Company update | IT

June 12, 2012

Wipro
Company update Poised to perform well
We recently attended Wipros analyst meet. The meet focused on the companys strategy to build differentiation in selected segments in various industry verticals and service lines. The company maintained that investments to develop domain capabilities are going on to help drive medium-term growth. The senior management team indicated that the demand scenario remains volatile due to uncertainty across the globe but outsourcing/offshoring as a means of driving productivity as well as cost benefits remains crucial to clients. We believe Wipro is poised to outperform some of its peer companies due to the following reasons: Strategy To focus upon chosen areas in industry verticals and services: Wipro has chosen its growth strategy to revolve around focusing on selected few segments in terms of industry verticals and services. The company has identified four momentum industry verticals: 1) BFSI, 2) energy and utilities, 3) retail and 4) lifesciences and healthcare. These verticals all-together account for 65% of the company's revenue. Wipro has higher exposure (as a proportion of revenue) as compared to its peers in three out of the above-mentioned four momentum verticals. Optimal margin levers in hand: Wipro has operating margin levers such as improving utilization level and increasing offshore revenue. Wipros utilization level is currently at 67.4%, which is at a historic low level since FY2008. The company has headroom to improve its utilization by ~300bp even if management does not want to run a tight ship. In addition, Wipros share of offshore revenue declined to 45.6% due to SAICs acquisition from 49% earlier (peers have offshore revenue above 50%). Increasing offshoring of revenue is on Wipros cards right now and could offer a cushion to its margins. Outlook and valuation: Wipro emphasized its focus on profitable growth and aspirations to close the gap in profitability with peers. Early signs of restructuring yielding results are visible in terms of improvement in the deal pipeline, growth seen in the companys focus industry verticals and increasing revenue from the companys top clients. We expect Wipros revenue to post a CAGR of 13.7% over FY2012-14E, with EBITDA margin moving from 19.8% in FY2012 to 20.5% in FY2014. Over FY2012-14E, Wipros net profit is expected to post a CAGR of 15.2%, which is industry leading. We upgrade the stock to Buy with a target price of `452, valuing it at 15x FY2014E EPS of `30.1.

BUY
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code IT 96,545 0.8 472/310 128,670 2 16,863 5,116 WIPR.BO WPRO@IN

`394 `452
12 Months

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 78.4 3.4 6.7 11.5

Abs. (%) Sensex Wipro

3m (4.1)

1yr (7.7)

3yr 10.7 60.0

(10.0) (10.1)

Key financials (Consolidated)

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) FY2010
27,124 6.2 4,594 18.5 21.9 18.9 20.8 4.4 23.4 15.6 3.3 15.0

FY2011
31,099 14.7 5,297 15.3 21.2 21.7 18.1 4.0 22.0 15.5 2.8 13.3

FY2012
37,525 20.7 5,573 5.2 19.8 22.7 17.3 3.4 19.5 14.7 2.3 11.7

FY2013E
43,150 15.0 6,362 14.2 20.0 25.9 15.2 2.9 19.1 14.7 1.9 9.5

FY2014E
48,541 12.5 7,390 16.1 20.5 30.1 13.1 2.5 19.0 14.8 1.6 7.6

Ankita Somani
+91 22 3935 7800 Ext: 6819 ankita.somani@angelbroking.com

Source: Company, Angel Research

Please refer to important disclosures at the end of this report

Wipro | Company Update

Strategy To focus upon chosen areas in industry verticals and services lines
The company has chosen its growth strategy to revolve around focusing on selected few segments in terms of industry verticals and services. The company has chosen 138 clients as mega gamma accounts, which management believes have the potential to grow to US$50m+ in future. The company is also looking for growth by gaining market share amid the churn happening among vendors.

