3QFY2016 Result Update | IT

February 23, 2016

Wipro

BUY

CMP

`547

Performance Highlights

Target Price

`670

(` cr)

3QFY16 2QFY16

% chg (qoq)

3QFY15

% chg (yoy)

Investment Period

12 Months

Net revenue

12,861

12,514

2.8

11,993

7.2

EBITDA

2,648

2,729

(2.9)

2,676

(1.0)

Stock Info

EBITDA margin (%)

20.6

21.8

(121)bps

22.3

(172)bps

PAT

2,234

2,235

(0.1)

2,193

1.9

Sector

Source: Company, Angel Research

Market Cap (` cr)

135,227

Wipro posted lower than expected numbers on all fronts for 3QFY2016. IT

Net Debt (` cr)

(20,014)

Services posted a 0.3% sequential growth in USD revenues to US$1,838mn (V/s

Beta

0.6

an expected US$1,841mn). In constant currency (CC) terms, IT Services posted a

52 Week High / Low

677/509

1.4% QoQ growth. On the operating front, the EBITDA margin came in at 20.6%

Avg. Daily Volume

105,336

V/s 21.8% in 2QFY2016, ie a downtick of 121bp QoQ. Consequently, the PAT

Face Value (`)

came in at `2,234cr (V/s an expected `2,318cr), a de-growth of 0.1% QoQ. For

BSE Sensex

23,709

4QFY2016, the company has guided for revenue of US$1,875-1,912mn, a QoQ

Nifty

7,211

growth of 2.0-4.0%. We maintain our Buy recommendation on the stock with a

Reuters Code

WIPR.BO

price target of `670.

Bloomberg Code

WPRO@IN

Quarterly highlights: During 3QFY2016, the company posted lower than

expected numbers on all fronts. IT Services posted a 0.3% sequential growth in

USD revenues to US$1,838mn (V/s an expected US$1,841mn). In CC terms, IT

Shareholding Pattern (%)

Services posted a 1.4% QoQ growth. On the operating front, the EBITDA margin

Promoters

73.4

came in at 20.6% V/s 21.8% in 2QFY2016, ie a downtick of 121bp QoQ.

MF / Banks / Indian Fls

6.7

Consequently, the PAT came in at `2,234cr (V/s an expected `2,318cr) a de-

FII / NRIs / OCBs

12.3

growth of 0.1% QoQ. Among other operating matrix, the gross utilization levels

Indian Public / Others

7.6

dropped to 66.4% V/s 69.5% in 2QFY2016. Net utilization (excl support) dropped

to 73.8% V/s 77.2% in 2QFY2016. In terms of client addition, it added one client

US$50mn+ and some other major ones in small order sizes. Overall, 39 clients

Abs.(%)

3m 1yr

3yr

were added during the quarter.

Sensex

(8.3)

(19.5)

20.7

Outlook and valuation: The Management remains confident of revenue growth

Wipro

(1.8)

(17.0)

33.6

pick-up, citing momentum in large deal closures and win rates, uptick in

discretionary spending, its strong business pipeline and with demand from the US

sustaining. We expect USD and INR revenue CAGR for IT services to be at 7.0%

3-year price chart

and 11.5%, respectively, over FY2015-17E. We recommend a Buy.

700.0

600.0

Key financials (Consolidated, IFRS)

Y/E March (` cr)

FY2014

FY2015

FY2016E

FY2017E

500.0

Net sales

43,427

46,955

52,827

58,410

400.0

% chg

16.0

8.1

12.5

10.6

300.0

Net profit

7,797

8,653

9,547

10,403

200.0

% chg

17.5

11.0

10.3

9.0

EBITDA margin (%)

22.9

23.1

23.7

23.8

EPS (`)

31.5

35.1

38.6

42.1

Source: Company, Angel Research

P/E (x)

17.4

15.6

14.2

13.0

P/BV (x)

3.9

3.3

2.8

2.5

RoE (%)

22.6

21.1

19.5

18.0

RoCE (%)

17.1

15.3

15.2

14.7

Sarabjit kour Nangra

EV/Sales (x)

2.7

2.5

2.0

1.7

+91 22-39357800 Ext: 6806

EV/EBITDA (x)

12.2

11.0

9.1

7.5

[email protected]

Source: Company, Angel Research; Note: CMP as of February 19, 2016

Please refer to important disclosures at the end of this report

Wipro | 3QFY2016 Result Update

Exhibit 1: 3QFY2016 performance (Consolidated, IFRS)

