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REPORT ON
FINANCIAL ANALYSIS OF SELECTED COMPANIES IN IT SECTOR
Submitted for the partial fulfillment of the degree
Bachelor of Business Administration (BBA)
Submitted to,
The Principal;
Agarwal Vidya Vihar English Medium College, Vesu– Surat.
Affiliated to:
Veer Narmad South Gujarat University, Surat.
UNDER THE GUIDANCE OF:
Mrs. KHUSHBOO JARIWALA
Prepared By:
SURBHI BHANSALI
Roll no: 02
T.Y.BBA (FINANCE)
BBA (SEMESTER – VI)
MARCH – APRIL 2020

DECLARATION
I, hereby declare that the winter internship project report titled “FINANCIAL ANALYSIS
OF SELECTED COMPANIES IN IT SECTOR” is a result of my own work and my
indebtedness to other work publications, references, if I have been duly acknowledged.
If I am found guilty of coping from any other report or published information and showing
as original work, or extending plagiarism limit, I will understand that I shall be liable and
punishable by the university, which may include ‘fail’ in examination or any other
punishment that university may decide.
Name of the Student: Surbhi Bhansali (02)
Specialization: finance
Roll no: 02
Sign:
Date:
i
ACKNOWLEDGEMENT
The successful completion of any task would be incomplete without the mention of the
leaders, whose constant guidance and encouragement crown all the efforts with
success. I am highly obliged to the veer Narmad south Gujarat university for arranging
the programmed of practical in bachelor of business administration in such a manner.
It is my privilege to express my deep sense of gratitude to, Mrs. Khushboo Jariwala

(project guide) their efforts, guidance, valuable comments and suggestions for making
this project report. They helped me to complete the report on the practical study and
gave contribution to improve the practical knowledge. I am also acknowledging the co-
operation and support that I received from the principal.
Finally, I would like to express my deep sense of gratitude to all those who has always
been a source of inspiration for me, their involvement, unconditional co-operation and
support in the successful and timely preparation of this report.
Name of the Student: Surbhi Bhansali
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EXECUTIVE SUMMARY
The current report title is “financial analysis of selected it companies in it sector” is

undertaken to measure the financial performance of the IT industry and to examine the
position of IT sector.
The first chapter of the report gives the brief introduction about the various financial
analysis of selected IT sector’s. It is a study to analysis the strength and weakness of
the seven companies in the industry. The five companies with high capital market
include TCS, INFOSYS, WIPRO, HCL, and TECH MAHINDERA. The objective of the
study to analysis the company performance, understanding them and to suggest the
investor whether to buy or not to buy on the basics of their analysis.
The second chapter talks about the five IT Companies The analysis of all the five
company is done on many parameters. the brief knowledge about the companies and
their features, how they are functioning, their important decision related company, their
objectives, etc are taken into consideration to know about the company and their role in
the it industry.
The third chapter talks about the literature review which research papers by various
authors which have been really helpful for this project and objectives of the project.
The fourth chapter talks about research methodology. It talks about the research
design, study and scope of the research study. The current research study is descriptive
research study because it is based in secondary data. The secondary data has has
been found out from websites, books, research papers etc.
The fifth chapter talks about the findings and analysis of the study. Here I took the
financial analysis of the five companies on the basis of ratio analysis, ANOVA, and
comparative analysis through which it is most helpful in finding the financial condition of
all the companies. After that whatever the interpretation and findings has come is also
mentioned.
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The sixth chapter talks about the conclusion of the study which tells about how they
perform, their strength and weakness, in which factor they have opportunities and how
to grab them is also mentioned.
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TABLE OF CONTENT
SR.NO CONTENT PAGE NO.
1 Declaration
2 Acknowledgement
3 Table of content 1
4 Chapter 1. Introduction to Industry 2
Introduction to IT Industry
5 Chapter 2. Introduction to company 8

TCS 8
INFOSYS 11
WIPRO 14
HCL 18
TECH MAHINDRA 21
6 Chapter 3. Literature Review 24

7 Chapter 4. Research Methodology 29
Research design 29
Objectives 33
Justification of title 34
Limitation 35
8 Chapter 5. Findings and Analysis 36
Ratio Analysis 36
Comparative Statement 58
9. Chapter 6. Conclusion & Suggestions 73
10. Bibliography 76
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CHAPTER 1 INTRODUCTION TO INDUSTRY
Information Technology (IT) is defined as the design, development, implementation and
management of computer-based information systems, particularly software applications
and computer hardware. It has grown to cover most aspects of computing and
technology. The largest firms globally include IBM, HP, Dell and Microsoft. Information
Technology is one of the most important industries in the Indian economy. The IT
industry of India has registered huge growth in recent years. In the last ten years the
Information Technology industry in India has grown at an average annual rate of 30%.
The Information Technology (IT) industry has become one of the fastest growing
industries in India because of which it has caught world attention. India is now being
identified as powerhouse for incremental development of computer software. It has
grown from USD 4 billion industry to USD 58.8 billion industry in2008-09 employing over
2 million people. IT-BPO Industry has become growth engine for the economy
contributing substantially to increases in GDP, urban employment and exports to
achieve vision of ‘young and resilient India’. The key segments that have contributed
significantly to industry’s exports include-Software and services and IT enabled
services. In the face of current recession though the mood is that of cautious optimism
but Industry is expected to witness sustainable growth over period of two years. But at
the same time while industry has significant headroom for growth, as the competition is
increasing with China emerging as major threat, all the stakeholders of Indian IT
industry must give concentrated efforts to ensure that India realizes its potential and
maintains its leadership position in future also.
The IT industry is heavily influenced by factors like the global market and sustenance of
its rate of growth. The recession in the United States also impacted the IT community in
India negatively. This segment is promising and has vast potential, but there are
concerns regarding the demand-supply gap, which is widening. Some challenges which
the industry is facing are inadequate infrastructure, tax issues and limited preferential
access for local firms. China and Taiwan are examples of low-cost destinations, and
India needs to change its current tax structure so that it can outdo competition from
other countries. Information Technology (IT) services companies, as the name
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suggests, provide IT services such as software development, software maintenance
and support, product development, and other related services to domestic and overseas
clients. 70% of all the IT companies in India are in the Small and Medium Enterprises
(SME) sector. For the purpose of this study an IT services company in small scale
sector would be typically 40 to 200 people strong with turnover ranging from Rupees 1
crore to Rupees 20 crore. The IT Industry eco-system in India comprises of large scale
tier 1 and tier 2 companies, a number of medium size companies and a plethora of
small scale companies and startups. The industry has played a key role in transforming
India’s image from a government controlled economy to a global player in providing
world class technology solutions and business services.
The IT industry is one which is not limited to software development alone. Technology
can be applied in libraries, hospitals, banks, shops, prisons, hotels, airports, train
stations and many other places through database management systems, or through
custom-made software as seen fit.
The IT sector in India has been driving growth for the last decade and more, and has
the potential to continue doing so for the next couple of years if shortcomings are met
and challenges are faced.
India's IT industry is expected to grow at a rate of 12 - 14% during 2016 - 2017 as per a
report by India's software industry body National Association of Software and Services
Companies (NASSCOM.) This clearly shows that information technology is a sector
which will likely be one of the emerging markets in the days to come as India's economy
requires more hardware, software and other IT services. In a NASSCOM-McKinsey
report, India's position in the global offshore IT industry is based on five factors -
abundant talent, creation of urban infrastructure, operational excellence, conducive
business environment and finally, continued growth in the domestic IT sector.
People are the most important asset of any service-base organization. People
Management, therefore, attains special importance in services companies. The IT
industry typically suffers from high attrition rates across the segments. The attrition rates
are more pronounced in small scale IT service companies. High attrition adversely
impacts the continuity of project staffing and project deliveries, consistency of quality
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and productivity. Uncertain and unpredictable schedules and quality of delivery makes
customers wary of doing business with these companies.
Indian IT companies have globally established their superiority in terms of cost

