4QFY2013 Result Update | IT

April 19, 2013

Wipro
Performance Highlights
(` cr) Net revenue EBITDA EBITDA margin (%) PAT 4QFY13 11,026 2,253 20.4 1,737 3QFY13 11,025 2,218 20.1 1,725 % chg (qoq) 0.0 1.6 31bp 0.7 4QFY12 9,869 1,961 19.9 1,481 % chg (yoy) 11.7 14.9 56bp 17.3

ACCUMULATE
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Net debt (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code IT 90,448 (9,020) 0.8 418/290 147,559 2 19,016 5,783 WIPR.BO WPRO@IN

`369 `385
12 Months

Source: Company, Angel Research

Wipro came out with a lower-than-expected set of results for 4QFY2013; the results are lower on the revenue as well the margin front. The IT services USD revenue growth came in at just 0.5% qoq. The only positive in the results was the 2.5% qoq volume growth in IT services. Going forward, for 1QFY2014, the Management has given a USD revenue guidance of US$1,575mn-1,610mn, which translates into a qoq growth of -0.6 to +1.6%, which is well below our expectation of +1.5-3.5% qoq growth. The Management has factored in the continued uncertainty in ramp up of discretionary projects. We recommend an Accumulate rating on the stock. Quarterly highlights: For 4QFY2013, Wipros consolidated revenues came in at `11,026cr, almost flat qoq. The consolidated EBITDA margin increased by 31bp qoq to 20.4%, while its EBIT margin declined by 98bp qoq to 16.7%. The overall reported EBIT margin of the business, excluding demerged entities, stood at 17.8%, in line with estimates. The EBIT margin for IT services stood at 20.2%, down ~60bp qoq. The PAT came in-line with expectations at `1,737cr, up 0.7% qoq, aided by `328cr of other income. Outlook and valuation: The Management has given a USD revenue guidance of US$1,575mn-1,610mn for 1QFY2014, which translates into a qoq growth of -0.6 to +1.6%. The soft guidance is on account of 1Q tending to be a seasonally weak quarter for India and the Middle East geographies, which have been the growth drivers in 4QFY2013. Additionally, revenues around discretionary segments remain uncertain. The company however expects the growth rates to improve going into 2QFY2014 and 3QFY2014. The Management indicated that the pipeline for the company as on March 2013 appears similar to that as in March 2012; however, the company sees itself better placed than around this time last year, to latch on to the opportunities in the market. We expect USD and INR revenue CAGR for IT services to be at 7.6% and 7.2%, respectively over FY2013-15. We value the stock at 13.5x FY2015E EPS of `28.5, which gives us a target price of `385. We recommend Accumulate rating on the stock.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 78.3 3.3 7.3 11.1

Abs. (%) Sensex Wipro

3m (5.1)

1yr 9.3

3yr 8.1 (14.9)

(7.2) (13.7)

Key financials (Consolidated, IFRS)

Y/E March (` cr) Net sales % chg Net profit % chg EBITDA margin (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x) FY2011 31,099 14.7 5,297 15.3 21.2 21.7 17.0 3.8 22.0 15.5 2.6 12.4 FY2012 37,525 20.7 5,573 5.2 19.8 22.7 16.2 3.2 19.5 14.7 2.2 10.9 FY2013E 43,361 15.6 6,660 19.5 20.2 27.0 13.7 3.2 23.4 17.1 1.7 8.6 FY2014E 40,173 (7.4) 6,553 (1.6) 20.4 26.2 14.1 2.8 19.7 14.1 1.7 8.5 FY2015E 43,697 8.8 7,127 8.8 20.6 28.5 12.9 2.4 18.4 13.7 1.5 7.1

Ankita Somani
+91 22 3935 7800 Ext: 6819 [email protected]

Source: Company, Angel Research; Note: *Closing price as on 18 April 2013

Please refer to important disclosures at the end of this report

Wipro | 4QFY2013 Result Update

Exhibit 1: 4QFY2013 performance (Consolidated, IFRS)

