Dr.

Virendra Swarup

COLLEGE OF MANAGEMENT STUDIES

A
Project Report
On

A Comparative Study of Financial Performance of Wipro Ltd and Infosys

Ltd.

Submitted in partial fulfillment of the requirement

for the award of the degree of
Bachelor of Business Administration (BBA)
Submitted By

Arya Dwivedi
( Roll No: 0505171)
Under the Guidance of

Ms.Ashi Pandey
(Project Coordinator)

(Affiliated to CHHATRAPATI SAHU JI MAHARAJ UNIVERSITY, KANPUR)

 Index

Topic Page no.

Self-Declaration
Acknowledgement
Certificate
Chapter 1
Introduction to the chapter
Introduction to the Industry
Contemporary state of affairs

Introduction to the Company (Wipro)

Introduction to the Company (Infosys)
Justification of the Topic
Awards and Recognitions

Chapter 2
Review of Literature
Chapter 3
Research Methodology
Scope & Limitation of the study
Chapter 4
Data Representation and Analysis

Chapter 5
Results and Discussion
Discussions & Suggestions

Conclusion
References
 SELF DECLARATION

I, Arya Dwivedi student of Bachelor of Business Administration of College of Management

Studies, Kanpur declare that the project report my original work and made on the basis of
received information/data from various people related to the topic. There by declare that, this
project report is neither copied nor theft from any other sources.

Date: Student Name

Arya Dwivedi
 ACKNOWLEDGEMENT

I wish to express my gratitude to Ms. Ashi Pandey for providing me valuable information.
I am grateful to College of Management Studies, Kanpur for giving me an opportunity to
pursue MBA. I wish to Ms. Ashi Pandey thank, who has been a perpetual source of
information and offered valuable suggestion to improve my practical knowledge.

Place: Kanpur Signature of Student

Date: Arya Dwivedi
 CERTIFICATE

This is to certify that the Research Project Report entitled A

Comparative Study of Financial Performance of Wipro Ltd and

Infosys Ltd.

is a bonafide work of Arya Dwivedi student of BBA- 6 th Semester. It has been done under
my supervision for the partial fulfillment of the requirements for the award of BBA degree
from CSJM University Kanpur.

The study presented here has not been submitted earlier elsewhere. I am pleased to say that
the performance of the student during the period of report work was extremely satisfactory.

Supervisor Name:- Ms. Ashi Pandey

Supervisor Signature:-

Designation: - Assistant Professor Dr. Ashutosh Mishra

Date:- Principal
Chapter:1
 CHAPTER 1:

INTRODUCTION TO THE CHAPTER

Rationale of the study

The term Financial Analysis is composed of each studies and expertise of operational efficiency
and cash related state of issues of the company. Different methods are carried out to contemplate
the relationship between different decrees. The Budgetary announcements will supply the relevant
and solid realities inside and outer clients like dealers, proprietors coming about from association,
skilled executives, leasers and government and so on are the clients of those variables who are in
any other case referred to as companions of a specialty unit.

The exam of financial report will check out the things in Profit and Loss record and articulation of
Balance Sheet. On the off risk that the data is coordinated in a imperative way, it's aiming to
suggest the relationship among the related things. It'll help to all of the clients of monetary
surveys to require a victory desire.

Indian Information Technology (IT) office has expected an imperative method in putting India
on the arena direct. At present, India has developed to be a trend-setter in IT and ITES areas in
anyplace at a few point of the arena. IT&BPO factor has gotten one of the vital change sections
for the Indian money related system. Indian IT department is the colossal wellspring of
triumphing the a few distance off cash by means of programming and organizations.

All the IT offices covered right presently energizing execution on offers the front. Henceforth is
the situation with Profit after Tax in general expressions. Benefit after Tax to Sales Ratio
execution of INFOSYS is on better issue at over 20%, while Wipro has remained among 12% to
19%. The fortune of many has declined presently. This can be in a general sense because of low
duty content fabric texture inside the capital shape of the commercial venture organization.
Keeping pace with change in Deals, Working Capital necessities of all groups have quickened.
Current Ratio and Debtors Ratio have continued all right with gigantic coins assets. A close
examination of organizations in created countries and developing worldwide areas is likely
respected to upgrade the ends.

A skip venture and cross country have an observance that could be required prior than we sum up
results.
Introduction to the industry

Indian Information Technology (IT) enterprise has expected a crucial interest in setting India on
the sector manual. At gift, India aroused as a trend-setter in IT and ITES component in anywhere
sooner or afterward of the sector. IT&BPO department has gotten one of the enormous change
locales for the Indian monetary gadget.

Indian IT element urges the Indian economy to conclude up essentially. Regardless fueling
India's economic system, this division in addition earnestly impacting the way of life of its family
supporters thru a functioning straight away and underhanded commitment to the special financial
parameters, for instance, way of life, trade venture and to begin with rate assortment.

IT element has expected a huge task in converting India's picture from a gentle shifting
bureaucratic economic machine to a work of brilliant trade organization human beings and a
international member in giving universal magnificence development preparations and company
organizations.

Nowadays IT and ITES factors lead the financial enhancement as a long way as earnings age,
methods of lifestyles, work, and fare advancement. Indian IT part is the primary wellspring of
obtaining the distant off cash through programming and its administrations. After the Industrial
strategy of 1991 have become advanced, there has been an sea of adjustments in Indian joining of
monetary system into spherical the arena. The progressions got here through advancement,
privatization and globalization.

Information Technology (IT) is clarified since the plan, advancement, execution and the
administrators of PC based facts frameworks, uncommonly PC system and programming
packages. At gift, it has predominant to cowl maximum parts of processing and innovation. The
biggest worldwide businesses comprise Infosys, TCS, Deloitte, Cognizant and Amazon.

Information Technology is one of the most huge institutions inside the Indian financial system.
The IT commercial venture of India has shown enormous improvement as of late. The IT_BPM
zone in India conveyed at US$177 billion up in 2019 seeing an advancement of 6.1 percent three
hundred and sixty five days-on-one year and is classified that the measure of the commercial
employer will expand to US$ 350 billion by way of the use of 2025.

India's IT and ITeS enterprise raised to US$ 181 billion of every 2018-19. Fares from the
company advanced to US$ 137 billion in FY19 indeed as neighborhood earning (counting device)
advanced to US$ 44 billion. IT industry has human beings four.1 million people as of FY2019.
Investing on records advancement in India is assessed to secure US$ ninety billion out of 2019.
Income from automated part is evaluated to wrap 38% of the anticipated US$ 350 billion
undertaking profits through the use of 2025.

Information Technology in India consists of two major components:

IT services and business method outsourcing (BPO). the world has exaggerated its contribution to
India's value from 1.2% in 1998 to 7.7% in 2017.According to NASSCOM, the world aggregative
revenues of US $180 billion in 2019, with export revenue standing at US $99 billion and domestic
revenue at US $48 billion, growing by over 13. As of 2020, India's IT manpower accounts for
four.36 million staff. The US accounts for common fraction of India's IT services exports.

History

India's IT Services industry was born in Mumbai in 1967 with the creation of Tata practice
Services who in 1977 partnered with Burroughs that began India's export of IT services.
The
initial software system export zone, SEEPZ – the precursor to the contemporary IT park – was
established in Mumbai in 1973.over 80 % of the country's software system exports were from
SEEPZ within the 1980s.

Within ninety days of its institution, the Task Force created an extensive background report on the
state of technology in India and an IT Action set up with 108 recommendations. The Task Force
may act quickly as a result of it designed upon the expertise and frustrations of state governments,
central government agencies, universities, and therefore the software industry. a lot of what it
projected was additionally in step with the thinking and suggestions of international bodies just
like the World Trade Organization (WTO), International Telecommunications Union (ITU), and
IBRD additionally, the Task Force incorporated the experiences of Singapore and different
nations, that enforced similar programs. it had been less a task of invention than of sparking action
on a agreement that had already evolved at intervals the networking community and government.

Regulated VSAT links became visible in 1994. Desai (2006) describes the steps taken to relax
laws on linking in 1991:

In 1991 the Department of electronics broke this impasse, making an organization known as
software Technology Parks of India (STPI) that, being owned by the govt, may offer VSAT
communications while not breaching its monopoly. STPI found out software system
technology parks in several cities, every of that provided satellite links to be employed by
firms; the native link was a wireless link. In 1993 the government began to permit individual
corporations their own dedicated link, that allowed work wiped out India to be transmitted
abroad directly. Indian corporations presently convinced their yank customers that a satellite
link was as reliable as a team of programmers operating within the clients’ workplace.

