Financial Report Analysis

Wipro Ltd 2007 to 2011

By Rajesh Kanjani
Roll # 34473
Ex MBA Sem 1 2011-2014

Financial Report Analysis Wipro Ltd

Contents
Contents.......................................................................................................................................... 2
Balance Sheet................................................................................................................................. 3
Profit & Loss Statement...................................................................................................................4
Working Notes................................................................................................................................. 6
Financial Ratios............................................................................................................................... 9
Trends and Comments..................................................................................................................11

Financial Report Analysis Wipro Ltd

Balance Sheet
Wipro Ltd (Source: http://www.moneycontrol.com)
Balance Sheet
------------------- in Rs. Cr. ------------------Mar
Mar
Mar
Mar
Mar
'11
'10
'09
'08
'07
Sources Of Funds
291.
Total Share Capital
490.8 293.6
293 292.3
8
291.
Equity Share Capital
490.8 293.6
293 292.3
8
Share Application
Money
0.7
1.8
1.5
58
3.5
Preference Share
Capital
0
0
0
0
0
20829 17396 12220 11260 9025
Reserves
.4
.8
.5
.4
.1
Revaluation Reserves
0
0
0
0
0
21320 17692
11610 9320
Networth
.9
.2 12515
.7
.4
Secured Loans
0
0
0
4
23.2
4744. 5530. 5013. 3818.
214.
Unsecured Loans
1
2
9
4
8
4744. 5530. 5013. 3822.
Total Debt
1
2
9
4
238
23222 17528 15433 9558
Total Liabilities
26065
.4
.9
.1
.4
Application Of Funds
Gross Block
Less: Accum.
Depreciation
Net Block
Capital Work in
Progress
Investments
Inventories
Sundry Debtors
Cash and Bank
Balance
Total Current Assets
Loans and Advances

7779.
3
3542.
3

6761.
3

4237

3105
3656.
3

603.1
10813
.4

991.1
8966.
5

5743.
3
2563.
7
3179.
6
1311.
8
6895.
3

724.9
5781.
3
2334.
2
8840.
4
6756.

606.9
5016.
4
1938.
3
7561.
6
5425.

459.6
4446.
4
1902.
1
6808.
1
4202

2282.
2

1645
.9

0
2282.
2

448.1
3646.
6
3732.
1
7826.
8
4231.

0
1645
.9
989.
5
4348
.7
240.
4
2582
.3
1849
.2
4671
.9
1666

1335
4500.
1

Financial Report Analysis Wipro Ltd

Fixed Deposits
Total CA, Loans &
Advances
Deffered Credit
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Miscellaneous
Expenses
Total Assets

8
2869.
1
18466
.3
0
5290
2764.
8
8054.
8
10411
.5
0
26065

Contingent Liabilities

707.3

Book Value (Rs)

86.86

.5
0
6338
.4
0
2998
.9
765.
2
3764
.1
2574
.3
0
9558
.4

3726
16713
.5
0
4874.
2
2230.
8

2507.
1
13517
.2
0
5564.
3
1810.
7

7105
9608.
5

7375
6142.
2

0
12058
.1
0
3361.
6
1380.
7
4742.
3
7315.
8

0
23222
.4

0
17528
.9

0
15433
.1

1045.
4

749.9

85.42

79.05

778
120.4
9

661.
6
63.8
6

Profit & Loss Statement

Wipro Ltd (Source: http://www.moneycontrol.com)
Profit & Loss account
------------------- in Rs. Cr. ------------------Mar
Mar
Mar '11 Mar '10 Mar '09 '08
'07
Income
26401. 23006. 21612. 17658 13758
Sales Turnover
2
3
8
.1
.5
Excise Duty
100.7
84.3
105.5 165.5
74.6
26300.
21507. 17492 13683
Net Sales
5
22922
3
.6
.9
Other Income
603.3
866.7
-480.4 326.9 288.7
Stock Adjustments
31.6
111
-3.8
187
86.3
26935. 23899. 21023. 18006 14058
Total Income
4
7
1
.5
.9
Expenditure
3139. 1975.
Raw Materials
3805.6 3768.8 3438.8
3
3
Power & Fuel Cost
199.7
141.4
154
0
0
10937.
7409. 5768.
Employee Cost
4 9062.8 9249.8
1
2
Other Manufacturing
Expenses
2780.2 2145.3 1687.8 299.8 120.5
4

Financial Report Analysis Wipro Ltd

Selling and Admin
Expenses
Miscellaneous Expenses
Preoperative Exp
Capitalised
Total Expenses