Y/E March (` cr) Net revenue Cost of revenue Gross profit SG&A expense EBITDA Dep. and amortization EBIT Other inc., net of finance chgs. PBT Income tax PAT Minority interest Adj. PAT Diluted EPS (`) Gross margin (%) EBITDA margin (%) EBIT margin (%) PAT margin (%)
Source: Company, Angel Research

4QFY13 11,026 7,201 3,826 1,573 2,253 415 1,838 328 2,175 438 1,737 1,737 7.0 34.7 20.4 16.7 18.7

3QFY13 11,025 7,281 3,744 1,526 2,218 272 1,946 271 2,210 485 1,725 1,725 6.9 34.0 20.1 17.7 18.1

% chg (qoq) 0.0 (1.1) 2.2 3.1 1.6 52.6 (5.6) (1.6) (9.7) 0.7 0.7 1.7 (74)bp 31bp (98)bp 62bp

4QFY12 9,869 6,580 3,289 1,328 1,961 267 1,694 198 1,893 402 1,491 10 1,481 6.0 33.3 19.9 17.2 15.1

% chg (yoy) 11.7 9.4 16.3 18.4 14.9 55.7 8.5 14.9 9.0 16.5 (100.0) 17.3 16.3 137bp 56bp (50)bp 362bp

FY2013 43,361 29,772 13,588 6,074 8,752 1,237 7,514 990 8,505 1,835 6,670 10 6,660 27.0 31.3 20.2 17.3 17.6

FY2012 37,525 26,317 11,207 4,806 7,414 1,013 6,401 574 6,975 1,376 5,599 26 5,573 22.7 29.9 19.8 17.1 16.4

% chg (yoy) 15.6 13.1 21.2 26.4 18.0 22.2 17.4 21.9 33.3 19.1 (62.1) 19.5 18.9 147bp 43bp 27bp 126bp

Exhibit 2: 4QFY2013 Actual vs Angel estimates

(` cr) Net revenue EBITDA margin (%) PAT
Source: Company, Angel Research

Actual 11,026 20.4 1,737

Estimate 11,212 20.3 1,675

Variation (%) (1.7) 17bp 3.7

Disappointing show, volume growth the only positive

For 4QFY2013, Wipros IT services revenue came in at US$1,585mn, up merely 0.5% qoq and below our estimate of an ~2.0% qoq growth. The only positive in the results came in the form of an overall volume growth of 2.5% qoq (ie 2.4% onsite and 2.5% offshore). The company reported a 2.3% and 1.0% qoq onsite and offshore price realization decline respectively in constant currency (CC) terms during 4QFY2013. Factors that contributed to the CC pricing decline include: 1) lower working days qoq, and 2) change in business mix (higher growth from India and the Middle East geographies). In CC terms, the revenue growth was of 1.4% qoq. In INR terms, the revenue from the IT services segment came in at `8,554cr, down 0.6% qoq.

April 19, 2013

Wipro | 4QFY2013 Result Update

Exhibit 3: Volume trend (Effort wise)

3 2.5 2.4 1.1 1 1.2 0.8 (0.1) 1QFY13 2QFY13 (0.1) 3QFY13 4QFY13

(%)

0.2 0 4QFY12 (1)

(1.1) (2) Onsite

Source: Company, Angel Research

(1.3) Offshore

Exhibit 4: Pricing trend (Effort wise, CC basis)

4 3 2 1.1 0.2 (1.0) (2.3) 4QFY12 1QFY13 2QFY13 Onsite
Source: Company, Angel Research

3.2 3.0

1.4 1.1

(%)

1 0

(1.0)

(1) (2) (3)