Y/E March (` cr)

3QFY16

2QFY16

% chg (qoq)

3QFY15

% chg (yoy) 9MFY2016

9MFY2015

% chg (yoy)

Net revenue

12,861

12,514

2.8

11,993

7.2

37,889

34,813

8.8

Cost of revenue

8,675

8,229

5.4

7,922

9.5

25,022

22,912

9.2

Gross profit

4,186

4,284

(2.3)

4,071

2.8

12,867

11,901

8.1

SGA expense

1,537

1,556

(1.2)

1,395

10.2

4,582

4,193

9.3

EBITDA

2,648

2,729

(2.9)

2,676

(1.0)

8,285

7,708

7.5

Dep. and amortisation

352

353

(0.3)

365

(3.5)

1,066

956

11.5

EBIT

2,296

2,376

(3.3)

2,311

(0.6)

7,219

6,752

6.9

Other income

572

619

(7.7)

515

1,337

1,504

(11.1)

PBT

2,868

2,995

(4.2)

2,826

1.5

8,555

8,256

3.6

Income tax

625

654

(4.5)

623

0.2

1,868

1,837

1.7

PAT

2,243

2,341

(4.2)

2,203

1.8

6,687

6,419

4.2

Minority interest

Adj. PAT

2,234

2,235

(0.1)

2,193

1.9

6,657

6,381

4.3

Diluted EPS

9.1

(0.1)

8.9

1.9

27.1

26.0

4.4

Gross margin (%)

32.5

34.2

(169)bps

33.9

(140)bps

34.0

34.2

(23)bps

EBITDA margin (%)

20.6

21.8

(121)bps

22.3

(172)bps

21.9

22.1

(28)bps

EBIT margin (%)

17.9

19.0

(113)bps

19.3

(141)bps

19.1

19.4

(34)bps

PAT margin(%)

17.4

17.9

(49)bps

18.3

(91)bps

17.6

18.3

(76)bps

Source: Company, Angel Research

Exhibit 2: 3QFY2016 - Actual vs Angel estimates

(` cr)

Actual

Estimate

Variation (%)

Net revenue

12,861

12,739

1.0

EBIT margin (%)

20.6

21.5

(91)bp

PAT

2,234

2,318

(3.6)

Source: Company, Angel Research

Lower-than-expected results

During 3QFY2016, the company posted lower than expected numbers on all

fronts. IT Services posted a

0.3% sequential growth in USD revenues to

US$1,838mn (V/s US$1,841mn expected). In constant currency (CC) terms, IT

Services posted a 1.4% qoq growth. Revenues came in at the middle end of the

band of US$1,821-1,858mn at the actual currency realized. In rupee terms,

overall consolidated revenues came in at `12,861cr (V/s `12,739cr expected) a

growth of 2.8% qoq.

In terms of geographies, USA posted a 0.3% QoQ CC growth, Europe posted a

1.4% QoQ CC growth, India & Middle East Business posted a 5.4% QoQ CC

growth and APAC and Other Emerging Markets posted a 3.1% QoQ CC growth.

In terms of verticals Global Media & Telecom posted a 2.7% QoQ CC growth,

Finance Solutions posted a 0.7% QoQ CC decline, Manufacturing & Hi-tech

posted a 0.6% QoQ CC decline, Healthcare Life Sciences & Services posted a

6.0% QoQ CC growth, Retail, Consumer Goods & Transportation posted a 4.6%

QoQ CC growth and Energy, Natural Resources & Utilities posted no growth

during the period.

February 23, 2016

Wipro | 3QFY2016 Result Update

Exhibit 3: Trend in IT Services revenue growth (QoQ)

1,900

1,850

2.1

1.3

1,800

1.1

1,750

0.3

1,700

1,650

(1.1)

(1)

1,600

1,550

(2)

3QFY15

4QFY15

1QFY16

2QFY16

3QFY16

IT services

qoq growth (%)

Source: Company, Angel Research

Industry wise, Wipro’s Global Media & Telecom vertical grew by 2.7% QoQ in CC

terms. The revenue from the anchor industry vertical, Financial Solutions, de-grew

by 0.7% QoQ in CC terms. Revenue from Healthcare, Life Sciences & Services

grew by 6.0% QoQ in CC terms while that from Energy, Natural Resources &

Utilities was flat QoQ in CC terms. Manufacturing and Hi-tech posted a de-growth

of 0.6% QoQ in CC terms while Retail & Transportation posted a 4.6% QoQ

growth in CC terms.

