3QFY2017 Result Update | IT
February 1, 2017
Wipro
BUY
CMP
`457
Performance Highlights
Target Price
`590
(` cr)
3QFY17 2QFY17
% chg (qoq)
3QFY16
% chg (yoy)
Investment Period
12 Months
Net revenue
13,688
13,766
(0.6)
12,861
6.4
EBITDA
2,731
2,654
2.9
2,649
3.1
Stock Info
EBITDA margin (%)
20.0
19.3
68bps
20.6
(64)bps
Sector
IT
PAT
2,109
2,067
2.0
2,237
(5.7)
Market Cap (` cr)
111,116
Source: Company, Angel Research
Net Debt (` cr)
(21,460)
Wipro posted below expectations results for 3QFY2017. The Company’s IT
Beta
0.6
services recorded revenues of US$1,903mn (US$1,919mn expected) v/s
52 Week High / Low
607/410
US$1,916mn in 2QFY2017, a qoq de-growth of 0.7%. Revenue in Constant
Avg. Daily Volume
187,478
Currency (CC) came at 0.6% qoq. In Rupee terms, revenues came in at
Face Value (`)
2
`13,688cr (`14,096cr expected) v/s `13,766cr in 2QFY2017, dip of 0.6% qoq.
BSE Sensex
27,656
On EBIT front, the company posted EBIT of 16.9% (15.9% expected) v/s 15.8% in
Nifty
8,561
2QFY2017, expansion of 110bps qoq. Consequently, PAT came in at `2,109cr
Reuters Code
WIPR.BO
(`2,124cr expected) v/s `2,067cr in 2QFY2017, a growth of 2% qoq. It terms, of
Bloomberg Code
[email protected]
the guidance, the company has guided for 4QFY2017 sales of US$1,916-1,955.
We maintain our Buy rating.
Shareholding Pattern (%)
Quarterly highlights: IT services recorded revenues of US$1,903mn
Promoters
73.3
(US$1,919mn expected) v/s US$1,916mn in 2QFY2017, a qoq de-growth of
MF / Banks / Indian Fls
8.1
0.7%. Revenue in Constant Currency (CC) came at 0.6% qoq. It terms of
geography, USA contributed around 55.5% of sales in 3QFY2017 as compared
FII / NRIs / OCBs
12.9
to 54.8% of sales in 3QFY2016. Growth recorded in CC terms, were - US 1.0%
Indian Public / Others
5.7
qoq, APAC and other emerging markets 1.3% qoq growth, while Europe 1.7%
qoq. On EBIT front, the company posted an EBIT of 16.9% (15.9% expected) v/s
Abs.(%)
3m 1yr
3yr
15.8% in 2QFY2017, expansion of 110bps qoq. Consequently, PAT came in at
Sensex
(1.0)
11.2
34.8
`2,109cr (`2,124cr expected) v/s `2,067cr in 2QFY2017, a growth of 2% qoq.
Wipro
(1.7)
(18.5)
(20.5)
Outlook and valuation: The management has set a target of US$15bn of revenue
and an EBIT margin of 23% by 2020. The company achieving the revenue target
3-year price chart
would imply a CAGR of 20% in sales over the next four years. However, the near
700.0
term guidance suggests a moderate organic growth. We maintain a Buy on the stock
with a Target Price of `590 given the valuations.