advantages, availability of skilled manpower and the quality of services. They have
been enhancing their global services delivery capabilities through a combination of
organic and inorganic growth initiatives. Global giants like Microsoft, SAP, Oracle and
Lenovo have already established their captive centers in India. These companies
recognize the advantage India offers and the facts that it is among the fastest growing
IT markets in the Asia -Pacific region.
The global sourcing market in India continues to grow at a higher pace compared to the
IT industry. India is the leading sourcing destination across the world, accounting for
approximately 55 per cent market share of the US$ 185-190 billion global services
sourcing business in 2017-18. Indian IT &IT’S companies have set up over 1,000 global
delivery centre’s in about 80 countries across the world, India has become the digital
capabilities hub of the world with around 75 per cent of global digital talent present in
the country.
Investments and Development

Indian IT's core competencies and strengths have attracted significant investments from
major countries. The computer software and hardware sector in India attracted
cumulative Foreign Direct Investment (FDI) inflows worth US$ 39.47 billion between
April 2000 and June 2019 and ranks second in inflow of FDI, as per data released by
the Department for Promotion of Industry and Internal Trade (DPIIT).
Leading Indian IT firms like Infosys, Wipro, TCS and Tech Mahindra, are diversifying
their offerings and showcasing leading ideas in block chain, artificial intelligence to
clients using innovation hubs, research and development centers, in order to create
differentiated offerings.
Some of the major developments in the Indian IT and IT’S sector are as follows:
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• Total export revenue of the industry is expected to grow 8.3 per cent year-on-
year to US$ 136 billion in FY19.
• UK-based tech consultancy firm, Continues, has been acquired by Cognizant.
• In May 2019, Infosys acquired 75 per cent stake in ABN AMRO Bank's subsidiary
Starter for US$ 143.08 million
• In June 2019, Mind tree was acquired by L&T.
• NASSCOM has launched an online platform which is aimed at up-skilling over 2
million technology professionals and skilling another 2 million potential
employees and students.
• Revenue growth in the BFSI vertical stood at 6.80 per cent y-o-y between July-
September 2018.
• As of March 2018, there were over 1,140 GICs operating out of India.
• PE investments in the sector stood at US$ 2,400 million in Q4 2018.
Market Size
The IT -BPM sector in India stood at US$177 billion in 2019 witnessing a growth of 6.1
per cent year-on-year and is estimated that the size of the industry will grow to US$ 350
billion by 2025. India’s IT & Its industry grew to US$ 181 billion in 2018-19. Exports from
the industry increased to US$ 137 billion in FY19 while domestic revenues (including
hardware) advanced to US$ 44 billion. IT industry employees 4.1 million people as of
FY19.
Spending on information technology in India is expected to reach US$ 90 billion in 2019.

Revenue from digital segment is expected to comprise 38 per cent of the forecasted
US$ 350 billion industry revenue by 2025.
Achievements
Following are the achievements of the government during 2017-18:
• About 200 Indian IT firms are present in around 80 countries.

• IT exports from India are expected to reach highest ever mark of US$ 137 billion
of revenues in FY19 growing at 8.3 per cent.
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• Revenue of GICs is expected to touch US$ 50 billion by 2025.
• Highest ever revenue was generated by Indian IT firms at US$ 181 billion in
2018-19.
Road Ahead
India is the topmost off shoring destination for IT companies across the world.
Having proven its capabilities in delivering both on-shore and off-shore services to
global clients, emerging technologies now offer an entire new gamut of opportunities
for top IT firms in India. Export revenue of the industry is expected to grow 7-9 per
cent year-on-year to US$ 135-137 billion in FY19. The industry is expected to grow
to US$ 350 billion by 2025 and BPM is expected to account for US$ 50-55 billion out
of the total revenue.
The government has suggested the investment of Rs 5,000,000 crore (US$ 750
billion) for railways infrastructure between 2018 -2030.
The sector has been classified into many categories:
1. IT services.
2. Engineering services.
3. ITES-BPO services.
4. E-business.
It sector can be further be categorized into information services(IS) outsourcing,

packaged software support and installation, system intercom, processing services,
hardware support and installation and it training and education.
Engineering services includes industrial design, mechanical design, electronically

