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WIPRO 2022-23 Annual Report Analysis
Sun, 30 Apr

WIPRO has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

WIPRO Income Statement Analysis

  • Operating income during the year rose 14.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 1.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.5% in FY23 as against 20.9% in FY22.
  • Depreciation charges increased by 8.5% and finance costs increased by 89.2% YoY, respectively.
  • Other income grew by 8.9% YoY.
  • Net profit for the year declined by 7.2% YoY.
  • Net profit margins during the year declined from 15.4% in FY22 to 12.6% in FY23.

WIPRO Income Statement 2022-23

No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change
Net Sales Rs m 793,120 904,876 14.1%
Other income Rs m 21,409 23,312 8.9%
Total Revenues Rs m 814,529 928,188 14.0%
Gross profit Rs m 166,102 167,824 1.0%
Depreciation Rs m 30,778 33,402 8.5%
Interest Rs m 5,325 10,077 89.2%
Profit before tax Rs m 151,408 147,657 -2.5%
Tax Rs m 28,974 33,992 17.3%
Profit after tax Rs m 122,434 113,665 -7.2%
Gross profit margin % 20.9 18.5
Effective tax rate % 19.1 23.0
Net profit margin % 15.4 12.6
* 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 FY23 down at Rs 268 billion as compared to Rs 308 billion in FY22, thereby witnessing an decrease of -13.2%.
  • Long-term debt stood at Rs 61 billion as compared to Rs 56 billion during FY22, a growth of 8.5%.
  • Current assets rose 6% and stood at Rs 661 billion, while fixed assets rose 13% and stood at Rs 513 billion in FY23.
  • Overall, the total assets and liabilities for FY23 stood at Rs 1,174 billion as against Rs 1,073 billion during FY22, thereby witnessing a growth of 9%.

WIPRO Balance Sheet as on March 2023

No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change
Networth Rs m 648,772 775,532 19.5
 
Current Liabilities Rs m 308,329 267,753 -13.2
Long-term Debt Rs m 56,463 61,272 8.5
Total Liabilities Rs m 1,072,756 1,173,722 9.4
 
Current assets Rs m 620,752 661,096 6.5
Fixed Assets Rs m 452,004 512,626 13.4
Total Assets Rs m 1,072,756 1,173,722 9.4
* 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 FY23 stood at Rs 131 billion, an improvement of 17.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY23 stood at Rs -84 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY23 stood at Rs -61 billion on a YoY basis.
  • Overall, net cash flows for the company during FY23 stood at Rs -12 billion from the Rs -66 billion net cash flows seen during FY22.

WIPRO Cash Flow Statement 2022-23

Particulars No. of months 12 12 % Change
Year Ending Mar-22 Mar-23
Cash Flow from Operating Activities Rs m 110,797 130,601 17.9%
Cash Flow from Investing Activities Rs m -224,495 -84,065 -
Cash Flow from Financing Activities Rs m 46,586 -60,881 -
Net Cash Flow Rs m -65,830 -11,972 -
* 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 20.7, an decline from the EPS of Rs 22.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 385.2, stands at 18.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 2.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 18.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-22* 12 Mar-23*
Sales per share (Unadj.) Rs 144.7 164.9
TTM Earnings per share Rs 22.3 20.7
Diluted earnings per share Rs 22.3 20.7
Price to Cash Flow x 21.2 18.0
TTM P/E ratio x 26.5 18.6
Price / Book Value ratio x 4.9 3.4
Market Cap Rs m 3,159,180 2,646,274
Dividends per share (Unadj.) Rs 6.0 1.0
* 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 improved and stood at 2.5x during FY23, from 2.0x during FY22. 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 deteriorated and stood at 15.7x during FY23, from 29.4x during FY22. 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 14.7% during FY23, from 18.9% during FY23. 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 18.8% during FY23, from 22.2% during FY22. 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 10.5% during FY23, from 11.9% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-22* 12 Mar-23*
Current ratio x 2.0 2.5
Debtors’ Days Days 53 51
Interest coverage x 29.4 15.7
Debt to equity ratio x 0.1 0.1
Return on assets % 11.9 10.5
Return on equity % 18.9 14.7
Return on capital employed % 22.2 18.8
* 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 509.0 to Rs 385.2, registering a loss of Rs 123.9 or around 24.3%.

Meanwhile, the S&P BSE IT Index is trading at Rs 27,503.5 (up 1.0%). Over the last one year it has moved down from 31,989.9 to 27,503.5, a loss of 4,486 points (down 14.0%).

Overall, the S&P BSE SENSEX is up 7.6% 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 480.1 per share. You can check out the latest share price performance of WIPRO here...

What was the revenue of WIPRO in FY23? How does it compare to earlier years?

The revenues of WIPRO stood at Rs 928,188 m in FY23, which was up 14.0% compared to Rs 814,529 m reported in FY22.

WIPRO's revenue has grown from Rs 616,327 m in FY19 to Rs 928,188 m in FY23.

Over the past 5 years, the revenue of WIPRO has grown at a CAGR of 10.8%.

What was the net profit of WIPRO in FY23? How does it compare to earlier years?

The net profit of WIPRO stood at Rs 113,665 m in FY23, which was down -7.2% compared to Rs 122,434 m reported in FY22.

This compares to a net profit of Rs 108,680 m in FY21 and a net profit of Rs 97,718 m in FY20.

Over the past 5 years, WIPRO net profit has grown at a CAGR of 6.0%.

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 increased in FY23 and stood at Rs 130,601 m as compared to Rs 110,797 m in FY22.
  • Cash flow from investments increased in FY23 and stood at Rs -84,065 m as compared to Rs -224,495 m in FY22.
  • Cash flow from financial activity decreased in FY23 and stood at Rs -60,881 m as compared to Rs 46,586 m in FY22.

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

(Rs m)FY19FY20FY21FY22FY23
From Operations116,316100,643147,550110,797130,601
From Investments50,12634,0127,739-224,495-84,065
From Financial Activity-49,369-150,998-128,84046,586-60,881
Net Cashflow117,599-14,42125,559-65,830-11,972

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 18.5% in FY23 as against 20.9% in FY22.
  • Net profit margins declined from 15.4% in FY22 to 12.6% in FY23.
  • Debt to Equity ratio for FY23 stood at 0.1 as compared to 0.1 in FY22.

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

 FY19FY20FY21FY22FY23
Operating Profit Margin (%)19.720.223.620.918.5
Net Profit Margin (%)15.316.017.515.412.6
Debt to Equity Ratio (x)0.10.00.00.10.1

 

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