600.0
500.0
Key financials (Consolidated, IFRS)
Y/E March (` cr)
FY2015
FY2016
FY2017E
FY2018E
400.0
Net sales
46,955
51,631
55,440
60,430
300.0
% chg
8.1
10.0
7.4
17.0
Net profit
8,653
8,887
9,148
9,853
200.0
% chg
11.0
2.7
2.9
7.7
EBITDA margin (%)
22.3
21.7
18.1
18.1
EPS (`)
35.1
35.9
37.0
39.9
Source: Company, Angel Research
P/E (x)
13.8
13.5
13.1
12.1
P/BV (x)
2.9
2.6
2.4
2.2
RoE (%)
21.1
19.0
19.0
17.0
RoCE (%)
15.3
13.4
13.4
13.9
Sarabjit kour Nangra
EV/Sales (x)
2.1
1.8
1.7
1.4
+91 22-39357800 Ext: 6806
EV/EBITDA (x)
9.3
8.5
8.2
6.9
[email protected]
Source: Company, Angel Research; Note: CMP as of January 31, 2017
Please refer to important disclosures at the end of this report
1
Wipro | 3QFY2017 Result Update
Exhibit 1: 3QFY2017 performance (Consolidated, IFRS)
Y/E March (` cr)
3QFY17
2QFY17
% chg (qoq)
3QFY16
% chg (yoy) 9MFY2017
9MFY2016
% chg (yoy)
Net revenue
13,688
13,766
(0.6)
12,861
6.4
41,053
37,899
8.3
Cost of revenue
9,173
9,296
(1.3)
8,675
5.7
28,108
25,022
12.3
Gross profit
4,515
4,470
1.0
4,186
7.9
12,945
12,877
0.5
SGA expense
1,784
1,816
(1.8)
1,537
16.0
5,374
4,582
17.3
EBITDA
2,731
2,654
2.9
2,649
3.1
7,571
8,295
(8.7)
Dep. and amortisation
485
485
-
352
37.7
969
1,066
(9.1)
EBIT
2,247
2,169
3.6
2,297
(2.2)
6,602
7,229
(8.7)
Other income
512
496
3.3
572
(10.5)
1,493
1,337
11.6
PBT
2,759
2,665
3.5
2,869
(3.8)
8,095
8,555
(5.4)
Income tax
644
591
9.0
625
3.0
1,847
1,868
(1.1)
PAT
2,115
2,074
2.0
2,246
(5.8)
6,247
6,687
(6.6)
Minority interest
5
7
9
19
30
Adj. PAT
2,109
2,067
2.0
2,237
(5.7)
6,228
6,670
(6.6)
Diluted EPS
8.7
8.5
2.2
9.1
(4.3)
25.6
27.2
(5.7)
Gross margin (%)
33.0
32.5
52bps
32.5
44bps
31.5
34.0
(244)bps
EBITDA margin (%)
20.0
19.3
68bps
20.6
(64)bps
18.4
21.9
(344)bps
EBIT margin (%)
16.4
15.8
66bps
17.9
(145)bps
16.1
19.1
(299)bps
PAT margin(%)
15.4
15.0
41bps
17.4
(192)bps
15.2
17.6
(238)bps
Source: Company, Angel Research
Exhibit 2: 3QFY2017 - Actual vs Angel estimates
(` cr)
Actual
Estimate
Variation (%)
Net revenue
13,688
14,096
(2.9)
EBIT margin (%)
16.4
15.9
62bps
PAT
2,109
2,124
(0.7)
Source: Company, Angel Research
Revenues lower than expected in Dollar terms
Wipro posted results below expectations. It posted
IT services
revenues of
US$1,903mn (US$1,919mn expected) v/s US$1,916mn in 2QFY2017, a qoq de-
growth of 0.7%. Revenue in Constant Currency (CC) came at 0.6% qoq. In Rupee
terms, revenues came in at `13,688cr (`14,096cr expected) v/s `13,766cr in
2QFY2017, dip of 0.6% qoq.
It terms, of geography it was USA, which contributed around 55.5% of sales in
3QFY2017 as compared to 54.8% of sales in 3QFY2016. On CC terms, US
posted a growth of 1.0% qoq, APAC and other emerging markets posted 1.3%
qoq growth while Europe posted
1.7% qoq growth. On services side,
Communications posted a 0.8% CC qoq growth, Consumer Business Unit posted a
0.1% CC qoq growth, Energy, Natural Resources & Utilities posted a 2.1% CC qoq
growth, Finance Solutions, posted a 0.8% qoq growth, Healthcare, Life Sciences &
Services posted a 0.1% CC qoq growth, while Manufacturing and Technology
posted a 0.1% CC qoq growth.