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

% to revenue

% growth (QoQ)

% growth (yoy)

Global media and telecom

13.4

2.7

5.4

Financial solutions

26.2

(0.7)

7.8

Manufacturing and hi-tech

18.4

(0.6)

6.6

Healthcare, life sciences and services

12.0

6.0

7.2

Retail and transportation

15.6

4.6

16.7

Energy and utilities

14.4

0.0

(5.3)

Source: Company, Angel Research

Services wise, Wipro’s anchor service lines

- Business Application Services

(contributed 46.7% to revenue) and Technology Infrastructure Services (contributed

28.1% to revenue) registered a rise in revenue of

0.0% and

0.7% QoQ,

respectively. Analytics and Information Management (which contributed 7.4% of

sales) de-grew by 1.4% QoQ. Product Engineering and Mobility (which contributed

8.0% of sales) grew by 2.1% QoQ. Consulting, R&D and BPO posted a QoQ

growth of (15.2)%, (0.2)% and 1.0%, respectively.

February 23, 2016

Wipro | 3QFY2016 Result Update

Exhibit 5: Revenue growth (Service wise)

Service verticals

% to revenue

% growth (QoQ)

% growth (yoy)

Technology infrastructure services

28.1

0.7

3.8

Analytics and information management

7.4

(1.4)

8.4

BPO

9.8

1.0

5.9

Product engineering and mobility

8.0

2.1

16.2

ADM

46.7

0.0

(1.9)

R&D business

10.4

(0.2)

9.3

Consulting

1.6

(15.2)

(14.2)

Source: Company, Angel Research

Geography wise, the developed economies - America and Europe, grew by 0.3%

and 1.4% QoQ in CC terms, respectively. India posted a 5.4% QoQ growth

during the period.

Exhibit 6: Revenue growth (Geography wise, CC basis)

% to revenue

% growth (QoQ)

% growth (yoy)

America

52.8

0.3

6.8

Europe

24.8

1.4

(2.3)

India and Middle East

11.0

5.4

20.9

APAC and other emerging markets

11.4

3.1

12.3

Source: Company, Angel Research

The IT Products segment reported a 16.0% yoy dip in revenue to `650cr, during

the quarter.

Exhibit 7: IT Products - Revenue growth (yoy)

1,000

7.0

944

900

800

821

700

(16.0)

(10)

774

(14.9)

600

650

(20)

500

565

(23.8)

400

(30)

300

(38.3)

(40)

200

100

(50)

3QFY15

4QFY15

1QFY16

2QFY16

3QFY16

IT products

yoy growth (%)

Source: Company, Angel Research

February 23, 2016

Wipro | 3QFY2016 Result Update

Hiring and utilization

Wipro reported a net addition of 2,268 employees in its IT Services’ employee

base, which now stands at 170,664. Voluntary attritions (annualized) in the global

IT business increased considerably, but remained stagnant on a net basis at

16.3%. The Management indicated that it has taken necessary steps to curtail

attritions and expects them to decline going ahead. Also, the Management noted

that the company is going measured in terms of hiring due to hyper automation

process going on in the company in the run services, resulting in higher

productivity. The utilization rate of the global IT business moved down by 310bp

sequentially to 66.4%. Going ahead, an improvement in utilization level will be an

important margin lever.

Exhibit 8: Employee pyramid

Employee pyramid

3QFY15 4QFY15 1QFY16 2QFY16 3QFY16

Utilization - Global IT (%)

68.5

70.5

71.3

69.5

66.4

Attrition (%)

Global IT

16.5

16.4

16.3

BPO

13.1

13.3

12.0

10.2

9.9

Net additions

2,569

1,351

3,572

6,607

2,268

Source: Company, Angel Research

Margins dip

On the operating front, the EBITDA margin came in at 20.6% V/s 21.5% in

2QFY2016, a downtick of 121bp qoq. The IT Services segment posted an EBIT

margin of 20.2% V/s 20.7% in 2QFY2016. The 50bps decline was a result of costs

associated with the Chennai floods. On the product business front, the company

posted a 4% operating loss. The miss was largely on account of operating losses in

the hardware business to the tune of `50.6cr (-7.8% EBIT margin). Lower-than-

expected revenues and higher provisioning led to the loss during the quarter,

which should start recovering going ahead.

