MARKETING MIX ADOPTED BY CARBONATED DRINKS MANUFACTURER

CASE OF COCA COLA INDIA LTD VS PEPSICO INDIA

SUBMITTED TO

FOR PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE MASTERS

DEGREE IN BUSINESS ADMINISTRATION
BY
NITESH THAKUR
13MBA 157

SUPERVISED BY
DR.SAMIRAN JANA
ASSISTANT PROFESSOR
SCHOOL OF MANAGEMENT
IMS UNISON UNIVERSITY,DEHRADUN
BATCH 2013-2015

ACKNOWLEDGEMENT

It gives me immense pleasure to present this project report on MARKETING MIX

ADOPTED BY CARBONATED DRINKS MANUFACTURER CASE OF COCA COLA
INDIA LTD VS PEPSICO INDIA In partial fulfillment of post-graduate course M.B.A.

No work can be carried out without the help and guidance of various persons. I am happy
to take this opportunity to express my gratitude to those who have been helpful to me in
completing this project report..

I would be failing in my duty if I do not express my deep sense of gratitude to

DR.SAMIRAN JANA without his guidance it wouldnt have been possible for me to
complete this project work.

Lastly I would like to thank my parents, friends and well wishers who
encouraged me to do this research work and all those who contributed directly or
indirectly in completing this project to whom I am obligated to.

NITESH THAKUR
13MBA157
DECLARATION BY THE STUDENT

This is to certify that the project work Titled MARKETING MIX ADOPTED BY
CARBONATED DRINKS MANUFACTURER CASE OF COCA COLA INDIA LTD VS
PEPSICO INDIA which is being submitted by me for the partial fulfillment of the requirement
for the Master degree in business administration at IMS UNISON UNIVERSITY,DEHRADUN
is a record of my original work and due acknowledgement have been made in the to all other
materials used . the matter embodied in the research work has been submitted for the award of
any degree elsewhere .

Signature:Student name:- NITESH THAKUR

Student id no:- 13MBA157
Date:-

CERTIFICATE OF THE PROJECT SUPERVISION

It is certified that the project work Titled MARKETING MIX ADOPTED BY

CARBONATED DRINKS MANUFACTURER CASE OF COCA COLA INDIA LTD VS
PEPSICO INDIA which is being submitted by NITESH THAKUR , ID NO.13MBA157 for
the master degree in business administration IMS UNISON UNIVERSITY,DEHRADUN is a
record of his own work carried by him under my supervision .the matter embodied in the
research work has not been submitted for the award of any degree elsewhere.

I recommend this project work for submission and evaluation for the
award of degree to the student .

Signature:Name of the supervisor:- Dr.samiran jana.

Designation:-assistant professor
Date:-

EXECUTIVE SUMMARY

The project deals in FINANCIAL STATEMENT ANALYSIS OF IT COMPANIES IN

INDIA
This financial analysis report examines two high profile competitors, wipro
and Infosys.
Infosys Technologies Ltd is a global technology services firm that defines,
designs and delivers information technology (IT)-enabled business solutions
to their clients. Infosys Technologies Ltd is a public limited and India's
second largest software exporter company.
Wipro Ltd is a leading India based provider of IT Services, including Business
Process Outsourcing (BPO) services, globally. Wipro is India's third-largest
software services exporter and has diversified business interests, including,
software development, hardware, consumer care and lighting and
infrastructure engineering. Wipro's IT services business has been
consistently on the rise and has been the major driver of revenue and profit
growth for the company.
This study is basically concern with the performance of both the leading I.T
companies of india and with this study it can throw some light on the working
, performance and growth of both companies in the I.T sector and how they
both are serving to the india and outside the country.

CONTENTS

S.NO.

PARTICULARS

PAGE NO.
INTRODUCTION

1.

1-26
OBJECTIVE

2.

OF

THE

STUDY

27-28
RESEARCH

3.

METHODOLOGY

29-30
LITERATURE REVIEW

4.

31-32
5.

DATA ANALYSIS & INTERPRETATION

3344
6.

FINDINGS

45-46
7.

LIMITATION

47-48
8.

CONCLUSION
49-50
9.
51-52

BIBLIOGRAPHIES

INTRODUCTION

INTRODUCTION

Overview of IT Company:
Overview of IT Industry The Indian IT sector is growing rapidly and it has
already made its presence felt in all parts of the world. IT has a major role in
strengthening the economic and technical foundations of India. Indian
professionals are setting up examples of their proficiency in IT, in India as
well as abroad. The sector can be classified into 4 broad categories - IT
Services, Engineering Services, ITES-BPO Services, E Business IT
Services can further be categorized into Information Services (IS)
outsourcing, packaged software support and installation, systems
integration, processing services, hardware support and installation and IT
training and education.
Information technology (IT) is concerned with the development,
management, and use of computer based information systems. The
Information Technology Association of America has defined information
technology (IT) as the study, design, development, application,
implementation, support or management of computer-based information
systems, but the term has also been applied more narrowly to describe a
branch of engineering dealing with the use of computers and
telecommunications equipment to store, retrieve, transmit and manipulate
data. Although commonly used to refer to computers and computer
networks, IT encompasses other information-distribution technologies such
as television and telephones, a wider field more explicitly known as
information and communications technology. The information technology (IT)
industry has become of the most robust industries in the world. IT, more than
any other industry or economic facet, has an increased productivity,
particularly in the developed world, and therefore is a key driver of global
economic growth. Economies of scale and insatiable demand from both
consumers and enterprises characterize this rapidly growing sector.
Features of the IT Industry at a Glance:

Economies of scale for the information technology industry are high.

Unlike other common industries, the IT industry is knowledge-based.
Efficient utilization of skilled labour forces in the IT sector can help
an economy achieve a rapid.
pace of economic growth.

