Company analysis of wipro

JiveshPrajapati 2,058 views 61 slides Nov 04, 2018
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About This Presentation

The analysis is done on the basis of the Annual Report of the Company and other sites.


Slide Content

COMPANY ANALYSIS

1. COMPANY INFORMATION
❑Management Team
❑History
❑Background
❑Shareholding of promoter and promoter group
❑Listing in stock indices

❑MANAGEMENT TEAM
•Azim H Premji
(Chairman & Managing Director)
•M K Sharma
(Independent Director)
•Abidali Z Neemuchwala
(Executive Director & CEO)
•N Vaghul
(Independent Director)
•Ireena Vittal
(Independent Director)
•Patrick Dupuis
(Independent Director)
•Ashok S Ganguly
(Independent Director)
•Rishad Azim Premji
(Whole-time Director)
•Patrick J Ennis
(Independent Director)
•William Arthur Owens
(Independent Director)

•M Sanaulla Khan
(Company Secretary)
•Aneesh Garg
(Vice President)
•Deepak Jain
(Sr. Vice President & Head)
•Hariprasad Hegde
(Senior Vice President)
•Jatin Pravinchandra Dalal
(Chief Financial Officer)
•Narayanan Vaghul
(Independent Director)
•Patrick Dupuis
(Independent Director)
•Prasanna Gamma Kali
(President)
•Rajan Kohli
(Senior Vice President & Global Head)
•Sheetal Sharad Mehta
(Vice President)

❑HISTORY
•The company was incorporated on 29 December 1945 in Amalner, Maharashtra by
Mohamed Premji as 'Western India Vegetable Products Limited', later abbreviated
to 'Wipro’.
•It was initially set up as a manufacturer of vegetable andrefined oils inAmalner.
•In 1966, after Mohamed Premji’s death, his sonAzim Premjireturned home
fromStanford Universityand took over Wipro as itschairmanat the age of 21.
•During the 1970s and 1980s, the company shifted its focus to new business
opportunities in the IT and computing industry, which was at a nascent stage in
India at the time. On 7 June 1977, the name of the company changed from Western
India Vegetable Products Limited, to Wipro Products Limited.

•1966–1992
oIn 1988, Wipro diversified its product line into heavy-duty industrial cylinders and
mobile hydraulic cylinders.
oA joint venture company with the United States'General Electricin the name of
Wipro GE Medical Systems Pvt. Ltd. was set up in 1989.
oLater, in 1991, tipping systems and Eaton hydraulic products were launched.
oThe Wipro Fluid Power division, in 1992, developed expertise to offer standard
hydraulic cylinders for construction equipment and truck tipping systems.
oThe market saw the launch of the "Santoor" talcum powder and "Wipro Baby
Soft" range of baby toiletries in 1990.

•1994–2000
oIn 1995, Wipro set up an overseas design centre, Odyssey 21, for undertaking
projects and product developments in advanced technologies for overseas
clients.
oFive of Wipro's manufacturing and development facilities secured the ISO 9001
certification during 1994–95.
oIn 1999, Wipro acquired Wipro Acer.
oThe year 2000 was the year Wipro launched solutions for convergent networks
targeted at Internet and telecom solution providers in the names of Wipro OSS
Smart and Wipro WAP Smart.
oIn the same year, Wipro got listed onNew York Stock Exchange.

•2001–2010
oIn February 2002, Wipro became the firstsoftwaretechnology and services company in
India to be certified forISO 14001certification.
oWipro also achievedISO 9000certification to become the first software company to get
SEI People Capability Maturity Model (PCMM) Level 5 in 2002.
oWipro Consumer Care and Lighting Group entered the market ofcompact fluorescent
lamps, with the launch of a range of CFL, under the brand name of Wipro Smartlite. It
set up a wholly owned subsidiary company viz. Wipro Consumer Care Limited to
manufacture consumer care and lighting products.
oIn 2004 Wipro joined the billion dollar club.
oIn 2006 Wipro acquire cMango Inc., a US-based technology infrastructure Consulting
firmEnabler, and a Europe-based retail solutions provider.
oIn 2007, Wipro signed a large deal with Lockheed Martin and also signed an R&D
partnership contract with Nokia Siemens Networks in Germany.
oIn 2008 Wipro’s entered the clean energy business with Wipro Eco Energy.