A joint EU-India cluster of students was fashioned on twenty three Nov 2001 to additionally
promote joint analysis and development. On twenty five June 2002, India and therefore the
international organization united to bilateral cooperation within the field of science and
technology. India holds observer standing at CERN, whereas a joint India-EU software system
Education and Development Center are going to be situated in Bangalore.
Contemporary state of affairs

In the modern times economy, India is that the largest bourgeois of IT. Exports dominate the
Indian IT business and represent concerning seventy nine of the industry's total revenue.
However, the domestic market is additionally important, with strong revenue growth. The
industry's share of total Indian exports (merchandise and services) exaggerated from but
fourdimensional in FY1998 to concerning 25th in FY2012. The technologically-inclined services
sector in India accounts for 400th of the country's value and half-hour of export earnings as of
2006, whereas using solely twenty fifth of its manpower, in step with Sharma (2006). in step with
Gartner, the "Top 5 Indian IT Services Providers" area unit Tata practice Services, Infosys,
Wipro, technical school Mahindra, and HCL Technologies.

Software and Services

Companies that provide internet services, as well as companies that provide software and IT
services, make up the software and services industry sector. Companies that offer web databases
or digital websites, such as search engines or social networks, are called Internet services.
Companies that offer IT advisory or data processing services to other businesses are classified as
IT services. Finally, computing encompasses all types of software for business and consumer use,
including enterprise and systems software as well as video games.

Technology Hardware and Equipment

Communications devices, technology hardware, storage and peripherals, and computer equipment,
tools, and components are the three sectors that make up technology hardware and equipment.
Routers, telephones, and switchboards are examples of communications equipment. Computers,
printers, and mobile phones are examples of technology hardware, storage, and peripherals.
Companies that produce barcode scanners, transformers, and protection devices, as well as
distributors and Original Equipment Manufacturers, fall under the category of computer
equipment, instruments, and components (OEM). An OEM is a company that creates parts or
components that are used in the final product of another company. Many Dell machines, for
example, have Intel processors and Windows pre-installed; Intel and Microsoft may be called
Dell's OEMs.

Major data technology hubs:

Bengaluru

Bengaluru is known because the "Silicon vale of India". Notable tech parks are electronics town
clinical trial & II, ITPL, Bagmane technical school Park, Embassy links, Manyata technical
school Park, international Village technical school Park, Embassy TechVillage. except for these
IT corporations are situated in many different components of the town. Notable IT corporations
of the realm embrace Infosys, Wipro, HCL Technologies, SAP Labs, Accenture, TCS, Oracle,
IBM India, FusionCharts, classical music software system, Strand Life Sciences, Mindtree, and
savvy India.

Hyderabad

Hyderabad – celebrated for the HITEC town or Cyberabad – could be a major international IT
hub, and therefore the largest bioinformatics hub in India. Hyderabad came into view because the
second largest town within the country for software system exports pipping competitors

Chennai and Pune. As of 2020, the IT exports from Hyderabad was ₹128,807 large integer (US
$15 billion), the town homes 1500 IT and ITES corporations that offer 582,126
employment.Notable technical school and drug company parks area unit HITEC town, ordination
vale, and Hyderabad pharma town.
Kolkata

Kolkata is that the money and business hub of eastern India. The tube town has seen a big rise in
IT services. In August 2018, the geographic region|state|province} Government has declared that
two hundred acres of land in Rajarhat Newtown are going to be used for the event of Bengal
geographical region, kind of like the California geographical region in port of entry, USA. the
most intention of this project is to make a business-friendly surroundings for IT corporations to
line up their business within the town..

Chennai

As of 2012, Chennai is India's Largest bourgeois of knowledge technology (IT) and business
method outsourcing (BPO) services. Tidel Park in Chennai was beaked as Asia's largest IT park
once it had been designed. Notable technical school parks area unit International technical school
Park, DLF SEZ, Mahindra World town, SIPCOT IT Park, Olympia technical school Park and
Ramanujan IT town. town has AN superhighway known as because it expressways and a most
well-liked location for IT industries. Major software system corporations have their offices
found out here, with a number of them creating Chennai their largest base.

Pune

The Rajiv Gandhi Infotech Park in Hinjawadi could be a ₹600-billion (US$8.9 billion) project by
the geographic region Industrial Development Corporation (MIDC).The IT Park encompasses a
vicinity of concerning a pair of,800 acres (11 km2) and is home to over 800 IT corporations of all
sizes. Besides Hinjawadi, IT corporations are situated at Magarpatta, Kharadi {and several and a
number of different and several other} other components of the town. As of 2017, the IT sector
employs over 300,000 people.
Delhi NCR

Delhi NCR is one amongst the key IT hub in India. Cities like Gurugram and Noida have many
corporations that serves the native and international markets.
Introduction to the company

WIPRO

Wipro limited is an Indian multinational corporation that has data technology, consulting and
business method services. It is headquartered in Bangalore, Karnataka, India. In 2013, Wipro
separated its non-IT businesses and formed the privately owned Wipro Enterprises. Wipro has
shifted to figure from anyplace model since March 2020.

History

xvi | P a g e
 AZIM PREMJI
The company was incorporated on twenty nine december 1945 in Amalner, Maharashtra by
Mohamed Premji as "Western India Palm Refined Oil Limited", later abbreviated to "Wipro".
it had been at first originated as a manufacturer of vegetable and refined oils in Amalner,
Maharashtra, British India, underneath the trade names of Kisan, Sunflower, and Camel.

In 1966, once Mohamed Premji's death, his son Azim Premji took over Wipro as its chairman at
the age of twenty one.

During the 1970s and 1980s, the corporate shifted its focus to new opportunities within the IT and
computing trade, that was at a aborning stage in India at the time. On 7 June 1977, the name of the
corporate modified from Western India Vegetable product restricted, to Wipro product limited. In
1982, the name was modified once more, from Wipro product restricted to Wipro restricted.
Wipro continuing to expand within the client product domain with the launch of "Ralak" a Tulsi
based mostly family soap and "Wipro Jasmine", a bathroom soap.

1986–1992

In 1988, Wipro added mobile hydraulic cylinders and heavy-duty industrial cylinders to its line of
merchandise. A venture company with the United States' General electrical within the name of
Wipro GE Medical Systems Pvt. Ltd. was got wind of in 1989 for the manufacture, sales, and
service of diagnostic and imaging merchandise. In 1991, tipping systems and Eaton hydraulic
product were launched. The Wipro Fluid Power division, in 1992, developed the potential to
supply normal hydraulic cylinders for construction instrumentality and truck tipping systems.
The "Santoor" talcum and "Wipro Baby Soft" vary of baby toiletries were launched in 1990.

1994–2000

In 1995, Wipro created a remote design centre, Odyssey 21, for the overseas shoppers. Wipro
Infotech and Wipro Systems were amalgamated with Wipro in April that year. 5 of Wipro's
producing and development facilities secured the ISO 9001 certification throughout 1994–95.

In 1999, Wipro non inheritable Wipro Acer, and discharged new product like the Wipro Super
Genius personal computers (PCs). In 1999, it had been the one Indian laptop vary to get USbased
National software package Testing Laboratory (NSTL) certification for the Year 2000 (Y2K)
compliance in hardware for all models.

Wipro joined with KPN (Royal Dutch telecom) to create a venture company "Wipro internet
Limited" to supply net services in India. In 2000 Wipro launched Wipro OSS sensible and Wipro
WAP sensible within the same year, Wipro was listed on the New York stock market.

2001–2011
In February 2002, Wipro became the primary software package technology and services company
in India to be ISO 14001 certified. Wipro client Care and Lighting cluster entered the market of
compact fluorescent lamps, with the launch of a variety of CFL, underneath the name of Wipro
Smart lite because the company grew, a study unconcealed that Wipro was the quickest wealth
creator for five years (1997–2002). It got wind of an entirely owned company (Wipro consumer
Care Limited) to manufacture client care and lighting product.

In 2004 Wipro joined the billion greenback club. It additionally partnered with Intel for
ishiksha. In 2006, Wipro non inheritable Mango INC., a US-based technology infrastructure
firm, and a Europe-based retail supplier.

In 2007, Wipro signed a traumatize Lockheed Martin. It additionally united to amass Oki
Techno Centre Singapore Pte Ltd (OTCS) Associate in Nursing signed an R&D partnership
contract with Nokia Siemens Networks in Germany.

In 2008, the firm entered the clean energy business with Wipro Eco Energy.