3QFY13

4QFY13

Offshore

Industry wise, Wipros growth was led by energy & utilities and manufacturing & hi-tech industry verticals, the revenues from which grew by 3.9% and 3.4% qoq, respectively, in CC terms. For FY2013, energy & utilities was the only vertical that grew in double digits (ie by ~19% yoy), aided by the acquisition of SAIC, while global media & telecom was the only vertical that declined (-3.9% yoy). Coming back to 4QFY2013, in tandem with its peers, Wipro reported a muted revenue growth in the global media and telecom industry segment, the revenues of which declined by 1.9% qoq in CC terms. The Management indicated that revenue growth from the telecom industry is expected to remain sluggish for the next few quarters. The revenue from retail & transportation and healthcare, lifesciences & services grew by 1.3% and 2.8% qoq, respectively in CC terms. The Management indicated that the company is seeing bottoming out of weakness in multiple segments like in telecom OEMs and hi-tech, which should help growth from 2QFY2014 onwards.
April 19, 2013

Wipro | 4QFY2013 Result Update

Exhibit 5: Revenue growth (Service wise CC basis)

% to revenue Global media and telecom Financial solutions Manufacturing and hi-tech Healthcare, life sciences and services Retail and transportation Energy and utilities
Source: Company, Angel Research

% growth (qoq) (1.9) (0.3) 3.4 2.8 1.3 3.9

% growth (yoy) (1.5) 4.7 5.1 5.7 3.1 15.1

13.8 26.3 19.3 10.1 15.1 15.4

Service wise, Wipros anchor service lines - business application services (contributed 31.4% to revenue) and technology infrastructure services (contributed 24.5% to revenue) posted a 0.4% and 4.0% qoq revenue growth, respectively. The application development and maintenance (ADM) segment (contributed 20.7% to revenue) declined by 3.4% qoq. The analytics and information management services segment, the R&D business, and the BPO delivered an almost flat revenue performance on a sequential basis. The Management indicated that analytics, mobility and data will be the next growth drivers for the overall IT industry, and that the company is making continuous investments in these areas. The company is seeing bottoming out of weakness in multiple segments, such as the IMS business out of India, and product engineering.

Exhibit 6: Revenue growth (Service wise)

Service verticals Technology infrastructure services Analytics and information management Business application services BPO Product engineering and mobility ADM R&D business Consulting
Source: Company, Angel Research

% to revenue 24.5 7.1 31.4 8.8 7.5 20.7 10.4 2.4

% growth (qoq) % growth (yoy) 4.0 0.3 0.4 0.7 0.9 (3.4) 0.5 5.2 12.0 7.2 5.8 11.0 (4.3) (9.7) (10.0) (12.7)

Geography wise, Wipros primary revenue growth came in from India and the Middle East geographies, which cumulatively grew by 7.0% qoq, while revenues from Europe declined by 0.9% qoq in CC terms. For the full year FY2013, it was the other emerging markets segment that drove growth for Wipro, growing by ~25% yoy, while the others grew in low single digits.

Exhibit 7: Revenue growth (Geography wise, CC basis)

% to revenue America Europe India and Middle East APAC and other emerging markets
Source: Company, Angel Research

% growth (qoq) 1.0 (0.9) 7.0 4.3

% growth (yoy) (0.4) 8.3 9.5 20.3

50.1 28.5 9.4 12.0

April 19, 2013

Wipro | 4QFY2013 Result Update

Segmental performance
During the quarter, the IT services segments revenue came in at US$1,585mn, up 0.5% qoq, with India and the Middle East geographies being the major revenue drivers, cumulatively growing by 4.7% qoq.

