WIPRO 2023-24 Annual Report Analysis

Thu, 27 Jun

WIPRO has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

WIPRO Income Statement Analysis

• Operating income during the year fell 0.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.6% in FY24 as against 18.1% in FY23.
• Depreciation charges increased by 2.0% and finance costs increased by 24.6% YoY, respectively.
• Other income declined by 3.5% YoY.
• Net profit for the year declined by 2.2% YoY.
• Net profit margins during the year declined from 12.6% in FY23 to 12.4% in FY24.

WIPRO Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	904,876	897,603	-0.8%
Other income	Rs m	27,743	26,761	-3.5%
Total Revenues	Rs m	932,619	924,364	-0.9%
Gross profit	Rs m	163,393	167,072	2.3%
Depreciation	Rs m	33,402	34,071	2.0%
Interest	Rs m	10,077	12,552	24.6%
Profit before tax	Rs m	147,657	147,210	-0.3%
Tax	Rs m	33,992	36,089	6.2%
Profit after tax	Rs m	113,665	111,121	-2.2%
Gross profit margin	%	18.1	18.6
Effective tax rate	%	23.0	24.5
Net profit margin	%	12.6	12.4

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WIPRO Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 252 billion as compared to Rs 268 billion in FY23, thereby witnessing an decrease of -5.7%.
• Long-term debt stood at Rs 62 billion as compared to Rs 61 billion during FY23, a growth of 1.7%.
• Current assets fell 2% and stood at Rs 651 billion, while fixed assets fell 3% and stood at Rs 495 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1,146 billion as against Rs 1,169 billion during FY23, thereby witnessing a fall of 2%.

WIPRO Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	771,047	738,946	-4.2
Current Liabilities	Rs m	267,753	252,458	-5.7
Long-term Debt	Rs m	61,272	62,300	1.7
Total Liabilities	Rs m	1,169,237	1,146,089	-2.0
Current assets	Rs m	661,096	650,662	-1.6
Fixed Assets	Rs m	508,141	495,427	-2.5
Total Assets	Rs m	1,169,237	1,146,089	-2.0

WIPRO Cash Flow Statement Analysis

• WIPRO's cash flow from operating activities (CFO) during FY24 stood at Rs 176 billion, an improvement of 34.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 12 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -183 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 5 billion from the Rs -12 billion net cash flows seen during FY23.

WIPRO Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	130,601	176,216	34.9%
Cash Flow from Investing Activities	Rs m	-84,065	11,680	-
Cash Flow from Financing Activities	Rs m	-60,881	-182,567	-
Net Cash Flow	Rs m	-11,972	5,090	-

Current Valuations for WIPRO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.3, an improvement from the EPS of Rs 20.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 495.2, stands at 23.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 2.9 times.
• The company's price to cash flow (P/CF) ratio stood at 16.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	164.9	171.8
TTM Earnings per share	Rs	20.7	21.3
Diluted earnings per share	Rs	21.7	21.2
Price to Cash Flow	x	13.0	16.2
TTM P/E ratio	x	16.8	23.3
Price / Book Value ratio	x	3.4	3.2
Market Cap	Rs m	2,646,274	2,345,956
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for WIPRO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.6x during FY24, from 2.5x during FY23. 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 12.7x during FY24, from 15.7x during FY23. 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 improved and stood at 15.0% during FY24, from 14.7% during FY24. 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 improved and stood at 19.9% during FY24, from 19.0% during FY23. 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 improved and stood at 10.8% during FY24, from 10.6% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	2.5	2.6
Debtors’ Days	Days	51	47
Interest coverage	x	15.7	12.7
Debt to equity ratio	x	0.1	0.1
Return on assets	%	10.6	10.8
Return on equity	%	14.7	15.0
Return on capital employed	%	19.0	19.9

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 382.6 to Rs 0.0, registering a loss of Rs 382.6 or around 100.0%.

Meanwhile, the S&P BSE IT Index is trading at Rs 36,203.1 (down 0.3%). Over the last one year it has moved up from 29,068.9 to 36,203.1, a gain of 7,134 points (up 24.5%).

Overall, the NIFTY 50 is down 0.0% over the year.

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