A STUDY OF DIVIDEND POLICY OF IT INDUSTRY SUBJECT: FINANCIAL MANAGEMENT SUBMITTED TO : PROF.

DIVYA

GROUP MEMBERS

NAME

Roll no

Company

Pradeep Shaikh Heena Safrin Durgesh Singh Saif Abbas Kinnari Vora 1358 1348 1349

Infosys Wipro TCS

HISTORY (IT Industry):[1] Information Technology in India is an Industry of two major components: IT Services and Business Process Outsourcing(BPO). The Sector has Increased its contribution to Indias GDP from 1.2% in 1998 to 7.5% in 2012. According to NASSCOM, The sector aggregated Revenue of US$100 billion in 2012, where exports and Domestic Revenue stood at US$69.1 billion and US$31.7 billion respectively growing by over 9%.

BIG FIVE IT SERVICE COMPANIES:[1] Firm TCS Cognizant Technology Services Infosys Wipro HCL Technologies Revenues $11.57 Billion $7.05 Billion Head Quarters Mumbai Teaneck ,New Jersey

$6.69 Billion $5.73 Billion $4.3 Billion

Banglore Banglore Noida

Major IT hubs:[1]
Rank 1 City Banglore Description Popularly known as the silicon valley of India & leading Software Exporter from India. Banglore is considered to be a Global Information Technology hub of India Chennai is the 2nd largest exporter of IT and ITES of India. And it is the BPO Hub of India, Chennai has the largest Operations hub of TCS, and Cognizant Hyderabad is a Major IT Hub in India which is also known as Cyberabad which consist of many Multinational corporation Companies such as Google, Facebook, Microsoft, Amazon, Oracle and Electronic Arts etc The Financial capital of India, but recently many IT companies have established offices.

Chennai

Hyderabad

Mumbai

Delhi

The National Capital Region comprising Delhi, Gurgaon and Noida are clusters of software development. Major Indian and International Firms present in Pune. Pune is also C-DAC headquarters. The City is a major back-end operational hub for IBM, Deloitte. The capital city of Odisha, an emerging IT and education hub, is one of India's fastest developing cities. The capital of Kerala, now houses all major IT companies including Oracle, TCS, Infosys, and contributes in IT export of India.

Pune

Kolkata

Bhubaneswar

10

Thiruvananthapuram

Contribution of IT sector in Indias GDP:[2] The Contribution by the IT sector in Indias GDP has increased from 6.4% in 2008 to 7.5% in 2012

[1] Source:http://en.m.wikipedia.org/wiki/Information_technology_in_india [2] http://articles.economictimes.indiatimes.com/2012-05-18/news/31765463_1_growth-rateindia-s-gdp-sachin-pilot

History: Established in 1980 as subsidiary of WIPRO limited listed on New York Stock Exchange. WIPRO was initially set up in 1945 with main product of producing sunflower Vanaspati Oil and different soaps. During 1970s and 1980s it shifted its focus and begin to look into business opportunities in IT sector. Wipro was the first company which marketed the first indigenous homemade PC from India in 1975. In 1966 Azim Premji, took over as the chairman of the company at the age of 21 and transformed it into one of the finest largest IT outsourcing services provider of the world. Wipro is the third largest IT services company in India. Headquarter: Bangalore, Karnataka, India Zonal Offices of Wipro: Chennai, Kolkata, Mumbai, Pune, Hyderabad WORLDWIDE Offices of Wipro: United States of America, Canada, Mexico, Latin America, China, Japan Azim PremjiChairman He has led Wipro since 1966. Wipro Limited is today a $5 billion revenue. Presence in over 50 countries.

 Wipro Group of Companies Wipro Ltd.: Wipro Limited is a global provider of comprehensive IT solutions and services, including Systems Integration, Consulting, Information Systems outsourcing, IT-enabled services, and R&D services. Wipro entered into the technology business in 1981 and has over 140,000 employees and clients across 54 countries today. IT revenues stood at $ 6.2 billion for the year ended 31 March 2013, with a repeat business ratio of over 95%. Wipro Consumer Care & Lighting: Wipro Consumer Care and Lighting (WCCLG), a business unit of Wipro Limited operates in the FMCG segment offering a wide range of consumable commodities. Established in 1945, Wipro Infrastructure Engineering: Wipro Infrastructure Engineering is the hydraulics business division of Wipro Limited and has been in the business of manufacturing hydraulic cylinders, truck cylinders, and their components and solutions since 1976. Wipro GE Medical Systems Limited: Wipro GE Medical Systems Limited is Wipros joint venture with GE Healthcare South Asia. It is engaged in the research and development of advanced solutions to cater to patient and customer needs in healthcare. This partnership, which began in 1990, today includes offerings like gadgets and equipment for diagnostics, healthcare IT solutions and services to help healthcare professionals combat cancer, heart disease, and other ailments. Wipro services: Analytics and Information Management BPO IT services Technology Infrastructure Services Product engineering Solution Consulting Services Business process Outsourcing Cloud services Application services Infrastructure management Services