Exhibit 8: IT services Revenue growth (qoq)

8 6 4 6.4 5.3 3.5 1.5 2.0 1.1 1QFY13 (0.9) (1.4) 1.5 0.9 1.7 2.8 (0.5) 3QFY13 2.4 (0.3) 0.5 0.5 4.7

(%)

2 0

4QFY12 (2) (4) (6) (1.6)

2QFY13

4QFY13

(4.8) Global IT India and Middle East BPO IT services

Source: Company, Angel Research

Exhibit 9: Global IT services revenue trend

3.0 2.5 2.0 1.5 1.0 0.5 0.0 (0.5) (1.0) (1.5) (2.0) Global IT volume growth
Source: Company, Angel Research

2.4 2.0 0.8 0.8 4QFY12 1QFY13 (1.4) 0.2 2QFY13 3QFY13 (1.0) 1.7

2.5

(%)

0.5

4QFY13

IT services revenue growth (in USD)

The IT products segment reported a 14.7% yoy increase in its revenue to `1,075cr during the quarter. The consumer care and lighting segment posted another modest quarter with a 15.1% yoy growth in revenue to `1,044cr; the company is hiving off this business into an unlisted entity.

April 19, 2013

Wipro | 4QFY2013 Result Update

Exhibit 10: IT products Revenue growth (yoy)

1,100 1,075 14.7 997 10.8 899 800 (5.2) (10.2) 700 4QFY12 1QFY13 IT products
Source: Company, Angel Research

25

1,000

15

(` cr)

(5)

(15) 2QFY13 3QFY13 yoy growth (%) 4QFY13

Exhibit 11: Consumer care and lighting Revenue growth (yoy)

1,100 1,050 1,000 25.2 980 1,008 25.9 1,028 29.9 31 29 1,044 27 25

(` cr)

900 850 800

21 907 17.0 4QFY12 1QFY13 2QFY13 3QFY13 15.1 4QFY13 19 17 15

Consumer care and lightening

Source: Company, Angel Research

yoy growth (%)

On a consolidated level, Wipros revenue came in at `11,026cr, almost flat qoq.

Hiring and utilization

Wipro reported a net addition of 2,907 employees in its IT services employee base, which now stands at 145,812 headcounts. Voluntary attritions (annualized) in the global IT business declined to 12.5% in 4QFY2012 from 12.9% in 3QFY2012. The utilization rate of the global IT business remained almost flat qoq at 64.9%, which is at low levels for the company on an historical basis. The Management indicated that this is because of the following factors: 1) hyper automation process being implemented in the run services, resulting in higher productivity; 2) freshers added into the system and 3) lesser number of working days. Going ahead, increased utilization level will be an important margin lever.

April 19, 2013

(%)

950

23

(%)

900

2.9 937

953

Wipro | 4QFY2013 Result Update

Exhibit 12: Employee pyramid

Employee pyramid Utilization Global IT (%) Attrition (%) Global IT BPO Net additions
Source: Company, Angel Research

4QFY12 67.4 14.4 15.1 (814)

1QFY13 68.3 15.2 13.4 2,632

2QFY13 66.8 14.4 14.4 2,017

3QFY13 64.8 12.9 12.5 2,336

4QFY13 64.9 12.5 12.8 2,907

Margins mixed
During 4QFY2013, Wipros consolidated EBITDA margin increased by 31bp qoq to 20.4%, while its EBIT margin declined by 98bp qoq to 16.7% as depreciation increased by 53% qoq. The overall reported EBIT margin in the business, excluding demerged entities, stood at 17.8%, in line with estimates. The IT services segments EBIT margin was at 20.2%, down ~60bp qoq. The EBIT margin during the quarter saw headwinds from currency and a qoq decline in productivity; however, factors like a decline in SGA expenses as a percentage of sales by ~30bp qoq and a shift in the mix by ~40bp qoq in favor of offshore, partially offset the same. The EBIT margin of the IT products business segment grew by 10bp qoq to 2.5%.

Exhibit 13: Segment-wise EBIT margin trend

25 20.7 20 17.2 15 21.0 17.6 11.6 11.3 4.7 2.2 4QFY12 IT services 1QFY13 IT products 3.0 2.5 4QFY13 Consolidated 20.7 17.4 20.8 17.7 13.6 12.8 20.2 16.7

(%)

12.5

10 5 0

2.4 3QFY13

2QFY13

Consumer care and lightening

Source: Company, Angel Research

April 19, 2013

Wipro | 4QFY2013 Result Update

Client pyramid
Wipro added 52 new clients in 4QFY2013, with its active client base increasing to 978 from 966 in 3QFY2013. The companys client pyramid witnessed an addition of three clients in the US$20mn-50mn revenue bracket. Overall, six clients were added in the US$1mn+ revenue brackets. The companys revenue from its top clients jumped up by 13% qoq, while revenues from the top 5/10 clients declined by 0.3%/1.7% qoq.