system design (it includes chip/board and Embedded software design), Design
Validation Testing, Industrialization and Prototyping.
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E Business (Electronic Business) is carrying out business on the internet; it
includes buying n selling, serving customers and collaboration with business
partners.
The Indian information technology industry has played a key role in putting indian on
global map. Thanks to the success of the IT industry, India is now a power to reckon
with. According to the national association of software and service companies
(NASSCOM) , THE apex body India’s IT growth in the world is primarily dominated
by it software and service such as custom application development and
maintenances (CADM), SYSTEM INTERGRATION, IT consultancy, application
management, infrastructure management services, software testing, service-
oriented architecture and web services.
Government Initiatives
The Indian engineering sector is of strategic importance to the economy owing to its
intense integration with other industry segments. The sector has been de-licensed and
enjoys 100 per cent FDI. With the aim to boost the manufacturing sector, the
government has relaxed the excise duties on factory gate tax, capital goods, consumer
durables and vehicles.
• Government has planned an investment of Rs 100 lakh crore (US$ 1.43 trillion)
in infrastructure sector over the next five years.
• The government announced Rs 150,000 (US$ 2,250) income tax deduction on
interest paid on loans for purchase of electric vehicles the Union Budget 2019-
20.
• The Union Cabinet has approved incentives up to Rs 10,000 crore (US$ 1.47
billion) for investors by amending the M-SIPS scheme, in order to further
incentivize investments in electronics sector, create employment opportunities
and reduce dependence on imports by 2020.
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CHAPTER 2 INTRODUTION TO COMPANY
The introduction of five companies are as follows:
1. TATA CONSULTANCY SERVICE (TCS):
Tata Consultancy Services Limited (TCS) is an Indian multinational information

technology (IT) service and consulting and business solutions company headquartered
in Mumbai, Maharashtra. It is a subsidiary of Tata Group and operates in 46 countries.
TCS is the largest Indian company by market capitalization. Tata consultancy services
is now placed among the most valuable IT services brands worldwide.TCS alone
generates 70% dividends of its parent company. TCS was ranked 64th overall in
the Forbes World's Most Innovative Companies ranking, making it both the highest-
ranked IT services company and the top Indian company. It is the world's largest IT
services provider. As of 2018, it is ranked eleventh on the Fortune India 500 list.
Tata Consultancy Services Limited was founded in 1968 by division of Tata Sons
Limited. Its early contracts included punched card services to sister company TISCO
(now Tata Steel), working on an Inter-Branch Reconciliation System for the Central
Bank of India, and providing bureau services to Unit Trust of India.
In 1980, TCS established India's first dedicated software research and development
center, the Tata Research Development and Design Centre (TRDDC) in Pune. In 1981,
it established India's first client-dedicated offshore development Centre, set up for
clients Tandem. TCS later (1993) partnered with Canada-based software factory
Integrity Software Corporation which TCS later acquired.
On 25 August 2004, TCS became a Publicly Listed Company.

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In 2005, TCS became the first India-based IT services company to enter
the bioinformatics market. In 2006, it designed an ERP system for the Indian Railway
Catering and Tourism Corporation. By 2008, its e-business activities were generating
over US$500 million in annual revenues.
TCS entered the small and medium enterprises market for the first time in 2011,
with cloud-based offerings. On the last trading day of 2011, it overtook RIL to achieve
the highest market capitalization of any India-based company. In the 2011/12 fiscal
year, TCS achieved annual revenues of over US$10 billion for the first time.
In May 2013, TCS was awarded a six-year contract worth over 1100 crore to provide
services to the Indian Department of Posts. In 2013, the firm moved from the 13th
position to 10th position in the League of top 10 global IT services companies and in
July 2014, it became the first Indian company with over Rs 5 lakh crore market
capitalizations.
In Jan 2015, TCS ends RIL's 23-year run as most profitable firm
In Jan 2017, the company announced a partnership with Auras, Inc., a payments
technology company, to deliver payment solutions for retailers using TCS Omni Store, a
first of its kind unified store commerce platform.
TCS Honored with Four Stevie’s at the 2019 American Business Awards.
TCS and its 67 subsidiaries provides a wide range of information technology-related

products and services including application development, business process
outsourcing, capacity planning, consulting, enterprise software, hardware sizing,
payment processing, software management and technology education services. The
firm's established software products are TCS Ba NCS and TCS Master Craft.
Tata Consultancy Services has 285 offices across 46 countries and 147 delivery
centers in 21 countries. At the same date TCS had a total of 58 subsidiary companies.
Service lines
TCS services are currently organized into the following service lines:
• Application development and maintenance (43.80%) value.
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• Asset leverage solutions (2.70%)
• Assurance services (7.70%)
• Business process outsourcing (12.50%)
• Consulting (2.00%)
• Engineering and Industrial services (4.60%)
• Enterprise solution (15.21%) and
• IT infrastructure services (11.50%)
Tata Research Development and Design Centre
TCS established the first software research center in India, the Tata Research
Development and Design Centre, in Pune, India in 1981. Tata research development
and design center (TRDDC) undertakes research in Software engineering, Process
engineering and systems research. Researchers at TRDDC also developed Master
Craft. A Model Driven Development software that can automatically create code based
on a model of a software, and rewrite the code based on the user's needs.TCS
deployed thousands of these filters in the Indian Ocean tsunami disaster of 2004 as part
of its relief activities .This product has been marketed in India as Tata Swachh, a low
cost water purifier.
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2. INFOSYS:
Infosys was co-founded in 1981 by CEO NarayanMurthy, Nandan Nilekani, S.

Gopalkrishanan, S. D. Shibulal , K. Dinesh, N. S. Raghavan and Ashok Arora all of
whom were former employees of Patni Computer Systems.
Infosys Limited is an Indian multinational corporation that provides business

consulting, information technology and outsourcing services. It has its headquarters
in Bangalore, Karnataka, India.
Infosys is the second-largest Indian IT company after Tata Consultancy Services by

2017 revenue and 596th largest public company in the world based on revenue. On
March 29, 2019, its market Capitalization was $46.52 billion.
The company changed its name to Infosys Technologies Private Limited in April 1992
and to Infosys Technologies Limited when it became a public limited company in June
1992. It was later renamed to Infosys Limited in June 2011.
An initial public offer (IPO) in February 1993 with an offer price of 95 (equivalent to 510
or US$7.20 in 2018) per share against book value of 20 (equivalent to 110 or US$1.50
in 2018) per share was undersubscribed but it was "bailed out" by US investment
bank Morgan Stanley, which picked up 13% of equity at the offer price. Its shares were
listed in stock exchanges in June 1993 with trading opening at 145 (equivalent to 790 or
US$11 in 2018) per share. Its annual revenue reached US$100 million in 1999,
US$1 billion in 2004 and US$10 billion in 2017.
In 2012, Infosys announced a new office in Milwaukee, Wisconsin, to serve Harley-