The IT industry helps many other sectors in the growth process of the
economy including the
2

services and manufacturing sectors.

Big

IT Services

companies

Firm

Revenues

TCS

$10.17

Mumbai

Wipro

$6.30

Bangalore

Headquarters

Infosys

$7.99

Bangalore

HCL

$4.2

Noida

The Role of the IT Industry:

The IT industry can serve as a medium of e-governance, as it assures easy
accessibility to information. The use of information technology in the service
sector improves operational efficiency and adds to transparency. It also
serves as a medium of skill formation. Growth of IT industries gets attention
from every corner ex: Investors, job-seekers, government, competitors etc;
and all wants financial analysis of the companies for various purposes.
Financial analysis (also referred to as financial statement analysis or
accounting analysis or Analysis of finance) refers to an assessment of the
viability, stability and profitability of a business, sub-business or project.
Among various methods available for analyzing financial statement Ratio
analysis is a method of analyzing financial statement to determine the
overall financial strength of a business. Hence this research project presents
"A STUDY ON FINANCIAL STATEMENT ANALYSIS OF IT COMPANIES IN INDIA.
WITH SPECIAL REFERENCE TO INFOSYS AND WIPRO".

FINANCIAL STATEMENT ANALYSIS

The analysis of financial statement is a process of evaluating the relationship
between component parts of financial statement to obtain a better
understanding of firm financial position.
Analysis is a process of critically examining the accounting information given
in financial statements. For the purpose of analysis, individual items are
studied; their interrelationship with other related figures is established.
3

Thus analysis of financial statement refer to treatment of information contain

in financial statement in a way so as to afford a full diagnosis of the
profitably and financial position of the firm concern.
Financial analysis:
Financial analysis is an aspect of the overall business finance function that
involves examining historical data to gain information about the current and
future financial health of a company. It refers to an assessment of the
viability, stability and profitability of a business, sub-business or project.
Finance is the language of business.
Advantages of Financial Statements Analysis:
1. Financial statements analysis helps the government agencies to analyze
the taxation due to the company.
2. Any company can analyse its own performance through financial
statements analysis over any period of time.
3. The investors get enough idea to decide about the investments of their
funds in the specific company.
Disadvantages of Financial Statements Analysis:
1. Strong financial statement analysis does not necessarily mean that the
organization has a strong financial future.
2. Financial statement analysis might look good but there may be other
factors that can cause an organization to collapse.

Financial statement analysis (or financial analysis) is the process of

reviewing and analyzing a company's financial statements to make better
economic
decisions.
These
statements
include
the income
statement, balance sheet, statement of cash flows, and a statement of
retained earnings. Financial statement analysis is a method or process
involving specific techniques for evaluating risks, performance, financial
health, and future prospects of an organization.
It is used by a variety of stakeholders, such as credit and equity investors,
the government, the public, and decision-makers within the organization.
These stakeholders have different interests and apply a variety of different
4

techniques to meet their needs. For example, equity investors are interested
in the long-term earnings power of the organization and perhaps the
sustainability and growth of dividend payments. Creditors want to ensure the
interest and principal is paid on the organizations debt securities (e.g.,
bonds) when due.
Common methods of financial statement analysis include fundamental
analysis, DuPont analysis, horizontal and vertical analysis and the use of
financial ratios. Historical information combined with a series of assumptions
and adjustments to the financial information may be used to project future
performance. The Chartered Financial Analyst designation is available for
professional financial analysts.

FINANCIAL STATEMENT ANALYSIS - DEFINITION, OBJECTIVE, IMPORTANCE,

LIMITATIONS

Meaning
The analysis of financial statement is a process of evaluating the relationship between
component parts of financial statement to obtain a better understanding of firm financial
position.
Analysis is a process of critically examining the accounting information given in financial
statements. For the purpose of analysis, individual items are studied; their interrelationship with
other related figures is established.
Thus analysis of financial statement refer to treatment of information contain in financial
statement in a way so as to afford a full diagnosis of the profitably and financial position of the
firm concern.

Definitions
According to Myser Financial study analysis is largely a study of relationship among the
various financial factor in the business as disclosed by the single set of statement and a study of
trend of these factor shown in the financial statement.

IMPORTANCE OF ANALYSIS OF FINANCIAL STATEMENT

Financial statement is prepared at a certain point of time according to established convention.
These statements are prepared to suit the requirement of the proprietor. For measuring the
financial soundness, efficiency, profitability and future prospects of the concern, it is necessary
to analyze the financial statement. Following purposes are served by the Financial analysis: -

1.
Help in Evaluating the operational efficiency of the Concern:- It is necessary to
analyze the financial statement for matching the total expenses incurred in manufacturing,
Advertising, selling and distribution of the finished goods and total financial expanses of the
current year comparing with the total expanses of the previous year and evaluate the
managerial efficiency of concern.
2.
Help in Evaluating the short and long term financial position:- It is necessary to
analyze the financial statement for comparing the current assets and current liabilities to
evaluate the short term and long term financial soundness.
3.
Help in calculating the profitability:- It is necessary to analyze the financial statement
to know the gross profit and net profit.
4.
Help in indicating the trend of achievements:- Analysis of financial statement helps
in comparing the Financial position of previous year and also compare various expenses,
purchases and sales growth, gross and net profit. Cost of goods sold, total value of assets and
liabilities can be compare easily with the help of Analysis of financial statement.
5.
Forecasting, budgeting and deciding future line of action :-The potential growth of
the business can be predicts by the analysis of financial statement which helps in deciding
future line of action. Comparisons of actual performance with target show all the shortcomings.

LIMITATIONS OF FINANCIAL ANALYSIS

1.
2.
3.
4.
5.

