4QFY2012 Result Update | IT

April 25, 2012

Wipro
Performance Highlights
(` cr) Net revenue EBITDA EBITDA margin (%) PAT 4QFY12 9,869 1,961 19.9 1,481 3QFY12 9,997 1,984 19.8 1,456 % chg (qoq) (1.3) (1.2) 2bp 1.7 4QFY11 8,302 1,707 20.6 1,375 % chg (yoy) 18.9 14.9 (69)bp 7.7

NEUTRAL
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 100,630 0.8 472/310 126,707 2 17,151 5,202 WIPR.BO WPRO@IN

`410 -

Source: Company, Angel Research

For 4QFY2012, Wipros results came in-line with our expectations. The companys client base increased to seven in the US100mn+ bracket at the end of FY2012 from three in FY2011, which was a positive sign. The major disappointment came from managements 1QFY2013 USD revenue growth guidance of -1 to 1%, which is very sluggish as 1Q is typically a good quarter for IT companies. This guidance indicates that management is seeing further delays in deal closures and ramp-up of projects. We recommend Neutral on the stock. Quarterly highlights: For 4QFY2012, Wipro registered a 1.3% qoq decline in its revenue to `9,869cr. Revenue from the IT services segment came in at US$1,536mn, up 2.0% qoq. Revenue from the consumer care and lighting segment grew strongly by 25.2% yoy, while the IT products segment reported merely 2.9% yoy revenue growth. EBIT margin of the IT services, IT products and consumer care and lighting business declined by 8bp, 60bp and 61bp qoq to 20.7%, 4.7% and 12.5%, respectively. Wipros overall EBIT margin declined by 8bp qoq to 17.2%. Outlook and valuation: For 1QFY2013, Wipro has given USD revenue guidance of US$1,520mn-1,550mn, which translates into qoq growth of -1 to 1% qoq, which is extremely subdued. Now, managements endeavor is to grow at par with industrys average revenue growth for FY2013. Nasscom has guided for 11-14% yoy USD revenue growth for FY2013 to achieve this Wipro needs to record at least 3.5% qoq USD revenue growth post 1QFY2013. This number indicates that management is banking more on back-ended growth for FY2013, which makes us slightly cautious about the companys growth outlook. We expect USD and INR revenue CAGR for IT services to be at 10.3% and 11.0%, respectively, over FY2012-14E. We expect EBIT margin of the IT services segment to slide down to 20.2% in FY2013 from 20.8% in FY2012. We expect a 12.1% and 12.3% CAGR in EBITDA and PAT, respectively, over FY2012-14E. We value the stock at 15x FY2014E EPS of `28.6, which gives us a target price of `430. We recommend Neutral on the stock.

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 0.4

1yr (12.4)

3yr 51.4

(2.0) (11.9) 119.2

Key financials (Consolidated, IFRS)

Y/E March (` cr) Net sales % chg Net profit % chg EBITDA margin (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x) FY2010* 27,124 6.2 4,594 18.5 21.9 18.9 21.7 4.6 23.4 15.6 3.4 15.7 FY2011 31,099 14.7 5,297 15.3 21.2 21.7 18.9 4.2 22.0 15.5 2.9 13.9 FY2012 37,525 20.7 5,573 5.2 19.8 22.7 18.1 3.5 19.5 14.7 2.4 12.3 FY2013E 41,918 11.7 6,152 10.4 19.4 25.1 16.4 3.0 18.6 13.9 2.1 10.6 FY2014E 46,879 11.8 7,030 14.3 19.9 28.6 14.3 2.6 18.3 13.9 1.7 8.6

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

Source: Company, Angel Research; Note: *Adjusted for 2:3 bonus

Please refer to important disclosures at the end of this report

Wipro | 4QFY2012 Result Update

Exhibit 1: 4QFY2012 performance (Consolidated, IFRS)

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

4QFY12 9,869 6,580 3,289 1,328 1,961 267 1,694 198 1,893 402 1,491 10 1,481 6.0 33.3 19.9 17.2 17.0

3QFY12 9,997 6,710 3,287 1,303 1,984 260 1,724 113 1,849 381 1,468 11 1,456 5.9 32.9 19.8 17.2 15.7

% chg (qoq) (1.3) (1.9) 0.1 1.9 (1.2) 2.5 (1.7) 2.4 5.4 1.6 (9.6) 1.7 1.7 44bp 2bp (8)bp 131bp