•2011-2018
oApril 2011, Wipro signed an agreement withScience Applications International
Corporation(SAIC) for the acquisition of their global oil and gas information
technology practice, which was a part of SAIC's commercial business services
business unit.
oIn 2012 Wipro employed more than 70,000H-1B visaprofessional temporary
workers in the United States.
oIn 2014, Wipro signed a 10-year $1.2 billion contract withATCO, a Canadian
Energy & Utilities corporation based out ofCalgary, Alberta.
oOctober 2016, Wipro announced that it was buyingAppirio, anIndianapolis-
based cloud services company for $500 million.
oIn 2017, the company expanded its operations in London. In 2017, Wipro
Limited won a five-year IT infrastructure and applications managed services
engagement with Grameenphone (GP), a leading telecom operator in
Bangladesh (on August 16, 2017).

oIn 2018, the company began building software to help with theGeneral Data
Protection Regulation(GDPR) in Europe.
oIn March 2018, Wipro said it would be buying a third of Denim Group.
oIn April 2018, the company sold its stake in the airport IT services company JV.
oTo compete withHindustan UnileverandProcter & Gamble, in May 2018 Wipro
Consumer Care and Lighting announced it would increase Indian distribution of
its acquired personal care brands Enchanteur andYardley.
oOn May 3, 2018, it was announced that Wipro was opening manufacturing
locations inAndhra PradeshandGuangzhou.
oOn May 4, 2018, it was reported that Wipro's stock value had been decreasing.
oOn August 18,2018 it said thatHCLwould likely unseat Wipro that quarter as
the third largest Indian IT company, after TCS andInfosys.

BACKGROUND
Incorporation Year1945
Registered Office
Doddakannelli, Sarjapur Road,
Bangalore,
Karnataka -560035
Telephone 91-80-28440011
Fax 91-80-28440256
Chairman Azim H Premji
Managing DirectorAzim H Premji
Company SecretaryM Sanaulla Khan
Auditor Deloitte Haskins & Sells LLP
Face Value 2
Market Lot 1
Listing
Bombay Stock Exchange (BSE)
National Stock Exchange (NSE)
New York Stock Exchange (NYSE)
Metropolitan Stock Exchange of India (MSEI)
Registrar
Karvy Computershare Pvt Ltd
Karvy Selenium Tow-B, PL-31&32 Gachibowli,
Nanakramguda, Hyderabad -500032

❑SHAREHOLDING OF PROMOTER AND PROMOTER GROUP
Holder’s Name No. of Shares % Share Holding
Promoters 3361997805 74.31%
Foreign Institutions 394581758 8.72%
General Public 234019074 5.17%
Financial Institutions 197206393 4.36%
Others 189899389 4.2%
National Banks Mutual
Funds
124051205 2.74%
Global Depository Receipt 22239823 0.49%

Category & Name of the
Shareholders
No. of shareholderNo. of fully paid up
equity shares held
Total no. shares heldShareholding as a % of total no. of
shares (calculated as per SCRR, 1957)
As a % of (A+B+C2)
No. (a)As a % of
total Shares
held(b)
Number of equity
shares held in
dematerialized form
Indian 10 3361997805 3361997805 74.32 0 0.00 3361997805
Individuals/Hindu
undivided family
4 190838864 190838864 4.22 0 0.00 190838864
AZIM H PREMJI 1 186810200 186810200 4.13 0 0.00 186810200
YASMEEN A PREMJI 1 2125332 2125332 0.05 0 0.00 2125332
TARIQ AZIM PREMJI 1 530000 530000 0.01 0 0.00 530000
RISHAD AZIM PREMJI 1 1373332 1373332 0.03 0 0.00 1373332
Any Other (specify) 6 3171158941 3171158941 70.10 0 0.00 3171158941
MR AZIM HASHAM PREMJI
PARTNER REPRESENTING
PRAZIM TRADERS
1 890813582 890813582 19.69 0 0.00 890813582
MR AZIM HASHAM PREMJI
PARTNER REPRESENTING
HASHAM TRADERS
1 741912000 741912000 16.40 0 0.00 741912000
HASHAM INVESTMENT
AND TRADING CO. PVT.
LTD.
1 1125996 1125996 0.02 0 0.00 1125996
AZIM PREMJI TRUST 1 618461626 618461626 13.67 0 0.00 618461626
AZIM PREMJI
PHILANTHROPIC
INITIATIVES PRIVATE
LIMITED
1 15606157 15606157 0.34 0 0.00 15606157
MR AZIM HASHAM PREMJI
PARTNER REPRESENTING
ZASH TRADERS
1 903239580 903239580 19.97 0 0.00 903239580
Foreign 0 0 0 0 0 0 0
Grand Total 10 3361997805 3361997805 74.32 0 0.00 3361997805