The company’s management is optimistic on the Energy segment going into 2017,
while, in Healthcare it’s cautious given the change of guard in US.
February 1, 2017
2
Wipro | 3QFY2017 Result Update
Exhibit 3: Trend in IT Services revenue
2,000
3
2.4
2.6
1,950
1,900
2
1,850
1,800
1
1,750
1,700
0.3
0
1,650
1,600
(0.8)
(0.7)
1,550
(1)
3QFY16
4QFY16
1QFY17
2QFY17
3QFY17
IT services
qoq growth (%)
Source: Company, Angel Research
Exhibit 4: Revenue growth (Industry wise - CC basis)
% to
% growth
% growth
revenue
(QoQ)
(yoy)
Global media and telecom
7.4
0.8
4.2
Financial solutions
25.5
0.8
4.3
Manufacturing and hi-tech
22.3
0.1
0.0
Healthcare, life sciences and services
16.0
0.1
39.0
Retail and transportation
15.8
0.1
0.5
Energy and utilities
13.0
2.1
(0.3)
Source: Company, Angel Research
Services wise, Wipro’s anchor service lines ADM (contributed 44.4% to revenue)
and Technology Infrastructure Services (contributed 28.1% to revenue) registered a
growth of 0.7% and a dip of 1.1% qoq respectively. Analytics and Information
Management, which contributed
7.0% of sales, de-grew by
5.4% qoq,
while, Product Engineering and Mobility contributed 7.2% of sales and grew
by 1.3% qoq.
Exhibit 5: Revenue growth (Service wise)
Service verticals
% to revenue
% growth (qoq)
Technology infrastructure services
28.1
(1.1)
Analytics and information management
7.0
(5.4)
BPO
13.3
(1.6)
Product engineering and mobility
7.2
(1.3)
ADM
44.4
0.7
Source: Company, Angel Research
Geography wise, the developed economies such as America and Europe grew by
1.0% and 1.3% qoq in CC terms respectively. India posted a 4.2% qoq CC de-
growth, during the period. However, APAC and other emerging markets posted a
1.7% qoq growth for the quarter.
February 1, 2017
3
Wipro | 3QFY2017 Result Update
Exhibit 6: Revenue growth (Geography wise, CC basis)
% to revenue
% growth (QoQ)
% growth (yoy)
America
55.5
1.0
9.0
Europe
23.6
1.7
(1.3)
India and Middle East
10.0
1.3
8.5
APAC and other emerging markets
10.9
(4.2)
(5.2)
Source: Company, Angel Research
The IT Products segment reported a 12.3% yoy de-growth in revenue to `570cr
during the quarter.
Exhibit 7: IT Products - Revenue growth (yoy)
50
900
36.3
40
800
30
20
700
10
600
0
(10)
500
(12.3)
(16.0)
(20)
400
(28.2)
(30)
300
(40)
(52.5)
(50)
200
(60)
650
449
590
770
570
100
(70)
3QFY16
4QFY16
1QFY2017
2QFY17
3QFY17
IT products
yoy growth (%)
Source: Company, Angel Research
Hiring and utilization
Wipro reported a net addition of 4,891 employees in its IT Services employee
base, which now stands at 174,238 employees. Though voluntary attritions
(annualized) in the global IT business increased considerably, it remained stagnant
on a net basis at 16.3%. The utilization rate of the global IT business moved up by
40bps sequentially to 71.6%. Going ahead, an improvement in utilization level will
be an important margin lever.
Exhibit 8: Employee pyramid
Employee pyramid
3QFY16 4QFY16 1QFY17 2QFY17 3QFY17
Utilization - Global IT (%)
66.4
68.1
69.9
71.2
71.6
Attrition (%)
Global IT
16.3
16.1
16.5
16.6
16.3
BPO
9.9
11.1
11.7
12.2
10.7
Net additions
2,268
2,248
951
375
4,891
Source: Company, Angel Research
February 1, 2017
4
Wipro | 3QFY2017 Result Update
Margins better than expected
On EBIT front, the posted EBIT of
16.9%
(15.9% expected) v/s
15.8% in
2QFY2017, expansion of 110bps qoq, mainly aided by better utilization of the
employees. Losses in the product business continued to hurt the overall EBIT
margins of the company.