4QFY11 8,302 5,512 2,790 1,083 1,707 228 1,479 149 1,642 260 1,381 6 1,375 5.6 33.6 20.6 17.8 16.6

% chg (yoy) 18.9 19.4 17.9 22.6 14.9 17.0 14.6 15.3 54.2 7.9 74.6 7.7 7.7 (28)bp (69)bp (64)bp 37bp

FY2012 37,525 25,304 12,220 4,806 7,414 1,013 6,401 541 6,975 1,376 5,599 26 5,573 22.7 32.6 19.8 17.1 16.3

FY2011 31,099 20,464 10,635 4,047 6,588 821 5,767 472 6,303 971 5,332 35 5,297 21.7 34.2 21.2 18.5 18.6

% chg (yoy) 20.7 23.7 14.9 18.8 12.5 23.4 11.0 10.7 41.7 5.0 (25.8) 5.2 4.7 (163)bp (143)bp (149)bp (226)bp

Exhibit 2: 4QFY2012 Actual vs. Angel estimates

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

Actual 9,869 19.9 1,481

Estimate 10,125 19.9 1,522

Variation (%) (2.5) (1)bp (2.7)

Results in-line but guidance muted

For 4QFY2012, Wipros IT services revenue came largely in-line with expectations at US$1,536mn, up 2.0% qoq, primarily led by 0.8% qoq volume growth in global IT services and 1.1% qoq (constant currency basis) offshore pricing growth. In constant currency (CC) terms, onsite pricing was flat on a qoq basis. Volume growth of 0.8% qoq in global IT services came on the back of 1.1% offshore volume growth and 0.2% onsite volume growth. In CC terms, the IT service segments revenue grew by 1.3% qoq to US$1,525mn. In INR terms, revenue of the IT services segment came in at `7,590cr, down 0.2%, impacted by INR appreciation against USD.

April 25, 2012

Wipro | 4QFY2012 Result Update

Exhibit 3: Volume trend (Effort wise)

10 8 6 5.8 4.7 9.0

(%)
4 2.8 2 0 (2) Onsite
Source: Company, Angel Research

2.0 0.2 1QFY12 2QFY12 1.5 3QFY12 Offshore 1.1 0.2 4QFY12

(0.4) 4QFY11

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

6 4.3 4 2 0.9 0.4 (0.4) (1.2) (1.7) (4.1) 3.6 1.1 -

(%)

0 (2) (4) (6)

4QFY11

1QFY12

2QFY12 Onsite Offshore

3QFY12

4QFY12

Source: Company, Angel Research

Service wise, Wipros anchor service lines, business application services (contributed 30.6% to revenue), application development and maintenance (ADM) (contributed 23.6% to revenue) and technology infrastructure services (contributed 22.6% to revenue) posted 1.3%, 0.7% and 6.4% qoq growth in revenue, respectively. In addition, analytics and information management services posted modest 5.4% qoq growth in revenue. However, revenue from other service verticals such as BPO and product engineering and mobility declined by 2.0% and 1.5% qoq, respectively. Service vertical wise, the company is now witnessing traction from deals related to application management, application support, infrastructure services and BPO. Revenue from BPO services has been declining since the last three quarters and management indicated that revenue from BPO is expected to come back to the growth path in the next couple of quarters.