It is Suffering from the limitations of financial statements

There is Absence of standard universally accepted terminology in financial analysis
price level changes is ignored in financial analysis
quantity aspect is ignored in financial analysis
Financial analysis provides misleading result in absence of absolute data

FINANCIAL ANALYSIS

financial statements is key to fundamental stock analysis and overall

investment research. Financial statements provide an account of a
companys past performance, a picture of its current financial strength and a
glimpse into the future potential of a firm.
Financial Statements and Their Key Elements
The role of financial reporting for companies is to provide information about
their fiscal health and financial performance. As investors, we use financial
reports to evaluate the past, current and prospective performance and
financial position of a company. These statements allow us to compare one
firm to another and form the basis of valuing the worth of a stock.Several
financial statements are reported by companies. The most important three,
and the three used most often by investors, are:

the income statement,

the balance sheet and

the cash flow statement.

Income Statement
The income statement reports how much revenue the company generated
during a period of time, the expenses it incurred and the resulting profits or
losses. The basic equation underlying the income statement is:
Revenue expenses = income
All companies use a reporting period of one year, which can start and end at
the same time as a calendar year, or could start and end at different point in
the year (the firms fiscal year).

Balance Sheet
Although the income statement may be the most popular financial
statement, the balance sheet provides vital information on a companys
financial position. In contrast to the income statement, which provides
revenue and earnings data over a period of time, the data contained in the
balance sheet is a snapshot for a specific date.The balance sheet provides
information on what a company owns (assets), what it owes (liabilities), and
the shareholder ownership interest (equity). The equation underlying the
balance sheet is:
assets = liabilities + equity

Defining Financial Analysis Tools

Financial analysis tools are one of the most efficient ways that can be
used for ensuring good profit from your investments. These financial analysis
tools are highly helpful in evaluating the market and investing in a way so as
to maximize the profit from the investments made. These financial analysis
tools are useful for deciphering both internal and external information related
to a specific business organization.

Applications of Financial Analysis Tools

Mainly, the financial analysis tools can be used for SWOT analysis. The term
SWOT is short for:
SStrength
WWeaknesses
OOpportunities
T Threats
The economic conditions in the present day market are analyzed by
management professionals with assistance from SWOT analysis performed
by the various financial analysis tools. Each section of the evaluation process
contains specific information which is helpful in gauging the general
performance of a company. Moreover, financial analysis tools are really
8

important for any investor for the companys performance shows direct
impact on the price of a companys stock.

Types of Financial Statements

Basic financial statements include the balance sheet, the income statement,
cash flow statement and notes to account. There are different types of
reports because different types of information are needed to effectively
manage a company and plan for the future. Sometimes companies use
financial reporting information internally, and in some cases they are
required to release this information externally. Tracy (1999) called cash the
"lubricant" of business. Without cash it is difficult for a business to function
and it increases the likelihood that a business may fail. But, Tracy warned
that cash flows only show part of the picture and give no information about
the business' profit or financial condition. Since cash flows only show part of
the picture, other types of financial reports are needed.
The most common financial reports are the balance sheet and the income
statement.

The balance sheet (also called the statement of financial position)

provides information about the financial condition of a company.

The income statement (also called the earnings or profit and loss
statement) shows the profitability of the business.
Balance Sheets

The general categories on balance sheets are assets and liabilities. A publicly
traded firm also includes shareholder equity. A typical balance sheet shows
assets a company owns. Assets include cash, accounts receivable, inventory
and any prepaid expenses. Balance sheets also record property the company
owns and any depreciation on assets. The balance sheet is a two-sided
report because it records assets on one side and liabilities on the other.
Liabilities include accounts payable and accrued expenses, income tax owed,
loans and stockholders' equity. Stockholders' or shareholders' equity is any
claim that owners of company stock have against the assets that a company
has. Stockholders' or shareholders' equity is also called net worth.
9

Stockholders' equity is found by deducting liabilities and debt from assets

(Morgenson & Harvey, 2002).

Income Statements
Income statements show the profitability of a business. The income
statement is for a period of one year and shows the total sales revenue for
the year. Subtracted from sales revenue is the cost of goods sold or the
expenses a company incurs in producing finished goods to sell. Also
deducted from the revenue are expenses for operating costs and
depreciation. If a company is publicly owned, its income statement must also
report earnings per share (Tracy, 1999). Earnings per share is a measure of
company profitability (Godin, 2001). It is calculated by dividing net income
by the total shares of stock. When looking at the income statement of a
company, the profitability isn't just the gross profit, it is also important to
look at the ratio of expenses as a percentage of profit. If a company has high
profits but also has high expenses, the company could be mismanaged.
Balance sheets are not only important to companies but also to investors
(Godin, p. 52). Balance sheets can tell investors whether or not a company is
a good investment based on its financial condition. Financial statements are
often prepared by accountants and reviewed by auditors to ensure that the
records are accurate and to avoid the temptation not to report factual
information or to hide financial flaws. A reason business owners may use
financial professionals is to reduce the chance of error and to stay out of an
area where they may not have expertise. O'Bannon (2005) cautioned
business owners against being lulled to sleep by the power of current
accounting software products, which cannot replace the knowledge gained
by using professional financial advice. O'Bannon felt that one of the primary
benefits of the newer software is that it allows owners and financial advisors
to speak the same language and lets business owners provide easy to use
documentation to their accountant. Accountants and
other financial advisors can use software to quickly perform somewhat
complex analysis and generate reports for their clients.
Arar (2012) wrote that small businesses operating in the 2010s have "more
accounting software options than ever, including Web-based subscriptions."
For those businesses with large inventories or client databases, however, or
10

those that choose not to entrust data to the cloud, such desktop tools as
Acclivity AccountEdge Pro 2012, Intuit QuickBooks 2013, and Sage 50
Complete Accounting 2013 are good options (Arar 2012).