Industry verticals Focus on BSFI, retail, energy and utilities and life sciences and healthcare
Wipro has identified four momentum industry verticals: 1) BFSI, 2) energy and utilities, 3) retail and 4) lifesciences and healthcare and seeks to drive stronger revenue growth by focusing on these key verticals. These verticals all together account for 65% of the company's revenue. Wipro has higher exposure (as a proportion of revenue) as compared to its peers in three out of the above-mentioned four momentum verticals. These three industry verticals are energy and utilities, retail and lifesciences and healthcare. BFSI where the exposure of Wipro is less than its peers (as a proportion of revenue), as indicated by the managements of most IT companies, is seeing pressure in terms of IT spending, especially from investment banking clients. Wipro expects overall BFSI budgets to remain flat, or even see cuts, given the stressed financial institutions in the U.S. and Europe. Management of all IT companies have indicated that IT spend in industry verticals such as retail and energy and utilities is expected to grow higher than the overall industry growth. Wipros revenue run-rate from the energy and utilities vertical is substantially higher than all its peers because of SAICs acquisition. Post the acquisition, Wipro's revenue from the energy and utilities industry vertical is ~100% higher than the next largest competitor in this space (Infosys).

Exhibit 1: Proportion of revenue from various industry verticals

(%) As of 4QFY2012 BFSI Manufacturing and hi-tech Retail Energy and utilities Lifesciences and healthcare
Source: Company, Angel Research

Infosys 34.3 21.3 15.2 6.1 5.5

TCS 42.2 13.9 12.5 3.8 5.3

Wipro 14.9 19.1 15.4 14.0 10.0

HCL Tech 24.0 29.0 8.6 6.8 9.1

June 12, 2012

Wipro | Company Update

Exhibit 2: Revenue from energy and utilities industry vertical 4QFY12

250 200 215

(US$ mn)

150 108 100 50 Infosys TCS Wipro HCL Tech Quaterly revenue run-rate from energy and utilities indsutry vertical 101 71

Source: Company, Angel Research

We expect the high growth trajectory in energy and utilities to continue because of trends such as: government-operated utilities such as electricity, gas and water supply in countries such as 1) the U.S., U.K., Australia and Japan being deregulated and opened up to competition and (2) entities seeking to improve efficiency, profitability and customer service.

Exhibit 3: Retail Revenue growth trend

20 15 10
(%)

Exhibit 4: Energy and utilities Revenue growth trend

25 20 15 10
(%)

5 0 (5)

5 0 (5) 3QFY11 4QFY11 Infosys 1QFY12 TCS 2QFY12 Wipro 3QFY12 HCL Tech 4QFY12

(10) (15) (20) 3QFY11 4QFY11 Infosys 1QFY12 TCS 2QFY12 Wipro 3QFY12 HCL Tech 4QFY12

Source: Company, Angel Research

Source: Company, Angel Research

Service lines IMS driving growth

In terms of service lines, Wipro has the highest exposure for one of the fastest growing infrastructure management services (IMS). Managements of various IT companies are banking upon growth in this service line and expect it to grow higher than the industrys average growth. IMS is the biggest segment within IT services, 2x bigger than ADM, which is the bread-and-butter business of Indian IT vendors. Deals from sourcing advisors in the IMS segment have increased in size and sourcing advisors ITO initiatives in Continental Europe has increased from 40% to 50%. Spend in IMS is driven by changing customer needs leading to simultaneous IT transformation, consolidation and standardization.

June 12, 2012

Wipro | Company Update

Exhibit 5: Revenue from IMS service line 4QFY2012

400 350 300 275 347

(US$ mn)

250 200 150 100 50 Infosys TCS Wipro 110

252

HCL Tech

Quaterly revenue run-rate from IMS service line

Source: Company, Angel Research

Exhibit 6: IMS Revenue growth trend

20 15 10

(%)

5 0 (5)

(10) 3QFY11 4QFY11 Infosys

Source: Company, Angel Research

1QFY12 TCS

2QFY12 Wipro

3QFY12 HCL Tech

4QFY12

Diversified geography-wise revenue portfolio

The Indian IT industry derives majority of its revenue from the U.S. Continental Europe is a large untapped opportunity for Indian IT companies. We believe the gradual opening up to offshoring by European countries besides the U.K., such as Germany and France, will ensure a higher proportion of revenue from Europe for the Indian IT sector. Other than developed nations, emerging countries like Japan also present a big potential opportunity for Indian IT services companies. Japan has been a closed market, with enterprises focusing mainly on internal IT development. Japan comprises about 2% of Indian IT exports even though companies such as TCS and Wipro have been in the geography for several years. Wipro as well as TCS is attempting to gain a foothold in Japan.

