WIPRO 2021-22 Annual Report Analysis

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WIPRO 2021-22 Annual Report Analysis
Mon, 16 May

WIPRO has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

WIPRO Income Statement Analysis

  • Operating income during the year rose 28.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 13.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.9% in FY22 as against 23.6% in FY21.
  • Depreciation charges increased by 11.9% and finance costs increased by 4.7% YoY, respectively.
  • Other income declined by 15.4% YoY.
  • Net profit for the year grew by 12.6% YoY.
  • Net profit margins during the year declined from 17.5% in FY21 to 15.4% in FY22.

WIPRO Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 619,430 793,120 28.0%
Other income Rs m 25,295 21,409 -15.4%
Total Revenues Rs m 644,725 814,529 26.3%
Gross profit Rs m 146,326 166,045 13.5%
Depreciation Rs m 27,634 30,911 11.9%
Interest Rs m 5,088 5,325 4.7%
Profit before tax Rs m 138,899 151,218 8.9%
Tax Rs m 30,349 28,946 -4.6%
Profit after tax Rs m 108,550 122,272 12.6%
Gross profit margin % 23.6 20.9
Effective tax rate % 21.8 19.1
Net profit margin % 17.5 15.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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WIPRO Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 308 billion as compared to Rs 230 billion in FY21, thereby witnessing an increase of 34.0%.
  • Long-term debt stood at Rs 56 billion as compared to Rs 7 billion during FY21, a growth of 657.1%.
  • Current assets rose 19% and stood at Rs 621 billion, while fixed assets rose 51% and stood at Rs 456 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 1,077 billion as against Rs 826 billion during FY21, thereby witnessing a growth of 30%.

WIPRO Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 545,939 652,900 19.6
 
Current Liabilities Rs m 230,040 308,329 34.0
Long-term Debt Rs m 7,458 56,463 657.1
Total Liabilities Rs m 825,658 1,076,884 30.4
 
Current assets Rs m 523,186 620,752 18.6
Fixed Assets Rs m 302,472 456,132 50.8
Total Assets Rs m 825,658 1,076,884 30.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



WIPRO Cash Flow Statement Analysis

  • WIPRO's cash flow from operating activities (CFO) during FY22 stood at Rs 111 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -224 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs 47 billion, an improvement of 136% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -66 billion from the Rs 26 billion net cash flows seen during FY21.

WIPRO Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 147,550 110,797 -24.9%
Cash Flow from Investing Activities Rs m 7,739 -224,495 -
Cash Flow from Financing Activities Rs m -128,840 46,586 -
Net Cash Flow Rs m 25,559 -65,830 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for WIPRO

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.3, an improvement from the EPS of Rs 19.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 469.1, stands at 21.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.9 times, while the price to sales ratio stands at 3.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 20.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 113.1 144.7
TTM Earnings per share Rs 19.8 22.3
Diluted earnings per share Rs 19.8 22.3
Price to Cash Flow x 16.7 20.6
TTM P/E ratio x 20.9 21.0
Price / Book Value ratio x 3.2 4.8
Market Cap Rs m 1,756,612 3,159,180
Dividends per share (Unadj.) Rs 1.0 6.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for WIPRO

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY22, from 2.3x during FY21. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 29.4x during FY22, from 28.3x during FY21. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at 18.7% during FY22, from 19.9% during FY22. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at 22.1% during FY22, from 26.0% during FY21. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company declined and down at 11.8% during FY22, from 13.8% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 2.3 2.0
Debtors’ Days Days 56 53
Interest coverage x 28.3 29.4
Debt to equity ratio x 0.0 0.1
Return on assets % 13.8 11.8
Return on equity % 19.9 18.7
Return on capital employed % 26.0 22.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how WIPRO has performed over the last 5 years, please visit here.

WIPRO Share Price Performance

Over the last one year, WIPRO share price has moved down from Rs 498.4 to Rs 469.1, registering a loss of Rs 29.3 or around 5.9%.

Meanwhile, the S&P BSE IT Index is trading at Rs 29,792.8 (down 0.6%). Over the last one year it has moved up from 26,131.6 to 29,792.8, a gain of 3,661 points (up 14.0%).

Overall, the S&P BSE SENSEX is up 8.8% over the year.

(To know more, check out historical annual results for WIPRO and quarterly results for WIPRO)

Annual Report FAQs

What is the current share price of WIPRO?

WIPRO currently trades at Rs 418.7 per share. You can check out the latest share price performance of WIPRO here...

What was the revenue of WIPRO in FY22? How does it compare to earlier years?

The revenues of WIPRO stood at Rs 814,529 m in FY22, which was up 26.3% compared to Rs 644,725 m reported in FY21.

WIPRO's revenue has grown from Rs 570,465 m in FY18 to Rs 814,529 m in FY22.

Over the past 5 years, the revenue of WIPRO has grown at a CAGR of 9.3%.

What was the net profit of WIPRO in FY22? How does it compare to earlier years?

The net profit of WIPRO stood at Rs 122,272 m in FY22, which was up 12.6% compared to Rs 108,550 m reported in FY21.

This compares to a net profit of Rs 97,689 m in FY20 and a net profit of Rs 90,222 m in FY19.

Over the past 5 years, WIPRO net profit has grown at a CAGR of 11.2%.

What does the cash flow statement of WIPRO reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of WIPRO reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 110,797 m as compared to Rs 147,550 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -224,495 m as compared to Rs 7,739 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs 46,586 m as compared to Rs -128,840 m in FY21.

Here's the cash flow statement of WIPRO for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations84,233116,316100,643147,550110,797
From Investments35,57850,12634,0127,739-224,495
From Financial Activity-129,978-49,369-150,998-128,84046,586
Net Cashflow-9,792117,599-14,42125,559-65,830

What does the Key Ratio analysis of WIPRO reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of WIPRO reveals:

  • Operating profit margins witnessed a fall and stood at 20.9% in FY22 as against 23.6% in FY21.
  • Net profit margins declined from 17.5% in FY21 to 15.4% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.1 as compared to 0.0 in FY21.

Here's the ratio/financial analysis of WIPRO for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)19.019.720.223.620.9
Net Profit Margin (%)14.715.316.017.515.4
Debt to Equity Ratio (x)0.10.10.00.00.1

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