Analyzing Balance Sheet

Analyzing balance sheets and income statements requires more than simply
reading the categories of figures. The numbers have to be read with an eye
towards what they mean and what they might mean in combination. Scott
(2005, p. 108) stated that financial statement analysis means interpreting
the data "in a meaningful way" instead of looking at "past results." This can
mean looking at the company's management strategy, the way the business
is operated and the plans the business has for the future. Scott suggested
asking the following questions to get close to figuring out how internal
factors, especially management, influence financial statement content:

How is the company distinguishing itself from the competition?

How does it compete? E.g., on price, quality, responsiveness,

availability?

Is the company's strategy viable given the marketplace economy?

Is management adapting its strategy to a changing environment?

These questions and others can provide qualitative information in addition to
the quantitative numbers provided in financial statements. Using the
information in aggregate can give a broader picture of the company's
financial health.

Types of Financial Analysis Tools

There are different types of financial analysis tools available in the financial
field. These tools are designed especially for carrying out specific functions.
Among these different types of financial analysis tools, the Balanced
Scorecard is one tool which can be of good assistance to gauge the financial

11

position of a company (can be easily performed using Ready Ratios

software).
Three commonly used tools are these:
1. Ratios analysis
2. Fund flow analysis
3. Cash flow analysis
Financial ratio analysis
Financial ratios are very powerful tools to perform some quick analysis of
financial statements. There are four main categories of ratios: liquidity ratios,
profitability ratios, activity ratios and leverage ratios. These are typically
analyzed over time and across competitors in an industry.

Liquidity ratios are used to determine how quickly a company can turn
its assets into cash if it experiences financial difficulties or bankruptcy. It
essentially is a measure of a company's ability to remain in business. A
few common liquidity ratios are the current ratio and the liquidity index.
The current ratio is current assets/current liabilities and measures how
much liquidity is available to pay for liabilities. The liquidity index shows
how quickly a company can turn assets into cash and is calculated by:
(Trade receivables x Days to liquidate) + (Inventory x Days to
liquidate)/Trade Receivables + Inventory.

Profitability ratios are ratios that demonstrate how profitable a

company is. A few popular profitability ratios are the breakeven point and
gross profit ratio. The breakeven point calculates how much cash a
company must generate to break even with their start up costs. The gross
profit ratio is equal to (revenue - the cost of goods sold)/revenue. This
ratio shows a quick snapshot of expected revenue.

Activity ratios are meant to show how well management is managing

the company's resources. Two common activity ratios are accounts
payable turnover and accounts receivable turnover. These ratios
demonstrate how long it takes for a company to pay off its accounts
payable and how long it takes for a company to receive payments,
respectively.
12

Leverage ratios depict how much a company relies upon its debt to
fund operations. A very common leverage ratio used for financial
statement analysis is the debt-to-equity ratio. This ratio shows the extent
to which management is willing to use debt in order to fund operations.
This ratio is calculated as: (Long-term debt + Short-term debt + Leases)/
Equity.

OBJECTIVE OF FINANCIAL STATEMEMENT ANALYSIS

Financial statement is helpful in assessing the financial position and
profitability of the concern. Keeping in the view of accounting ratio the
accountant should calculate the ratio in appropriate form as early as possible
for presentation for management for managerial decisions.
Following are the main objectives of analysis of financial statements: 1.

To evaluate the business in terms of profit in present and future.

2.

To evaluate the efficiency of various parts or department of the business.

3. To evaluate the short term and long term solvency of business for
distributing profit to the trade creditor and debenture holders.
4. To evaluate the chances of growth of business in the future by preparing
budgets and forecasting.
5. To evaluate the operational efficiency of one firm with another firm by
study the comparative statements.
6.

To evaluate the financial and economical stability of the business.

7.

To evaluate the actual meaning and consequence of financial data.

8.

To evaluate the long-term liquidity of the fund of the business

13

COMPANIES:-

1.) INFOSYS

Infosys Technologies Ltd is a global technology services firm that defines,

designs and delivers information technology (IT)-enabled business solutions
to their clients. Infosys Technologies Ltd is a public limited and India's
second largest software exporter company.
It was incorporated in the year 1981 as Infosys Consultants Pvt Ltd by
Mr.N.R.Narayana Murthy at Karnataka.
The company provides end-to-end business solutions that leverage
technology for their clients, including technical consulting, design,
development, product engineering, maintenance, systems integration,
package-enabled consulting, and implementation and infrastructure
management services.
Infosys has come to be the gold standard in the Indian IT industry's success.
From humble beginnings in 1981, the company today is the second largest
exporter of software services from the country.
It is known globally for its world-class management practices and work
ethics. It has been making conscious and constant efforts to move up the
software value chain and offers services like software development,
maintenance, technology consulting, testing and package implementation.
Infosys offers all these services through its highly integrated and widely
acclaimed global delivery model.

14

BOARD OF DIRECTORS:

Executive Members of the Board

Dr. Vishal Sikka

Chief Executive Officer & Managing Director

15

Pravin Rao
Chief Operating Officer

Non-Executive Chairman of the Board

K. V. Kamath
Chairman of the Board

Independent Directors

16

Carol M. Browner

Prof. John W. Etchemendy

Roopa Kudva

17

Jeffrey Sean Lehman

R Seshasayee

Kiran Mazumdar Shaw

18

Ravi Venkatesan

Awards:
At Infosys, we consistently strive to deliver innovative services to clients and
deliver shareholder value to all stakeholders. The awards won by Infosys
span the gamut from industry to corporate governance and more.
Infosys won a leading Green energy award in 2014. We received the Gold
Award for sustainable buildings at the 2014 International Ashden Awards,
which celebrate pioneering businesses and organizations that are helping
tackle climate change and transforming peoples lives.
The 2014 Asian Most Admired Knowledge Enterprises (MAKE) award has
been presented to Infosys. We are the only Indian company to have won the
award 12 times, the first one being in the year 2000.
Once again, we topped ASIAMONEYs Corporate Governance Poll in the
domestic country category. The poll was expanded to cover Australia and
Vietnam, and is the largest ever, with 322 select analysts and investors
voicing their opinions.
At the Institutional Investor 2014 All-Asia Rankings, we were honored with
several awards in the IT services and software categories. The recognitions
included Best CFO and Best Investor Relations.
Infosys has been included in the top list of Business Innovation and
Transformation Partners by Lnendonk, a leading German IT and consulting
industry analyst firm. Only 11 companies across all German consulting and IT
companies make it to this premiere league.
19