Davidson, being the 18th international office in the United States. Infosys hired 1,200
United States employees in 2011, and expanded the workforce by an additional 2,000
employees in 2012. In April 2018 Infosys announced expanding in Indianapolis, Indiana.
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The development will include more than 120 acres and is expected to result in 3,000
new jobs—1,000 more than previously announced.
In July 2014, Infosys started a product subsidiary called Edge Verve Systems, focusing
on enterprise software products for business operations, customer service, procurement
and commerce network domains. In August 2015, the Finacle Global Banking Solutions
assets were officially transferred from Infosys and became part of the product
company Edge Verve Systems product portfolio.
Infosys provides software development, maintenance and independent validation

services to companies in finance, insurance, manufacturing and other domains.
One of its known products is Finacle which is a universal banking solution with various
modules for retail & corporate banking
Its key products and services are:
• NIA – Next Generation Integrated AI Platform (formerly known as Manna)

• Infosys Consulting – a global management consulting service
• Infosys Information Platform (IIP) – Analytics platform
• Edge Verve Systems which includes Finacle, a global banking platform
• Panaya Cloud Suite
Infosys has 82 sales and marketing offices and 123 development centers across the
world as of March 31, 2018, with major presence in India, United States, China,
Australia, Japan, Middle East and Europe.
In 2019, 60%, 24% and 3% of its revenues were derived from projects in North America,
Europe and India, respectively. Remaining 13% of revenues were derived from rest of
the world.
In India, shares of Infosys are listed on the BSE where it is included in BSE
SENSEX and NSE where it is included in CNX Nifty. Its shares are listed by way
of American depositary receipts (ADRs) at the New York Stock Exchange.
Over a period of time, the shareholding of its promoters has gradually reduced, starting
from June 1993 when its shares were first listed. The promoters' holdings reduced
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further when Infosys became the first Indian-registered company to list Employees
Stock Options Schemes and ADRs on NASDAQ on 11 March 1999. The promoter
holding on 31 March 2002 was 28.72% and at 30 June 2017 it dropped to 12.75% as
they gradually sold their shares and reduced involvement in active management of the
company.
Infosys had a total of 243,454 employees at the end of December 2019, out of which
37.8% were women. Out of its total workforce, 229,658 are software professionals and
remaining 13,796 works for support and sales. In 2016, 89% of its employees were
based in India.
During financial year 2019, Infosys received 2,333,420 applications from prospective
employees, interviewed 180,225 candidates and had a gross addition of 94,324
employees, a 4% hiring rate. These numbers do not include its subsidiaries.
The attrition rate of Infosys Ltd. including its subsidiaries, for financial year 2019 was
21.5%.
As the world's largest corporate university, the Infosys global education Centre in the
337acrecampus has 400 instructors and 200+ classrooms, with international
benchmarks at its core. Established in 2002, it had trained around 1,25,000 engineering
graduates by June 2015. It can train 14,000 employees at a given point of time on
various technologies.
The Infosys Leadership Institute (ILI), based in Mysore, has 96 rooms and trains about
400 trainees (called Infoscions) annually. Its purpose is to prepare and develop the
senior leaders in Infosys for current and future executive leadership roles. The Infosys
Training Centre in Mysore also provides a number of extracurricular facilities like tennis,
badminton, basketball, swimming pool and gym.
In 2019, Infosys was ranked as the 3rd Best Regarded Company in the World by
Forbes.
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3. WESTERN INDIA PRODUCTS (WIPRO):
The third-largest company in India, Bangalore-based Wipro Limited is an ever-growing

and ever-diversifying global company that manufactures and sells products and
services ranging from cooking oil and soaps to health care instruments and information
technology (IT) consulting. Although Wipro's chairman and managing director Azim
Hasham Premji is committed to the company's diversified business model, its future
clearly lies in its continued successes in software and IT services, which make up nearly
half of the company's sales and has consistently outpaced the growth of Wipro's other
businesses. Wipro's world-class technologies division provides a range of high-tech
services such as global IT consulting, e-business integration, and legacy systems
maintenance to clients such as Cisco Systems, Thomas Cooke, and NEC. Wipro's IT
efforts are so reliable that in 1998 the company became the first in the world to have
been awarded the Software Engineering Institute's (SEI) coveted Level 5 Certification
for quality. After an impressive debut on the New York Stock Exchange in 2000, Premji,
who owns 75 percent of Wipro, became one of the top billionaires in the world.
The company's first departure from its main cooking oil business came about in 1975.
Drawing Azim Premji his engineering background, and at the suggestion of one of the
new IIM recruits, M. Cenesthopathy Rao, Premji launched Wipro Fluid Power, an
operation that manufactured hydraulic and pneumatic cylinders. And under the direction
of P.S. Pai, Wipro's consumer care division expanded beyond oil in 1979, establishing
operations in soaps, toiletries, and baby care products. Along with major expansions in
distribution, Wipro's consumer care division gained so much financial strength for the
company that the company was able to further diversify into IT and healthcare
instruments.
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Wipro would diversify into computers almost as soon as India's computer industry
began to develop in the mid-1970s. At the time, the Indian government was the largest
purchaser of computers sold in India, and was standardized on the Unix-based platform,
which helped Indian companies build a solid reputation in Unix-based software
development. The growing IT industry in India attracted multinationals such as IBM,
Motorola, and Texas Instruments, who took advantage of India's wealth of low-cost
engineering labor.
In 1980 Wipro launched information technology services for the domestic market,
setting up in Bangalore a crack-team of R&D and marketing managers, headed by
Ashok Narasimhan. Their professionalism, innovation and insistence on quality were to
make Wipro the No. 1 listed information Technology Company in the country within the
next 15 years. By 1984 the company diversified into software, which it would
discontinue by 1990, but it led to Wipro's foray into its growth business, software
services. Wipro began manufacturing PCs and workstations in 1985, quickly building
brand recognition and securing the enviable position of commanding a premium price
over the competitions' cheap clones. Wipro assembled and redistributed hardware for
U.S. companies like Nortel, Sun Microsystems, and Cisco Systems.
Wipro began to shift its IT business away from costly on-site development projects in
the United States, to more profitable offshore development closer to home. To help
keep its competitive edge, the company replicated the development labs of some of its
major clients, including AT&T, IBM, and Intel Corporation. And while Wipro continued to
offer a range of programming services, including hardware design, networking, and
communications and operating system support—it continued to diversify into other lines
of business.
In 1992 the company established a new lighting business, offering a range of lighting
solutions for domestic, commercial, industrial, and pharmaceutical lab environments.
Wipro discarded its PC brand in 1995 when it formed a joint venture with Acer, a
Taiwan-based computer and peripherals manufacturer and distributor.
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By 1998, Bangalore became one of the many IT centers in India, with about 250 high-
tech firms, plus about 100 just outside the city's limits. And Wipro became the center of
this Indian "Silicon Valley," as India's second-biggest software exporter. Both software
and hardware businesses generated 57 percent of the company's sales, and 75 percent
of its profits, with software employees numbering over 5,600 of the company's 9,000
total. Still, Premji saw continued value in keeping Wipro's non-IT businesses, which he
was always quick to point out were the best in their niche markets.
Along with diversifying its customer base, Wipro set out to expand and deepen its IT
service offerings and become a global tech powerhouse that directly competes with
giants such as IBM Global Consulting, Accenture, and Electronic Data Service. Even
though Wipro came out of 2000 quite well, India's IT industry quickly became flanked
with growing competition from countries such as Ireland, China, Vietnam, and the
Philippines. And even though 60 percent of Indian software exports were absorbed by
businesses in the U.S. in 1999, which accounted for only 2 percent of the global total.
Wipro decided to go beyond the unglamorous back-office code-writing on contract, and
pursue even more high-profile, high-paying projects that involved e-business
development, new software products, and end-to-end business/system consulting.
Instead of doing small portions of large IT software solutions, Wipro would set out to
develop comprehensive, end-to-end solutions, which included both software services
and hardware, and often involved outsourcing the simpler code work to other countries.
In February 2002, Wipro became the first software technology and services company in
India to be ISO 14001 certified. Wipro Consumer Care and Lighting Group entered the
market of compact fluorescent lamps, with the launch of a range of CFL, under the
brand name of Wipro Smartlite.
In 2004 Wipro joined the Billion Dollar club. It also partnered with Intel for I-Shiksha.
In 2006, Wipro acquired MangoInc. A US-based technology infrastructure is a