In April 2011, the firm signed Associate in Nursing agreement with Science Applications
International Corporation (SAIC) for the acquisition of their international oil and gas data
technology follow. In 2012, Wipro utilized quite 70,000 temporary staff within the US.

2012-2018
In 2012, Wipro Ltd. demerged its client care, lighting, furniture, infrastructure engineering
(hydraulics and water and medical diagnostic business) into a separate company to be named
'Wipro Enterprises Ltd' before demerger, these firms along contributed concerning 100 percent of
the revenues of Wipro restricted.

In the same year, Wipro non inheritable Australian Trade Promotions Management firm Promax
Applications cluster (PAG) for $35 million.

In 2014, the firm signed a 10-year $1.2 billion contract with ATCO, a Canadian Energy and
Utilities corporation based mostly in Calgary, Alberta. This was the most important deal in
Wipro's history. In October 2016, Wipro proclaimed that it had been shopping for Appirio,
Associate in Nursing Indianapolis-based cloud services company for $500 million. In 2017, the
corporate expanded its operations in London.

In 2017, the firm won a five-year IT infrastructure and applications managed services engagement
with Grameen phone (GP), a serious telecommunication operator in Bangladesh and proclaimed it
might got wind of a brand new delivery centre there. In 2018, the corporate began building
software package to assist with the final information Protection Regulation (GDPR) in
Europe. In March 2018, Wipro aforementioned it might be shopping for a 3rd of Denim cluster.

In April 2018, the corporate sold-out its stake within the airdrome IT services company JV. In
August 2018, Wipro paid United States$75m to National Grid US as a settlement for a unskilled
SAP implementation that a 2014 audit calculable may value the corporate US$1 billion. Wipro
had been employed as systems measuring device in 2010, however errors within the rollout,
meant to interchange an Oracle system, caused serious losses and reputational harm.

2019-2020

In 2019, Wipro client Care and also the Ang-Hortaleza Corporation signed a share contract for
the sale of 100 percent of the latter's stake within the care business Splash Corporation.

In March 2020, Hedera proclaimed that Wipro would be change of integrity their
Governing Council, providing suburbanized governance to its hashgraph distributed ledger
technology.
In February 2020, Wipro non inheritable Rational Interaction, a Seattle-based digital client
expertise practice

In July 2020, the firm proclaimed the launch of its 5G edge services solutions suite engineered
with IBM software package systems.

2021

In March 2021, Wipro became non inheritable Capco, a 22-year-old British technical school
practice firm.

In March 2021, Wipro appoints Pierre Bruno as chief executive officer of European operations.

WIPRO HEADQUARTERS AT BENGALURU

Subsidiaries:

Western India product Limited

Wipro restricted could be a supplier of IT services, together with Systems Integration, Consulting,
data Systems outsourcing, IT-enabled services, and R&D services.

Wipro entered into the technology business in 1981 and has over 160,000 workers and shoppers
across 110 countries. IT revenues were at $7.1 billion for the year complete thirty one March
2015, with a repeat business quantitative relation of over ninety fifth.

Wipro GE Medical Systems

Wipro GE Medical Systems restricted is Wipro's venture with GE aid South Asia. it's engaged
within the analysis and development of aid product. This partnership, that began in 1990,
nowadays includes gadgets and instrumentality for medicine, aid IT and services to assist aid
professionals combat cancer, cardiovascular disease, and alternative ailments there's complete
adherence to 6 letter of the alphabet quality standards altogether product.

Sustainability

Wipro was hierarchal first within the 2010 Asian property Rating (ASR) of Indian companies and
could be a member of the National Association of Securities Dealers Automated Quotations
world property Index in addition because the Dow-Jones Industrial Average property Index.

In November 2012 Guide to Greener physics, NGO hierarchal Wipro 1st with a score
of seven.1/10.

Listing and shareholding

Listing: Wipro's initial public giving was within the 1946. Wipro's equity shares area unit listed
on metropolis securities market, wherever it's a constituent of the BSE SENSEX index, and also
the
 National securities market of Republic of India wherever it's a constituent of the S&P CNX great.
The yank Depositary Shares of the corporate area unit listed at the NYSE since October 2000.

Shareholding: The table provides the share holding pattern as of 30 Sept 2018.

Shareholders (as on 30 Sept 2018) Shareholding

Promoter cluster LED by Azim Premji 74.31%

Public 25.21%

Employee trust 0.48%

Employees

Wipro has over 180,000 dedicated employees serving clients across six continents and is known
for its extensive range of services, strong dedication to sustainability, and good corporate
citizenship. They come up with fresh ideas and link the dots to create a stronger and more
adventurous future.

INFOSYS

Infosys limited, is an Indian international technology company that gives business consulting, info
technology and outsourcing services the corporate is headquartered in Bangalore,
Karnataka, India. Infosys is that the second-largest Indian IT company when Tata practice
Services by 2020 revenue figures and therefore the 602nd largest public company within the world
as per Forbes world 2000 ranking. On 31 Dec 2020, its market capitalization was $71.92 billion.
The credit rating of the corporate the corporate (rating by customary & Poor's).

History
Infosys was supported by seven engineers in Pune, geographical region, India with associate
initial capital of $250 in 1981. It had been registered as Infosys Consultants personal restricted on
a pair of July 1981. In 1983, it resettled its workplace to urban center, Karnataka, India.

The company modified its name to Infosys Technologies personal restricted in Apr 1992 and to
Infosys Technologies restricted once it became a public Ltd. in June 1992 it had been later
renamed to Infosys restricted in June 2011.

An initial public providing (IPO) was floated in February 1993 with a proposal value of ₹95
(equivalent to ₹550 or US$7.80 in 2019) per share against a value value (equivalent to ₹120 or
US$1.60 in 2019) per share. The IPO was undersubscribed however it had been "bailed out"
by
USA investment bank Morgan Stanley, that picked up a thirteen equity stake at the selling
price. Its shares were listed in June 1993 with commerce gap at ₹145 (equivalent to ₹850 or
US$12 in 2019) per share.

Its shares were listed on the NASDAQ stock market in 1999 as yankee depositary receipts. The
share value surged to ₹8,100 (equivalent to ₹28,000 or US$390 in 2019) by 1999 creating it the
most costly share on the market at the time. At that point, Infosys was among the twenty biggest
firms by market capitalisation on the NASDAQ.[15] The ADR listing was shifted from
NASDAQ to stock exchange Euro next to provide European investors higher access to the
company's shares.

Its annual revenue reached US$100 million in 1999, US$1 billion in 2004 and US$10 billion in
2017.

In 2012, Infosys proclaimed a replacement workplace in metropolis, Wisconsin, to serve

HarleyDavidson, being the eighteenth international workplace within the US. Infosys employed
1,200 us workers in 2011, and distended the manpower by a further 2,000 workers in 2012. In
Apr 2018 Infosys proclaimed increasing in Indianapolis, Indiana. the event can embrace quite one
hundred twenty acres and is anticipated to lead to 3,000 new jobs—1,000 quite antecedently
proclaimed.

In July 2014, Infosys started a product subsidiary referred to as EdgeVerve Systems, specializing
in enterprise computer code product for business operations, client service, acquisition and
commerce network domains. In August 2015, the Finacle world Banking Solutions assets were
formally transferred from Infosys and have become a part of the merchandise company
EdgeVerve Systems product portfolio.

Products and services

Infosys provides computer code development, maintenance and freelance validation services to
firms in finance, insurance, producing and different domains.

One of its well-known product is Finacle that could be a universal banking resolution with varied
modules for retail and company banking.

Its key product and services are:

• NIA – Next Generation Integrated AI Platform (formerly referred to as Mana)

• Infosys Consulting – a worldwide service industry service

• Infosys info Platform (IIP) – Analytics platform

• Edge Verve Systems which incorporates Finacle, a worldwide banking platform

• Panaya Cloud Suite

• Skava

• Engineering Services

• Digital Marketing
Geographical presence

INFOSYS PYRAMID HEADQUARTERS AT BENGALURU

Infosys has eighty two sales and selling offices and 123 development centers across the globe as
of 31 March 2018, with major presence in India, US, China, Australia, Japan, geographic area
and Europe.

In 2019, 60%, 24%, and 3 of its revenues were derived from comes in North America, Europe, and
India, severally. The remaining thirteen of revenues were derived from the remainder of the globe.