1703.3

1491.4

1523

557.8

1145

921.8

691.4

2558

0
20571.
2

0
17531.
5

0
16744.
8

0
13964

Operating Profit

5760.9

5501.5

4758.7

PBDIT
Interest

6364.2
58.6

6368.2
99.8

4278.3
196.8

PBDT
Depreciation
Other Written Off

6305.6
600.1
0

6268.4
579.6
0

4081.5
533.6
0

Profit Before Tax

Extra-ordinary items
PBT (Post Extra-ord
Items)
Tax

5705.5
0

5688.8
0

3547.9
0

5705.5
861.8

5688.8
790.8

3547.9
574.1

Reported Net Profit

4843.7
16765.
6
490.8
981.8
220.4

4898
13762.
7
0
880.9
128.3

2973.8
13306
0
586
99.6

3715.
6
4042.
5
116.8
3925.
7
456
0
3469.
7
0
3469.
7
406.4
3063.
3
10824
.7
0
876.5
148.9

24544.
09
17.74
200
86.86

14682.
11
33.36
300
120.49

14649.
81
20.3
200
85.42

14615
20.96
300
79.05

Total Value Addition

Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data
(annualised)
Shares in issue (lakhs)
Earning Per Share (Rs)
Equity Dividend (%)
Book Value (Rs)

27.6
2624.
1
0
10515
.7
3254.
5
3543.
2
7.2

14590
19.48
300
63.86

3536
359.8
0
3176.
2
0
3176.
2
334.1
2842.
1
8540.
4
0
873.7
126.8

Financial Report Analysis Wipro Ltd

Working Notes
Mar '11
(i)

Profit after
tax (PAT)
Total
Profit
(PBDIT)
Less:
Depreciati
on,
Interest
and Tax
Depre
ciation
Profit
before
Interest
and Tax
(PBIT)
Intere
st

Tax
Corpor

ate
Dividend
Tax

(ii)

(iii
)

Net Sales
Sales
Turnover
Less:
Excise
Duty

Total
Current
Assets,
Loans &
Advances
Total
Current
Assets
Invent
ories
Sundr
y Debtors
Cash
and Bank
Balance

Mar '07

6,364.
20

6,368.
20

4,278.
30

4,042.
50

3,543.
20

600.10

579.60

533.60

456.00

359.80

5,764.
10

5,788.
60

3,744.
70

3,586.
50

3,183.
40

58.60

99.80

196.80

116.80

861.80

790.80

574.10

406.40

26,401
.20

23,006
.30

21,612
.80

17,658
.10

13,758
.50

100.70
26,300
.50

84.30
22,922
.00

105.50
21,507
.30

165.50
17,492
.60

74.60
13,683
.90

J
M

724.90
5,781.
30
2,334.
20

H
6,756.
80
2,869.
10
P

128.30

1,018.
90
4,769.
70

7.20
334.1
0

1,140.
80
4,623.
30

220.40

Loans
and
Advances
Fixed
Deposits

(iv

------------------- in Rs. Cr. ------------------Mar '10

Mar '09
Mar '08

606.90
5,016.
40
8,840.
40
8,840.
40

9,625.
90
18,466
.30

1,938.
30

5,425.
90
3,726.
00

99.60

870.50
2,874.
20

459.60
4,446.
40
7,561.
60
7,561.
60

9,151.
90
16,713
.50

1,902.
10

4,202.
00
2,507.
10

148.90

672.10
2,914.
40

3,732.
10

7,826.
80
7,826.
80

4,231.
30
6,709.
10
13,517
.20

0.00

468.10
2,715.
30

240.4
0
2,582
.30

448.10
3,646.
60
6,808.
10
6,808.
10

126.8
0

1,849
.20

4,671.
90
4,671.
90

1,666
.50
4,231.
30
12,058
.10

0.00

1,666.
50
6,338.
40

Current

Financial Report Analysis Wipro Ltd

Mar '11
)

Liabilities
and
Provisions
Current
Liabilities
Provisio
ns

5,290.
00
2,764.
80

(v)

(vi
)

Net
Current
Assets
Total
Current
Assets,
Loans &
Advances
Less:
Current
Liabilities
and
Provisions

Total
Assets
Gross
Block
Less:
Accummul
ated
Depreciati
on
Net
Block
Capital
Work in
Progress
Investm
ents
Miscelle
neous
Expenses
Net
Current
Assets