Infosys Public Services won the Hottest Government Contractor honor at

the 13th annual Northern Virginia Technology Council (NVTC) Hot Ticket
Awards for developing innovative solutions to help the government.
Infosys has been positioned as a leader in Gartners International Retail Core
Banking report for its Finacle Core Banking solution. This is the eighth time in
a row that Infosys has been named a leader.Infosys AssistEdge and
Openreach (infrastructure division of BT) won the prestigious Alsbridge
Innovation Award 2014 for Customer Service Seamless Desktop.
Infosys has been cited as a Leader and Star Performer in the 2014 Everest
Group PEAK Matrix for life sciences IT outsourcing. In 2013, we were one of
the major contenders, according to the Everest Group.Infosys has been
awarded the Leadership in Energy and Environmental Design (LEED) India
Platinum rating by the Indian Green Building Council for its Software
Development Blocks (SDB) 2 and 3 in Hyderabad, India. With this, we now
have a total of ten buildings, covering 2.7 million square feet of space,
garnering the prestigious Platinum rating, up from 2.1 million square feet in
year 2013.
Infosys has won the 2014 Thomson Reuters India Innovation Award in the HiTech Corporate category. It honors organizations headquartered in India for
their spirit of innovation in R&D as it relates to Indian patent publications.
Infosys also won the 2014 Asia IP Elite Award. The award recognizes
companies that are leading the way in IP value creation in the Asia-Pacific
region.

WIPRO

20

Wipro Ltd is a leading India based provider of IT Services, including Business

Process Outsourcing (BPO) services, globally.
The company was incorporated on 29 December 1945, in Mumbai by
Mohamed Premji as 'Western India Vegetable Products Limited later
abbreviated to 'Wipro'. It was initially set up as a manufacturer of vegetable
and refined oils in Mumbai, Maharashtra, India under the trade names of
Kisan, Sunflower and Camel.The company logo still contains a sunflower to
reflect products of the original business.
Wipro Ltd is a global information technology, consulting and outsourcing
company with 156,866 employees serving clients in 175+ cities across 6
continents. The company posted revenues of $7.3 billion for the financial
year ended Mar 31, 2014.
Wipro is India's third-largest software services exporter and has diversified
business interests, including, software development, hardware, consumer
care and lighting and infrastructure engineering. Wipro's IT services business
has been consistently on the rise and has been the major driver of revenue
and profit growth for the company. IT services business contributes around
77% of total revenues of the company. Between FY07 and FY12, the
company grew its sales and profits at average annual rates of 20% and 14%
spectively.
The company provides comprehensive IT Solutions and Services, including
Systems Integration, Information Systems Outsourcing, IT Enabled Services,
Package
Implementation,
Software
Application
development
and
maintenance, and Research and Development Services to corporations
21

globally. They also provide Consumer Products, Lighting, Furniture, Eco

Energy, Water treatment and Hydraulic business. The company is the first
PCMM Level 5 and SEI CMM Level 5 certified IT Services Company globally.
Wipro Ltd (NYSE:WIT) is a global information technology, consulting and
outsourcing company with 154,297 employees serving clients in 175+ cities
across 6 continents. The company posted revenues of $7.3 billion for the
financial year ended Mar 31, 2014.
Wipro helps customers do business better by leveraging our industry-wide
experience, deep technology expertise, comprehensive portfolio of services
and vertically aligned business model. Our 55+ dedicated emerging
technologies Centers of Excellence enable us to harness the latest
technology for delivering business capability to our clients.

Wipro is globally recognized for its innovative approach towards delivering

business value and its commitment to sustainability.

In todays world, organizations will have to rapidly reengineer themselves

and be more responsive to changing customer needs. Wipro is well
positioned to be a partner and innovator to businesses in their
transformation journey, identify new growth opportunities and facilitate their
foray into new sectors and markets.

WIPRO BOARD OF DIRECTORS

Our Chairman Azim H. Premji, Sr. executives of Wipro and external members
who are global leaders and visionaries, form the Wipro Board of Directors
which provides direction and guidance to the organization.

CHAIRMAN

22

Azim H. PremjiChairman,
Wipro Ltd

EXECUTIVE DIRECTOR

T K Kurien
CEO & Member of the Board,
Wipro Ltd.

INDEPENDENT DIRECTORS

23

Dr. Ashok S. Ganguly

Ireena Vittal
Independent Director

24

Dr. Jagdish N. Sheth

Independent Director

M. K. Sharma
Independent Director

Narayanan Vaghul
Independent Director

25

Vyomesh Joshi
Independent Director

William Arthur Owens

Independent Director
WIPRO ENTERPRISES LIMITED
Wipro Enterprises Limited (Formerly Azim Premji Custodial Services Private
Limited), was incorporated under the Provisions of Companies Act, 1956, is
headquartered in Bangalore, India. The Company primarily carries on the
businesses of Consumer care products, Domestic & Commercial lighting and
Infrastructure engineering which were transferred pursuant to the Scheme of
26

Arrangement of Wipro Limited (Wipro) with effect from March 31, 2013,
with the appointed date as on April 1, 2012.
Wipro Enterprises Limited comprises of two main divisions
Wipro Consumer Care and Lighting (WCCLG)

