Manufacturing and hi-tech

22.5

(0.9)

4.6

Healthcare, life sciences and

15.3

17.7

46.6

services

Retail and transportation

15.8

(1.6)

6.9

Energy and utilities

13.2

(4.1)

(2.8)

Source: Company, Angel Research

Services wise, Wipro’s anchor service lines ADM (contributed 44.7% to revenue)

and Technology Infrastructure Services (contributed 27.9% to revenue) registered a

growth of 1.2% and a dip of 1.0% qoq, respectively. Analytics and Information

Management, which contributed 7.4% of sales, grew by 5.4% qoq while Product

Engineering and Mobility contributed 7.1% of sales and de-grew by 8.9% qoq.

Exhibit 5: Revenue growth (Service wise)

Service verticals

% to revenue

% growth (QoQ)

% growth (yoy)

Technology infrastructure services

27.9

(1.0)

7.2

Analytics and information management

7.4

5.4

6.2

BPO

12.9

24.9

49.3

Product engineering and mobility

7.1

(8.9)

(0.8)

ADM

44.7

1.2

1.3

Source: Company, Angel Research

Geography wise, the developed economies America and Europe grew by 4.2%

and 0.5% qoq in CC terms, respectively. India posted a 2.6% qoq CC de-growth

during the period. However, APAC and other emerging markets posted a 0.4%

qoq de-growth for the quarter.

July 25, 2016

Wipro | 1QFY2017 Result Update

Hiring and utilization

Wipro reported a net addition of 951 employees in its IT Services’ employee base,

which now stands at 1,73,863. Voluntary attritions (annualized) in the global IT

business increased considerably but remained stagnant on a net basis at 16.5%.

The utilization rate of the global IT business moved up by 180bp sequentially to

69.9%. Going ahead, an improvement in utilization level will be an important

margin lever.

Exhibit 8: Employee pyramid

Employee pyramid

1QFY16 2QFY16 3QFY16 4QFY16 1QFY17

Utilization - Global IT (%)

71.3

69.5

66.4

68.1

69.9

Attrition (%)

Global IT

16.4

16.3

16.1

16.5

BPO

12.0

10.2

9.9

11.1

11.7

Net additions

3,572

6,607

2,268

2,248

951

Source: Company, Angel Research

Margins dip

On the operating front, the EBIT margin for the IT services business came in at

17.8% V/s 19.7% in 4QFY2016, a downtick of 190bp qoq; while the consolidated

EBIT margin came in 16.1% V/s 17.1% in 4QFY2016. The miss in terms of overall

EBIT margins was largely on account of operating losses in the hardware business

(-6.8% EBIT margin).

Exhibit 9: Segment-wise EBIT margin trend

21.0

20.7

20.2

20.1

17.8

19.0

18.5

17.9

18.2

16.1

1.5

1.6

(4.0)

1QFY16

2QFY16

3QFY16

4QFY16

1QFY2017

(5)

(3.0)

(10)

(6.3)

IT services

IT products

Consolidated

Source: Company, Angel Research

July 25, 2016

Wipro | 1QFY2017 Result Update

Client pyramid

Wipro added 50 new clients during the quarter with its active client base now

standing at 1,208. Amongst these, 1 has been in the US$75mn+ bracket, 2 in

US$20mn+ bracket and 1 in the US$3mn+ bracket. Wipro cited that there has

been increasing pricing pressure in large deals, led by growing competitive

pressures. Both, deal sizes as well as value of deals are under pressure. In such an

environment, Wipro has been trying to offset pressure by increasing the use of

automation.

Exhibit 10: Client metrics

Particulars

1QFY16

2QFY16

3QFY16

4QFY16

1QFY17

US$100mn plus

US$75mn-$100mn

US$50mn-$75mn

US$20mn-$50mn

US$10mn-$20mn

US$5mn-$10mn

US$3mn-$5mn

US$1mn-$3mn

218

212

211

219

229

New client addition

119

Active customers

1071

1100

1105

1223

1208

Source: Company, Angel Research

Investment highlights

Moderate outlook on growth: For 2QFY2017, the company has given a revenue

guidance of US$1,901-1,939mn, implying a US$ qoq growth of 0-1% on CC, all

organic as full integration of HPS has been completed in 1QFY2017. The

company mentioned that due to delays in completion of closing conditions that

exceeded the target closing date the Viteos acquisition has been called off by both

companies. So after the 2QFY2017 guidance, the expected recovery in the

company looks more likely in FY2018. We expect US$ and INR revenue CAGR to

be at 8.4% and 7.9%, respectively, over FY2016-18E.

