Wipro is primarily an information technology company headquartered in Bangalore, India. Wipro is a public limited company. It is not owned by the Government of India.
As of March 2018, Wipro has a market capitalisation of over Rs.143,000 crore.
Wealth and Recent PerformanceFY 2018-19
The key financial highlights of the company’s performance for Q1 FY 2018-19, ended 31 June 2018 are as follows:
- The company’s gross revenue recorded an increase of 2.6% YoY and stood at Rs.139.8 billion ($2.0 billion).
- IT Products Segment Revenue stood at Rs.3.5 billion ($51.6 million) while the IT Products Margin for the quarter stood at -20.9%.
- IT Services Segment Revenue recorded an increase of 5.5% and stood at Rs.137 billion ($2.0 billion).
- IT Services Margin for the quarter stood at 17.2%. This includes a gain of Rs.2,529 million ($36.9 million) from the sale of our hosted data centre business.
- Earnings per share (EPS) recorded an increase of 9.9% YoY and stood Rs.4.71 ($0.071) per share.
- The company has projected revenue in the range between $2,009 million to $2,049 million from its IT Services business.
The key financial highlights of the company’s performance for the full year FY 2018-19, ended 31 June 2018 are as follows:
- The company’s net income recorded a decrease of 5.7% YoY and stood at Rs.80.1 billion ($1.2 billion).
- The gross revenue also declined by 1% and stood at Rs.544.9 billion ($8.4 billion).
- IT Services Segment Revenue was up 4.6% YoY and stood at $8,060.2 million.
- IT Services Segment Revenue in Rupee terms remained flat at Rs.528.4 billion ($8.1 billion). IT Services Margin was 15.8%.
- For the Q4 FY 2017-18, the company recorded a marginal increase of 0.7% in gross revenue that stood at Rs.137.7 billion ($2.1 billion).
- Net Income for the quarter stood at Rs.18.0 billion ($277 million).
- IT Services Segment Revenue recorded an increase of 1.3% and stood at Rs.134.1 billion ($2.1 billion) while the IT Services Margin for the quarter was at 14.4%.
- IT Products Segment Revenue for the quarter ended 31 March 2018 was Rs.4.2 billion ($64 million) while for the full year was Rs.18 billion ($276 million).
- IT Products Margin for the year was 2%.
- According to the condensed consolidated interim statements of income for the quarter ended December 2017, the gross revenue of Wipro in the third quarter of the fiscal year 2017–2018 was Rs.136,690 million which was lesser than the gross revenue in the third quarter of the previous year which stood at Rs.136,878 million.
- The profit before tax for the third quarter of 2017–2018 was Rs.24,714 million which was a decrease from the profit before tax for the same period the previous year at Rs.27,586 million.
- The total profit for the quarter ending December 2017 was Rs.19,359 million while the total profit for the corresponding period the previous year was Rs.21,146 million.
- The total assets of the company stood at Rs.741,492 million in the quarter ending December 2017.
- The total liabilities of the company stood at Rs.268,647 million in the third quarter of the financial year ending 2018.
Stock trend in 2018
- In January 2016, Wipro’s stock was trading at about Rs.316. The stock dipped briefly before increasing again to cross Rs.320. The highest price for the month of January was around Rs.331. After 23 January, 2018, the stock began to decline, closing at about Rs.304 for the month.
- The company announced an interim dividend of 50% on 31 January, 2018.
- The stock continued to decline in price well into the first week of February 2018. The lowest price in February was about Rs.285. The stock then appeared to recover, with a peak of Rs.295 for the rest of the month. The stock closed at about Rs.292 for the month of February in the year 2018.
- The stock dipped again in March 2018, touching a low of about Rs.285 before recovering again. By 15 March 2018, the stock was trading at about Rs.293.
- The price of the stock at the beginning of April was Rs.274 and it reached almost Rs.300 towards the end of the month. The opening price of the stock by the end of April 2018 was Rs.276.
- In the month of May, the stock price declined by around 10 points and ended the month at Rs.262.
- The price declined further by few points and stood at Rs.259 by the end of June.
- The scrip picked up the pace in the month of July and reached Rs.287 on 20 July 2018. By the end of the month, the price of the stock was at Rs.273.
- In the month of August, the scrip increased by 30 points throughout the month. The opening price of the stock by the end of the month stood at Rs.300.
- The scrip continued to increase in the month of September. The opening price of the stock as on 11 September 2018 was Rs.326.
Stock History (2016–2017)
- Wipro’s stock opened at about Rs.278 in January, 2016. By the second week of January, the stock had dropped about Rs.10, to reach a value of about Rs.268. The stock recovered again after that and began a mostly upward trend. The stock ended the month at about Rs.281. An interim dividend of 250% was announced by the company on 25 January, 2016. The stock rose to about Rs.284 on the first day of February and then began dropping after that. The lowest the stock was in that month was about Rs.258. The stock rose again, about mid-month and touched a high of about Rs.273. The stock declined again to end the month at about Rs.260. In March, the stock opened at about Rs.267 and continued on an upward trend for the rest of the month. The stock closed at about Rs.282 by the end of the month.
- The stock opened at about Rs.281 in the month of April. The stock declined for the first week, with a low of about Rs.274 before gaining again. The stock touched about Rs.300 by 20 April, 2016. The stock nosedived to about Rs.279 the very next day and continued on a downward trend for the rest of the month. The decreases after that were not steep or sudden. The stock closed at about Rs.277 at the end of the month. The stock opened at about Rs.274 in May 2016, and the stock declined in price further into the month. The lowest price of the stock was about Rs.266. The stock gained in price for the rest of the month, but the increases were minimal. The stock closed the month at about Rs.272. The stock began trading at about Rs.277 in June 2016. The stock declined for the first week, and then increased for the next two weeks. The highest value of the stock in June was about Rs.281. The stock ended the month at about Rs.278.