Exhibit 9: Segment-wise EBIT margin trend

22.2

21.8

21.0

20.7

20.2

20.0

19.3

19.0

18.5

17.9

1.5

0.8

0.6

1.6

3QFY15

4QFY15

1QFY16

2QFY16

3QFY16

(5)

(4.0)

(10)

IT services

IT products

Consolidated

Source: Company, Angel Research

February 23, 2016

Wipro | 3QFY2016 Result Update

Client pyramid

Wipro added 39 new clients in 3QFY2016, with its active client base standing at

1,105. Wipro cited that there has been increasing pricing pressure in large deals,

led by growing competitive pressures. Both, deal sizes and value of deals are

under pressure. In this environment, Wipro has been trying to offset the pressure

by increasing the use of automation.

Exhibit 10: Client metrics

Particulars

3QFY15

4QFY15

1QFY16

2QFY16

3QFY16

US$100mn plus

US$75mn-$100mn

US$50mn-$75mn

US$20mn-$50mn

US$10mn-$20mn

US$5mn-$10mn

US$3mn-$5mn

US$1mn-$3mn

226

231

218

212

211

New client addition

Active customers

1,018

1,054

1071

1100

1105

Source: Company, Angel Research

Investment highlights

Moderate outlook: For 3QFY2016, the company has given a revenue guidance of

US$1,875-1,912mn, implying a US$ QoQ growth of 2.0-4.0%. The Management

remains confident of the revenue growth pick-up sustaining, citing a pick-up in

large deal closures and win rates, uptick in discretionary spending, strong business

pipeline and sustained momentum in demand from the US. We expect USD and

INR revenue CAGR for IT services to be at 7.0% and 11.5%, respectively, over

FY2015-17E.

Deal pipeline looks robust: Company sees itself better placed than this time last

year to latch on to opportunities in the market and remains focused on improving

traction from its top 125 clients. As per the company, it is seeing a broad based

pick up in discretionary spending across verticals in the US, which should help

drive a better performance in the geography. In addition, the company remains

confident of its growth prospects with increased penetration in Europe. Wipro has

chosen a growth strategy of focusing on a selected few segments in terms of

industry verticals and services. Wipro is now better positioned than it was three

years ago to capture upsides from overall market improvement and can reduce the

gap in revenue growth with its peers.

Further, the company has bought the information technology (IT) services business

of the Canadian logistics and utilities firm, Atco, for US$195mn.The deal, which

comes less than a year since Wipro bought US-based Opus Capital Markets

Consultants Llc for US$75mn, is one of the company’s largest acquisitions in

recent years, and comes bundled with a 10-year, US$1.1bn outsourcing contract

with Atco. The outsourcing contract—one of the largest ever for Wipro—is

expected to result in annual revenue of about US$112mn.

February 23, 2016

Wipro | 3QFY2016 Result Update

Outlook and valuation

Wipro has been showing a decent performance in the past couple of quarters by

rationalizing costs. We have factored in a FY2015-17E EBIT margin at 12.5%

considering that most headwinds are already behind for Wipro and hence believe

that this can be achieved if the company improves its operational efficiency. The

stock is currently trading at 14.2x FY2016E and 13.0x FY2017E EPS, ie at a

discount to its peers. We recommend a Buy on the stock with a target price of

`670.

Exhibit 11: Key assumptions

FY2016E

FY2017E

Revenue growth - IT services (USD)

4.0

10.0

USD-INR rate (realized)

65.0

Revenue growth - Consolidated (`)

12.5

10.6

EBITDA margin (%)

23.7

23.8

Tax rate (%)

22.0

EPS growth (%)

10.3

9.0

Source: Company, Angel Research

Exhibit 12: One-year forward PE chart

1,100

950

800

650

500

350

200

Price

27x

22x

17x

12x

Source: Company, Angel Research

Exhibit 13: Recommendation summary

Company

Reco

CMP Tgt. price Upside FY2017E FY2017E FY2015-17E FY2017E FY2017E

(`)

(%) EBITDA (%)

P/E (x) EPS CAGR (%) EV/Sales (x) RoE (%)