Wipro Consumer Care and Lighting (WCCLG) is among the top fastest
growing FMCG companies in India. It has a strong brand presence in personal
care and skin care products in South-East Asia and Middle-East apart from
significant market share in identified segments. Today WCCLG has global
workforce of 8300 serving over 40 countries.
WCCLG business includes multiple product ranges from Personal care (Soaps,
Toiletries), Baby care, Wellness Electrical wire devices, Lighting and Modular
Office Furniture.Wipro Infrastructure Engine

Wipro Infrastructure Engineering (WIN) is the largest independent hydraulic

cylinder manufacturer in the world, delivering around 2 million cylinders to
27

OEMs in different geographies. WIN has global workforce of over 1,700

committed and skilled people, and 14 state-of-the-art manufacturing
facilities across India, Northern Europe, Eastern Europe, US, Brazil and China.
WIN specializes in designing and manufacturing custom Hydraulic Cylinders
(double acting, single acting and telescopic cylinders), Actuators and
Precision engineered components for infrastructure and related industries
such as Construction & Earthmoving, Material/Cargo Handling & Forestry,
Truck Hydraulic, Farm & Agriculture, Mining, and Aerospace & Defense.

Milestones

Wipro,oneoftheworldsmosttrustedbrands,isanamewithalonghistory.Heresa
snapshotofourjourneytodate:
Establishedin1945asWesternIndiaVegetableProductsLimitedinAmalner,
Maharashtra
IPOforcapitalinFebruary1946
VenturedintothefledglingITindustryin1981
Establishedsoftwareproductsandexportssubsidiary,WiproSystemsLtd.in1983
PioneersinmarketingindigenousPersonalComputersin1985
EstablishedaJointventurewithGEin1989
EnteredITservicesinthe1990swewereamongthepioneersindevelopingtheODC
(OffshoreDevelopmentCenter)concept
SoftwarebusinessassessedatSEICMMLevel5in1998
ListedonNYSEin2000(NYSE:WIT)
ThefirstcompanyintheworldtobeassessedatPCMMLevel5in2001
EnteredtheBPObusinessin2002
EnteredtheEcoenergybusinessin2008

28

OBJECTIVE OF THE
STUDY

29

OBJECTIVE OF THE STUDY

Financial statement is helpful in assessing the financial position and

profitability of the concern. Keeping in the view of accounting ratio the
accountant should calculate the ratio in appropriate form as early as possible
for presentation for management for managerial decisions.
1. To know the strength and weakness of Infosys and wipro through data
analysis and interpretation .
2. To evaluate the performance of the companies.
3. To understand the liquidity , profitability and effieciency positions of the
companies.
4. To make comparison between the ratios during different periods.

Need for Financial Statement Analysis

1. Financial statement analysis is used to identify the trends and
2.

relationships between financial statement items.

Both internal management and external users (such as analysts,
creditors, and investors) of the financial statements need to evaluate a
company's profitability, liquidity, and solvency.

3. The most common methods used for financial statement analysis are

trend analysis, commonsize statements, and ratio analysis.

30

4. These methods include calculations and comparisons of the results to

historical

company

data,

competitors,

or

industry

averages

to

determine the relative strength and performance of the company being

analyzed.

RESEARCH METHODOLOGY

31

RESEARCH METHODOLOGY

TYPE OF RESEARCH
Research is one of the most important parts of any study and pertains to the
collection of information and knowledge. Marketing research is defined as the
systematic design, collection, analysis, and reporting of data and findings
relevant to a specific marketing situation facing the company. My project has
been developed on has basis of conclusive research. The research process
depends upon developing the most efficient plan for gathering the needed
information.
DATA COLLECTION METHOD
Only Secondary data is used in the study because there is a comparison of
I.T companies in the study. so only secondary data is used in the study
Secondary data
Secondary data provides a starting point for any research and offers valuable
sources of already existing information. Secondary data are the easiest to
gather and the cost of collecting this data is also very low. For my project
work it was collected through the help of various directories of various
associations, magazines, newspapers, websites etc. The directories helped
me in short lisitng people, for my target people.
Some secondary data collection method for this study are as follows:1. Company websites.
2. Annual reports of the companies .
32

3. Books and other reports.

LITERATURE REVIEW

33

LITERATURE REVIEW

This study is basically concern with the performance of both the leading I.T
companies of india and with this study it can throw some light on the working
, performance and growth of both companies in the I.T sector and how they
both are serving to the india and outside the country.
Both the companies are working in I.T sector and both are known firm of
india so in this study I have analysed all the important aspects of both the
companies which include there sales per share, gross profit ,assets , current
ratio, yield per share and dividend per share, these are the main aspects
which I have analysed and presented in the form of graphs and bar .
IT Industry in Indian IT sector is growing rapidly and it has already made its
presence felt in all parts of the world. IT has a major role in strengthening the
economic and technical foundations of India.
financial statements is key to fundamental stock analysis and overall
investment research. Financial statements provide an account of a
companys past performance, a picture of its current financial strength and a
glimpse into the future potential of a firm.
The research methodology used in this study is basically concern with the
performance of both the companies from 2010 to 2014 so for that only
secondary data is used for the study.