June 12, 2012

Wipro | Company Update

As Indian vendors ramp-up their presence in China, they can target the Japanese geography from China and eat into the 55% Chinese market share. Wipros exposure to emerging nations is higher than its peers, which put Wipro in a profitable zone to capture IT spending market share as incremental growth is expected to come from MNCs trying to expand their footprints globally.

Exhibit 7: Proportion of revenue from various industry verticals

(%) LTM U.S. Europe Rest of the World India Asia Pacific MEA Japan Infosys 63.9 21.9 14.2 2.2 TCS 56.4 25.3 18.3 8.6 7.6 2.1 9.5 9.6 1.2 Wipro 52.1 27.7 20.2 HCL Tech 56.5 27 16.5

Source: Company, Angel Research; Note: MEA exposure of Wipro includes exposure to India

Optimal margin levers in hand coupled with cheers from INR depreciation
Growth is a key margin lever for IT companies as it aids in the broadening of employee pyramid by hiring a larger number of freshers and bringing in scale benefits by leveraging SG&A costs. Currently, the growth rates of IT companies are declining and this will be a headwind to the margins of Indian IT companies. In such a scenario, the levers to support operating margins are: 1) improving utilization level and 2) increasing offshore revenue. Wipro believes it has scope to tighten operations, which will help the company to bridge the gap in terms of profitability with its peers over the medium term. Wipros utilization level (including trainees) is currently standing at 67.4%, which is a historic low level since FY2008. The company has got room to improve its utilization level by ~300bp even if management does not want to run a tight ship. Such improvement in utilization level can add 100-120bp to the companys operating margin. Wipro has the highest room to improve margins among peers.

June 12, 2012

Wipro | Company Update

Exhibit 8: Utilization level trend

74 73 72 71 70.8 70.0 68.6 68.9 73.2 72.1 71.3 70.9 69.7 69.3 67.4

(%)

70 69 68 67 66

67.1

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12
45.6

Utilization level
Source: Company, Angel Research

Wipros revenue from offshore declined to 45.6% from 49% earlier due to SAICs acquisition. Infosys and TCS derive more than 50% of their revenue from offshore effort base. Increasing offshoring at SAIC as well as from other locations is on Wipros cards right now and this could again provide a cushion to its margin. Also, increased offshoring of revenue is always considered as a growth lever during the downturn.

Exhibit 9: Offshore revenue as a % of the companys overall revenue

60 55 50.5 50 55.0

(%)

45 40 35 30 Infosys TCS Offshore revenues Wipro

Source: Company, Angel Research

Organizational restructuring on track

Wipros management highlighted that the company's internal transformation continued to be on track and on time. The company has made several changes in its organizational structure, front-end personnel, senior management roles and incentive structures to re-energize the company and close the performance gap with peers. The variable payout of various senior employees now depends on the following criteria: 1) customer satisfaction measured by customer satisfaction index, 2) employee satisfaction and retention, which is measured by keeping in mind attrition rates and 3) growth in gross profits. Management indicated that the
June 12, 2012

4QFY12

Wipro | Company Update

process of workforce alignment is complete, while the capabilities assignment is still going on. The company indicated it had seen the results of transformation in a few client instances and now needs to work on institutionalizing the process. Wipro has set up dedicated hunting and farming organizations to get more market share in existing accounts and run-the-business budgets. In addition, Wipro has created a dedicated organization to target the change-the-business budgets. We believe these initiatives will start showing results once there is a revival in demand, but the extent of the success will be known only in due course of time.

Continuous improvement in client mining

Wipro has been consistently looking to improve client relationships by increasing the level of engagement with clients. Initial results of these initiatives are already visible in the form of improving customer satisfaction scores over the past one year. The tear-down of the twin CEO structure and restructuring of the organization has also made the company more agile than in the past. Wipro's top client has posted a CQGR of 5.0% over the last four quarters, while its top five clients have reported a CQGR of 4.8% over the same period. The company added four clients in the US$100mn+ revenue bracket during FY2012 from three clients to seven clients now. Also, attrition rate has declined sharply over the past three quarters from 23.2% to 14.4% on a quarterly annualized basis.