April 25, 2012

Wipro | 4QFY2012 Result Update

Exhibit 5: Revenue growth (Service wise)

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

% to revenue 22.6 6.8 30.6 8.2 8.2 23.6 12.0 2.9

% growth (qoq) % growth (yoy) 6.4 5.4 1.3 (2.0) (1.5) 0.7 (2.9) (1.1) 14.7 24.9 13.0 (8.4) 8.5 5.1 1.3 0.3

Industry wise, Wipros growth was led by retail and transportation (contributed 15.4% to revenue) and energy and utilities (contributed 14.0% to revenue), which reported revenue growth of 5.2% and 5.1% qoq (CC terms), respectively. Revenue from the companys anchor vertical, financial services (contributed 26.6% to revenue) reported a 1.1% qoq decline (CC terms) due to challenges and delays seen from investment banking and insurance firms. Revenue from healthcare, life sciences and services (contributed 10.0% to revenue) and manufacturing and hi-tech (contributed 19.1% to revenue) grew by 1.7% and 2.4% qoq (CC terms), respectively. Management indicated that equipment manufacturers space in the telecom industry is still challenged in terms of IT spend; service provider companies, especially small companies, are looking for new opportunities in Europe and Asia Pacific. Other than telecom, management indicated that the deal pipeline in financial services and healthcare looks promising.

Exhibit 6: Revenue growth (Service wise CC basis)

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

% growth (qoq) (2.9) (1.1) 2.4 1.7 5.2 5.1

% growth (yoy) (2.8) 10.5 8.2 6.7 10.2 50.4

14.9 26.6 19.1 10.0 15.4 14.0

Geography wise, Wipro reported revenue growth across all its geographies, except Japan. Revenue from APAC and other emerging markets grew by 6.2% qoq (CC terms). Revenue from America and India and Middle East posted 1.0% and 4.1% qoq (CC terms) growth, respectively.

April 25, 2012

Wipro | 4QFY2012 Result Update

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

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

% growth (qoq) 1.0 0.4 (16.7) 4.1 6.2

% growth (yoy) 6.1 11.3 (21.3) 27.7 36.3

52.1 27.7 1.1 9.6 9.5

Segmental performance
During the quarter, the IT services segments revenue came in at US$1,536mn, up 2.0% qoq, with India and Middle East business being the major growth driver, posting 6.4% qoq growth. Revenue from global IT services came in at US$1,159mn, up 1.5% qoq, while revenue from BPO services declined by 1.6% qoq to US$126mn.

Exhibit 8: IT services Revenue growth (qoq)

12 8 4 0 4QFY11 (4) (8) Global IT
Source: Company, Angel Research

9.8 7.7 4.2 7.5 6.4 4.7 2.3 0.5 1QFY12 (4.4) (4.6) India and Middle East (1.0) 2QFY12 4.6 4.3 2.2 1.5 (1.2) 3QFY12 4QFY12 (1.6) 2.0

(%)

2.7

(5.0) BPO IT services

Exhibit 9: Global IT services revenue trend

7 6 5 4.6 4.2 1.9 1.8 0.5 4QFY11 1QFY12 2QFY12 2.2 1.8 0.8 3QFY12 4QFY12 2.0 6.0

(%)

4 3 2 1 0

Global IT volume growth

Source: Company, Angel Research

IT services revenue growth (in USD)

April 25, 2012

Wipro | 4QFY2012 Result Update

The IT products segment reported merely 2.9% yoy growth in revenue to `937cr during the quarter. The consumer care and lighting segment posted another strong quarter with 25.2% yoy growth in revenue to `907cr, with brands like Yardley, Santoor and Chandrika bolstering growth. In the lighting business, Wipro is gaining traction in its eco-energy business, which involves managing energy through the use of renewable products.

Exhibit 10: IT products Revenue growth (yoy)

1,200 1,100 1,000 2.3 900 800 700 4QFY11 1QFY12 IT products
Source: Company, Angel Research

25 20.9 15 1,006 911 (6.4) 1,001

(` cr)

2.4 900

2.9 937

(5)

(15) 2QFY12 3QFY12 yoy growth (%) 4QFY12

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

950 900 850 879 800 724 19.1 755 17.6 20.3 26.4 907 29 27 25.2 25 23 21 19 17 15 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 Consumer care and lightening
Source: Company, Angel Research

(` cr)

800 750 700 650 600

yoy growth (%)

On a consolidated level, Wipros revenue came in at `9,869cr, down 1.3% qoq.