Exhibit 14: Client metrics

Particulars US$100mn plus US$75mn$100mn US$50mn$75mn US$20mn$50mn US$10mn$20mn US$5mn$10mn US$3mn$5mn US$1mn$3mn New clients Active customers 4QFY12 7 9 9 50 46 87 84 183 41 943 1QFY13 8 6 11 48 58 82 89 176 37 919 2QFY13 9 7 9 46 62 62 85 182 53 939 3QFY13 10 6 10 47 59 82 79 191 50 966 4QFY13 10 6 10 50 57 80 78 199 52 978

Source: Company, Angel Research

Outlook and valuation

For 1QFY2014, the Management has given a USD revenue guidance of US$1,575mn-1,610mn, which translates into a qoq growth of -0.6 to +1.6%, well below our expectation of +1.5-3.5% qoq growth. The guidance is also soft given that 1Q traditionally is a strong quarter for IT companies. The Management has factored in the continued uncertainty in ramp up of discretionary projects. It has also taken into consideration the fact that 1Q tends to be a seasonally weak quarter for India and Middle East geographies, which were the growth drivers in 4QFY2013 (accounting for 43% of incremental revenues). Additionally, revenues around discretionary segments remain uncertain. The Management indicated that CY2013 IT budgets are expected to remain stable and anticipates a positive demand environment ahead. The company however expects the growth rates to improve going into 2QFY2014 and 3QFY2014. Despite some healthy deal wins in 2QFY2013 and 3QFY2013, ramp-ups have continued to be slow. The Management indicated that the pipeline for the company as on March 2013 appears similar to that in March 2012, which however is in contrast to the commentary it had given in January 2013, of the deal pipeline being better. However, the company sees itself better placed than this time last year, to latch on to opportunities in the market. The Management cited that the company is facing greater problems in winning deals in the hunting space than in the mining zone. Win rates for Wipro in deals for traditional commoditized work are softer, which is a concern given that the pipeline of IT companies in current conditions is dominated by RTB type deals. We believe that the restructuring initiatives have not yet started showing the expected results and will start reflecting in the financials of the company in due course.

April 19, 2013

Wipro | 4QFY2013 Result Update

We expect Wipros volume growth to continue to lag from some of its peer companies. Wipro has chosen a growth strategy of focusing on a selected few segments in terms of industry verticals and services. We expect Wipro's transition to take longer than had been anticipated earlier, and the uncertain macro environment will further push the timeline. We are modeling in an ~1% qoq USD revenue growth for 1QFY2014 and an ~2.1% CQGR over 2Q-4QFY2014. We expect USD and INR revenue CAGR for IT services to be at 7.6% and 7.2%, respectively over FY2013-15. Wipro has been showing a decent performance in the past five quarters by rationalizing costs. The Management has indicated towards giving wage hikes from June 1, the quantum of which is yet to be decided (the Management has guided for a single digit increase in wages for offshore). This implies one months impact on margins in 1QFY2014. On the operating front, Wipro has tailwinds of improving utilization level and headwinds of moderate volume growth and wage hikes. We expect the IT services EBIT margin to continue to be narrow; we expect an EBIT margin of 19.7% and 19.8% for FY2014 and FY2015, respectively, for the IT services segment. The stock is currently trading at 14.1x FY2014E and 12.9x FY2015E EPS. We value the stock at 13.5x FY2015E EPS of `28.5, which gives us a target price of `385. We recommend Accumulate rating on the stock.