7,105.
00
7,105.
00

5,564.
30
1,810.
70

7,375.
00
7,375.
00

3,361.
60
1,380.
70

4,742.
30
4,742.
30

2,998
.90
765.2
0

3,764.
10
3,764.
10

16,713
.50

13,517
.20

12,058
.10

6,338.
40

8,054.
80
10,411
.50

7,105.
00
9,608.
50

7,375.
00
6,142.
20

4,742.
30
7,315.
80

3,764.
10
2,574.
30

7,779.
30

6,761.
30

5,743.
30

2,282.
20

1,645.
90

3,542.
30
4,237.
00

3,105.
00
3,656.
30

2,563.
70
3,179.
60

0.00
2,282.
20

0.00
1,645.
90

603.10
10,813
.40

991.10
8,966.
50

1,311.
80
6,895.
30

1,335.
00
4,500.
10

989.5
0
4,348
.70

0.00

0.00

0.00

0.00

0.00

10,411
.50

Equity
Capital
Total
Share
Capital
Preferen
ce Share
Capital
Reserve
s
Reevaluation
Reserves

21,828
.00
26,065
.00

9,608.
50

19,566
.10
23,222
.40

6,142.
20

14,349
.30
17,528
.90

7,315.
80

13,150
.90
15,433
.10

2,574
.30

490.80

293.60

293.00

292.30

291.8
0

0.00
20,829
.40

0.00
17,396
.80

0.00
12,220
.50

0.00
11,260
.40

0.00
9,025
.10

0.00
E

(vii
i)

4,874.
20
2,230.
80

Mar '07

18,466
.30

D
(vii
)

8,054.
80
8,054.
80

------------------- in Rs. Cr. ------------------Mar '10

Mar '09
Mar '08

21,320
.20
21,320
.20

0.00

17,690
.40
17,690
.40

0.00

12,513
.50
12,513
.50

0.00

11,552
.70
11,552
.70

0.00

7,912.
50
9,558.
40

9,316.
90
9,316.
90

Networth

Financial Report Analysis Wipro Ltd

Mar '11
21,320
.20

Equity
Capital
Share
Applicatio
n Money

(ix
)

0.70

Total Debt
Secured
Loans
Unsecur
ed Loans

0.00
4,744.
10
K

(x)

Total
Liabilities
Networt
h
Total
Debt

21,320
.90
4,744.
10

21,320
.90
21,320
.90

4,744.
10
4,744.
10

26,065
.00
26,065
.00

------------------- in Rs. Cr. ------------------Mar '10

Mar '09
Mar '08
17,690
12,513
11,552
.40
.50
.70
1.80

0.00
5,530.
20

17,692
.20
5,530.
20

17,692
.20
17,692
.20

5,530.
20
5,530.
20

23,222
.40
23,222
.40

1.50

0.00
5,013.
90

12,515
.00
5,013.
90

12,515
.00
12,515
.00

5,013.
90
5,013.
90

17,528
.90
17,528
.90

58.00

4.00
3,818.
40

11,610
.70
3,822.
40

11,610
.70
11,610
.70

3,822.
40
3,822.
40

15,433
.10
15,433
.10

Mar '07
9,316
.90
3.50

23.20
214.8
0

9,320.
40
9,320.
40

238.00
238.00

9,320
.40
238.0
0

9,558.
40
9,558.
40

(xi
)

Book
value (Rs.)

86.86

120.49

85.42

79.05

63.86

(xii
)

Preference
Dividend

490.80

0.00

0.00

0.00

0.00

Financial Report Analysis Wipro Ltd

Financial Ratios
Equation (Working
Ratio
Note Reference)
Computing Profitability Measures
After Tax
Profit
Profit After Tax [B] / Sales
Margin
[C]
Return on
Assets
Profit Before Interest and
(ROA)
Tax [A] / Total Assets [D]
Return on
Capital
Profit After Tax [B] / Net
Employed Fixed Assets [Q] + Net
(ROCE)
Working Capital ([P] - [O])
Return on
Net
Worth /
Equity
Profit After Tax [B] /
(ROE)
Equity Capital [E]
Computing Market Values Measures
Closing NSE market price
Market
as on Mar'31; adjusted for
Price
bonus issues
Shares
Outstandi Issued, subscribed and
ng
paid-up shares
Profit After Tax [B] Earnings
Preference Dividend [R] /
Per Share Shares Outstanding
Price per share / Earning
PE ratio
per share
Market to
book
Market value per share /
ratio
book value per share [G]
Computing Liquidity Ratios
Current
Current Assets [P] /
Ratio
Current Liabilities [O]
(Current Assets [P] Quick
Inventory [J]) / Current
Ratio
Liabilities [O]
Net
Working
Capital to
Net Sales Net Working Capital ([P] Ratio
[O])/ Net sales [C]
Computing long term solvency ratio
Debt to
equity
Long term debt [K] / Total
ratio
Equity [E]
Assets to
Total Assets [D] / Long
debt ratio term debt [K]
Proprietar Total Equity [E] / Total
y Ratio
Assets [D]
Computing Receivables Ratios
Receivabl
es
Sales [C] / Accounts
Turnover
Receivables [M]
Days'
365 / Receivables
sales in
Turnover