Hiring and utilization

Wipro reported net reduction of 814 employees in its IT services employee base, which was a negative surprise with its employee base now standing at 135,920. Management attributed this to the transition going on in the company, which is leading to people shifting offshore. Gross hiring during the quarter was healthy at ~7,000. Voluntary attritions (annualized) in global IT business increased slightly to 14.4% in 4QFY2012 from 14.2% in 3QFY2012. Also, attrition rate (quarterly) in BPO increased to 15.1% in 4QFY2012 from 13.9% in 3QFY2012.
April 25, 2012

(%)

(%)

Wipro | 4QFY2012 Result Update

Exhibit 12: Employee pyramid

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

4QFY11 68.9 20.9 15.5 2,894

1QFY12 69.7 23.2 15.3 4,105

2QFY12 69.3 18.5 14.1 5,240

3QFY12 67.1 14.2 13.9 5,004

4QFY12 67.4 14.4 15.1 (814)

Utilization rate of the global IT business improved slightly by 30bp qoq to 67.4%. As per management, of the total hiring to be done in FY2012, ~70% was of freshers, which in turn did not give utilization level much headroom to scale up. Going ahead, increased utilization level will be an important margin lever.

Margins decline slightly

During 4QFY2012, Wipro reported a decline in EBIT margin across all its business segments. EBIT margin of the IT services segment declined slightly by 8bp qoq to 20.7%. EBIT margin of the IT products business segment and consumer care and lighting business segment declined by 60bp and 61bp qoq to 4.7% and 12.5%, respectively. On a consolidated level, Wipros EBIT declined by 8bp qoq to 17.2%.

Exhibit 13: Segment-wise EBIT margin trend

25 20 15
(%)

22.1

22.0 20.0 17.8 17.5 11.9 16.4 11.0

20.8 17.2 11.9

20.7 17.2 12.5

12.0

10 5 0 4QFY11 IT services 1QFY12 IT products 3.6 4.2

4.5

5.3

4.7

2QFY12

3QFY12

4QFY12 Consolidated

Consumer care and lightening

Source: Company, Angel Research

Client pyramid
Wipro added 41 new clients in 4QFY2012 but its active client base reduced to 943 in 4QFY2012 from 953 in 3QFY2012. The companys client pyramid witnessed qualitative improvement, with one client getting added in the US$100mn plus revenue bracket and one client in the US$75mn-100mn revenue bracket. Two clients from the US$10mn-20mn bracket moved to the US$20mn-50mn revenue bracket. The company witnessed addition of 11 clients in the US$5mn-10mn revenue bracket.

April 25, 2012

Wipro | 4QFY2012 Result Update

Exhibit 14: Client metrics

Particulars US$100mn plus US$75mn$100mn US$50mn$75mn US$20mn$50mn US$10mn$20mn US$5mn$10mn US$3mn$5mn US$1mn$3mn New clients Active customers
Source: Company, Angel Research

4QFY11 3 9 10 46 49 63 75 174 68 904

1QFY12 4 8 12 45 49 77 63 180 49 937

2QFY12 5 8 11 46 50 72 75 195 44 930

3QFY12 6 8 11 48 48 76 87 178 39 953

4QFY12 7 9 9 50 46 87 84 183 41 943

Outlook and valuation

As per management, the company witnessed pressure from clients in India business, which led to delays in project closures. For 1QFY2013, management has given USD revenue guidance of US$1,520mn-1,550mn, which translates into qoq growth of -1 to 1% qoq, which is extremely subdued. Now, managements endeavor is to grow at par with industrys average revenue growth in FY2013. Nasscom has guided for 11-14% yoy USD revenue growth for FY2013 to achieve this Wipro needs to record at least 3.5% qoq USD revenue growth post 1QFY2013. This number indicates that management is banking more on backended growth for FY2013, which makes us slightly cautious about the companys growth outlook. We expect USD and INR revenue CAGR for IT services to be at 10.3% and 11.0%, respectively over FY2012-14E. At the operating front, Wipro has tailwinds of improving utilization level and headwinds such as wage inflation and moderate volume growth, which are expected to pull down its margins to some extent. We expect EBIT margin of the IT services segment to slide down to 20.2% in FY2013 from 20.8% in FY2012. We expect a 12.1% and 12.3% CAGR in EBITDA and PAT over FY2012-14E. We value the stock at 15x FY2014E EPS of `28.6, which gives us a target price of `430. We recommend Neutral on the stock.