Target sales CAGR of 20% and EBIT Margin of 23%: The company as part of its

vision for 2020 is targeting to reach US$15bn revenues with 23% EBIT margin,

implying revenue CAGR of ~20% over the next four years. If the margins expand

by 300bp, then it would imply an even higher CAGR for earnings. The company

sees itself better placed than this time last year to latch on to opportunities in the

market though the same aggression and optimism is yet to reflect in its

performance. Going by the guidance, the company’s organic growth outlook is not

even closer to its peers. However, on the acquisition front, the company has been

very aggressive in comparison to its peers.

During the quarter, the company acquired HealthPlan Services from Water Street

Healthcare Partners. Since partnering with Water Street in 2008, HealthPlan

Services has grown to become the leading independent technology and Business

Process as a Service (BPaaS) provider in the US health insurance market. As part of

the agreement, Wipro will acquire 100% of HealthPlan Services' shares for a

purchase consideration of US$460mn. Headquartered in Tampa, Florida,

July 25, 2016

Wipro | 1QFY2017 Result Update

HealthPlan Services employs over 2,000 associates. HealthPlan Services offers

market-leading technology platforms and a fully integrated BPaaS solution to

health insurance companies in the individual, group and ancillary markets.

HealthPlan Services’ BPaaS solutions are ideal for players who want to operate in

the private and public exchanges and the off-exchange individual market in the

US.

Outlook and valuation

The new CEO of the company has put in place an aggressive target of 20%

revenue CAGR over the next four years, with much improved profitability (where

the company has significant levers in the form of automation and improving

utilization levels). Also, the company announced a total of `6/share in dividend

and up to `2,500cr through a buyback. Thus the total payout in FY2016 amounts

to ~45% compared to 34% in FY2015. The company guided at sustaining ~40%

payout going forward, which will improve the overall returns of the shareholders.

On the valuation front, the stock is currently trading at 14.8x its FY2017E and

13.7x its FY2018E EPS, ie at a discount to its peers, while we expect the gap to

narrow down once the company’s performance comes in line with its peers in

terms of growth and profitability. We recommend an Accumulate on the stock with

a target price of `582.

Exhibit 11: Key assumptions

FY2017E

FY2018E

Revenue growth - IT services (USD)

7.8

9.0

USD-INR rate (realized)

65.7

Revenue growth - Consolidated (`)

6.9

9.0

EBITDA margin (%)

17.9

Tax rate (%)

22.0

EPS growth (%)

1.6

7.6

Source: Company, Angel Research

Exhibit 12: One-year forward PE chart

1100

950

800

650

500

350

200

Price

27x

22x

17x

12x

Source: Company, Angel Research

July 25, 2016

Wipro | 1QFY2017 Result Update

Exhibit 13: Recommendation summary

Company

Reco

CMP Tgt. price Upside

FY2018E FY2018E

FY2016-18E

FY2018E FY2018E

(`)

(%)

EBITDA (%)

P/E (x)

EPS CAGR (%) EV/Sales (x)

RoE (%)

HCL Tech

Buy

729

1,000

37.2

20.5

11.4

9.6

1.2

17.9

Infosys

Buy

1,083

1,370

26.5

27.5

15.0

10.4

2.6

22.3

TCS

Buy

2,493

2,867

15.0

27.3

16.6

10.1

3.2

33.9

Tech Mahindra

Buy

505

700

38.6

17.0

12.2

13.2

1.2

20.7

Wipro

Buy

539

582

7.9

17.9

13.7

4.5

1.7

17.7

Source: Company, Angel Research

Company background

Wipro is among the leading Indian companies, majorly offering IT services. The

company is also engaged in the IT hardware (10% of sales) business. Wipro's IT

arm is India's fourth largest IT firm, employing more than 1,68,000 professionals,

offering a wide portfolio of services such as ADM, consulting and package

implementation, and servicing more than 1,000 clients.