Exhibit 15: Key assumptions

FY2014 Revenue growth IT services (USD) USD-INR rate (realized) Revenue growth Consolidated (`) EBITDA margin (%) Tax rate (%) EPS growth (%)
Source: Company, Angel Research

FY2015 8.5 54.0 8.8 20.6 17.6 8.8

6.6 54.0 (7.4) 20.4 17.4 (2.9)

Exhibit 16: One-year forward PE chart

950 800 650

(`)

500 350 200 50

Oct-06

Oct-07

Oct-08

Oct-09

Oct-10

Oct-11

Oct-12
7x

Apr-06

Apr-07

Apr-08

Apr-09

Apr-10

Apr-11

Apr-12

Price
Source: Company, Angel Research

34x

28x

21x

14x

April 19, 2013

Apr-13

Wipro | 4QFY2013 Result Update

Exhibit 17: Recommendation summary

Company HCL Tech Hexaware Infosys Infotech Enterprises KPIT Cummins Mahindra Satyam MindTree MphasiS NIIT Persistent TCS Tech Mahindra Wipro Reco. Buy Buy Accumulate Buy Buy Buy Accumulate Accumulate Buy Accumulate Accumulate Buy Accumulate CMP (`) 736 88 2,295 163 96 109 868 356 23 549 1,451 951 369 Tgt. price (`) 863 105 2,465 196 130 143 926 395 30 602 1,585 1,230 385 Upside (%) 17.3 20.0 7.4 20.2 35.6 31.7 6.7 11.1 30.4 9.6 9.3 29.4 5.0 FY2015E EBITDA (%) 20.7 19.2 27.7 18.5 15.2 19.1 19.4 17.4 9.1 24.6 27.9 18.1 20.6 FY2015E P/E (x) 11.9 7.5 12.6 7.5 6.6 9.1 9.4 8.6 4.3 9.1 16.5 8.3 12.9 FY2012-15E EPS CAGR (%) 19.6 9.5 7.9 14.5 21.8 2.3 19.9 3.3 (7.1) 19.3 17.4 10.7 7.9 FY2015E RoCE (%) 1.4 0.9 2.1 0.4 0.4 0.9 0.8 0.6 0.1 0.9 3.2 1.4 1.5 FY2015E RoE (%) 21.5 22.1 19.3 13.1 18.8 20.1 18.8 13.6 11.9 16.8 27.9 19.1 18.4

Source: Company, Angel Research; Note: Closing price as on 18 April 2013

Company background
Wipro is one of the leading Indian companies, majorly offering IT services. The company is also engaged in IT hardware (11% of sales) and consumer care and lighting (10% of sales) businesses. Wipro's IT arm is India's fourth largest IT firm, employing more than 1,45,000 professionals, offering a wide portfolio of services such as ADM, consulting and package implementation, and servicing more than 950 clients.

April 19, 2013

10

Wipro | 4QFY2013 Result Update

Profit & Loss account (Consolidated, IFRS)

Y/E March (` cr) Net revenue Cost of revenues Gross profit % of net sales Selling and mktg exp. % of net sales General and admin exp. % of net sales Depreciation and amortization % of net sales EBIT % of net sales Other income, net Share in profits of eq. acc. ass. Profit before tax Provision for tax % of PBT PAT Share in earnings of associate Minority interest Adj. PAT Diluted EPS (`) FY2011 31,099 21,285 9,814 31.6 2,218 7.1 1,829 5.9 821 2.6 5,767 18.5 472 64.8 6,303 971 15.4 5,332 35 5,297 21.7 FY2012 37,525 26,317 11,207 29.9 2,778 7.4 2,029 5.4 1,013 2.7 6,401 17.1 541 33.3 6,975 1,376 19.7 5,599 26 5,573 22.7 FY2013E 43,361 29,772 13,588 31.3 3,663 8.4 2,410 5.6 1,237 2.9 7,514 17.3 1,001 (10.5) 8,505 1,835 21.6 6,670 10 6,660 27.0 FY2014E* 40,173 28,278 11,895 29.6 2,548 6.3 2,370 5.9 1,205 3.0 6,976 17.4 1,425 0 8,402 1,848 22.0 6,553 6,553 26.2 FY2015E* 43,697 30,688 13,009 29.8 2,766 6.3 2,571 5.9 1,311 3.0 7,672 17.6 1,705 0 9,377 2,251 24.0 7,127 1 7,127 28.5