Listing and material possession pattern

In India, shares of Infosys square measure listed on the animal disease wherever it's a region of the
animal disease SENSEX and therefore the NSE wherever it's a keen fifty Constituent.[47] Its
shares square measure listed by method of yankee depositary receipts (ADRs) at the big apple
stock market.

Over an amount of your time, the material possession of its promoters has bit by bit reduced,
ranging from June 1993 once its shares were initial listed. The promoters' holdings reduced more
once Infosys became the primary Indian-registered company to list workers Stock choices
 Schemes and ADRs on NASDAQ on eleven March 1999. The promoter holding on thirty one
March 2002 was 28.72% and at 30 June 2017 it born to 12.75% as they bit by bit sold their shares
and reduced involvement in active management of the corporation.

Shareholders (as of 30 June 2017) Shareholding

Promoters group 12.75%

Foreign institutional investors (FII) 37.47%

ADR 16.70%

Individual shareholders 09.83%

Banks, budgetary establishments and 11.24%

insurance firms

Mutual funds 08.97%

Others 03.04%

Total 100.00%

Employees
Infosys had a complete of 243,454 workers at the tip of Dec 2019, out of that 37.8% were girls.
Out of its total manpower, 229,658 square measure computer code professionals and remaining
13,796 workers for support and sales. In 2016, eighty nine of its workers were primarily based in
India.

During the fiscal year 2019, Infosys received a pair of 3,33,420 applications from prospective
workers, interviewed 180,225 candidates and had a gross addition of 94,324 workers, a forty five
hiring rate. These numbers don't embrace its subsidiaries.
The rate of attrition of Infosys Ltd., together with its subsidiaries, for the fiscal year 2019 was
twenty one.5%.

Training centre in Mysuru

As the world's largest company university, the Infosys world education centre within the 337
acre field has four hundred instructors and 200+ school rooms, with international benchmarks at
its core. Established in 2002, it had trained around 1,25,000 engineering graduates by June 2015.
It will train 14,000 workers at a given purpose of your time on varied technologies.

The Infosys Leadership Institute (ILI), primarily based in Mysuru, has 196 rooms and trains
concerning 4000 trainees (called Infoscions) annually. Its purpose is to organize and develop the
senior leaders in Infosys for current and future government leadership roles.

The Infosys coaching Centre in Mysuru additionally provides variety of extracurricular facilities
like court game, badminton, basketball, athletic facility and athletic facility.

Machine learning, big data and analytics, and artificial intelligence are being used by Infosys,
India's second largest IT services firm, to map employees' learning abilities and recommend
training programmes that best fit them.

The Bengaluru-based firm has created an internal platform, Recommendation Engine, that
performs 360-degree profiling of employees based on historical data such as project success,
educational qualifications, and attitude and aptitude.

CEOs
Since its institution in 1981 until 2014, the CEOs of Infosys were its promoters, with N.R.
Narayana Murthy leading the corporate in its initial twenty one years. Dr Vishal Sikka was the
primary non-promoter CEO of Infosys World Health Organization worked for around three
years. Dr Vishal Sikka resigned in August 2017. in an exceedingly personal note to board
colleagues, Sikka cites a "drumbeat of distractions" and "false, baseless, malicious and more and
more
 personal attacks" as his reason for effort Infosys several sources suspect this can be in respect to a
protracted running feud with Infosys Founders over the new direction Sikka was reportedly taking
Infosys when his resignation, UB Pravin Rao was appointed as Interim CEO and MD of Infosys.
Infosys appointed Salil Parekh chief officer (CEO) and manager (MD) of the corporate with result
from 2 January 2018.

Name Period

Narayan Murthy 1981 to March 2002

Nandan Nilekani March 2002 to April 2007

S. Gopalakrishnan April 2007 to August 2011

S. D. Shibulal August 2011 to July 2014

Vishal Sikka August 2014 to August 2017

UB Pravin Rao (interim) August 2017 to Dec 2017

Salil S. Parekh January 2018 onwards

SALIL S. PAREKH PRESENT CEO AT INFOSYS

Justification of the topic

Comparative Achievements of the companies

In the Indian IT industry, there are two corporations that are a category apart, and way ahead of
competition. These 2 behemoths of the Indian IT sector, Infosys and Wipro, have created their
presence felt within the international IT scene similarly, through their international delivery
model and quality service offerings. In this study, we tend to attempt to bring out a comparison
between these two pioneers of the IT revolution within the country .Both Infosys and Wipro have
extremely mature and evolved delivery models, and this represents their competitive advantage.
Over the years, each these corporations have developed their onsite and offshore execution
capabilities and have delivered prime quality, ascendable services to their clients. And during this
process, they have created substantial investments in setting up} correct infrastructure and systems
in place. More significantly, these corporations are ready to integrate the onsite and offshore
services, and this helps them in giving seamless, top quality solutions to their clients.

While Infosys has centered its efforts and resources on providing IT services, Wipro, with the
exception of IT services, includes a diversified presence in IT hardware, consumer care, lighting,
and health sciences. However, as far as it services are involved, each these corporations are able
to create a swift movement up the software value chain. Each of these corporations have shifted
their focus towards a lot of high-end services find it irresistible consulting, package
implementation, systems integration. Even supposing nowadays the revenue contribution from
such high-end services remains miniscule, the trend is probably going to alter in favour of those
high-end services going forward.
However if one were to think about the present revenue streams of the 2 corporations, Wipro is
exposed to a bigger risk. this is often as a result of 12 months of its revenues are derived from the
telecom R&D section, that provides services to telecom equipment majors like Nortel, Cisco and
lambent. Wipro's purchasers during this space were the worst affected because of the technology
meltdown globally and also the revenues from this area have shown a marginal decline (-3.1%) in
FY03. so going forward since there's lack of clarity relating to the recovery of the worldwide
telecom industry, a major can still face volatility.

In comparison, Infosys doesn't face this risk, because it doesn't have a considerable presence in a
very single phase. Moreover, Infosys has developed a core banking solution (essentially a
software product), that has found success within the domestic similarly as international markets.
so we tend to we observe higher top line growth for Infosys as compared to Wipro going
forward as Infosys core revenues appear a lot more sustainable in long term. However, for each
these corporations, growth will be volume-driven.

A comparison on the idea of certain growth ratios as shown within the table below more
differentiates these 2 corporations. Infosys, as the table shows, has been able to surpass Wipro in
 the majority almost all sales growth, EPS growth, return on net worth, return on assets, and return
on investment.

(%) Infosys Wipro*

Sales growth (TTM**) 39.1 24.6

Sales growth (5-year avg.) 72.5 26.0

OPM (TTM) 35.1 25.6

EPS growth (TTM) 18.6 -7.3

EPS growth (5-year avg.) 35.6 33.8

RoNW (TTM) 33.5 24.7

RoNW (5-year avg.) 35.5 29.4

RoA ( TTM) 26.9 20.2

RoA (5- year avg.) 29.1 20.7

Rol (TTM) 33.5 24.9

Rol (5-year avg.) 35.3 28.9

*Wipro Ltd. (includes IT services, hardware, consumer care, lighting and health sciences)
**Trailing Twelve Months (FY03)

Even when both these corporations are facing monumental pressure in recent times attributable to
the economic retardation, and MNC competition, Infosys has been able to maintain margins in a
very higher manner compared to Wipro. However it's to not deny the strength and experience that
Wipro possesses. In recent times, Wipro has been able to attract larger-sized and longer-term
contracts than Infosys, and this speaks plenty concerning the company's ability to successfully bid
for large contracts abroad.
 Valuations favour Infosys

Infosys Wipro
(X)
P/E Ratio (TTM) 22.0 26.0

Mkt. Cap/Sales 5.9 4.9

Price/Book Value 7.0 6.0

Price/Cash Flow 19.0 21.0

Moving on to valuations, whereas valuations look cheap despite margin pressures, Wipro's
valuation looks to be stretched. With the Indian IT stocks commerce at a median P/E of 18x their
FY03 earnings, Wipro looks extremely priced. Another risk for Wipro is that the low level of
floating stock (around 16%) that has consigned the stock to high volatility levels within the past,
and this could continue going forward.
Awards and Recognitions

Awards and recognitions of Wipro

• It received National award for excellence in company Governance from the Institute of
Company Secretaries of India throughout the year 2004.[82]

• Wipro honored as 2010 Microsoft Country Partner of the Year Award for India.[83]

• In 2012, it had been awarded the best rating of neutral price and company Rating one (SVG 1)
by ICRA restricted.[84]

• Wipro received the 'NASSCOM company Award for Excellence in Diversity and Inclusion,
2012', within the class. 'Most Effective Implementation of Practices & Technology for
Persons with Disabilities'.