July 25, 2016

Wipro | 1QFY2017 Result Update

Profit & Loss account (Consolidated, IFRS)

Y/E March (` cr)

FY2014 FY2015 FY2016 FY2017E FY2018E

Net revenue

43,427

46,955

51,631

55,188

60,155

Cost of revenues

29,549

30,846

34,325

38,632

42,108

Gross profit

13,878

16,108

17,306

16,556

18,046

% of net sales

32.0

34.3

33.5

30.0

Selling and mktg exp.

2,925

3,063

3,319

3,698

4,030

% of net sales

6.7

6.5

6.4

6.7

General and admin exp.

2,354

2,585

2,788

2,980

3,248

% of net sales

5.4

5.5

5.4

Depreciation and amortization

1,111

1,282

1,496

1,600

1,744

% of net sales

2.6

2.7

2.9

EBIT

8,600

9,179

9,703

9,879

10,768

% of net sales

19.8

19.5

18.8

17.9

Other income, net

1,501

1,990

1,770

Share in profits of eq. acc. ass.

Profit before tax

10,101

11,168

11,473

11,648

12,538

Provision for tax

2,260

2,462

2,537

2,563

2,758

% of PBT

22.4

22.0

22.1

22.0

PAT

7,840

8,706

8,936

9,086

9,779

Share in earnings of associate

Minority interest

Adj. PAT

7,797

8,653

8,887

9,027

9,710

Diluted EPS (`)

31.5

35.1

35.9

36.5

39.3

July 25, 2016

Wipro | 1QFY2017 Result Update

Balance sheet (Consolidated, IFRS)

Y/E March (` cr)

FY2014

FY2015

FY2016

FY2017E

FY2018E

Assets

Goodwill

6,342

6,808

10,199

6,316

6,317

Intangible assets

194

793

1,584

Property, plant & equipment

5,145

5,421

6,495

6,795

7,095

Investment in equ. acc. investees

268

387

491

Derivative assets

Non-current tax assets

1,019

1,141

1,175

Deferred tax assets

336

295

380

Other non-current assets

1,430

1,437

1,583

Total non-current assets

14,762

16,354

21,933

18,350

18,651

Inventories

229

485

539

Trade receivables

8,539

9,153

10,238

10,756

11,724

Other current assets

3,947

7,336

10,407

Unbilled revenues

3,933

4,234

4,827

Available for sale investments

6,056

5,391

13,294

Current tax assets

977

649

781

Derivative assets

366

508

568

Cash and cash equivalents

11,420

15,894

9902

17852

21452

Total current assets

35,469

43,649

50,556

59,023

63,592

Total assets

50,230

60,003

72,489

77,373

82,243

Equity

Share capital

493

494

493

494

Share premium

1,266

1,403

1,462

Retained earnings

31,495

37,225

42,574

46,511

50,625

Share based payment reserve

102

131

223

102

103

Other components of equity

1,047

1,545

1,853

Shares held by controlled trust

(54)

Equity attrib. to shareholders of Co.

34,350

40,789

46,606

50,421

54,538

Minority interest

139

165

222

Total equity

34,489

40,954

46,828

50,644

54,760

Liabilities

Long term loans and borrowings

1,091

1,271

1,736

Deferred tax liability

180

324

511

Derivative liabilities

Non-current tax liability

345

670

823

Other non-current liabilities

417

366

723

Provisions

Total non-current liabilities

2096

2647

3804

Loans and bank overdraft

4,068

6,621

10,786

Trade payables

5,226

5,875

6,819

7,495

8,169

Unearned revenues

1,277

1,655

1,808

1,877

1,878

Current tax liabilities

1,248

804

702

1,025

1,103

Derivative liabilities

250

234

Other current liabilities

1,439

1,222

1,382

Provisions

137

152

126

Total current liabilities

13,646

16,403

21,856

22,925

23,678

Total liabilities

15,742

19,050

25,661

26,729

27,483

Total equity and liabilities

50,230

60,003

72,489

77,373

82,243

July 25, 2016

Wipro | 1QFY2017 Result Update

Cash flow statement (Consolidated, IFRS)

Y/E March (` cr)

FY2014

FY2015

FY2016

FY2017E

FY2018E

Pre tax profit from operations

8,935

11,168

11,473

11,648

12,538

Depreciation

1,111

1,282

1,496

1,600

1,744

Expenses (deferred)/written off

(13)

Pre tax cash from operations

10,033

12,438

12,956

13,236

14,269

Other income/prior period ad

1,165

1,990

1,770

Net cash from operations

11,198

14,428

14,726

15,006

16,039

Tax

(2,260)

(2,462)

(2,537)

(2,563)

(2,758)

Cash profits

8,938

11,965

12,189

12,443

13,281

(Inc)/dec in current assets

(2,653)

(8,181)

(6,906)

(8,468)

(4,569)

Inc/(dec) in current liab.