❑LISTING IN STOCK INDICES
oMCX-SX 40 Index
oNifty 100
oNifty 200
oNifty 50
oNifty 500
oNifty IT
oNifty LargeMidcap 250
oNifty Low Volatility 50
oNifty Quality 30
oNifty Services Sector
oNifty100 Equal Weight
oNifty50 USD
oNifty50 Value 20
oS&P BSE 100 (100largest and most liquid
Indian companies)
oS&P BSE 100 ESG Index (similar to
theS&P BSE100)
oS&P BSE 200 (free float weighted index
of200companies)
oS&P BSE 250 LargeMidCap Index
oS&P BSE 500 (consists of500of the
largest, most liquid Indian stocks trading at
theBSE)
oS&P BSE AllCap (is a comprehensive,
rules-based index that seeks to measure
the performance of the Indian stock
market.)
oS&P BSE Carbonex
•Listing in stock indices

oS&P BSE Dollex –100 (is designed to
measure the performance of
the100largest and most liquid Indian
companies within theS&P
BSELargeMidCap.)
oS&P BSE Dollex -200
oS&P BSE Dollex -30
oS&P BSE Information Technology
oS&P BSE LargeCap
oS&P BSE LargeMidCap
oS&P BSE Sensex
oS&P BSE Sensex 50
oS&P BSE TASIS Shariah 50
oS&P BSE TECk
•Listed On
oBangalore Stock Exchange Ltd.
oCalcutta Stock Exchange Association Ltd.
oCochin Stock Exchange Ltd.
oDelhi Stock Exchange Assoc. Ltd.
oHyderabad Stock Exchange Ltd
oInter-connected Stock Exchange of India
oMadras Stock Exchange Ltd
oMCX Stock Exchange
oNational Stock Exchange of India Ltd.
oOver The Counter Exchange Of India Ltd.
oThe Stock Exchange, Ahmedabad
oThe Stock Exchange, Mumbai

2. COMPANY’S FINANCIAL
PERFORMANCE
❑Sales Turnover = Demand for the Product = TR
❑Net Profit
❑Total Assets
❑Total Liabilities
❑Percentage Change in Profit
❑Market Share
❑Current Market Capitalization and
❑Stock Performance

ANALYSIS OF COMPANY’S LAST TWO YEARS
PERFORMANCE
❑Sales Turnover = Demand for the Product = TR

❑TOTAL ASSETS

❑TOTAL LIABILITIES

❑PERCENTAGE CHANGE IN PROFIT
STANDALONE STATEMENT CONSOLIDATED STATEMENT
( ₹ in millions) ( ₹ in millions)
Year ended Year ended
March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017
Total Profit 77,228 81,617 80,031 85,179
=
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Total Profit = -5.68 = -6.43

❑MARKET SHARE
•BOMBAY STOCK EXCHANGE (BSE)

•NATIONAL STOCK EXCHANGE (NSE)

•FUTURES

•OPTIONS

❑CURRENT MARKET CAPITALIZATION

❑STOCK PERFORMANCE

Stock performance (cont.)

3. DEMAND ESTIMATION AND FORECASTING:
TREND LINE AND REGRESSION
❑Calculate or estimate ‘α’ and ‘β’.
❑Interpret ‘α’ and ‘β’.
❑Forecast ‘α’ and ‘β’ for 2019 and 2020.