HCL Tech

Buy

850

1,038

22.1

21.5

14.7

6.0

2.0

18.8

Infosys

Buy

1,126

1,347

19.7

27.5

17.1

10.6

2.9

20.1

TCS

Buy

2,320

2,854

23.0

28.5

16.8

11.8

3.3

38.9

Tech Mahindra

Buy

440

530

20.5

17.0

13.1

10.8

1.2

19.1

Wipro

Buy

547

670

22.5

23.8

13.0

9.7

1.7

17.2

Source: Company, Angel Research

February 23, 2016

Wipro | 3QFY2016 Result Update

Profit & Loss account (Consolidated, IFRS)

Y/E March (` cr)

FY2013 FY2014 FY2015 FY2016E FY2017E

Net revenue

37,426

43,427

46,955

52,827

58,410

Cost of revenues

26,067

29,549

30,846

35,922

39,719

Gross profit

11,359

13,878

16,108

16,905

18,691

% of net sales

30.4

32.0

34.3

32.0

Selling and mktg exp.

2,421

2,925

3,063

3,539

3,913

% of net sales

6.5

6.7

6.5

6.7

General and admin exp.

2,203

2,354

2,585

2,853

3,154

% of net sales

5.9

5.4

5.5

5.4

Depreciation and amortization

1,084

1,111

1,282

1,373

1,519

% of net sales

2.9

2.6

2.7

2.6

EBIT

6,735

8,600

9,179

10,513

11,624

% of net sales

18.0

19.8

19.5

19.9

Other income, net

1,626

1,501

1,990

1,808

Share in profits of eq. acc. ass.

Profit before tax

8,360

10,101

11,168

12,320

13,431

Provision for tax

1,691

2,260

2,462

2,710

2,955

% of PBT

20.2

22.4

22.0

PAT

6,669

7,840

8,706

9,610

10,477

Share in earnings of associate

Minority interest

Adj. PAT

6,636

7,797

8,653

9,547

10,403

Diluted EPS (`)

26.8

31.5

35.1

38.6

42.1

February 23, 2016

Wipro | 3QFY2016 Result Update

Balance sheet (Consolidated, IFRS)

Y/E March (` cr)

FY2013

FY2014

FY2015

FY2016E

FY2017E

Assets

Goodwill

5,476

6,342

6,808

6,919

6,316

Intangible assets

171

194

793

Property, plant & equipment

5,053

5,145

5,421

5,721

6,021

Investment in equ. acc. investees

268

387

Derivative assets

Non-current tax assets

1,031

1,019

1,141

Deferred tax assets

424

336

295

Other non-current assets

1,074

1,430

1,437

1,430

Total non-current assets

13,233

14,762

16,354

16,758

16,455

Inventories

326

229

485

480

Trade receivables

7,664

8,539

9,153

10,296

11,384

Other current assets

3,107

3,947

7,336

Unbilled revenues

3,199

3,933

4,234

Available for sale investments

6,917

6,056

5,391

Current tax assets

741

977

649

900

Derivative assets

303

366

508

Cash and cash equivalents

8,484

11,420

15,894

23267

32206

Total current assets

30,740

35,469

43,649

52,411

62,438

Total assets

43,973

50,230

60,003

69,169

78,893

Equity

Share capital

493

Share premium

1,176

1,266

1,403

Retained earnings

25,918

31,495

37,225

45,036

53,704

Share based payment reserve

132

102

131

102

Other components of equity

717

1,047

1,545

Shares held by controlled trust

(54)

Equity attrib. to shareholders of Co.

28,381

34,350

40,789

48,580

57,247

Minority interest

117

139

165

Total equity

28,498

34,489

40,954

48,744

57,412

Liabilities

Long term loans and borrowings

1,091

1,271

Deferred tax liability

180

324

Derivative liabilities

Non-current tax liability

479

345

670

Other non-current liabilities

339

417

366

Provisions

Total non-current liabilities

1001

2096

2647

Loans and bank overdraft

6,296

4,068

6,621

Trade payables

4,807

5,226

5,875

6,969

7,705

Unearned revenues

1,035

1,277

1,655

1,877

Current tax liabilities

1,023

1,248

804

1,084

1,182

Derivative liabilities

250

Other current liabilities

1,099

1,439

1,222

Provisions

117

137

152

Total current liabilities

14,474

13,646

16,403

17,778

18,834

Total liabilities

15,475

15,742

19,050

20,425

21,481

Total equity and liabilities

43,973

50,230

60,003

69,169

78,893

February 23, 2016

Wipro | 3QFY2016 Result Update

Cash flow statement (Consolidated, IFRS)