• Wipro was hierarchal ordinal within the Newsweek 2012 world five hundred
inexperienced firms.

• In 2014, Wipro was hierarchal 52nd among India's most trustworthy brands consistent with
the whole Trust Report, a study conducted by Trust analysis consultatory.

• Wipro won seven awards, together with Best Managed IT Services and Best System
measuring device within the federation alternative Awards 2015, India

• Wipro won Gold Award for ‘Integrated Security Assurance Service (iSAS) underneath the
‘Vulnerability Assessment, remedy and Management’ class of the eleventh Annual 2015
data Security PG's world Excellence Awards.

• In may 2016, it had been hierarchal 755th on the Forbes world 2000 list.

• In March 2017, Wipro was recognized joined of the world's most moral firms by US-
based Ethisphere Institute for the sixth consecutive year.
• In 2018, Wipro received ATD's better of the most effective Award.

Awards and recognition of Infosys

• In 2020, Infosys was hierarchal No. one within the HFS prime ten Agile computer
code Development 2020 report.

• In 2020, Infosys was recognized as a pacesetter in Retail and CPG Digital Services by Avasant.

• In 2019, Infosys was a winner of the world organization world Climate Action Award in
'Climate Neutral Now' class.

• In 2019, Infosys was hierarchal because the third Best Regarded Company within the World
by Forbes.

• In 2017, HfS analysis enclosed Infosys in country of HfS Blueprint for Managed Security
Services, Industry 4.0 services and Utility Operations.

• In 2013, Infosys was hierarchal eighteenth largest IT services supplier within the world by
HfS analysis within the same year, it had been hierarchal 53rd in Forbes list of World's Most
Innovative firms.

• In 2012, Infosys was hierarchal No. nineteen amongst the world's most innovative firms by
Forbes within the same year, Infosys was within the list of prime twenty inexperienced firms
in Newsweek's inexperienced Rankings for 2012.

• In 2006, Institute of hired Accountants of India enclosed Infosys into Hall of Fame for being
the winner of Best given Accounts for eleven consecutive years.
Chapter:2
 CHAPTER 2:

REVIEW OF LITERATURE

International Reviews

1. Bhunia, A., MukhutI, S., (2011) identified that understanding financial statements is a key to
fundamental stock analysis and overall investment research. Financial statements provide an
account of a company’s past performance, a picture of its current financial strength and a
glimpse into the future potential of a firm. The goal is to enhance an ability to make a sound
judgment about a company’s financial strength and future prospects by using financial
statements in your personal investment research.

2.Thomson, R., (2008) said that financial analysis is the process of identifying the strengths and
weakness of the firm with the help of accounting information provided in the Profit and Loss
Account and Balance Sheet.

3.Anthony, R., (2007) identified that Accounting as a means of collecting, summarizing,

analysing and reporting in monetary terms, information about the business. This simple definition
highlights the importance of accounting and financial information in the business enterprise.
There is a reference to the following accounting principles and scope of the field of accounting
and finance.

4. Gordon, M., Shilinglaw, G., (2006) the author explains the importance of business and
financial reporting. He highlighted that the economy depends on the business organizations for
goods and services. The financial activities of business enterprises of production and sale are of
utmost importance.

5.Wilson, P. R., Carpenter, J. H., (2005) said that the financial statement assumes an
important place in modern management. Executives, officers, and directors of Journal of
Accounting, Finance and Auditing Studies 3/3 (2017) 1-13 4 corporation should be able to
make an authentic examination of the financial statement of their business if they exist to plan
fruitfully and wisely.

6.Reilly., Brown, (2004) identified that the major source of information regarding a stock is the
corporation's financial statement. Financial statement are intended to provide information on the
resources available to management, how these resources were financed, and what the firm
accomplished with them. Corporate shareholders annual reports include three required financial
statement: the balance sheet, the income statement, and the statement of cash flow.

7.George, T., Schleifeer,L.F.,(2003) identified that financial analysis of companies is usually

undertaken so that investors, creditors, and other stakeholders can make decisions regarding their
companies. The focus of this paper is on the financial analysis of companies who trade freely
and therefore make the data and information public needed by stakeholders.

8.Altman, E. (1968). In this study author talks about relationship among various financial factors
in a business as disclosed by a single set of statements and a study of trend of those factors as
shown in a series of statements.”

9.Lermack (2003) showed the benefits of financial ratios analysis. He showed that financial
ratios are an important and well-established technique of financial analysis. As for the benefits
of financial ratios analysis.

10.Brigham and Ehrhardt(2010) stated that financial ratios are designed to help evaluate financial
statements. Financial ratios are used as a planning and control tool, and financial ratios analysis is
used to evaluate the performance of an organization.

National Reviews

1. According to Dusan Baran, Andrej Pastyr, Daniela Baranova (2016) the Study is to provide
basic knowledge about financial analysis and evaluate business subject progress in the area of
activity, liquidity, profitability, and indebtedness, to reveal strengths and opportunities of the
business. This analysis is able to identify the factors that with the largest stake have caused
 undesirable results within the business. Also, it is helpful to predict future development and
possible option for bankruptcy.

2. S. Saigeetha and Dr. S.T. Surulivel (2017)purpose is to identifying cash fluctuations of

profitability, liquidity position. Also, to do performance and operational efficiency examination
and to test solvency position. After analyzing the ratios, they found that the profits are
declining due to increasing cost and decreasing sales during the five years. Therefore, they
should try to increase sales volume by reducing costs to improve the profitability position.

3. P.Srinivasan (2018) conducted a study to evaluate and analyze financial performance and
position using ratio analysis. It includes analyzing the balance sheet and profit & loss account
for
the period of five years. The research shows that the company’s financial performance was not
satisfactory and they should take efforts to increase sales by reducing cost for maximizing profits.

4. According to Dr. Viral Shah and Shreeda Shah the research is to access the financial
health, operational proficiency and earning capacity of the company by using financial
statement
analysis. The analysis gave the insights about the company’s financial position which was
declining. So, they should take the corrective to improve it.

5. Mohammed Nuhu (2014) to be of optimal benefit and as well enable the users make well –
informed decisions, financial statements need to be analyzed by means of ratios. Therefore, in
order to establish the role of ratio analysis in business decisions, this research is carried out;
using NBC Maiduguri Plant was used as the Case study.

6. Elijah Adeyinka Adedeji (2014) this study was done to analyze how ratio analysis can be
used to measure performance of an organization. This study confirmed that there is
relationship between ratio analysis and the organizational performance. It says that financial
ratios highlight the importance of effective management of the organization.
7. S. Sabarinathan, V. Jenifer the study includes profitability, cost of goods sold and other
overall financial performance of the company. The study has major concentration on ratio
analysis from the 5-year balance sheets and profit and loss A/C. Based on the findings, the
study says that it will help the management to interpret its weaknesses and problems and
certainly help the management in taking financial decisions.

8. Mahendra Maisuria (2016) the main objective of this study is to analyze the profitability of
Indian major information technology (IT) companies. For analyzing profitability researchers
used ratio analysis as a tool. Also, one statistical tool is used for analyzing hypothesis.

9. R Judith Priya, V Sukithangam, J Subhashree, C Uma (2018) the study was made to analyze
potential of both Tata Consultancy Services (TCS) and Infosys using valuation ratios. It has
been concluded that the value of the Tata Consultancy Services (TCS) is relatively high when
comparing with Infosys. Thus, these valuation ratios attract the investors who are interested
in regular returns. By the study, Tata Consultancy Services (TCS) has positive impact for
greater investment opportunities.

10. Syeda Saria Musheer and L. Ganesamoorthy (2017) conducted to study the profitability of
Information Technology (IT) companies in India. They applied ratios analysis, mean,
standard
deviation and co-efficient of variation as the tools for analysis. Their study found that
profitability in terms of net profit ratio and operating profit ratio is good in case of three
companies and low in case of two companies.
Chapter:3
 CHAPTER 3:

RESEARCH METHODOLOGY

Research design: The research design used for this study is descriptive research design.

Research gap: This study mainly concentrated on selected IT companies and it analysed
short term as well as long term financial position from 2008-2020.

Universe- Indian IT industry

Sample Unit- IT companies are selected on the basis of higher market capitalization rate.

Sample Size: 4 IT companies that are selected as the proxy for analysing the sector as a whole:
 Infosys
 Wipro
 HCL
 TCS
Time period of study: the time period of study is 2008-2020.
Data collection method: Secondary data has been used to collect the data for this research like
annual reports of companies, previous research papers, magazines, journals and internet.