❑CALCULATION OR ESTIMATION OF ‘α’ and ‘β’
(₹ in crores)


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❑INTERPRETATION OF ‘α’ and ‘β’
•Estimation:
This regression line indicates that the with zero immediate initial period
(X = 0), the expected sales revenue of the firm (Y =) is₹��,���.���crores.
With the sales revenue of the first year (i.e., with X =1)
On the other hand, X =10
Plotting these two points (1 , 21,594.775) and (10 , 48,532.565) and joining them by a
straight line, we obtain the regression line.
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෡�
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❑FORECASTING ‘α’ and ‘β’ for 2019 & 2020
•In 2019;
The estimated regression line could also be used to estimate that the firm’s
sales revenue with for year in 2019 would be;
•In 2020;
Plotting these two point (11 , 51,525.655) and (12 , 54,518.745) and joining them by a
straight line, we obtain the regression line.
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4. COMPARATIVE ANALYSIS
❑Sales Turnover
❑Net Profit
❑Total Assets
❑Total Liabilities
❑Percentage Change in Profit
❑Market Share
❑Current Market Capitalization
❑Stock Performance

❑SALES TURNOVER

❑NET PROFIT

❑TOTAL ASSETS

❑TOTAL LIABILITIES

❑PERCENTAGE
CHANGE IN PROFIT

❑MARKET SHARE

❑CURRENT MARKET CAPITALIZATION

❑STOCK PERFORMANCE

5. MARKETING
❑Products of the company
oWestern India Products Limited :
•Wipro Limited is a global provider of comprehensive IT solutions and services, including
Systems Integration, Consulting, Information Systems outsourcing, IT-enabled services,
R&D services.
•Wipro entered into the technology business in 1981 and has over 140,000 employees and
clients across 54 countriesIT revenues were at $7.1 billion for the year ended 31 March
2015, with a repeat business ratio of over 95%.
oWipro Consumer Care & Lighting :
•Wipro Consumer Care and Lighting (WCCLG), a business unit of Wipro Limited operates in
the FMCG segment dealing in consumable commodities.
•Established in 1945, its first product was vegetable oil, later sold under the brand name
"Sunflower Vanaspati".
•It sells personal care products, such as Wipro Baby Soft and Wipro Safewash, toilet soaps
Santoor and Chandrika as well asYardleyIt sells lighting products, including Smartlite
CFLLED, and emergency lights.

oWipro 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.
•This division delivers hydraulic cylinders to international OEMs and represents the
Kawasaki, Sun Hydraulicsand Teijin Seiki range of hydraulic products in India.
oWipro GE Medical Systems :
•Wipro GE Medical Systems Limited is Wipro’s 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.
•Today includes gadgets and equipment for diagnostics, healthcare IT solutions and
services to help healthcare professionals combat cancer, heart disease, and other
ailments.

❑Stronger Brand
•The Wipro logo is a bold and dynamic signature that proudly headlines the vision they pursue
for their company and all those they serve.
•Embodying the essence of our brand, it evokes much of what we believe and stand for.
•Its styling captures the sense of fluidity, resourcefulness, optimism and creativity with which
they approach.
•The simplicity and elegance of the mark signal a keen intellect, one that is completely in sync
with the world around itself –vibrant, aware and forward looking.
•Building on the universal form of the circle, the radiating rings of dots around the name Wipro
suggest all the many connections that our brand creates for our customers.
•Together, they convey a sense of outward motion, propelling us into the future that they define
together.
•The colors of our brandmark also speak to our character –highlighting our reliability and
authority.
•The multi-colored dots convey a dynamic energy and optimism. With the simple strength of the
Wipro wordmark and the evocative interplay of form and color, the elements of our logo unite
to suggest the new world of connections that Wipro champions.
•With our identity, we offer an invitation to others to join us in a future that’s better and bolder –
and even more beautiful –than what has ever been imagined.

❑Price Competition
Even If WIPRO increases it’s market price it will easily survive in the market, as the price of
WIPRO Ltd. is very less as compared to other companies.