consulting firm and a Europe-based retail provider.
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In 2007, Wipro signed a deal with Lockheed Martin. It also agreed to acquire Oki
Techno Centre Singapore Pte Ltd (OTCS) and signed an R&D partnership contract with
Nokia Siemens Networks in Germany.
In 2008, Wipro's entered the clean energy business with Wipro Eco Energy.
In April 2011, Wipro signed an agreement with Science Applications International

Corporation (SAIC) for the acquisition of their global oil and gas information technology
practice.
In 2012, Wipro acquired Australian Trade Promotions Management firm Prom ax

Applications Group (PAG) for $35 million.
In 2014, Wipro signed a 10-year $1.2 billion contract with ATCO, a Canadian Energy
and Utilities corporation based in Calgary, Alberta. This was the largest deal in Wipro's
history. In October 2016, Wipro announced that it was buying Appirio, an Indianapolis-
based cloud services company for $500 million. In 2017, the company expanded its
operations in London.
In 2017, Wipro Limited won a five-year IT infrastructure and applications managed

services engagement with Grameen phone (GP), a major telecom operator in
Bangladesh and announced it would set up a new delivery Centre there.
In 2018, the company began building software to help with the General Data Protection
Regulation (GDPR) in Europe
In 2019, Wipro Consumer Care and the Ang-Hortaleza Corporation signed a share
purchase agreement for the sale of 100% of the latter's stake in the personal care
business of Splash Corporation, the companies announced on Monday, April 29.
Wipro has been ranked 1st in the 2010 Asian Sustainability Rating (ASR) of Indian
companies and is a member of the NASDAQ Global Sustainability Index as well as
the Dow Jones Sustainability Index.
17
4. HINDUSTAN COMPUTERS LIMITED (HCL):
HCL Technologies is on the Forbes Global 2000 list. It is among the top 20 largest
publicly traded companies in India with a market capitalization of $18.7 billion as of May
2017.As of September 2019, the company, along with its subsidiaries, had consolidated
revenue of $9.3 billion.
In 1976, a group of six engineers, all former employees of Delhi Cloth & General Mills,
led by Shiv Nader, started a company that would make personal computers. Initially
floated as Micro comp Limited, Nader and his team (which also included Arjun Malhotra,
Ajay Chowdary, D.S.Puri, Yogesh Vaidya and Sub hash Arora) started selling tele
digital calculators to gather capital for their main product. On 11 August 1976, the
company was renamed Hindustan Computers Limited (HCL).
On 12 November 1991, a company called HCL Overseas Limited was incorporated as a

provider of technology development services. It received the certificate of
commencement of business on 10 February 1992 after which it began its operations.
Two years later, in July 1994, the company name was changed to HCL Consulting
Limited and eventually to HCL Technologies Limited in October 1999.
HCL Technologies is one of the four companies under HCL Corporation, the second
company being HCL Info systems. In February 2014 HCL launched HCL
Healthcare. HCL Talent Care is the fourth and latest venture of HCL Corporation.
HCL Technologies began as the R&D Division of HCL Enterprise, a company which
was a contributor to the development and growth of the IT and computer industry in
India. HCL Enterprise developed an indigenous microcomputer in 1978, and a
networking OS and client-server architecture in 1983. On 12 November 1991, HCL
Technologies was spun off as a separate unit to provide software services.
18
HCL Technologies was originally incorporated as HCL Overseas Limited. The name
was changed to HCL Consulting Limited on 14 July 1994. On 6 October 1999, the
company was renamed 'HCL Technologies Limited' for "a better reflection of its
activities." Between 1991 and 1999, the company expanded its software development
capacities to the US, European and APAC markets.
In 1976, a group of six engineers, all former employees of Delhi Cloth & General Mills,
led by Shiv Nader, started a company that would make personal computers. Initially
floated as Micro comp Limited, Nader and his team started selling tele-digital calculators
to gather capital for their main product.
On 11 August 1976, the company was renamed Hindustan Computers Limited (HCL).
On 12 November 1991, a company called HCL Overseas Limited was incorporated as a