Note: *exclude numbers of hived off consumer care and lighting segment

April 19, 2013

11

Wipro | 4QFY2013 Result Update

Balance sheet (Consolidated, IFRS)

Y/E March (` cr) Assets Goodwill Intangible assets Property, plant & equipment Investment in equ. acc. investees Derivative assets Non-current tax assets Deferred tax assets Other non-current assets Total non-current assets Inventories Trade receivables Other current assets Unbilled revenues Available for sale investments Current tax assets Derivative assets Cash and cash equivalents Total current assets Total assets Equity Share capital Share premium Retained earnings Share based payment reserve Other components of equity Shares held by controlled trust Equity attrib. to shareholders of Co. Minority interest Total equity Liabilities Long term loans and borrowings Deferred tax liability Derivative liabilities Non-current tax liability Other non-current liabilities Provisions Total non-current liabilities Loans and bank overdraft Trade payables Unearned revenues Current tax liabilities Derivative liabilities Other current liabilities Provisions Total current liabilities Total liabilities Total equity and liabilities 1,976 30 259 502 271 8 3045 3,304 4,405 660 734 136 591 232 10,062 13,107 37,144 2,251 35 31 540 352 6 3215 3,645 4,726 957 723 635 970 112 11,769 14,984 43,600 85 85 12 479 339 1 1001 6,296 4,807 1,035 1,023 98 1,099 117 14,474 15,475 43,973 185 85 12 529 450 1 1262 6,496 4,648 900 1,223 98 1,399 167 14,931 16,193 49,489 235 85 12 579 450 1 1362 6,646 5,045 900 1,373 98 1,599 187 15,847 17,209 55,876 491 3,012 20,325 136 58 (54) 23,968 69 24,037 492 3,046 24,191 198 659 (54) 28,531 85 28,616 493 1,176 25,918 132 717 (54) 28,381 117 28,498 493 1,176 30,716 132 717 (54) 33,179 117 33,296 493 1,176 36,087 132 717 (54) 38,550 117 38,667 5,482 355 5,509 299 298 924 147 898 13,913 971 6,163 1,974 2,415 4,928 496 171 6,114 23,231 37,144 6,794 423 5,899 323 346 1,029 260 1,178 16,251 1,066 8,033 2,574 3,003 4,196 564 147 7,767 27,349 43,600 5,476 171 5,053 5 1,031 424 1,074 13,233 326 7,664 3,107 3,199 6,917 741 303 8,484 30,740 43,973 5,476 171 5,047 5 1,031 424 1,074 13,228 660 7,264 3,107 2,862 11,544 850 350 9,624 36,261 49,489 5,476 171 4,936 5 1,131 424 1,074 13,217 718 7,901 3,107 3,113 13,991 900 400 12,530 42,660 55,876 FY2011 FY2012 FY2013E FY2014E FY20115E

April 19, 2013

12

Wipro | 4QFY2013 Result Update

Cash flow statement (Consolidated, IFRS)