Analyst meet takeaways

The companys growth strategy now is to focus on chosen areas in various industry verticals (BSFI, retail, energy and utilities and life sciences and healthcare) as well as service lines. Wipro will also seek to grow by gaining market share amid the churn happening among vendors. Wipros senior management indicated that client buying decisions are increasingly being made by business owners rather than CIOs. According to management, only about 40% of the IT budgets are now being controlled by the CIO. Therefore, the company has made dedicated teams to mine the 138 must have clients. While management indicated comfort with respect to CY2012 overall budgets and increased outsourcing/offshoring, it also pointed out that decision-making has been going slow. The company maintained its cautious view of the demand scenario but indicated that investments to develop domain capabilities are going on to help drive medium-term growth. Discretionary spend is under stress in various industry verticals, especially for investment banking clients of the BFSI industry. The BFSI sectors clients are posing the maximum trouble in terms of IT spending, where investment banking continues to see cut backs in spending.

June 12, 2012

Wipro | Company Update

Wipros organization restructuring is almost complete and the company is focusing on areas such as cloud, mobility and analytics (in tandem with other industry peers) along with building industry-leading competencies in several sub-segments to differentiate itself. Wipro is focused more on customer satisfaction now and has linked its reward system to customer satisfaction and growth and increased gross margins.

Outlook and valuation

Wipro emphasized its focus on profitable growth and aspirations to close the gap in profitability with peers. Wipro has bridged the gap on revenue growth with peers in a seasonally weak quarter. The next challenge is to ensure growth in-line with peers in a seasonally strong quarter as well and the company appears to have laid the right foundations. Early signs of restructuring yielding results are visible in terms of improvement in the deal pipeline, growth seen in the companys focus industry verticals and increasing revenue from the companys top clients. We expect Wipros IT services business USD revenue to post a CAGR of 11.1% over FY2012-14E. On an overall basis, we expect Wipros revenue to post a CAGR of 13.7% over FY2012-14E. On the operating front, we expect Wipros IT services EBIT margin to move from 20.8% in FY2012 to 21.4% in FY2014. On an overall basis, the companys EBITDA is expected to post a CAGR of 15.9% over FY2012-14E, with EBITDA margin moving from 19.8% in FY2012 to 20.5% in FY2014. Over FY2012-14E, Wipros net profit is expected to post a CAGR of 15.2%, which is industry leading. We upgrade the stock to Buy with a target price of `452, valuing it at 15x FY2014E EPS of `30.1.

Exhibit 10: One-year forward PE (x) chart

950 800 650

(`)

500 350 200 50

Oct-06

Oct-07

Oct-08

Oct-09

Oct-10

Oct-11

Apr-06

Apr-07

Apr-08

Apr-09

Apr-10

Apr-11

Price
Source: Company, Angel Research

34x

28x

21x

14x

7x

June 12, 2012

Apr-12

Wipro | Company Update

Exhibit 11: Key assumptions

FY2013 Revenue growth IT services (USD) USD-INR rate (realized) Revenue growth Consolidated (`) EBITDA margin (%) EBIT margin (%) EPS growth (%)
Source: Company, Angel Research

FY2014 11.8 50.0 12.5 20.5 17.8 16.1

10.5 50.0 15.0 20.0 17.2 14.3

Exhibit 12: Change in estimates

FY2013E Parameter (` cr) USD rev. IT services Net revenue EBITDA PBT PAT Earlier estimates 6,484 41,918 8,118 7,812 6,152 Revised estimates 6,541 43,150 8,613 8,182 6,362 Variation (%) 0.9 2.9 6.1 4.7 3.4 Earlier estimates 7,197 46,879 9,320 9,276 7,030 FY2014E Revised estimates 7,310 48,541 9,967 9,686 7,390 Variation (%) 1.6 3.5 6.9 4.4 5.1

