Wipro: Ready for tomorrow - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Wipro: Ready for tomorrow

Sep 4, 2001

Wipro is one of the very few Indian software companies that offer a complete Bluetooth solution set. The company’s offerings include Bluewave Hardware Baseband Controller, Bluewave Software Baseband Controller and Bluewave Software Protocol Stack. For an introduction to Bluetooth please follow this link

While the Bluewave Hardware Baseband Controller Core is provides a configurable interface to a standard Bluetooth radio module, the Bluewave software Baseband Controller is a C source code implementation of the Bluetooth baseband functionality. The software baseband controller offers a flexible software implementation of the baseband functionality for quick prototyping. The software protocol stack is a portable software that offers support for multiple operating systems and includes the first thirteen profiles as defined by the Bluetooth specification.

Wipro recently became the second company in the world to have all thirteen Bluetooth profiles (Version 1.1) with product qualification status from the Bluetooth Qualification Body (BQB). The Bluetooth Qualification Program (BQP) is important because successful qualification implies assured interoperability with different solutions and vendors as well as complete standard conformance. The Bluetooth Specification for particular services, applications and use scenarios, specifies Bluetooth application profiles. The risk of interoperability problems between two different vendors' products is diminished if both conform to the same 'Profile' specification.

With the profiles, Wipro completes qualification for its entire suite of Bluetooth offerings, adding to its previous qualification of its BlueWave baseband controller and software stack, which had been qualified in April 2001. The company now plans to get into newer profiles like Hands Free Car Profile, HID (Human Interface Devices), PAN (Personal Area Networking) qualified in the near future.

Wipro’s solutions in this area includes Intellectual Property (IP) building blocks with a suite of hardware and embedded design services that can be seamlessly integrated into the customer's design. The Bluetooth IPs can be plugged into any design be it a complex system-on-chip (SoC) or an embedded subsystem. Wipro competitive advantage lies in the fact that the company not only provides a complete set of Bluetooth IP solutions but can also leverage its embedded design capabilities to give the customers an end-to-end solution. Such design services are supported by the company’s strategic alliances with ARM and Symbian, as well as with library vendor Artisan and foundry partner TSMC.

Wipro has set for it self to become one of the top ten technology companies in the world. In 1QFY02, 52% of Wipro Technologies’ (Global IT services business) revenues came from the R&D group. The most dominant practice from the R&D group was that of telecom and Internet working. The practice contributed 30% to the revenues of Wipro Technologies. The contribution of embedded systems and Internet access was a 19%. The telecom and embedded practices have shown a marginal decline in revenues (QoQ) in 1QFY02, this was largely due to the fact that Wipro did not compromise on its billing rates. Infact for the first quarter of FY02 the company managed a sequential rise in billing rates of 3.4% for onsite projects and 2.6% for offshore work.

R&D group (Rs m) 4QFY01 1QFY02 Change
Telecom and Internet working 1,603 1,563 -2%
Embedded systems and Internet access 1,034 990 -4%
Telecom and Internet Service provider practice 155 156 1%
Total 2,792 2,709 -3%

At the current market price of Rs 1,416 the stock is trading at a P/E multiple of 40 times its 1QFY02 annualised earnings. No doubt low liquidity of the stock is to a certain extent responsible for the high valuations. But the real reason behind the valuations is the company technology focus that gives it the edge above its competitors. The valuations are likely to remain stable unless the sector has a whole undergoes a re-rating.


Equitymaster requests your view! Post a comment on "Wipro: Ready for tomorrow". Click here!

  

More Views on News

WIPRO Announces Quarterly Results (1QFY21); Net Profit Up 0.2% (Quarterly Result Update)

Jul 16, 2020 | Updated on Jul 16, 2020

For the quarter ended June 2020, WIPRO has posted a net profit of Rs 24 bn (up 0.2% YoY). Sales on the other hand came in at Rs 149 bn (up 0.9% YoY). Read on for a complete analysis of WIPRO's quarterly results.

WIPRO Announces Quarterly Results (4QFY20); Net Profit Down 6.1% (Quarterly Result Update)

Apr 16, 2020 | Updated on Apr 16, 2020

For the quarter ended March 2020, WIPRO has posted a net profit of Rs 23 bn (down 6.1% YoY). Sales on the other hand came in at Rs 157 bn (up 3.6% YoY). Read on for a complete analysis of WIPRO's quarterly results.

WIPRO 2018-19 Annual Report Analysis (Annual Result Update)

Jun 27, 2019 | Updated on Jun 27, 2019

Here's an analysis of the annual report of WIPRO for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of WIPRO. Also includes updates on the valuation of WIPRO.

More Views on News

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

Why am I Recommending Caution? (Fast Profits Daily)

Sep 9, 2020

This is why I have changed my short-term view on the market.

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

WIPRO SHARE PRICE


Sep 22, 2020 (Close)

TRACK WIPRO

COMPARE WIPRO WITH

MARKET STATS