Measu
re

Mar'07

Mar'08

Mar'09

Mar'10

Mar'11

[%]

19.84

16.66

13.36

20.81

17.58

[%]

33.30

23.24

21.36

24.93

22.11

[%]

64.34

30.36

24.18

29.14

25.42

[%]

29.14

25.23

22.97

26.96

21.69

[Rs]

559.00

529.00

410.00

424.00

480.00

1,458,999,
650

1,461,453,
320

1,464,980,
746

1,468,211,
189

2,454,409,
145

[Rs]

18.61

19.94

19.62

32.49

16.84

[times]

30.04

26.53

20.90

13.05

28.51

[times]

8.75

6.69

4.80

3.52

5.53

[times]

1.68

2.54

1.83

2.35

2.29

[times]

1.62

2.45

1.77

2.27

2.20

[times]

0.19

0.42

0.29

0.42

0.40

[times]

0.03

0.33

0.40

0.31

0.22

[times]

40.16

4.04

3.50

4.20

5.49

[times]

0.97

0.75

0.71

0.76

0.82

[times]
[days]

5.30
68.88

4.80
76.09

4.84
75.46

4.57
79.88

4.55
80.23

[count]

Financial Report Analysis Wipro Ltd

Ratio
receivabl
es
Computi
ng total
Asset
turnover
Total
Asset
turnover
NWC
turnover
Fixed
Asset
Turnover

Equation (Working
Note Reference)

Measu
re

Sales [C] / Total Asset [D]

Sales [C] / Net Working
Capital ([P] - [O])

[times]

1.43

1.13

1.23

0.99

1.01

[times]

5.32

2.39

3.50

2.39

2.53

[times]

8.31

7.66

3.74

3.39

3.38

Sales Turnover [C] / Net

Fixed Assets [Q]

Mar'07

Mar'08

Mar'09

Mar'10

Mar'11

10

Financial Report Analysis Wipro Ltd

Trends and Comments

Computing Profitability Measures
After Tax Profit Margin [%]

Return on Assets (ROA) [%]

The trend indicates that the profit is

pretty much constant over the years.

Although the return on assets is good, the

return is on the decline.

Return on Capital Employed (ROCE) [%]

Return on Net Worth / Equity (ROE) [%]

The return on capital employed is on the

decline. Although it has stabilized post
the decline.

The return on the net worth over equity is

on the decline.

Computing Market Values Measures

Market Price [Rs]

Shares Outstanding [count]

11

Financial Report Analysis Wipro Ltd

The market price of the shares had

declined during the 2007-2008 US crisis;
it is on the rise again
Earnings per Share [Rs]

PE ratio [times]

The earning per share is on the decline.

The PE ratio has been on the decline for

last 4 years showing rise in the last year.
This indicates that future EPS can
improve; although this could only a spike.
We would need to observe for one more
year before commenting further on the
EPS.

Market to book ratio [times]

Same trend as PE ratio.

Computing Liquidity Ratios
12

Financial Report Analysis Wipro Ltd

Current Ratio [times]

Quick Ratio [times]

Current ratio is close to 2 which is an

ideal scenario.

Quick ratio or liquid ratio is stable.

Indicates that company has sufficient
assets available that can be converted in
the form of cash.

Net Working Capital to Net Sales Ratio

[times]

Net working capital to net sales ratio is on

the rise. The company has good amount
of net working capital available to
operate.
Computing long term solvency ratio
Debt to equity ratio [times]

Assets to debt ratio [times]

13

Financial Report Analysis Wipro Ltd

The debt to equity ratio is on the decline
which is a good sign. This indicates that
financial stake of the creditors is on the
decline as compared to the owners.
Proprietary Ratio [times]

Proprietary ratio of less than 1 indicates

that some of the owners funds are
invested in fixed assets. This ratio is on
the rise.
Computing Receivables Ratios
Receivables Turnover [times]

Days' sales in receivables [days]

Average collection period is on the rise. If

compared with the annual report, the
outstanding days is in the range of 66 to
69 days. The days sales in receivables is
larger than then the outstanding days
reported in the annual report.
Computing total Asset turnover
Total Asset turnover [times]

NWC turnover [times]

14

Financial Report Analysis Wipro Ltd

The asset turnover is on the decline,

which also indicates that the sales as
compared to the assets invested.

Same as total asset turnover.

Fixed Asset Turnover [times]

Same as total asset turnover.

15