provider of technology development services. It received the certificate of
commencement of business on 10 February 1992 after which it began its operations.
In July 1994, the company name was changed to HCL Consulting Limited and
eventually to HCL Technologies Limited in October 1999.
HCL Technologies is one of the four companies under HCL Corporation, the second
company being HCL Info systems. In February 2014 HCL launched HCL Healthcare.
HCL Talent Care is the fourth and latest venture of HCL Corporation.
HCL Technologies began as the R&D Division of HCL Enterprise, a company which
was a contributor to the development and growth of the IT and computer industry in
India. HCL Enterprise developed an indigenous microcomputer in 1978, and a
networking OS and client-server architecture in 1983. On 12 November 1991, HCL
Technologies was spun off as a separate unit to provide software services.
HCL Technologies was originally incorporated as HCL Overseas Limited. The name
was changed to HCL Consulting Limited on 14 July 1994. On 6 October 1999, the
company was renamed 'HCL Technologies Limited' for "a better reflection of its
19
activities."Between 1991 and 1999, the company expanded its software development
capacities to the US, European and APAC markets.
HCL Technologies operate in 44 countries, including its headquarters in Noida, India. It

has establishments in Australia, China, Hong Kong, India, Indonesia, Israel, Japan,
Malaysia, New Zealand, Saudi Arabia, Singapore, South Africa, the United Arab
Emirates and Qatar. In Europe it covers Belgium, Czech Republic, Denmark, Estonia,
Finland, France, Germany, Italy, Netherlands, Norway, Poland, Sweden, Switzerland,
Portugal, and the United Kingdom. In the Americas, the company has offices in Brazil,
Canada, Mexico, Puerto Rico, and the United States.
Business lines
1. Applications Services and Systems Integrations

2. BPO/Business Services: This division has "delivery centers" in India, the
Philippines, Latin America, USA, HCL BPO Northern Ireland, and Europe.
3. Engineering and R&D Services (ERS)
4. Infrastructure Management Services (IMS)
5. Digital & Analytics
6. Cyber Security
HCL Infrastructure Services Division (ISD) is an IT services company.

Headquartered in Delhi, NCR, India, HCL ISD was instituted in 1993 with the objective
to address the demand for cost-effective management of technology infrastructure
across geographically dispersed locations. HCL ISD, also known as HCL Comment
Systems and Services Ltd. in India, diversified its portfolio to provide end-to-end
enterprise IT infrastructure solutions globally in 1993 winning the first order to establish
India's first floorless stock exchange in order to achieve superior infrastructure
performance and significantly reduced costs.
20
5. TECH MAHENDRA:
Tech Mahindra Limited is an Indian multinational provider of information

technology (IT), networking technology solution and business process
outsourcing (BPO) to the telecommunication industry. Anand Mahindra is the Chairman
of Tech Mahindra, which is headquartered at Pune and has its registered office
in Mumbai.
Tech Mahindra began a joint venture with British Telecom and the company began as
Mahindra-British telecom in the year 1986. This was the time when IT revolution was
unthinkable.
The name of the company was changed from Mahindra-British Telecom Limited to the
present name Tech Mahindra Limited on 3rd February of the year 2006.British Telecom
was initially a partner of 30% with Mahindra but later on gradually sold its entire share to
investors by the year 2012. The Tech Mahindra bought Satyam Computer Services
through a subsidiary and doubled its number of employees. Tech Mahindra then finally
merged with Mahindra Satyam in the year 2012 and thus created a $2.5 billion company
IT Company.
Tech Mahindra bid for Satyam Computer Services, and emerged as a top bidder with an
offer of Rs 58.90 a share for a 31 per cent stake in the company, beating a strong
rival Larsen & Toubro. After evaluating the bids, the government-appointed board of
Satyam Computer announced on 13 April 2009: "its Board of Directors has selected
Ventura Consultants Private Limited, a subsidiary controlled by Tech Mahindra Limited
21
as the highest bidder to acquire a controlling stake in the Company, subject to the
approval of the Humble Company Law Board.
Tech Mahindra announced its merger with Mahindra Satyam on March 21, 2012, after
the boards of the two companies gave their approval, to create a 2.5 billion $ IT
Company. The two firms had received the go-ahead for the merger from the Bombay
Stock Exchange and the National Stock Exchange. On June 11, 2013, Andhra Pradesh
High Court gave its approval for the merger of Mahindra Satyam with Tech Mahindra,
after the Bombay high court had already given its approval.
Tech Mahindra announced the completion of its merger with Mahindra Satyam to create
the nation's fifth largest software services company.
Vision Statement
“We will Rise to be among the top three leaders in each of our chosen market segments
while fostering innovation and inclusion.
Products and Services Offered
Tech Mahindra's digital and design experience, innovative platforms and reusable
assets bring together a number of technologies together to deliver a tangible business
value and experience to their clients. Tech Mahindra provides a wide range of
information technology related products and services such as
• ADMS Java & Open Source

• Cloud Computing
• Consulting
• Enterprise Architecture
• Integrated Engineering Solutions
• Infrastructure Management Services
• Mobility Solutions
• Product Life Cycle Management
22
• Enterprise Security Risk Management
• Testing
• Socio
• Uno- Robotic Process Automation
• PRISM
• Retirement & Wealth
23
CHAPTER 3: LITERETURE RIVIEW
Literature review is a study involving a collection of literatures in the selected area of
research in which the researcher has limited experience, and critical examination and
comparison of them to have a better understanding. It also helps the researchers to
update the past data, data sources and results and identify the gaps, if any in the
researches.
Nabhi Kumar Jain6 (1992) specified certain tips for buying shares for holding and
also for selling shares. He advised the investors to buy shares of a growing company
of a growing industry. Buy shares by diversifying in a number of growth companies
operating in a different but equally fast-growing sector of the economy. He suggested
selling the shares the moment company has or almost reached the peak of its growth.
Also, sell the shares the moment you realize you have made a mistake in the initial
selection of the shares. The only option to decide when to buy and sell high priced
shares is to identify the individual merit or demerit of each of the shares in the portfolio
and arrive at a decision.
Carter Randal7 (1992) offered to investors the underlying principles of winning on

the stock market. He emphasized on long term vision and a plan to reach the goals.
He advised the investors that to be successful, they should never be pessimists. He
revealed that - though there has been a major economic crisis almost every year, it
remains true that patient investors have consistently made money in the equities
market. He concluded that investing in the stock market should be an un-emotional
endeavor and suggested that investors should own a stock if they believe it would
perform well.
Sunil Damodar'o (1993) evaluated the 'Derivatives' especially the 'futures' as a

tool for short-term risk control. He opined that derivatives have become an
indispensable tool for finance managers whose prime objective is to manage or reduce
the risk inherent in their portfolios. He disclosed that the over-riding feature of 'financial
24
futures' in risk management is that these instruments tend to be most valuable when
risk control is needed for a short- term or for a year or less. They tend to be cheapest
and easily available for protecting against or benefiting from short term price. Their low
execution costs also make them very suitable for frequent and short-term trading to
manage risk, more effectively.
John Colnan (1994), senior Research Analyst from SHAN Stock broking’s
Research Department provides some briefs pointers on what information to look for
and how to make sense of what is available.
Mark P. Bauman (1996) conducted a study named, “A Review of Fundamental