Y/E March (` cr)

FY2013

FY2014

FY2015

FY2016E

FY2017E

Pre tax profit from operations

6,974

8,935

11,168

12,320

13,431

Depreciation

1,237

1,111

1,282

1,373

1,519

Expenses (deferred)/written off

(10)

(13)

Pre tax cash from operations

8,201

10,033

12,438

13,681

14,938

Other income/prior period ad

1,001

1,165

1,990

1,808

Net cash from operations

9,202

11,198

14,428

15,489

16,745

Tax

(1,835)

(2,260)

(2,462)

(2,710)

(2,955)

Cash profits

7,367

8,938

11,965

12,779

13,791

(Inc)/dec in current assets

(2,653)

(8,181)

(8,762)

(10,027)

Inc/(dec) in current liab.

2,706

(828)

2,757

1,375

1,056

Net trade working capital

2,752

(3,482)

(5,423)

(7,387)

(8,971)

Cashflow from oper. actv.

10,119

5,456

6,542

5,392

4,819

(Inc)/dec in fixed assets

(391)

(1,203)

(276)

(300)

(Inc)/dec in intangibles

1,570

(889)

(600)

(Inc)/dec in investments

(2,398)

594

(119)

(Inc)/dec in net def. tax assets

(164)

(Inc)/dec in derivative assets

341

(24)

(Inc)/dec in non-current tax asset

(2)

(7)

(Inc)/dec in minority interest

Inc/(dec) in other non-current liab

(49)

273

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

104

(122)

Cashflow from investing activities

(957)

(1,667)

(826)

(297)

(290)

Inc/(dec) in debt

(2,166)

1,006

180

Inc/(dec) in equity/premium

(4,544)

(123)

314

4,013

6,145

Dividends

(1,736)

Cashflow from financing activities

(8,446)

(853)

(1,242)

2,277

4,409

Cash generated/(utilized)

717

2,936

4,474

7,372

8,939

Cash at start of the year

7,767

8,484

11,420

15,894

23,267

Cash at end of the year

8,484

11,420

15,894

23,267

32,206

February 23, 2016

Wipro | 3QFY2016 Result Update

Key Ratios

Y/E March

FY2013

FY2014

FY2015

FY2016E

FY2017E

Valuation ratio(x)

P/E (on FDEPS)

20.4

17.4

15.6

14.2

13.0

P/CEPS

10.1

8.3

7.6

6.7

6.1

P/BVPS

4.7

3.9

3.3

2.8

2.5

Dividend yield (%)

1.1

EV/Sales

3.2

2.7

2.5

2.0

1.7

EV/EBITDA

15.3

12.2

11.0

9.1

7.5

EV/Total assets

2.7

2.4

1.9

1.6

1.3

Per share data (`)

EPS (Fully diluted)

26.8

31.5

35.1

38.6

42.1

Cash EPS

54.1

66.3

72.1

81.1

89.1

Dividend

6.0

Book value

115.3

139.5

165.7

197.2

217.2

DuPont analysis

Tax retention ratio (PAT/PBT)

0.8

Cost of debt (PBT/EBIT)

7.7

9.1

8.7

9.0

8.8

EBIT margin (EBIT/Sales)

0.0

Asset turnover ratio (Sales/Assets)

0.9

0.8

0.7

Leverage ratio (Assets/Equity)

1.5

1.4

Operating ROE

23.5

22.8

21.3

19.8

18.3

Return ratios (%)

RoCE (pre-tax)

15.3

17.1

15.3

15.2

14.7

Angel RoIC

29.2

32.6

28.8

31.3

33.2

RoE

23.3

22.6

21.1

19.6

18.1

Turnover ratios (x)

Asset turnover(fixed assets)

0.9

0.8

Receivables days

Payable days

February 23, 2016

Wipro | 3QFY2016 Result Update

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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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 including its relatives/analyst do not hold any financial interest/beneficial

ownership of more than 1% in the company covered by Analyst. 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. Angel/analyst

has not served as an officer, director or employee of company covered by Analyst and has not been engaged in market making activity

of the company covered by Analyst.

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

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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.

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

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

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latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may

have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement

Wipro

1. Analyst ownership of the stock

2. Angel and its Group companies ownership of the stock

3. Angel and its Group companies' Directors ownership of the stock

4. Broking relationship with company covered

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

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)

February 23, 2016