❑Products/Service Differentiation
•Wipro’s depth and breadth in IT Infrastructure and Cloud technologies make us the
preferred partner in many of our client’s digital transformation.
•Our investment in proprietary tools and technologies, a comprehensive partner
ecosystem, skills in emerging technologies like software-defined everything, opensource,
DevOps, IoT etc. ensure that we are a one stop shop for all Cloud and IT infrastructure
needs.
•Wipro’s Cloud and infrastructure services takes operational efficiency to a new level
though HOLMES™, our cognitive automation platform.
•When it comes to customer experience design, it is effective engagement that can steer
the journey from effort to positive emotion.
•Taking a customer from'feeling the need to interact'with an organization to‘feeling
overwhelmingly positive about the interaction’requires the enterprise to think about the
customer experience from the perspective of the customer and not from that of the
enterprise.
•However, most organizations have traditionally been centred around internal departments,
and not around the customer’s intuitive needs. It is time for customer engagement to go
from being a hygiene requirement to a point of differentiation for the enterprise.

❑Customer Service
•Wipro’s intelligent customer service solution guides agents to proactively optimize
customer contact.
•The solution uses our pre-integrated, ready-to-deployNext-Gen Contact Center
(NGCC).
•NGCC’s analytics-based core engine assimilates customer profiles, preferences,
shopping history and social media interactions to provide agents with a single view of
the customer and supportive next best action.
•In an environment where customers want to be heard, engaged and delighted by their
favorite brands, Wipro provides retail clients with the ability to initiate and maintain
meaningful real-time conversations with end customers.
•Our team of domain experts provides strategies for customer and product attribute
management, pricing and promotions, assortment planning and merchandize execution
aligned with customer needs.

❑NON PRICE COMPETITION OR PROMOTION
•Wipro “Applying Thought” program in Schools
The Wipro “Applying Thought” program in Schools had been an initiative to improve the
Quality of the Education system in India. It worked with Teachers, Principals, Parents,
Educationists, NGOs and other education bodies to bring about this change. The program
was initiated in May 2001 with 100 teachers from 5 schools in Bangalore. Over the next
two and half years, it reached more than 2100 teachers and principals from 100 schools in
13 cities.
The Wipro “Applying Thought” program in Schools initiative had the following programs
running across India:
Education Leadership Program: The objectives of the Program were as follows:
oCapacity building of educators in leadership roles
oTo build leadership, instructional & organizational competence to enable participants
to identify and address the needs of their institution
oTo empower leaders to create a facilitative environment & lead the change
processes in their institution

Teacher Program: The Teacher Program helped empower the teacher with
perspective and tools necessary to initiate change. Spread over 2 academic years,
the Teacher Program was a mix of dedicated modules and on-the-job support for
teacher effectiveness.
Parents Program:The Parents Program was an integral part of The Wipro
“Applying Thought” in schools initiative. It aimed to help parents be involved in the
education of their children and play a proactive role in terms of shaping how the child
grew up. The parent modules aimed towards parents who were:
oInformed about the latest developments in the field of education and the
changes happening in the school as a result of the Wipro Applying Thought in
Schools Program.
oInspired to effectively participate in the education and comprehensive
development of their children.
oEmpowered with a variety of simple hands-on strategies and techniques so that
they are able to foster learning at home.

6. TECHNOLOGY
•Wipro delivers winning business outcomes through its deep industry experience and a 360-
degree view of "Business through Technology" –helping clients create successful and
adaptive businesses.
•Social, Mobility, Cloud, and Analytics are changing the course of business strategies across
sectors.
•A successful organization requires better business and IT alignment, improved
organizational agility and optimization of IT costs.
•We ideate, incubate and deliver next-generation technologies such as analytics, mobility,
collaboration, cloud, IOT and augmented reality, to help you achieve improved productivity
and operational efficiencies.
Software-Defined Everything (SDE)
As IT finds its way into practically every aspect of an organization's functions, the scale of IT
and IT infrastructure is changing.
Software-Defined Everything (SDE) networks running on virtualization techniques have the
potential to provide completely virtualized IT systems.