Exhibit 15: Key assumptions

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

FY2014 11.0 49.0 11.8 19.9 24.0 14.3

9.5 49.0 11.7 19.4 21.0 10.5

April 25, 2012

Wipro | 4QFY2012 Result Update

Exhibit 16: Change in estimates

FY2013E Parameter (` cr) Net revenue EBITDA Other income PBT Tax PAT Earlier estimates 43,249 8,507 960 8,327 1,665 6,641 Revised estimates 41,918 8,118 819 7,812 1,641 6,152 Variation (%) (3.1) (4.6) (14.7) (6.2) (1.5) (7.4) Earlier estimates 48,043 9,254 1,627 9,610 2,162 7,427 FY2014E Revised estimates 46,879 9,320 1,216 9,276 2,226 7,030 Variation (%) (2.4) 0.7 (25.2) (3.5) 3.0 (5.3)

Source: Company, Angel Research

Exhibit 17: One-year forward PE 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

Exhibit 18: Recommendation summary

Company HCL Tech Hexaware Infosys Infotech Enterprises KPIT Cummins Mahindra Satyam MindTree MphasiS NIIT Persistent TCS Tech Mahindra Wipro Reco. Accumulate Neutral Buy Accumulate Buy Buy Accumulate Buy Buy Neutral Accumulate Accumulate Neutral CMP (`) 508 130 2,349 159 83 74 548 356 45 354 1,172 688 410 Tgt. price (`) 560 2,792 177 98 89 585 433 61 1,276 750 Upside (%) 10.3 18.9 11.1 18.7 19.5 6.8 21.6 36.0 8.8 9.1 FY2014E EBITDA (%) 17.4 18.3 30.6 16.6 14.9 15.0 15.5 17.9 16.9 22.4 28.7 15.7 19.9 FY2014E P/E (x) 11.8 12.6 13.5 8.6 7.6 9.0 9.4 8.6 4.9 8.8 16.5 7.9 14.3 FY2011-14E EPS CAGR (%) 17.0 53.4 13.4 13.9 (1.4) 25.3 32.9 1.7 18.0 4.7 16.8 20.8 9.7 FY2014E RoCE (%) 20.4 24.1 22.8 16.9 20.0 11.4 19.8 14.1 11.5 17.0 28.8 12.9 13.9 FY2014E RoE (%) 21.3 21.6 20.8 13.2 18.0 13.0 17.0 13.7 19.0 14.5 27.7 18.0 18.3

Source: Company, Angel Research

April 25, 2012

Apr-12

Wipro | 4QFY2012 Result Update

Profit & Loss account (Consolidated, IFRS)

Y/E March (` cr) Net revenue Cost of revenues Gross profit % of net sales Selling and mktg exp. % of net sales General and admin exp. % of net sales Depreciation and amortization % of net sales EBIT % of net sales Other income, net Share in profits of eq. acc. ass. Profit before tax Provision for tax % of PBT PAT Share in earnings of associate Minority interest Adj. PAT Diluted EPS (`)
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 41,918 29,390 12,529 29.9 3,240 7.7 2,315 5.5 1,144 2.7 6,974 16.6 819 20 7,812 1,641 21.0 6,172 20 6,152 25.1

FY2014E 46,879 32,740 14,139 30.2 3,627 7.7 2,472 5.3 1,280 2.7 8,040 17.2 1,216 20 9,276 2,226 24.0 7,050 1 20 7,030 28.6

April 25, 2012

10

Wipro | 4QFY2012 Result Update

Balance sheet (Consolidated, IFRS)