Analysis Research in Accounting”. This paper has outlined the development of
fundamental valuation model and reviewed related empirical work. First, an accounting-
based expression for a firm’s equity value has been developed into a rich theoretical
framework. They verified its descriptive validity regarding the mapping of accounting
numbers into stock prices. This paper identified three major issues associated with
practical implementation of the model; the prediction of future profitability, the length of
appropriate forecast horizon, and the determination of the appropriate discount rate.
Jon Lynch conducted a study, “Share Market Analysis-Fundamental Vs Technical

Analysis”, which reveals that in recent times, there has been a bigger push towards
stock market research, which is being conducted by private individuals. This has been
possible through the vast amount of information on the Australian stock market, now
available online to any subscriber. This article explains the difference between the
fundamental and technical analysis; the most common methods adopted to conduct
research on the performance of stock markets.
25
Jim Berg (1999) conducted a study – “Fundamental Analysis Using Internet”. This
study examined that fundamental analysis looks at the fundamental issues that drive the
value of the particular company. These issues include its financial position, its industry
sector, and the current economic environment. The objective was to identify companies
that may be considered undervalued in the market with a view to investing when the
time is right.
Vanstone B. Finnie G. and Tan C. (2004) conducted a study entitled- “Enhancing

Security Selection in the Australian Stock Market Using Fundamental Analysis
and Neural Networks”. This paper examines financial trading from the aspect of
security selection. In practice, it is unrealistic for a financial trader to participate in the fill
market of tradable securities competing for investment capital. Essentially, there are two
main methodologies used namely, fundamental analysis and technical analysis. This
paper examines the practice of fundamental analysis and demonstrates how neural
networks can be practically employed to enhance the fundamentalist selection process.
Dr. Maria Nevis Soris and V. Sornaganesh (2012) conducted a study entitled-
“Fundamental Analysis of NBFC in India”. This study conducted to examine the
economic sustainability of the five major NBFC in Indian NBFC sector and its financial
performance.
Venkates CK, Dr. Madhu Tyagi, Dr. Ganesh L. (2012), This paper aims to
investigate the relationship between accounting information and stock returns of
selected Indian stocks pertaining to IT, Banking and Pharmacy sectors over the
past ten years starting from 2001 to 2010. In this research work, a simple financial score
is designed to capture short term changes in firms operating efficiency, Profitability and
Financial policy. Investigating accounting information and stock returns is a method
adopted in Fundamental analysis .The score values and market Returns as provided by
the companies were correlated to investigate the relationship between the score and the
market adjusted returns.
26
Shakti Prasanna D. & Ashish Kumar P.(2013),this paper presents the market
technical charts and their correlation to demonstrate the profitability pattern in
stock, future, commodities and currencies market. The empirical literature is
categorized into two groups „Early‟ and „Modern‟ studies. Early studies indicate that
technical trading strategies are profitable in foreign exchange markets and futures
market, but not in stock markets. Modern studies indicate that technical trading
strategies consistently generate economic profits in a variety of speculative markets.
S. UmaPrabha, M. Malavika (2014), the aim of this paper is to make technical

analysis of selected stocks of pharmaceutical sector and interpret whether to buy
or sell them and which stocks give higher return. The major tools and techniques
used in this study are Beta, Relative Strength index and simple moving average. to get
good returns investor must invest considering the time horizon of at least two to three
years.
Mrs. J. Nithya, Dr. G. Thamizhchelvan (2014), the objective of this paper is to

make technical analysis of selected companies included in the CNX nifty. The
descriptive method is used to study the price trend of fifteen stocks. MACD and RSI
techniques are used for the study. Secondary data is used for the analysis. Simple
random sampling method is used. According to RSI, there is increase in RSI value,
which indicates that there is increase in the share price. This states to the investors that
it is a strong sell signal. When RSI value decreases it is a strong buy signal.
Dr. Pooja Taraji (2014), in this paper exponential moving average is used to
predict future share prices. The study is conducted on taking five years historical data
sample on daily bases of Indian stock market. As a result, they found out the trends in
different stocks which are going upward or downward. It increases the chances for the
investors to predict the prices more accurately and hence increased profit in share
markets.
C. Boobalan (2014), the objective of this paper is to carry out technical analysis of
the securities of the selected companies and to assist investment decisions in
the Indian market. The five Indian companies, Wipro, SBI, GAIL, ONGC and ITC are
27
taken for the study. The different patterns of stock prices of these companies give an
idea of future trend of these companies.
Kevin L, Partha Moharram (2014), this paper covers fundamental analysis

strategies based on rational analysis such as FSCORE and GSCORE with
strategies based on intrinsic value such as the v/p ratio. The finding shows that all
three strategies generate significant hedge returns. Combining the V/P ratio with
FSCORE or GSCORE leads to a significant increase in hedge returns that hold for a
variety of partitions, persist over time and remain after controlling for risk factors. This
result suggests a new and powerful method to conduct fundamental analysis.
George j. Saranya D.Amrudha R. (2015), the study on the formation of candlestick