Exhibit 9: Segment-wise EBIT margin trend
40
29.6
30
20.2
20.1
17.8
17.8
20
18.3
17.9
18.2
10
16.1
15.8
15.9
0
3QFY16
4QFY16
1QFY2017
2QFY17
3QFY17
(10)
(4.0)
(3.0)
(6.3)
(20)
(22.1)
(30)
IT services
IT products
Consolidated
Source: Company, Angel Research
Client pyramid
Wipro added 108 new clients during the quarter with its active client base now
standing at 1,259. Amongst these, 1 has been in the US$100mn+ bracket and 2
in the US$50mn+ bracket. The company management is optimistic on the Energy
segment going into 2017, while, in Healthcare it’s cautious given the change of
guard in US.
Exhibit 10: Client metrics
Particulars
3QFY16
4QFY16
1QFY17
2QFY17
3QFY17
US$100mn plus
9
9
9
8
9
US$75mn-$100mn
8
9
10
11
8
US$50mn-$75mn
15
15
14
14
16
US$20mn-$50mn
53
56
58
58
57
US$10mn-$20mn
69
71
79
80
80
US$5mn-$10mn
93
88
82
87
94
US$3mn-$5mn
78
83
84
83
85
US$1mn-$3mn
211
219
229
230
227
New client addition
39
119
50
47
108
Active customers
1,105
1,223
1,208
1,180
1,259
Source: Company, Angel Research
February 1, 2017
5
Wipro | 3QFY2017 Result Update
Investment highlights
Moderate outlook on growth: For 4QFY2017, the company has given a revenue
guidance of US$1,916-1,955mn implying a US$ qoq growth of 1-2% on CC
terms. Hence, after the 4QFY2017 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 8.2% respectively over FY2016-18E.
Target sales CAGR of 20% and EBIT Margin of 23%: 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
300bps, then it would imply an even higher CAGR for earnings. The company sees
itself better placed than this time as against 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, company announced the acquisition of Appirio, a leading
cloud services company in areas like Sales force and Workday implementation.
Appirio’s CY2015 revenue was US$196mn and purchase consideration for the
acquisition is US$500mn. Its customers include Virgin America, Four Seasons
Hotels & Resorts, Coca Cola, eBay, Home Depot, Honeywell, NYSE Euronext,
Toyota and Facebook, among others.
Earlier, the company had 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,
HealthPlan Services employs over 2,000 associates. It 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 13.1x its FY2017E and
11.5x its FY2018E EPS, i.e. 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 maintain a Buy on the stock with a Target
Price of `590.
February 1, 2017
6
Wipro | 3QFY2017 Result Update
Exhibit 11: Key assumptions
FY2017E
FY2018E
Revenue growth - IT services (USD)
7.8
9.0
USD-INR rate (realized)
66.0
66.0
Revenue growth - Consolidated (`)
7.4
17.0
EBITDA margin (%)
18.1
18.1
Tax rate (%)
22.0
22.0
EPS growth (%)
2.9
7.7
Source: Company, Angel Research
Exhibit 12: One-year forward PE chart
1100
950
800
650
500
350
200
50
Price
27x
22x
17x
12x
7x
Source: Company, Angel Research
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
809
1,000
23.6
20.5
12.6
9.6
1.8
17.9
Infosys
Buy
929
1,249
34.4
27.0
13.4
8.4
2.2
21.6
TCS
Accumulate
2,230
2,620
17.5
27.6
15.3
8.5
3.1
33.1
Tech Mahindra
Buy
452
600
32.8
17.0
11.3
11.4
1.0
20.7
Wipro
Buy
457
583
27.5
18.1
11.5
4.0
1.6
17.6
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 168,000 professionals,
offering a wide portfolio of services such as ADM, consulting and package
implementation, and servicing more than 1,000 clients.