Source: Company, Angel Research

Exhibit 13: Recommendation summary

Company HCL Tech Hexaware Infosys Infotech Enterprises KPIT Cummins Mahindra Satyam MindTree MphasiS NIIT Persistent TCS Tech Mahindra Wipro Reco. Buy Neutral Accumulate Accumulate Neutral Accumulate Neutral Accumulate Buy Neutral Neutral Accumulate Buy CMP (`) 485 125 2,457 162 118 78 625 350 42 349 1,248 676 394 Tgt. price (`) 560 2,792 177 86 373 52 725 452 Upside (%) 15.5 13.6 9.3 10.2 6.6 23.5 7.2 15.0 FY2014E EBITDA (%) 17.4 18.6 30.6 16.6 14.8 16.0 15.5 17.3 15.1 22.4 28.7 15.2 20.5 FY2014E P/E (x) 11.3 11.6 14.1 8.7 10.3 9.8 10.7 9.5 4.8 8.7 17.6 8.2 13.1 FY2011-14E 17.0 55.0 13.4 13.9 0.2 23.7 32.9 (2.0) 16.3 4.7 16.8 18.5 11.6 FY2014E 1.2 1.4 2.6 0.5 0.9 0.7 0.8 0.7 0.3 0.8 3.4 1.3 1.6 FY2014E RoE (%) 21.3 22.4 20.8 13.2 18.7 12.3 17.0 12.6 18.4 14.5 27.7 18.1 19.0 EPS CAGR (%) EV/Sales (x)

Source: Company, Angel Research

June 12, 2012

Wipro | Company 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 (`)
Note: *Adjusted for 2:3 bonus

FY2010* 27,124 18,630 8,494 31.3 1,861 6.9 1,482 5.5 783 2.9 5,151 19.0 337 53 5,541 929 16.8 4,612 18 4,594 18.9

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 43,150 30,052 13,099 30.4 3,305 7.7 2,360 5.5 1,178 2.7 7,435 17.2 728 20 8,182 1,800 22.0 6,382 20 6,362 25.9

FY2014E 48,541 33,656 14,885 30.7 3,713 7.6 2,531 5.2 1,325 2.7 8,641 17.8 1,024 20 9,686 2,276 23.5 7,410 1 20 7,390 30.1

June 12, 2012

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Wipro | Company 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
Note: *Adjusted for 2:3 bonus

FY2010* 5,380 401 5,346 235 120 346 169 878 12,875 793 5,093 2,111 1,671 3,042 660 262 6,488 20,118 32,993 294 2,919 16,579 314 (440) (54) 19,611 44 19,655 1,811 38 288 307 323 10 2776.7 4,440 3,875 746 485 138 650 227 10,561 13,338 32,993

FY2011 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 37,144 491 3,012 20,325 136 58 (54) 23,968 69 24,037 1,976 30 259 502 271 8 3045.3 3,304 4,405 660 734 136 591 232 10,062 13,107 37,144

FY2012 FY2013E FY2014E 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 43,600 492 3,046 24,191 198 659 (54) 28,531 85 28,616 2,251 35 31 540 352 6 3215.3 3,645 4,726 957 723 635 970 112 11,769 14,984 43,600 6,794 423 5,921 400 346 1,338 300 1,469 16,991 1,064 8,275 2,632 3,192 9,545 780 247 7,810 33,546 50,536 492 3,046 28,831 198 659 (54) 33,171 85 33,256 2,401 70 350 700 400 16 3937 3,978 5,763 750 780 635 1,220 216 13,343 17,280 50,536 6,794 423 5,796 400 346 1,234 300 1,477 16,769 1,197 9,309 2,700 3,591 13,156 800 250 10,547 41,550 58,319 492 3,046 34,498 198 659 (54) 38,838 85 38,923 2,551 80 370 850 450 15 4316 4,350 6,455 900 850 635 1,620 270 15,080 19,396 58,319

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11

Wipro | Company 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
Note: *Adjusted for 2:3 bonus

FY2010* 5,204 783 (18) 5,969 337 6,306 (929) 5,377 (1,076) 237 (840) 4,537 (1,150) 182 (1,455) 268 (120) (346) 20 (436) (70) (3,107) (157) 982 (679) 146 1,576 4,912 6,488

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 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

FY2013E 7,455 1,178 (20) 8,613 728 9,340 (1,800) 7,540 (805) 1,575 770 8,310 (1,200) (5,426) (40) (310) 572 (290) (6,694) 150 0 (1,723) (1,573) 43 7,767 7,810

