Wipro Stock Analysis 2020

"Western India Palm Refined Oil Limited" (WIPRO) was started in 1945 by Mohamed Premji. They started IT services business in 1990. It is now led by Azim Premji since 1966.

IT Sector

Wipro Business

It is a B2B company and provides IT services, consulting to its clients.

It has ~1.8 lakh employees that consult clients in 6 continents.

Revenue distribution by geography

Business Areas and Revenue distributions

Business segments and Revenue distribution

Business Overview

IT Services

IT Services segment provides a range of IT services which are categorized into following services.

Application Services, Cloud and Infrastructure Services, Industrial and Engineering Services, Data, Analytics and AI, Cybersecurity and Risk Services, Digital Operations and Platforms.

IT Products

IT Products segment provides a range of third-party IT products, which is sold as system integration services. Some known products are Virtuadesk, Cloud studios, Topcoder platform, Wipro HOLMES.

ISRE (Govt.)

The ISRE segment consists of IT Services offerings to departments or ministries of the GoI, the Indian State Governments, PSUs.

2021 Strategy and Covid-19 Impact

Will prioritize and invest significantly to drive growth in key strategic fields such as digital, cloud, cybersecurity and industrial & engineering services.

Covid-19: It could decrease customer’s spend on technology, adversely affect demand for prospective projects, cause cancellations of existing projects. Q1 2021 revenues fell by ~5%.

WIPRO Leadership & Shareholding

Rishad Premji, Chairman

Rishad Premji is the chairman of WIPRO Ltd. and son of Azim Premji.

He did his MBA from Harvard Business School

He joined WIPRO in 2007.

Remuneration : 5 crores

Thierry Delaporte, CEO & MD

Remuneration : 32 crores

Prior Experience : Capgemini (COO), Life Project 4 Youth

Bhanumurthy B.M, COO

Remuneration : 5 crores

Prior Experience : WIPRO (28 yrs), IIM Ahmedabad , NIT Warangal

Jatin Dalal , CFO

Remuneration : 4.5 crores

Prior Experience : WIPRO (18 yrs) , CA, CFA, CGMA, CMA, NIT, Surat

Saurabh Govil , Chief HR Officer

Remuneration : 4.5 crores

Prior Experience : WIPRO (12 yrs), General Electric

Financials

Shareholding Pattern

Promoter Holding: 74%

FIIs / DIIs: 15%

Public Holding: 5.5%

Others: 5.5%

Balance Sheet Metrics

Reserves

CAG 10 yrs - 11.6%

CAG 3 yrs - 2%

Debt/Equity = 0.03

Reserves (2020) = 54,790 crores

Borrowings (2020) = 2107 crores

Profit Loss Metrics

CAG 10 yr (Revenues) - 8.43%

CAG 10 yr (Expenses) - 8.7%

CAG 10 yr (Net Profit) - 7.76%

CAG 3 yr (Revenues) - 3.31%

CAG 3 yr (Expenses) - 3.3%

CAG 3 yr (Net Profit) - 4.61%

Revenues (2020) - 61,138 crores (100%)

Expenses (2020) - 48,795 crores (79.8%)

Net Profit (2020) - 9,722 crores (15%)

Expenses breakdown

Cash Flow Metrics

Operating Cash Flow (2020) = 10,064 crores

Investing Cash Flow (2020) = 3,593 crores

Financing Cash Flow (2020) = -15,100 crores

Net Cash Flow (2020) = -1,442 crores

Competition Analysis

Thank You.

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