February 1, 2017
7
Wipro | 3QFY2017 Result Update
Profit & Loss account (Consolidated, IFRS)
Y/E March (` cr)
FY2014 FY2015 FY2016
FY2017E
FY2018E
Net revenue
43,427
46,955
51,631
55,440
60,430
Cost of revenues
29,549
30,846
34,325
38,143
41,576
Gross profit
13,878
16,108
17,306
17,297
18,854
% of net sales
32.0
34.3
33.5
31.2
31.2
Selling and mktg exp.
2,925
3,063
3,319
3,714
4,049
% of net sales
6.7
6.5
6.4
6.7
6.7
General and admin exp.
2,354
2,585
2,788
3,548
3,867
% of net sales
5.4
5.5
5.4
6.4
6.4
Depreciation and amortization
1,111
1,282
1,496
1,608
1,752
% of net sales
2.6
2.7
2.9
2.9
2.9
EBIT
8,600
9,179
9,703
10,035
10,938
% of net sales
19.8
19.5
18.8
18.1
18.1
Other income, net
1,501
1,990
1,770
1,593
1,593
Share in profits of eq. acc. ass.
0
0
0
0
0
Profit before tax
10,101
11,168
11,473
11,627
12,531
Provision for tax
2,260
2,462
2,537
2,651
2,857
% of PBT
22.4
22.0
22.1
22.1
22.8
PAT
7,840
8,706
8,936
8,976
9,674
Share in earnings of associate
-
-
-
-
-
Minority interest
44
53
49
59
59
Adj. PAT
7,797
8,653
8,887
8,917
9,614
Diluted EPS (`)
31.5
35.1
35.9
36.1
38.9
February 1, 2017
8
Wipro | 3QFY2017 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
1,584
1,584
Property, plant & equipment
5,145
5,421
6,495
6,795
6,795
Investment in equ. acc. investees
268
387
491
491
491
Derivative assets
29
74
26
26
26
Non-current tax assets
1,019
1,141
1,175
1,175
1,175
Deferred tax assets
336
295
380
380
380
Other non-current assets
1,430
1,437
1,583
1,583
1,583
Total non-current assets
14,762
16,354
21,933
18,350
18,351
Inventories
229
485
539
539
539
Trade receivables
8,539
9,153
10,238
10,063
11,778
Other current assets
3,947
7,336
10,407
10,407
10,407
Unbilled revenues
3,933
4,234
4,827
4,827
4,827
Available for sale investments
6,056
5,391
13,294
13,294
13,294
Current tax assets
977
649
781
781
781
Derivative assets
366
508
568
568
568
Cash and cash equivalents
11,420
15,894
9902
17559
21400
Total current assets
35,469
43,649
50,556
58,038
63,593
Total assets
50,230
60,003
72,489
76,387
81,943
Equity
Share capital
493
493
494
493
494
Share premium
1,266
1,403
1,462
1,462
1,462
Retained earnings
31,495
37,225
42,574
46,371
50,390
Share based payment reserve
102
131
223
102
103
Other components of equity
1,047
1,545
1,853
1,853
1,853
Shares held by controlled trust
(54)
-
-
-
-
Eq. attrib. to shareholders of Co.