Tool and techniques: Ratio Analysis technique which include Gross profit, Operating profit
and return on equity, return on investment, Current Ratio, capital structure ratio is used to
find out profitability and liquidity position of selected IT companies. One way ANOVA
(Khan and Singhal (2015)), CAGR which is used to show that there is difference in the
profitability of selected I.T companies. Graphical method is also used as statistical tool.

Data Analysis
Liquidity Analysis: - It is used to denote company’s ability to pay its day-to-day expenses or
to meet its short-term obligations usually up to one year. In order to study liquidity position
important ratios used are (i) Current ratio and (ii) Quick Ratio which is computed on the basis
of current assets, liquid assets and current liabilities.

Solvency Analysis: - It is also known as financial structure or Capital Structure Ratio. It is

used to denote company’s ability to meet its long-term obligations. It indicates company’s
ability to repay fixed interest charges and principal on long term debts on regular basis. It is
mainly studied by employing (i) Debt Equity Ratio, (ii) Interest Coverage Ratio & (iii)
Proprietary Ratio.
Profitability Analysis: - It is used to denote whether concern is profitable or not. It studies
whether company is able to meet its shareholders expectation with regards to return on their
investment. It is mainly studied by using important ratios such as (i) Return on Equity, (ii)
Return on Invested Capital (iii) Gross Profit Ratio & (iv) Net Profit Ratio.

Gross Profit Ratio (GP)= Gross Profit/Sales*100

Testing of Hypotheses
1. H0 = There is no significant difference in the Gross Profit Ratio of selected Indian
IT Companies.

Company Infosys Wipro HCL TCS

Years Gross Gross Gross Gross
profit % profit % profit % profit %
2008 41.3 29.5 44.7 36
2009 42.1 29.8 44.6 37
2010 42.8 31.5 98 39.5
2011 42.1 31.2 96.3 39.1
2012 41.1 29.2 96.7 38.7
2013 37.3 30.4 97.1 37.8
2014 35.8 32 47.1 39.5

2015 38.3 31.6 50.8 34.4

2016 37.4 30.4 33.8 46.7
2017 36.9 28.9 31.4 45.4
2018 25.65 28.74 38.26 26.86
2019 23.35 27.35 35.14 26.99
2020 22.63 32.41 33.2 26.39
CAGR 5% -1% 2% 2.41%
Analysis of Variance of Gross Profit Ratio

Companies SS df MS F P-value F crit

Between 5643.673 3 1881.224 7.966634 0.000237 2.816466
Groups
Within 10390.07 44 236.1379
Groups

Total 16033.74 47

Interpretation

The table shows that calculated F value of 7.966 is greater than the table value or critical value
of 2.816 at 5% level of
significance with degrees of freedom (v1=3 ad v2=44) and hence, we reject our null
hypothesis as our analysis does not support our hypothesis. So, it can be said that there is a
difference between the gross profit ratios of selected I.T companies.

Inter-company comparison
The study observed that the CAGR for Gross profit of Infosys is 5%, Wipro is -1%,
HCL is 2% and TCS is 2.41%. It reveals that the Infosys, HCL and TCS growth rate is
showing a positive trend from 2008 to 2020. Whereas, Wipro is showing a negative trend of
growth from 2008 to 2020. It clearly, shows that the position of Infosys is stronger as
compared to other selected I.T companies (HCL, TCS) as per gross profitability. TCS
stands the second place after that of Infosys and HCL is at the third in consideration of the
performance in terms of gross profitability.
Net Profit Ratio (NP)= Net Profit/Sales*100

2. H0 = There is no significant difference in the Net Profit Ratio of selected Indian

IT Companies.

Company Infosys Wipro HCL TCS

Years Net profit Net Net Net
% profit% profit% profit%
2008 27.66 16.39 21.72 21.98
2009 27.47 13.52 13.9 18.87
2010 27.33 16.96 12.9 23.25
2011 24.81 17.06 10.38 24.26
2012 24.54 14.98 10.47 21.25
2013 23.35 17.73 11.63 22.06
2014 21.23 17.95 15.79 23.38
2015 23.11 18.43 20.25 20.97
2016 21.6 17.35 19.94 22.36
2017 20.96 15.42 18.09 22.29
2018 26.08 17.27 33.35 26.86
2019 20.11 15.82 31.46 26.99
2020 19.66 17.22 27.5 26.39
CAGR 3% -0.37% -1% -1%

Analysis of Variance of Net Profit Ratio

Compan SS d MS F P- F crit
ies f value
Between 401.15 3 133.71 6.6548 0.0008 2.8164
Groups 43 81 43 37 66

Within 884.10 4 20.093

Groups 75 4 35

Total 1285.2 4
62 7
Interpretation
The table shows that calculated F value of 6.65 is greater than the table value or critical value
of 2.816 at 5% level of
significance with degrees of freedom (v1=3 ad v2=44) and hence, we reject our null
hypothesis as our analysis does not support our hypothesis. So, it can be said that there is a
difference between the net profit ratios of selected I.T companies.

Scope of the Study

1. Data used in the study is for 5 years only, for superior results it can be taken more than five
a long time.

2. More ratios can be used to measure the by and large execution of the companies.

3. Any other companies can be used for the study and in conclusion the complete IT sector can
be chosen to check the by and large execution of IT sector in India.

4. This study empowers us to have access to different realities of the companies.

5. It makes a difference in understanding the requirements for the significance and advantage of
materials within the organizations.

6. The study moreover makes a difference to provide exposure to our minds to the integrated
materials management the various methods, methods and technique embraced by the
organizations.

7. The study gives information about how the hypothetical perspectives are put within the
organizations.
Limitation of the study

1. The ratios are based on historical numbers. Therefore, these ratios invariably remain same
though performance of the corporate changes.

2. If researchers are using the ratios for analyzing trends, throughout the amount inflationary rate
has modified then accuracy of the analysis gets affected.

3. The knowledge from the financial plan that researchers are using for the study might have been
collective in several proportion within the past and so doing a analytic thinking supported that
data doesn’t show a real image.

4. Due to the distinction in accounting period, analysis of the companies becomes difficult.

5. A business will do forceful changes in its operations thanks to certain unexpected needs and
therefore using the info of the past and creating a judgment supported which will not invariably
give a fruitful conclusion.

6. Ratio analysis could ignore the qualitative read of the firm.

7. The study was solely restricted to data technology IT sector and additionally to specific
corporations.

8. In this study the researchers has taken specific two corporations, findings and suggestions are
restricted to solely these corporations.

9. The researchers have taken solely those corporations that are having their offices in
Pune additionally.

10. The researchers could have created miscalculation in any of the magnitude relation
calculation in spite of double checking.
Chapter:4
 CHAPTER 4:

DATA REPRESENTATION AND ANALYSIS

Data representation & Interpretation

TOOLS FOR THE STUDY

Ratio Analysis: Ratios analysis helps in knowing how liquid, profitable and sound a business is.
Below is the comparative analysis of different proportions of Infosys and Wipro. The following
ratios are calculated in order to analyse the financial position of the companies under study:

1. Current Ratio
2. Quick Ratio
3. Gross Profit Ratio
4. Operating Profit Ratio
5. Net Profit Ratio
6. Return on Capital Employed
7. Debt equity Ratio
8. Return on Equity
9. Return on Assets
10. Earnings Per Share

Current Ratio

The current ratio is a liquidity ratio that measures a company's ability to pay short-term
obligations or those due at intervals one year. It tells investors and analysts however an
organization will maximize the current assets on its record to satisfy its current debt and other
liabilities.

A current ratio that's in line with the trade average or slightly higher is usually considered
acceptable. A current ratio that's below the trade average might indicate higher risk of distress or
default. Similarly, if an organization features a terribly high current ratio compared to their
contemporaries, it indicates that management might not be exploitation their assets expeditiously.

The current ratio is termed “current” as a result of, not like another liquidity ratios, it incorporates
all current assets and current liabilities this ratio is usually known as the capital ratio.
Particulars 2016 2017 2018 2019 2020

Infosys 3.98 4.05 3.78 3.00 2.88

Wipro 2.98 3.52 2.86 2.96 2.78

A ratio under 1.0 indicates that the company’s debts due during a year or less are bigger than its
assets (cash or alternative short-term assets expected to be converted to cash at intervals a year or
less.)