34

DATA ANALYSIS AND

INTERPRETATION

35

DATA ANALYSIS AND INTERPRETATION

The purpose of the data analysis and interpretation phase is to transform the
data collected into credible evidence about the development of the
intervention and its performance.
INFOSYS LTD Vs. WIPRO SALES PER SHARE

DEFINITION OF 'SALES PER SHARE'

A ratio that computes the total revenue earned per share over a 12-month
period. It is calculated by dividing total revenue earned in a fiscal year by the
weighted average of shares outstanding for that fiscal year:
Also known as "revenue per share".
SALES PER SHARE =TOTAL REVENUE OR SALES/AVERAGE SHARES
OUTSTANDING

Sales per share (Unadj.) (Rs)

INFOSYS LTD
WIPRO

2010
398.0
185.3

36

2011
481.3
126.5

2012
590.4
151.3

2013
706.2
152.1

2014
877.4
176.2

1000
900
800
700
600
500

INFOSYS LTD

Column1

400
300
200
100
0
2010

2011

2012

2013

2014

thisanalysisisbasedonthesalespershareofboththecompaniesinwhichInfosysltdis
continuegrowingfrom2010to2014withahugepercentagebutwiproishaving
fluctuationineveryyearinsalespershare,wiprois176.2in2014whichislowerthan
2010andverylowcomparetoInfosyswhichis877.4in2014.
1. InfosysLtdVs.Wipro:EarningsPerShare
Earnings per Share (EPS) of a business is the portion of its net income of a
period that can be attributed to each share of its common stock. Earnings
per share can be calculated by dividing net income of a period by the
number of common shares outstanding during the period. Companies are
required to show EPS with their income statement.
Formula
The formula to calculate earnings per share is:
Earnings per Share
(EPS) =

Net Income Dividends on Preferred Shares

Weighted Average Number of Common Shares
Outstanding

37

Earnings per share (Unadj.) (Rs)

INFOSYS LTD
WIPRO

2010 2011 2012 2013 2014

109.7 119.6 145.8 165.0 186.5
31.5
21.6
21.4
25.0
32.2

200
180
160
140
120
INFOSYS LTD

100

Column1

80
60
40
20
0
2010

2011

2012

2013

2014

this analysis is based on the earning per share of both the companies
in which Infosys ltd is continue growing from 2010 to 2014 with a
positive percentage but wipro is having fluctuation in every year in
earning per share ,wipro is 32.2 in 2014 which is very low compare to
Infosys which is 186.5 in 2014.

2. InfosysLtdVs.Wipro:CashFlowPerShare
Cash flow per share is a financial ratio that measures the operating cash
flows attributable to each share of common stock. It is a variation of the
earnings per share which substitutes net income with net cash flows from
operations. While net income is subject to management judgment and
38

discretion in choice of accounting policies and preparation of accounting

estimates, the net cash flows from operating activities is more concrete
figure, and potentially more reliable.

Formula:-

Cash flow per share

=

Cash Flows from Operating Activities Preferred

Dividends
Weighted Average Number of Shares

Cash flow per share (Unadj.) (Rs)

INFOSYS LTD
WIPRO

2010 2011 2012 2013 2014

125.5 134.6 162.1 184.2 209.5
36.7
24.8
25.4
28.8
36.5

250

200

150
INFOSYS LTD
Column1

100

50

0
2010

2011

2012

2013

2014

this analysis is based on the cash flow per share of both the
companies in which Infosys ltd is continue growing from 2010 to 2014
39

with a positive percentage but wipro is having fluctuation in every

year in cash flow per share ,wipro is 36.5 in 2014 which is lower than
2010 and very low compare to Infosys which is 209.5 in 2014.

3. InfosysLtdVs.Wipro:DividendsPerShare
Dividends per share shows the percentage of the profit earned by a public
company that is to be given to the shareholders. This amount is important to
both the shareholders and investors. Shareholders care about this figure
because dividends are one way they can gain a financial return after buying
shares in a company. Investors use this ratio as one method of analyzing the
financial capabilities of a company. Dividends per share only accounts for
dividends that are to be distributed regularly, rather than one-time payments
to shareholders.
Formula: Dividends Per Share = Dividends Paid / Number of Shares

Dividends per share (Unadj.) (Rs)

INFOSYS LTD
WIPRO

2010 2011 2012 2013 2014

25.00 60.00 47.00 42.00 63.00
6.00
6.00
6.00
7.00
8.00

40

70
60
50
40
INFOSYS LTD
Column1

30
20
10
0
2010

2011

2012

2013

2014

this analysis is based on the dividend per share of both the

companies in which Infosys ltd is having fluctuating but positive
percentage in growth , wipro is having positive but stagnant growth
which is 8.00 in 2014 which is very low compare to Infosys which is
63.00 in 2014.
4. InfosysLtdVs.Wipro:DividendYield
Dividend yield is the ratio of dividend per share to current share price. It is a
measure of what percentage an investor is earning in the form of dividends.
Formula:Dividend Yield =

Dividend per Share

Current Share Price

Dividend yield = dividend per share/current Share Price

Dividend yield (eoy) (%)
INFOSYS LTD
WIPRO

2010
1.2
1.2

41

2011
2.0
1.4

2012
1.7
1.5

2013
1.6
1.9

2014
2.1
1.7

2.5
2
1.5
INFOSYS LTD

Column1

0.5
0
2010

2011

2012

2013

2014

Dividend yield of both the companies is same in 2010,from 2011

infosys have huge growth compare to wipro but wipro also increasing
positively but it has loss in 2014.
5. InfosysLtdVs.Wipro:BookValuePerShare
The book value per share is the value each share would be worth if the
company were to be liquidated, all the bills paid, and the assets distributed.
It is calculated by the company as shareholders' equity (book value) divided
by number of shares outstanding.
Formula:The Book Value Per Share calculation formula is as following:
Book Value Per Share = Total owners' equity / Number of shares outstanding

Book value per share (Unadj.) (Rs)