(828)

2,757

5,453

1,068

754

Net trade working capital

(3,482)

(5,423)

(1,453)

(7,399)

(3,815)

Cashflow from oper. actv.

5,456

6,542

10,736

5,044

9,466

(Inc)/dec in fixed assets

(1,203)

(276)

(1,075)

(300)

(Inc)/dec in intangibles

(889)

(600)

(791)

(Inc)/dec in investments

594

(119)

(104)

(Inc)/dec in net def. tax assets

(Inc)/dec in derivative assets

(24)

(Inc)/dec in non-current tax asset

146

(Inc)/dec in minority interest

(4)

Inc/(dec) in other non-current liab

273

510

(Inc)/dec in other non-current ast.

(122)

(34)

Cashflow from investing activities

(1,667)

(826)

(1,352)

(290)

Inc/(dec) in debt

1,006

180

465

Inc/(dec) in equity/premium

(123)

314

(14,062)

8,285

Dividends

(1,736)

(1,780)

(5,089)

(5,596)

Cashflow from financing activities

(853)

(1,242)

(15,377)

3,196

(5,575)

Cash generated/(utilized)

2,936

4,474

(5,992)

7,950

3,601

Cash at start of the year

8,484

11,420

15,894

9,902

17,852

Cash at end of the year

11,420

15,894

9,902

17,852

21,452

July 25, 2016

Wipro | 1QFY2017 Result Update

Key Ratios

Y/E March

FY2014 FY2015 FY2016 FY2017E FY2018E

Valuation ratio (x)

P/E (on FDEPS)

17.1

15.3

15.0

14.8

13.7

P/CEPS

8.1

7.5

7.2

7.0

6.5

P/BVPS

3.9

3.3

2.8

2.9

2.6

Dividend yield (%)

1.5

2.2

1.1

3.8

4.2

EV/Sales

2.7

2.4

2.2

1.9

1.7

EV/EBITDA

12.0

10.8

10.0

9.0

8.0

EV/Total assets

2.3

1.9

1.5

1.3

1.2

Per share data (`)

EPS (Fully diluted)

31.5

35.1

35.9

36.5

39.3

Cash EPS

66.3

72.1

75.2

76.5

82.8

Dividend

8.0

12.0

6.0

20.6

22.6

Book value

139.5

165.7

189.4

188.1

204.8

Return ratios (%)

RoCE (pre-tax)

17.1

15.3

13.4

12.8

13.1

Angel RoIC

32.6

28.8

24.8

26.1

RoE

22.6

21.1

19.0

17.8

17.7

Turnover ratios(x)

Asset turnover (fixed assets)

8.5

8.9

8.7

8.3

8.7

Receivables days

Payable days

July 25, 2016

Wipro | 1QFY2017 Result Update

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

DISCLAIMER

Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,

Bombay Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL

and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is a

registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number

INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing

/dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed public

offering of securities of the company covered by Analyst during the past twelve months.

This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment

decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should

make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the

companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine

the merits and risks of such an investment.

Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and

trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's

fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the

contrary view, if any.

The information in this document has been printed on the basis of publicly available information, internal data and other reliable

sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this

document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way

responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.

Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot

testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.

While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be

regulatory, compliance, or other reasons that prevent us from doing so.

This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,

redistributed or passed on, directly or indirectly.

Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from

or in connection with the use of this information.

Disclosure of Interest Statement

Wipro

1. Financial interest of research analyst or Angel or his Associate or his relative

2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives

3. Served as an officer, director or employee of the company covered under Research

4. Broking relationship with company covered under Research

Ratings (Based on expected returns

Buy (> 15%)

Accumulate (5% to 15%)

Neutral (-5 to 5%)

over 12 months investment period):

Reduce (-5% to -15%)

Sell (< -15)

July 25, 2016