On the opposite hand, in theory, the higher the current ratio, the more capable an organization is
of paying its obligations because it's a larger proportion of short-term asset value relative to the
value of its short-term liabilities. However, while a high ratio, say over 3, may indicate the
corporate will cover its current liabilities 3 times, it's going to indicate that it is not using its
current assets expeditiously, isn't securing funding very well, or isn't managing its working
capital. In the above comparison Infosys ltd shows better current ratio status than quick ratio.

Quick Ratio

The quick ratio is an indicator of a company’s short-term liquidity position and measures a
company’s ability to fulfill its short-term obligations with its most liquid assets.

Since it indicates the company’s ability to instantly use its near-cash assets (assets that may be
converted quickly to cash) to pay down its current liabilities, it's conjointly referred to as the acid
test ratio an "acid test" may be a slang term for a quick test designed to provide instant results—
hence, the name.

Particulars 2016 2017 2018 2019 2020

Infosys 3.98 4.05 3.78 3.00 2.88

Wipro 2.94 3.50 2.84 2.94 2.77

The quick ratio measures the dollar quantity of liquid assets out there against the dollar amount of
current liabilities of a corporation. quick assets are those current assets that may be quickly
converted into money with marginal impact on the value received within the open market,
whereas current liabilities are a company's debts or obligations that are due to be paid to creditors
at intervals one year.

A result of 1 is taken into account to be the normal quick ratio. It implies that the corporate is
totally equipped with precisely enough assets to be instantly liquidated to pay off its current
liabilities. a corporation that contains a quick ratio of less than one might not be ready to totally
pay off its current liabilities within the short term, whereas a corporation having a quick ratio
higher than 1 will instantly get obviate its current liabilities for example, a quick ratio of 1.5
indicates that a corporation has $1.50 of liquid assets out there to cover every $1 of its current
liabilities. The quick ratio of Infosys is better than that of Wipro.
Gross Profit Ratio

Gross profit margin is a metric analysts use to assess a company's monetary health by calculating
the quantity of cash left over from product sales when subtracting the cost of goods sold-out
(COGS) generally observed because the gross margin ratio, gross profit margin is usually
expressed as a percentage of sales.

Particulars 2016 2017 2018 2019 2020

Infosys 27.03 26.77 25.65 23.35 22.63

Wipro 18.87 18.47 17.75 16.26 17.98

If a company's gross profit margin wildly fluctuates, this might signal poor management practices
and/or inferior products. On the opposite hand, such fluctuations is also even in cases wherever a
corporation makes sweeping operational changes to its business model, within which case
temporary volatility ought to be no cause for alarm.
For example, if a corporation decides to automate certain supply chain functions, the initial
investment is also high, however the cost of products ultimately decreases because of the lower
labor costs resulting from the introduction of the automation.

Product pricing changes may influence gross margins. If a corporation sells its products at a
premium, with all other things equal, it's the next gross margin. However this may be balancing
leveling act as a result of if a corporation sets its costs too high, fewer customers might purchase
the product, and also the company might consequently hemorrhage market share.

The study shows higher gross profit margin of Infosys than Wipro.

Operating Profit Ratio

Operating profit ratio establishes a relationship between operative Profit attained and net
revenue generated from operations (net sales) operating profit ratio is a kind of profitability ratio
that is expressed as a percentage.

Net sales include both cash and Credit Sales, on the opposite hand, operating Profit is the net
operating profit i.e. the operating Profit before interest and taxes. Operating Profit ratio helps to
seek out operating Profit attained compared to revenue attained from operations.

Particulars 2016 2017 2018 2019 2020

Infosys 29.09 29.02 27.92 25.54 25.34

Wipro 20.83 20.75 20.02 18.20 20.24

specific income margin as a proportion instead of a dollar quantity, it's doable to match the
profitability of 2 or more businesses in spite of size.

Investors will assess if a company's management is generating enough make the most of its
sales and whether or not operating prices and overhead prices area unit being contained. for
instance, a corporation will have growing revenue, however if its operating prices are
increasing at a quicker rate than revenue, its income margin can shrink. Ideally, investors need
to see a track record of increasing margins that means that income margin is rising over time.

Above table clearly shows that Net profit is always placed better in Infosys Ltd. than Wipro
Ltd.

Return on Capital Employed

Return on Capital Employed: return on Capital employed (ROC) is profitability ratio that
reflects a relationship between the profit earned and therefore the capital used in a firm. It
measures the level of efficiency in generating profits from the employed capital. The profit
here is an operative profit usually known as earnings before interest and taxes (EBIT)
wherever as the capital used may be a surplus quantity of total assets over current liabilities.
Particulars 2016 2017 2018 2019 2020

Infosys 20.75 27.80 31.00 31.38 31.28

Wipro 18.75 22.61 23.87 20.44 23.62

The ratio is used to calculate a company's financial leverage. The D/E ratio is an important metric
employed in finance. It's a measure of the degree to that a corporation is financing its operations
through debt versus wholly-owned funds. a lot of specifically, it reflects the power of shareholder
equity to hide all outstanding debts within the event of a business downswing.

The debt-to-equity ratio could be an explicit sort of gearing ratio.

Particulars 2016 2017 2018 2019 2020

Infosys 0.00 0.00 0.00 0.00 0.00

Wipro 0.16 0.13 0.11 0.10 0.11

The debt-to-equity ratio measures a company’s debt relative to the worth of its net assets, it's
most frequently used to gauge the extent to that an organization is taking on debt as a way of
investment its assets. A high debt/equity ratio is usually related to high risk; it means an
organization has been aggressive in financing its growth with debt.

If loads of debt is employed to finance growth, an organization may potentially generate more
earnings than it might have while not that finance. If leverage will increase earnings by a greater

A high return on investment (ROI) indicates that a company's management team is more effective
when it comes to using investment capital to expand the company (and is more likely to provide
better returns to investors). A low ROE, on the other hand, may mean that a company is
mismanaged and is reinvesting earnings in ineffective assets.

The return on investment (ROI) is a metric that calculates both benefit and productivity. A
rising ROE indicates that a business is generating more profits by using less money. It also
shows how well a company's management manages shareholder funds.

A higher return on investment (ROI) is typically preferable, while a declining ROE may imply
inefficient use of equity capital.

As shown above, in comparison to Wipro Ltd, Infosys has better return on equity in its capital
structure.
Return on Assets

Return on assets (ROA) is a calculation of a company's profitability in relation to its total assets.
The return on assets (ROA) tells a manager, investor, or analyst how effectively a company's
management is using its assets to produce profits. The ROA is expressed as a percentage; the
higher the ROA, the better.
Particulars 2016 2017 2018 2019 2020

Infosys 19.20 18.25 19.95 19.03 19.08

Wipro 13.79 11.34 10.41 11.47 11.98

In simple terms, return on assets (ROA) indicates how much profit was earned from invested
capital (assets). The return on investment (ROI) for public corporations can vary significantly and
is highly dependent on the industry. As a result, it's better to equate ROA to a company's previous
ROA numbers or a similar company's ROA when using it as a comparative measure.
The return on investment (ROI) figure tells investors how well a business turns its investments
into profit. The higher the return on investment (ROI) the better, because the company is making
more money with less investment.

As clearly shown Infosys has better return on assets as compared to Wipro.

Earnings per Share

Earnings per share (EPS) is calculated to be as a company's profit divided by the outstanding
shares of its common stock. The ensuing variety is an indicator of a company's profit. It's common
for a corporation to report EPS that's adjusted for extraordinary items and potential share dilution.
The more a company's EPS, the more profitable it's thought of to be.

Particulars 2016 2017 2018 2019 2020

Infosys 29.48 31.37 36.83 35.53 39.14

Wipro 13.52 13.10 13.27 14.92 17.02

The earnings per share metric are one of the foremost important variables in deciding a share's
value. It's also a major element used to calculate the price-to-earnings (P/E) valuation ratio, where
the E in P/E refers to EPS. By dividing a company's share worth by its earnings per share, an
investor will see the value of a stock in terms of how much the market is willing to pay for each
dollar of earnings.

EPS is one of the various indicators you may use to choose stocks. If you have got an interest
available trading or investing, your next step is to settle on a broker that works for your
investment style.

Comparing EPS in absolute terms might not have a lot of meaning to investors as a result ordinary
shareholders don't have direct access to the earnings. Instead, investors can compare EPS with the
share worth of the stock to determine the worth of earnings and the way investors feel regarding
future growth.

In all these years Infosys has better EPS than Wipro.