Y/E March (` cr) Pre tax profit from operations Depreciation Expenses (deferred)/written off Pre tax cash from operations Other income/prior period ad Net cash from operations Tax Cash profits (Inc)/dec in current assets Inc/(dec) in current liab. Net trade working capital Cashflow from oper. actv. (Inc)/dec in fixed assets (Inc)/dec in intangibles (Inc)/dec in investments (Inc)/dec in net def. tax assets (Inc)/dec in derivative assets (Inc)/dec in non-current tax asset (Inc)/dec in minority interest Inc/(dec) in other non-current liab (Inc)/dec in other non-current ast. Cashflow from investing activities Inc/(dec) in debt Inc/(dec) in equity/premium Dividends Cashflow from financing activities Cash generated/(utilized) Cash at start of the year Cash at end of the year FY2011 5,832 821 (35) 6,618 472 7,090 (971) 6,119 (1,601) (499) (2,101) 4,018 (985) (56) (1,951) 22 (178) (578) 25 103 (20) (3,616) 165 617 (1,558) (775) (374) 6,488 6,114 FY2012 FY2013E FY2014E FY2015E 6,434 1,013 (26) 7,422 541 7,962 (1,376) 6,586 (3,197) 1,707 (1,490) 5,096 (1,402) (1,380) 708 (113) (48) (105) 16 (105) (280) (2,709) 275 713 (1,723) (735) 1,653 6,114 7,767 7,504 1,237 (10) 8,732 1,001 9,732 (1,835) 7,897 47 2,706 2,752 10,650 (391) 1,570 (2,398) (164) 341 (2) 32 (49) 104 (957) (2,166) (5,055) (1,755) (8,976) 717 7,767 8,484 6,976 1,205 8,181 1,425 9,607 (1,848) 7,758 246 457 703 8,462 (1,200) (4,627) 161 (5,666) 100 (0) (1,755) (1,655) 1,141 8,484 9,624 7,672 1,311 8,983 1,705 10,688 (2,251) 8,438 (1,046) 916 (130) 8,308 (1,200) (2,447) (100) 50 (3,697) 50 0 (1,755) (1,705) 2,905 9,624 12,530

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Wipro | 4QFY2013 Result Update

Key Ratios
Y/E March Valuation ratio(x) P/E (on FDEPS) P/CEPS P/BVPS Dividend yield (%) EV/Sales EV/EBITDA EV/Total assets Per share data (`) EPS (Fully diluted) Cash EPS Dividend Book value DuPont analysis Tax retention ratio (PAT/PBT) Cost of debt (PBT/EBIT) EBIT margin (EBIT/Sales) Asset turnover ratio (Sales/Assets) Leverage ratio (Assets/Equity) Operating ROE Return ratios (%) RoCE (pre-tax) Angel RoIC RoE Turnover ratios (x) Asset turnover(fixed assets) Receivables days Payable days
Note: Closing price as on 18 April 2013

FY2011 17.0 8.2 3.8 1.6 2.6 12.4 2.2 21.7 45.1 6.0 98 0.8 7.7 0.0 0.8 1.5 22.2 15.5 28.0 22.0 0.9 66 71

FY2012 16.2 7.6 3.2 1.6 2.2 10.9 1.9 22.7 48.8 6.0 117 0.8 6.9 0.0 0.9 1.5 19.6 14.7 25.8 19.5 0.9 69 63

FY2013E 13.7 6.5 3.2 1.6 1.7 8.6 1.7 27.0 56.7 6.0 114 0.8 6.9 0.0 1.0 1.5 23.5 17.1 32.5 23.4 1.0 66 58

FY2014E 14.1 6.8 2.8 1.6 1.7 8.5 1.4 26.2 54.1 6.0 133 0.8 7.0 0.0 0.8 1.5 19.8 14.1 30.5 19.7 0.9 68 58

FY2015E 12.9 6.2 2.4 1.6 1.5 7.1 1.1 28.5 59.2 6.0 155 0.8 7.2 0.0 0.8 1.4 18.5 13.7 32.1 18.4 0.8 69 58

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Wipro | 4QFY2013 Result Update

Research Team Tel: 022 - 3935 7800

E-mail: [email protected]

Website: www.angelbroking.com

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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. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. 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. 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 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 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 Limited endeavours 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. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking 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. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 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

Wipro No No No No

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

Ratings (Returns):

Buy (> 15%) Reduce (-5% to -15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

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