34,350
40,789
46,606
50,282
54,302
Minority interest
139
165
222
222
222
Total equity
34,489
40,954
46,828
50,504
54,525
Liabilities
Long term loans and borrowings
1,091
1,271
1,736
1,736
1,736
Deferred tax liability
180
324
511
511
511
Derivative liabilities
63
16
12
12
12
Non-current tax liability
345
670
823
823
823
Other non-current liabilities
417
366
723
723
723
Provisions
1
1
-
-
-
Total non-current liabilities
2096
2647
3804
3804
3804
Loans and bank overdraft
4,068
6,621
10,786
10,786
10,786
Trade payables
5,226
5,875
6,819
6,659
8,066
Unearned revenues
1,277
1,655
1,808
1,877
1,878
Current tax liabilities
1,248
804
702
1,015
1,143
Derivative liabilities
250
75
234
234
234
Other current liabilities
1,439
1,222
1,382
1,382
1,382
Provisions
137
152
126
126
126
Total current liabilities
13,646
16,403
21,856
22,079
23,614
Total liabilities
15,742
19,050
25,661
25,883
27,419
Total equity and liabilities
50,230
60,003
72,489
76,387
81,943
February 1, 2017
9
Wipro | 3QFY2017 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
11,473
12,531
Depreciation
1,111
1,282
1,496
1,496
1,752
Expenses (deferred)/written off
(13)
(13)
(13)
(13)
(13)
Pre tax cash from operations
10,033
12,438
12,956
12,956
14,270
Other income/prior period ad
1,165
1,990
1,770
1,770
1,593
Net cash from operations
11,198
14,428
14,726
14,726
15,863
Tax
(2,260)
(2,462)
(2,537)
(2,537)
(2,857)
Cash profits
8,938
11,965
12,189
12,189
13,006
(Inc)/dec in current assets
(2,653)
(8,181)
(6,906)
-
(16,613)
Inc/(dec) in current liab.
(828)
2,757
5,453
-
1,758
Net trade working capital
(3,482)
(5,423)
(1,453)
(1,453)
(14,855)
Cashflow from oper. actv.
5,456
6,542
10,736
10,736
(1,849)
(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
87
-
-
-
-
(Inc)/dec in derivative assets
(24)
-
-
-
-
(Inc)/dec in non-current tax asset
12
7
146
-
-
(Inc)/dec in minority interest
22
9
(4)
-
10
Inc/(dec) in other non-current liab
90
273
510
-
-
(Inc)/dec in other non-current ast.
(122)
(122)
(34)
-
-
Cashflow from investing activities
(1,667)
(826)
(1,352)
(1,352)
(290)
Inc/(dec) in debt
1,006
180
465
-
-
Inc/(dec) in equity/premium
(123)
314
(14,062)
3,362
15,151
Dividends
(1,736)
(1,736)
(1,780)
(5,089)
(5,596)
Cashflow from financing activities
(853)
(1,242)
(15,377)
(1,727)
9,555
Cash generated/(utilized)
2,936
4,474
(5,992)
7,658
7,416
Cash at start of the year
8,484
11,420
15,894
9,902
17,559
Cash at end of the year
11,420
15,894
9,902
17,559
24,975
February 1, 2017
10
Wipro | 3QFY2017 Result Update
Key Ratios
Y/E March
FY2014 FY2015 FY2016
FY2017E
FY2018E
Valuation ratio (x)
P/E (on FDEPS)
15.3
13.7
13.4
13.3
12.4
P/CEPS
7.3
6.7
6.4
6.4
5.8
P/BVPS
3.4
2.9
2.5
2.6
2.4
Dividend yield (%)
1.7
2.5
1.2
4.3
4.7
EV/Sales
2.3
2.0
1.8
1.7
1.3
EV/EBITDA
10.2
9.1
8.4
8.0
6.2
EV/Total assets
2.0
1.6
1.3
1.2
1.0
Per share data (`)
EPS (Fully diluted)
31.5
35.1
35.9
35.9
38.9
Cash EPS
66.3
72.1
75.2
75.2
83.1
Dividend
8.0
12.0
6.0
20.6
22.6
Book value
139.5
165.7
189.4
187.6
203.8
Return ratios (%)
RoCE (pre-tax)
17.1
15.3
13.4
13.4
12.8
Angel RoIC
32.6
28.8
24.8
24.8
29.3
RoE
22.6
21.1
19.0
19.0
17.6
Turnover ratios(x)
Asset turnover (fixed assets)
8.5
8.9
8.7
7.9
9.0
Receivables days
68
69
69
70
71
Payable days
67
67
67
67
67
February 1, 2017
11
Wipro | 3QFY2017 Result Update
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Wipro
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Ratings (Based on expected returns
Buy (> 15%)
Accumulate (5% to 15%)
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over 12 months investment period):
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February 1, 2017
12