SDE marks the intersection of computing infrastructure and virtualization, harnessing power of
next gen delivery models to intelligently manage and control networking, storage and data
center infrastructure using smart bots.
A software-defined IT infrastructure can be re-purposed on demand; it instantly re-distributes
workloads across systems in order to meet changing demands.
In order to bring to you the huge potential of SDE, Wipro is working on:
•Software-defined infrastructure
•Software-defined everyday
•Software-defined processes
•Software-defined systems
Wipro's service-offerings include:
AnalyticsandInformationManagement Consulting Services
BusinessApplicationServices EcoEnergyServices
Business Process OutsourcingServicesInfrastructureManagementServices
Cloud Services MobilitySolutions
Product Engineering Services

7. FUTURE STRATEGIES AND ANNOUNCEMENT
•“With the approach of combining consulting with digital practice, we can secure
mindshare amongst existing and new customers,”
•Wipro, had a few months back acquired Designit, a digital start-up company in
Europe, which designs user interface and counts Audi, NTT Data and Samsung as
some of its clients.
•So far this has started yielding results. In the fourth quarter, it won seven joint deals in
digital business.
•Wipro is also arming its employees with these kinds of skill-set and as a part of the
programme, it has trained 10,000 employees in digital technologies and plans to cover
another 20,000 employees.
•Second, Neemuchwala plans to focus on client mining, an area former CEO TK
Kurien had mixed success in.

•The company has set up an integrated services unit with a mandate of integrating
technology solutions from different service lines, the CEO said.
•Further, it has launched a programme called Addroit, designed for delivery
managers, which is aimed at covering 900 managers.
•Another area earmarked by Neemuchwala is localisation.
•In continental Europe, the IT major has acquired Cellent, which strengthens its
presence, and is looking to setting up a delivery centre in Mountain View, California
and two other cities in the US.
•Additionally, it is investing in markets like Latin America, Canada and Africa.
•Neemuchwala believes that taking a non-linear approach, which involves not adding
people to get more revenue, is the way of the future, in addition to automation.
•In the last quarter, Wipro had said that it had freed around 4,300 employees.
•“This year we plan to do a large scale roll out across many clients and plan to
release 4,500 people from our engagements through automation in the year,” he
said.

8. RECOMMENDATION
•As done above analysis it was observed that as compared to the above i.e. ‘Tech
Mahindra, HCL Technologies, TCS, Infosys, Oracle Fin Serv’ company the
performance of the “WIPRO” is average.
•According to me their performance is very poor because their market share as well
as their financial statements are very low.
•Their income statement as well as profit for the year i.e. (Net Profit Before/After Tax)
is less as compared to the previous year.
•It seems that they have faced some problems in the financial year 2018 as
compared with the previous year’s i.e. from the year 2009 –2017 they have
progressively gained as compared to last year
•But in the year 2018 they have faced a decrease in the gains compared to last year.

9. REFERENCES
•http://www.capitalmarket.com/Company-Information/Overview/Wipro/614
•https://en.wikipedia.org/wiki/Wipro
•https://www.dynamiclevels.com/en/wipro-promoter-shareholding
•https://microsite.wipro.com/annualreport/2017-18/consolidated-financial-statements-
under-ind-as.php
•https://issuu.com/sanjaykumarguptaa/docs/a-project-report-on-financial-analysis-of-
wipro
•https://www.macrotrends.net/stocks/charts/WIT/wipro/market-cap
•https://www.moneycontrol.com/financials/wipro/profit-lossVI/W
•https://www.moneycontrol.com/financials/techmahindra/balance-sheetVI/TM4#TM4
•https://www.wipro.com/blogs/ravi-purohit/from-hygiene-to-differentiation--better-
customer-experience-thro/

•http://faculty.poly.edu/~brao/wipro.case.pdf
•https://careers.wipro.com/technology.aspx
•https://whatis.techtarget.com/definition/Wipro-Technologies-Wipro-Limited
•https://economictimes.indiatimes.com/wipro-ltd/shareholding/companyid-12799.cms
•https://economictimes.indiatimes.com/wipro-ltd/profitandlose/companyid-12799.cms
•https://microsite.wipro.com/annualreport/2017-18/standalone-financial-statements-
under-ind-as.php
•https://www.business-standard.com/company/wipro-614.html
•https://economictimes.indiatimes.com/wipro-ltd/yearly/companyid-12799.cms
•https://economictimes.indiatimes.com/wipro-ltd/balancesheet/companyid-12799.cms
•https://www.moneycontrol.com/stock-charts/wipro/charts/W#W
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