Chapter:5
 CHAPTER 5:

RESULTS AND DISCUSSION

Major Findings

The study is case method of research and comparative analysis in nature, the study used solely
secondary data that was collected from research articles and thesis works already done on the
subject and conjointly took the assistance from the annual reports of five information Technology
corporations. These corporations are Infosys and Wipro. the information of these corporations
were taken for the quantity of 2016-2020, i.e. 5 years. For this study 10 common ratios are used to
measure profitability level in regard to sales, assets investment and shareholders. The findings for
the study are as follows:

1. Current Ratio

With the help of this ratio company’s ability to meet short term obligation can be measured.
Current ratio of Wipro is fluctuating and of Infosys is decreasing from 2017 to 2020. When we
compare both company, we can observe that current ratio of Infosys is good compared to Wipro
from the last 5 years.

2. Quick Ratio

The quick ratio calculates a company's capacity to pay off its current liabilities without needing
to sell its inventory or obtain additional financing. When we compare Quick Ratio of both these
companies, we can see that in all the above years Infosys is having good Quick Ratio than
Wipro.

3. Gross Profit Ratio

Gross profit margin is an inquisitive measure expressed as a company's net sales minus the cost of
goods sold-out (COGS).It is usually shown as the margin as a percentage of net sales. The gross
profit margin shows the quantity of profit made before deducting selling, general, and
administrative prices, that is that the firm's net profit margin. In the above study it is found that
Average Gross profit ratio of Infosys and Wipro are 25.086 and 17.866 respectively. GP of Infosys
in 2016, 2017 and 2018 are above than the average GP ratio and below in the year 2019 and 2020.
GP ratio of Wipro in the years 2016, 2017 and 2020 is above than the average GP ratio and below
in the year 2018 and 2019.

4. Operating Profit Ratio

An operating profit ratio that's going up is viewed as a negative sign, as this means that operating
expenses are increasing relative to sales or revenue. Contrarily, if the operating profit ratio is
decreasing, expenses are decreasing, or revenue is increasing, or some combination of each. In the
above table operating ratio of Infosys is constantly decreasing and that of Wipro the operating
ratio decreased from 2016-2019 but increased in 2020. A corporation might have to implement
cost controls for margin improvement if its operative ratio will increase over time.

5. Net Profit Ratio

Net profit margin measures how much net income is generated as a proportion of revenues
received. It helps investors assess if a company's management is generating enough cash in on its
sales and whether or not operating costs and overhead prices are being contained. It is one in all
the foremost necessary indicators of a company's overall financial health.

In the above study the net profit ratio in Wipro Ltd was 18.35% in the year 2016 and there
from the same got decreased to 17.72% in the year 2017 but in the year 2020 it was increased
to

17.22%. Where as in case of Infosys Ltd. the NPR was 23.51% in the year 2016 it increased in
2018 to 26.08% and thereon it keeps fluctuating. Above table is clearly showing that NPR is
always placed better in Infosys Ltd. than Wipro Ltd. Infosys had always succeeded in maintaining
a handsome margin of net profit over the Wipro Ltd.

6. Return on Capital Employed

It is represented from the table that the roc in Wipro Ltd was 18.75 in the year 2016, it reached at
22.61 in the year 2017 though it got increased and reached 23.87 at the end of study period. On
the other hand Infosys Ltd. constants were high within the starting at 20.75 and there from it got
continuously increased until the year 2020. As explicit earlier the roc Company mirrored reflected
potency of generating profit by the optimum utilization of capital utilized thus from the table it's
clear that the Infosys Ltd. is a lot of economical than Wipro Ltd., within the context of utilization
of capital for generating profits.

7. Debt Equity Ratio

As per the table in comparison to Wipro Ltd, Infosys has no debts capital in its capital structure.
As a result the debts equity ratio in Infosys Ltd. were 0.00 through out the study period though
within the beginning years it absolutely was of negligible value as Infosys Ltd have some long
term debts however Wipro Ltd is using its debts capital in its capital structure. Although it's
conjointly making an attempt to cut back the a part of capital supported through long term debts
which is additionally reflected in its ratio, the debts equity magnitude relation that was 0.16 in the
year 2016 reached 0.11 in the year 2020.

8. Return on Equity

Return on equity (ROE) is a metric that calculates a company's profitability in relation to its
stockholders' equity. If a ROE is deemed satisfactory, it will be determined by what is considered
common in the industry or among company peers. As per the above table in comparison to Wipro
Ltd, Infosys has better Return on Equity in its capital structure. As a clear result the ROE of Wipro
is cutting back.

9. Return on Assets

Return on Assets (ROA) is a metric that measures how profitable a company's assets are used.
When comparing related companies or a company's previous results, ROA is the most useful
metric. Unlike other related metrics like Return on Equity, ROA considers a company's debt
(ROE). Through the above table it is clear that Infosys has better working capital than Wipro.

10. Earnings per Share

EPS indicates how much money an organization makes for each share of its stock, and could be a
widely used metric to estimate company worth. A higher EPS indicates greater worth as a result
of investors will pay more for a company's shares if they assume the corporate has higher profits
relative to its share price. Here, we can observe that in all the 5 years Infosys is having better
Earnings per Share as compared to Wipro.
Discussions & Suggestions

1. The companies’ future plans for expansion seem clear due to increased investments.

2. Companies should try their best to increase sales and profit.

3. Companies should try to increase profit after tax.

4. The companies should improve their management efficiency in utilizing the proprietor’s fund.

5. The fixed assets are efficiently utilized by both the companies and the long term solvency is
good.
Conclusion

Wipro and Infosys Ltd. both are leading companies within the information and technology
industry. Both the companies have a critical part to play for the economy as well as investors.
With reference to the above examination the budgetary position of Infosys Ltd. can be said as way
better than that of Wipro Ltd. As seen within the over examination, nearly on every parameter the
execution of Infosys Ltd. outperformed the Wipro Ltd. In spite of the fact that it isn't an alarm
warning circumstance for Wipro Ltd but in comparison to Infosys Ltd. it should improve its
management productivity in utilizing the proprietors fund. Besides Infosys should also give their
emphasis on utilizing debts capital in order to extend its esteem and getting optimum capital
structure.
REFERENCES

(n.d.). Retrieved from equity master: https://www.equitymaster.com/detail.asp?

date=06/27/2003&story=2&title=Software-InfosysVs-
Wipro

(n.d.). Retrieved from https://ehamanagementconsultancy.com/a-study-on-

financial- analysisofselective-indian-it-companies-based-on-specific-ratios-
research-paper/

(n.d.). Retrieved from eha: https://ehamanagementconsultancy.com/a-study-on-

financialanalysisof-selective-indian-it-companies-based-on-specific-ratios-research-paper/

(n.d.). Retrieved from money control:

https://www.moneycontrol.com/financials/infosys/ratiosVI/IT#IT

(n.d.). Retrieved from money control:

https://www.moneycontrol.com/financials/wipro/ratiosVI/W (n.d.). Retrieved from rediff:

https://money.rediff.com/companies/Infosys-Ltd/13020007/ratio (n.d.). Retrieved from rediff:

https://money.rediff.com/companies/Wipro-Ltd/13020007/ratio (n.d.). Retrieved from

https://money.rediff.com/companies/Wipro-Ltd/11060011/ratio

(n.d.). Retrieved from value stocks: https://stock-financials.valuestocks.in/en/wipro-ratioanalysis

(n.d.). Retrieved from value stocks: https://stock-financials.valuestocks.in/en/infosysratioanalysis

(n.d.). Retrieved from research gate:

https://www.researchgate.net/publication/340816198_Financial_Analysis_of_Selected_It_Comp
anies_in_India

(n.d.). Retrieved from ndtv profit: https://www.ndtv.com/business/stock/wipro-

ltd_wipro/reports#:~:text=Wipro%20Ltd.%2C%20the%20flagship%20company,diversified%20i nto
%20various%20other%20businesses

(n.d.). Retrieved from equity master: https://www.equitymaster.com/detail.asp?

date=06/13/2012&story=5&title=Infosys-vs-
WiproThe-final-frontier

(n.d.). Retrieved from sage pub:

https://study.sagepub.com/oleary3e/studentresources/analysingdata/steps-in-secondary-data-
analysis

Bhargava, D. P. (n.d.). Retrieved from http://oaji.net/articles/2017/1817-

1500142497.pdf investopedia. (n.d.). Retrieved from https://www.investopedia.com/
Wikipedia. (n.d.). Retrieved from

https://en.wikipedia.org/wiki/Infosys Wikipedia. (n.d.). Retrieved

from https://en.wikipedia.org/wiki/Wipro