- The stock opened at about Rs.279 in July, and increased steadily for the first two weeks. On 11 July, 2016, the company announced a final 50% dividend. After the second week, the stock declined in price to touch a low of about Rs.268 for the month. The stock closed for the month at about Rs.272. In August 2016, the stock opened at about Rs.278 and declined slowly for the entire month. The stock touched a low of about Rs.239 in that month and closed at about Rs.245 for the month. The stock opened at about Rs.241 in September 2016 remained quite steady for the entire month. The last day of the month saw the trading price at about Rs.239.
- In October 2016, the stock held steady for a while before going up to Rs.249 in the third week. Then, the stock entered freefall and ended the month at about Rs.232. In November, the stock declined even further to touch a low of about Rs.218. The stock gained in price over the last week, to close the month at about Rs.232. The stock opened at about Rs.234 in December 2016, and closed at about Rs.237 at the end of the month.
- In January 2017, the stock began trading at about Rs.235. The stock touched a high of about Rs.242 for the month before it declined again to end the month at about Rs.229. The stock opened at about Rs.228 in February, and rose steadily throughout the month to end at about Rs.244. The company declared an interim 100% dividend. The stock opened at about Rs.244 for March 2017, and rose through the month to close for the month at about Rs.257.
- In April, the stock opened at about Rs.253. The stock declined after the first week and at one point dropped below Rs.250. The stock closed for the month at about Rs.247. The stock opened at about the same price the next month, May, 2017. It gained steadily throughout the month to close at about Rs.267. The stock breached the Rs.270 mark in June 2017, touching a peak of about Rs.280. After this peak, the stock declined and ended the month at about Rs.258. The company announced a bonus with a ratio of 1:1 on 13 June, 2017.
- The stock opened at about Rs.259 in the beginning of July 2017. The stock increased in price over the course of the month, closing at about Rs.288 at the end of the month. The stock opened at about Rs.294 in the beginning of August, and held steady for about three weeks before increasing again. The stock closed at about Rs.299 at the end of the month. In September 2017, the stock opened about Rs.3 lower, at about Rs.296. The stock held steady for a couple of weeks before decreasing. Then it increased and decreased again to end the month at about Rs.280.
- The stock opened at about Rs.280 in October and kept increasing throughout the year. The stock closed at about Rs.294 that month. The stock touched Rs.302 during the month of October. In November, the stock held steady between Rs.293 and Rs.302. In December, the stock opened at about Rs.289, and dipped for two weeks before gaining in the latter part of the second week. The stock then continued to gain until the end of the month which it ended at about Rs.314.
Should one Invest in Wipro?
- Wipro is a large IT firm. The demands for IT firms are not poised to reduce any time in the near future. Therefore, Wipro will continue to generate high revenues.
- In 2008, the company even invested in clean energy which is a game-changing industry. The potential for massive profits is high.
- In 2014, Wipro signed a $1.2 billion contract which stipulates a contract period of about ten years with a Canadian firm.
- Wipro also obtained a cloud services company in late 2016.
- All of these indicate that Wipro is a company that had positioned itself as a leading provider of various services around the world.
- While all these reasons can be stated in order to indicate that one should invest in Wipro’s stocks, it is better to perform personal research based on financial profile and risk appetite.
Wipro Limited is currently, primarily a leading information technology company that also does consulting work and provides business process services. It focuses meeting client expectations using cognitive computing, hyper-automation, robotics, cloud and analytics. It has over 160,000 employees and the company serves clients globally across six continents. The company focused more on computers and technology in the 1970s and 1980s. In 2012, the company announced that its non-IT divisions will be demerged from its IT businesses, and that the non-IT division would be known as Wipro Enterprises Limited.
Wipro was incorporated in 1945. Initially, the company was known as Western India Palm Refined Oils Limited. It was later renamed as Western India Products Limited. It initially only manufactured vegetable and refined oils in Maharashtra. Only in the 1970s and 1980s did the company focus on computing and other new technology. Around 1990, the company began working on R&D services for third parties. It also began working on IT services for third parties. By 2000, the company had been listed in the New York Stock Exchange. In the new millennium, the company also entered the BPO business. In 2012, the company decided to separate its IT and non-IT divisions. By 2015, the company had launched the ‘Wipro Digital’ scheme. This scheme was aimed at adding key capabilities to the company. In 2017, the company declared that it was launching a new brand identity and the company rearticulated the ‘Spirit of Wipro’ in a way that showed that the company was committed to evolving and transforming itself in order to meet evolving customer requirements.
Mr. Azim H. Premji is the Chairman of Wipro. Mr. Abidali Z. Neemuchwala is the CEO and a Member of the Board. Mr. Rishad Premji is the Chief Strategy Officer and a Member of the Board. The company has seven Independent Directors. The Executive Committee consists of seventeen people including the CEO. There are four Committees of Board, each of which contains at least three people. The Strategy Committee is the only committee that has seven people.
Wipro’s shares are traded on the BSE and the NSE. In addition to this, the stock is also traded on the NYSE.
BSE: 507685; NSE: WIPROEQ; ISIN code: INE075A01022; Sector: Information technology; Industry: Computers – Software; NYSE: WIT
Other than these, the company is also listed on the Bangalore Stock Exchange Limited, Cochin Stock Exchange Limited, et cetera.
Wipro also forms a part of indices like, the Nifty 100, Nifty LargeMidcap 250, S&P BSE 500, et cetera.
Corporate office address:
Wipro Limited, Doddakannelli, Sarjapur Road, Bengaluru – 560 035, India.
Ph: +91 (80) 28440011
Fax: +91 (80) 28440256
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