Wipro Industries: Aerospace Banking Consumer goods Engineering And Construction Government Hi-Tech Manufacturing Medical Devices Pharmaceutical and Life sciences Retail Transportation Healthcare Insurance and many more

Wipro Merger: Wipro Arabia Limited (WAL) is a joint venture between Wipro Limited and Dar Al Riyadh, a diversified group in Saudi Arabia with business interests in Engineering Services, Industrial Products, Systems & Integration and Information Technology. WAL provides enterprise customers with high value Information Technology Products, Services, Solutions and Consulting Services in the Kingdom of Saudi Arabia.

Share Holders On 30 September 2013, 73.51% of the equity shares of the company were owned by the promoters: Azim Premji, his family members, partnership firms in which he is a partner and Trusts formed by him/his family. The remaining 26.49% shares are owned by others.[10] Shareholders (as on 30-September-2013) Shareholding[10]

Promoter group led by Azim Premji

73.51%

Foreign Institutional Investors (FII)

08.82%

Indian Public

05.31%

Bodies Corporate

03.89%

Mutual Funds/UTI

01.90%

NRI

01.04%

Trusts/Others

00.84%

American Depositary Shares

01.93%

Total

100.0%

1.90% 5.31%

1.04% 0.84%

1.93%

3.89%

0.00% Shareholders (as on 30September-2013) Promoter group led by Azim Premji

8.82%

Foreign Institutional Investors (FII) Indian Public 73.51% Bodies Corporate Mutual Funds/UTI

Market share of IT companies in India:

Capital Structure: Period From 2012 2011 2010 2009 2008 To 2013 2012 2011 2010 2009 Equity Share Equity Share Equity Share Equity Share Equity Share Instrument Capital (Rs in Crore) Authorised Issue 530 530 530 330 330 492.59 491.75 490.88 293.64 293 PAIDUP Shares(nos) Face Value 2 2 2 2

24629347302 2 2458756228 2454409145 1468211189 1465000000

Growth of Wipro for last 5 years:

Net sales:
Year 2009 2010 2011 2012 2013 Net sales 21,507.30 22,922.00 26,300.50 31,682.90 33,226.50

35,000.00 30,000.00 25,000.00 20,000.00 15,000.00 10,000.00 5,000.00 0.00

31,682.90 33,226.50 26,300.50 22,922.00 21,507.30 2009 2010 2011 2012 2013

Net Sales

Total Income:
Total Income (Rs in Crore) Year 26,039.50 2009 27,699.10 2010 31,874.60 2011 38,444.50 2012 38,888.80 2013

2009

2010

2011

2012

2013 38,888.80

38,444.50 31,874.60 26,039.50 27,699.10

Total Income (Rs in Crore)

Net Profit:

Year Profit 2009 3,873.60 2010 4,593.20 2011 5,265.30 2012 5,596.90 2013 6,182.30

Net

Net Profit
2009 2010 2011 2012 2013

4,593.20 3,873.60

5,265.30

5,596.90

6,182.30

EPS (Rs in Crore) Year 2009 2010 2011 2012 2013 EPS 26.44 31.28 21.47 22.78 25.12
2009 2010 31.28 26.44 21.47 22.78 25.12 2011 2012 2013

EPS Rs In Crore

Dividend Per Share:

Year 2009 2010 2011 2012 2013

DPS 4 6 6 6 7

Dividend Per Share

7 7 6 5 4 3 2 1 0 4 6 6 6 2009 2010 2011 2012 2013

DPS

Equity Dividend (Rs in Crore) Equity Dividend (Rs in Crore) Year 586 2009 880.9 2010 1,472.60 2011 1,475.20 2012 1,724.70 2013

Equity Dividend
2009 2010 2011 2012 2013

1,472.60 880.9 586

1,475.20 1,724.70

Equity Dividend (Rs in Crore)