FY2014E 8,661 1,325 (20) 9,967 1,024 10,991 (2,276) 8,715 (1,656) 1,737 81 8,796 (1,200) (3,611) 104 229 (8) (4,486) 150 (0) (1,723) (1,573) 2,737 7,810 10,547

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Wipro | Company 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: *Adjusted for 2:3 bonus

FY2010* 20.8 8.9 4.4 1.0 3.3 15.0 2.7 18.9 44.3 4.0 89.3 0.8 7.1 0.0 0.8 1.7 23.5 15.6 28.5 23.4 0.9 67 79

FY2011 18.1 8.7 4.0 1.5 2.8 13.3 2.4 21.7 45.1 6.0 98.0 0.8 7.7 0.0 0.8 1.5 22.2 15.5 28.0 22.0 0.9 66 71

FY2012 17.3 8.1 3.4 1.5 2.3 11.7 2.0 22.7 48.8 6.0 116.6 0.8 6.9 0.0 0.9 1.5 19.6 14.7 25.8 19.5 0.9 69 63

FY2013E 15.2 7.0 2.9 1.5 1.9 9.5 1.6 25.9 56.2 6.0 135.5 0.8 6.9 0.0 0.9 1.5 19.2 14.7 28.2 19.1 0.9 69 64

FY2014E 13.1 6.0 2.5 1.5 1.6 7.6 1.3 30.1 65.3 6.0 158.6 0.8 7.3 0.0 0.8 1.5 19.1 14.8 31.1 19.0 0.9 68 64

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Wipro | Company Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
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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Wipro | Company Update

6th Floor, Ackruti Star, Central Road, MIDC, Andheri (E), Mumbai- 400 093. Tel: (022) 39357800
Research Team Fundamental: Sarabjit Kour Nangra Vaibhav Agrawal Bhavesh Chauhan Sharan Lillaney V Srinivasan Yaresh Kothari Nitin Arora Ankita Somani Varun Varma Saurabh Taparia Rahul Kaul Vinay Rachh Amit Patil Shareen Batatawala Twinkle Gosar Tejashwini Kumari Technicals: Shardul Kulkarni Sameet Chavan Sacchitanand Uttekar Derivatives: Siddarth Bhamre Institutional Sales Team: Mayuresh Joshi Hiten Sampat Meenakshi Chavan Gaurang Tisani Akshay Shah Production Team: Simran Kaur Dilip Patel Research Editor Production simran.kaur@angelbroking.com dilipm.patel@angelbroking.com VP - Institutional Sales Sr. A.V.P- Institution sales Dealer Dealer Sr. Executive mayuresh.joshi@angelbroking.com hiten.sampat@angelbroking.com meenakshis.chavan@angelbroking.com gaurangp.tisani@angelbroking.com akshayr.shah@angelbroking.com Head - Derivatives siddarth.bhamre@angelbroking.com Sr. Technical Analyst Technical Analyst Technical Analyst shardul.kulkarni@angelbroking.com sameet.chavan@angelbroking.com sacchitanand.uttekar@angelbroking.com VP-Research, Pharmaceutical VP-Research, Banking Sr. Analyst (Metals & Mining) Analyst (Mid-cap) Analyst (Cement, Power, FMCG) Analyst (Automobile) Analyst (Infra) Analyst (IT, Telecom) Analyst (Banking) Analyst (Banking, Media) Analyst (Cap Goods, Real Estate) Research Associate Research Associate Research Associate Research Associate Research Associate sarabjit@angelbroking.com vaibhav.agrawal@angelbroking.com bhaveshu.chauhan@angelbroking.com sharanb.lillaney@angelbroking.com v.srinivasan@angelbroking.com yareshb.kothari@angelbroking.com nitin.arora@angelbroking.com ankita.somani@angelbroking.com varun.varma@angelbroking.com sourabh.taparia@angelbroking.com rahul.kaul@angelbroking.com vinay.rachh@angelbroking.com amit.patil@angelbroking.com shareen.batatawala@angelbroking.com gosar.twinkle@angelbroking.com tejashwini.kumari@angelbroking.com

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