INFOSYS LTD
WIPRO

42

2010 2011 2012 2013 2014

403.4 454.6 548.3 664.9 779.3
124.3 91.7 110.0 107.9 130.4

900
800
700
600
500

INFOSYS LTD

400

Column1

300
200
100
0
2010

2011

2012

2013

2014

this analysis is based on the book value per share of both the
companies in which Infosys ltd is continue growing from 2010 to 2014
with a huge percentage but wipro is having fluctuation in every year
in book value per share ,wipro is 130.4 in 2014 which is very low
compare to Infosys which is 779.3 in 2014.
6. InfosysLtdVs.Wipro:NetSales
Net sales is total revenue, less the cost of sales returns, allowances, and
discounts. This is the primary sales figure reviewed by analysts when they
examine the income statement of a business.
Formula: Net Sales = Gross Sales - Sales of Returns and Allowance
Net Sales (Rs m)
INFOSYS LTD
WIPRO

2010
227,420
272,129

2011
275,010
310,385

43

2012
337,340
371,878

2013
403,520
374,300

2014
501,330
434,238

600000
500000
400000
INFOSYS LTD

300000

WIPRO
Column1

200000
100000
0
2010

2011

2012

2013

2014

From 2010 to 2012 wipro has huge growth compare to Infosys but
after 2012 infosys left wipro and in 2014 infosys has 501,330 (net
sales) and wipro has 434238.

7. InfosysLtdVs.Wipro:GrossProfit
gross profit is the amount of revenue that a company brings in before
subtracting the expenses associated with that revenue. It is reported on the
classified income statement. It's different from operating profit, which is
actually gross profit minus operating expenses. It's also different from net
profit, which is operating profit minus taxes and interest.
In order to calculate gross profit, you must have two important figures. First,
you must have the dollar amount of net sales for a given time period.
Second, you must have the dollar amount for cost of goods sold (COGS). The
formula for calculating gross profit is:

Gross Profit = Net Sales - Cost of Goods Sold

44

Gross profit (Rs m)

INFOSYS LTD
WIPRO

2010
78,790
60,057

2011
89,680
65,077

2012
107,230
70,322

2013
115,330
76,574

2014
133,810
96,352

160000
140000
120000
100000
INFOSYS LTD

80000

Column1
60000
40000
20000
0
2010

2011

2012

2013

2014

Gross profit of both companies has huge growth every year from
2010 to 2014.
8. InfosysLtdVs.Wipro:CurrentRatio
The current ratio is a financial ratio that investors and analysts use to
examine the liquidity of a company and its ability to pay short-term liabilities
(debt and payables) with its short-term assets (cash, inventory, receivables).
The current ratio is calculated by dividing current assets by current liabilities:
Current ratio = current assets / current liabilities

Current ratio (x)

INFOSYS LTD

2010

2011

2012

2013

2014

4.1

4.6

4.4

4.4

3.6

45

WIPRO

2.3

1.9

2.0

1.8

2.2

5
4.5
4
3.5
3
INFOSYS LTD

2.5

Column1

2
1.5
1
0.5
0
2010

2011

2012

2013

2014

current ratio of Infosys is continuously increasing which is not good

because 2:1 is ideal ratio but wipro has good current ratio compare to
Infosys ltd.
9. InfosysLtdVs.Wipro:TotalAssets
Total assets (Rs m)
INFOSYS LTD
WIPRO

2010
273,040
325,829

2011
364,620
368,162

46

2012
380,920
432,141

2013
463,310
436,739

2014
569,660
496,882

600000
500000
400000
INFOSIS LTD

300000

WIPRO
Column1

200000
100000
0
2010

2011

2012

2013

2014

Wipro has more total asset in 2010 compare to infosys and has huge
increase in asset from 2010 to 2012 after that Infosys has more
assets compare to wipro till 2014.

47

FINDINGS

48

FINDINGS

1. Infosys and wipro both the companies is the growing known I.T companies
in india.
2. Both companies doing well in the I.T sector in india .
3. Both the companies are having their own respective share in the market .
4. Both the companies are growing with the faster rate .
5. Both the companies providing services to the other countries .
6. Infosys and wipro are the riwalry companies.
7. After the studies it has been found out that Infosys is doing better
compare to wipro.
8. Infosys having faster growth rate, market share , profitability than wipro.

49

LIMITATIONS

50

Limitations of Study

The study is constrained to only the comparison of Infosys and wipro.

The study was based on secondary data of past financial years so
there is no primary data is used.
In a rapidly changing industry, analysis on one day or in one segment
can change very quickly. The environmental changes are vital to be
considered in order to assimilate the findings.
The conclusion arrived at are based on a very less experience of
researcher in this field.

51

Only past performance data of the companies is used in the study

there is no fresh data is involved.

52

CONCLUSION

CONCLUSION

53

As growth of IT industries gets attention from every corner - investors, jobseekers, government, competitors etc., everyone would want the financial
analysis of the companies for various purposes.
From the above financial analysis of infosys and Wipro with respect to ratio
analysis, the vision is clear about the current and future financial health of
infosys and Wipro. The current and future financial health of infosys is better
than that of Wipro.
Employees and job-seekers have a good future and opportunities of growth
and development with Infosys.
1.
2.
3.
4.

ThereisacomparisonoftheperformanceoftwoI.Tcompanies.
Dataofpastyearsisusedtoanalyseandinterpret.
Onlylimitedfindingisevaluatedduetosecondarydatacollection.
Both the companies is doing well in their respective field and satisfying
the need of the customers.

54

BIBLIOGRAPHY

BIBLIOGRAPHY

References:1.Kothari, C. R. .Research Methodology. (third. edition 2007) published by. new

age

international (P) ltd

2. Double Entry Book keeping, Class XI by T.S.Grewal.
3. Elements of Book Keeping For Class 11: CBSE by Mohan Juneja C, Arora J S,
Chawla R C.
4. Comprehensive Financial Accounting XI by S. A. Siddiqui, A. S. Siddiqui.

55

5. Fundamental of Financial Management by Prof. Nirmal Jain.

Webliography:
1.www.wipro.com
2.www.infosys.com
3. www.google.com
4. www.subscibd.com
5.www.moneycontrol.com

56

57