Y/E March ( cr) Assets Goodwill Intangible assets Property, plant & equipment Investment in equ. acc. investees Derivative assets Non-current tax assets Deferred tax assets Other non-current assets Total non-current assets Inventories Trade receivables Other current assets Unbilled revenues Available for sale investments Current tax assets Derivative assets Cash and cash equivalents Total current assets Total assets Equity Share capital Share premium Retained earnings Share based payment reserve Other components of equity Shares held by controlled trust Equity attrib. to shareholders of Co. Minority interest Total equity Liabilities Long term loans and borrowings Deferred tax liability Derivative liabilities Non-current tax liability Other non-current liabilities Provisions Total non-current liabilities Loans and bank overdraft Trade payables Unearned revenues Current tax liabilities Derivative liabilities Other current liabilities Provisions Total current liabilities Total liabilities Total equity and liabilities
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 6,794 500 5,954 400 500 1,338 300 1,469 17,255 1,034 8,039 2,632 3,101 9,411 780 247 7,700 32,943 50,199 492 3,046 28,620 198 659 (54) 32,960 85 33,045 2,401 70 350 700 400 16 3937 3,978 5,636 750 780 635 1,220 216 13,216 17,153 50,199 6,794 500 5,875 400 500 1,234 300 1,477 17,079 1,156 8,990 2,700 3,468 12,799 800 250 10,421 40,584 57,663 492 3,046 33,928 198 659 (54) 38,268 85 38,353 2,551 80 370 850 450 15 4316 4,350 6,369 900 850 635 1,620 270 14,994 19,310 57,663

April 25, 2012

11

Wipro | 4QFY2012 Result Update

Cash flow statement (Consolidated, IFRS)

Y/E March (` cr) Pre tax profit from operations Depreciation Expenses (deferred)/written off Pre tax cash from operations Other income/prior period ad Net cash from operations Tax Cash profits (Inc)/dec in current assets Inc/(dec) in current liab. Net trade working capital Cashflow from oper. actv. (Inc)/dec in fixed assets (Inc)/dec in intangibles (Inc)/dec in investments (Inc)/dec in net def. tax assets (Inc)/dec in derivative assets (Inc)/dec in non-current tax asset (Inc)/dec in minority interest Inc/(dec) in other non-current liab (Inc)/dec in other non-current ast. Cashflow from investing activities Inc/(dec) in debt Inc/(dec) in equity/premium Dividends Cashflow from financing activities Cash generated/(utilized) Cash at start of the year Cash at end of the year
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 6,994 1,144 (20) 8,118 819 8,937 (1,641) 7,296 (447) 1,448 1,001 8,297 (1,200) (77) (5,291) (40) (154) (310) 572 (290) (6,791) 150 0 (1,723) (1,573) (67) 7,767 7,700

FY2014E 8,060 1,280 (20) 9,320 1,216 10,536 (2,226) 8,310 (1,531) 1,778 247 8,557 (1,200) (3,389) 104 229 (8) (4,263) 150 0 (1,723) (1,573) 2,721 7,700 10,421

April 25, 2012

12

Wipro | 4QFY2012 Result Update

Key Ratios
Y/E March Valuation ratio(x) P/E (on FDEPS) P/CEPS P/BVPS Dividend yield (%) EV/Sales EV/EBITDA EV/Total assets Per share data (`) EPS (Fully diluted) Cash EPS Dividend Book value DuPont analysis Tax retention ratio (PAT/PBT) Cost of debt (PBT/EBIT) EBIT margin (EBIT/Sales) Asset turnover ratio (Sales/Assets) Leverage ratio (Assets/Equity) Operating ROE Return ratios (%) RoCE (pre-tax) Angel RoIC RoE Turnover ratios (x) Asset turnover(fixed assets) Receivables days Payable days
Note: *Adjusted for 2:3 bonus

FY2010* 21.7 9.3 4.6 1.0 3.4 15.7 2.8 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 18.9 9.1 4.2 1.5 2.9 13.9 2.5 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 18.1 8.4 3.5 1.5 2.4 12.3 2.1 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 16.4 7.7 3.0 1.5 2.1 10.6 1.7 25.1 53.5 6.0 134.7 0.8 6.8 0.0 0.8 1.5 18.7 13.9 26.5 18.6 0.9 70 64

FY2014E 14.3 6.7 2.6 1.5 1.7 8.6 1.4 28.6 61.4 6.0 156.3 0.8 7.2 0.0 0.8 1.5 18.4 13.9 29.1 18.3 0.9 66 67

April 25, 2012

13

Wipro | 4QFY2012 Result Update

Research Team Tel: 022 - 3935 7800

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%)

April 25, 2012

14