pattern was done to find out the different candlestick patterns and identify its
accuracy. This study is conducted based on the past five year’s Nifty index.
Candlesticks are one of the most powerful technical analysis tools. The advantage of
using candlestick charting in place of Bar charts is that you have the ability to use same
techniques and analysis that bar charts offer plus the diversity and unique signals that
candlesticks generate. The main findings from this study are candlestick patterns are
not 100% accurate as per the past Five year Nifty index.
Dr. K. Ramesh, Dr. V. Devendra (2017), the study focused 13 Indian listed Equities
from each sector in NSE Nifty for the period of one year. The aim of the study is to
predict the future price and to interpret on whether to buy or sell the selected equities.
The Purposive Sampling Technique is used and the Research Design is Descriptive in
nature. MACD and RSI tools are used to identify the Buy and Sell signals in the
Candlestick Chart. Strong Buy signal for Bharti Airtel Ltd, ITC Ltd, Adani Ports and
Special Economic Zone Ltd, Ambuja Cements Ltd, Sun Pharmaceutical Industries Ltd
and Zee Entertainment Enterprises Ltd. And Strong Sell signal for Infosys Ltd.
28
CHAPTER 4 RESEARCH METHODOLOGY
The chapter focuses on the methodology and the techniques used for the collection,
classification and tabulation of the data.
Research methodology is a way to systematically solve the problem. It is a game plan

for conducting research. In this we describe various steps that are taken by the
researcher.
Research is a common context is a search for knowledge. Research is an art of

scientific and systematic investigation. Thus research comprises defining and redefining
problems, formulating hypothesis or suggested solutions; collecting, organizing and
evaluating data, making deduction and researching conclusions. Research methodology
is a conceptual structure within which research is conducted. It is a frame work for the
study and is used a guide in collecting and analyzing the data. In addition to this, it is a
strategy specifying which approach will be used for gathering and analyzing the data
and also includes time and cost budget since most of studies are done under these two
constraints. The research methodology includes objectives of the research study, over
all research design, population under study, sampling procedure, the data collection
method, analysis procedure, limitations of the work and scope for future studies.
RESEARCH DESIGN
Research design is a framework of conducting research for a Project. The research

design used in this study is Descriptive research design. The purpose of descriptive
design is getting an insight over the issue. In this type of researcher has no control over
the variables; he can only report what has happened or what is happening.
Descriptive design is those designs which are concerned with describing the
characteristics of particular individual or the group. In descriptive and diagnostics study,
the researcher must be able to define clearly what he wants to measures and must find
adequate method for measuring it.
29
POPULATION:
A researcher population is generally a large collection of individuals or objects that is

the main focuses of a scientific query. It is for the benefits of the population that
researcher is done. Due to the large size of population, researcher often cannot test
every individual in the population because it is too expensive and time- consuming. This
is the reason why the Researcher relies on sampling techniques.
SAMPLING:
Sampling is a method of studying from a few selected items, instead of entire big
number of units the small selection is called sample. The large number of items of units
of particular characteristic is called population. Some of the types of sampling are:
(1) Simple random sampling: it is mostly used for the type of population which is
homogeneous.
(2) Stratified sampling: strata’s help us classify the population hen the population is
heterogeneous and take simple random samples from each class.
(3) Sequential sampling: it is done by selection of the samples sequentially at
regular intervals. The purpose of all the sampling techniques is to give the equal
chance of any item to be selected without bias.
TYPES OF DATA COLLECTION:
The next step was to select the source of data. There are mainly two types of data are:
• Secondary data
• Primary data
SECONDARY DATA:
30
Secondary data are originally collected by someone else for same, similar of different
purpose. They economical can be collected faster. It is advisable to check Compatibility,
Correctness and obsolescence risk for secondary data. There is an abundance of data
available in these sources about your research area in business studies, almost
regardless of the nature of the research area. Therefore, application of appropriate set
of criteria to be selected for secondary data .The sources of secondary data are as
follows:
1. Books & publication

2. Government data
3. Other researches
4. Professional data providers
5. Internal experts
6. Different reports
PRIMARY DATA
Primary data are collected by researcher for the purpose of same research. Primary
data are tailor made data collected exclusively for the purpose of research. The
methods for primary data Collection are as follows:
1. Field Survey
2. Observation method
3. Experiments
SAMPLING TECHNIQUES:
There are mainly two sample techniques classified into one of two categories:
• Probability sampling techniques: Sample has a known probability of being

selected.
31
• Non- probability sampling techniques: Sample does not have known probability
of being selected as in convenience or voluntary response surveys.
PROBABILTY SAMPLING:
In probability sampling it is possible to both determine which sampling units belong to

which sample and the probability that each sample will be selected.
1. Simple Random Sampling Method

2. Stratified Random Sampling Method
3. Cluster Sampling Method
4. Systematic Sampling
NON PROBANILITY:
Non-probability sampling is a sampling technique where the sampling is gathered in a

process that does not give all the individuals in the population equal chances of being
selected.
1. Convenience sampling
2. Judgmental sampling
3. Quota sampling
4. Snowball sampling
32
OBJECTIVES:
1. To carry out the financial analysis of IT sector in order to suggest the investment
of the various selected IT companies.
2. To study the financial performance of selected IT companies.
3. To study the growth of the IT sector in order to invest.
DATA COLLECTION:
This study is based on secondary data and it has been analysis from the published
annual report of various selected IT companies.
The data is collected from the balance sheet and profit and loss statement of selected
companies.
There are two types of data are:
A. Qualitative data
B. Quantitative data
Qualitative data includes
1. Nominal: The variables do not have a specific order.

2. Ordinal: The variables have a specific order.
Quantitative data includes
1. Continuous data: The variable can be in theory is any value within a certain
range can be measured.
2. Discrete: The variable can only have certain values, usually can be counted.
33
DATA ANALYISIS:
The project contains secondary data and it is analysis using the statistical tools. The
tools used for analysis the data are:
1. Ratio analysis
2. ANOVA
3. Comparative statement
JUSTIFICATION OF TITLE:
➢ Financial analysis of it sector helps us to understand the position in the market

as the IT sector is in growing trend in current market and has the possibility to
grow in the future in it sector.
➢ It helps us the investor to invest in the companies as it has the possibility of
giving the high return on investment.
➢ It is the sector of the technology which is developing in the many countries. In
today’s era, everything is done through technology, so there is the possibility for
the growth in this sector.
SCOPE OF FURTHER STUDY:
➢ By analysis the financial status and other related information of selected

companies of it sector of five years, will help to choose shares that outperform
the market and provided consistent gain to the investor.
➢ This study makes an attempt to provide the necessary information to the data.
➢ This study covers the five years of the data.
34
LIMITATIONS:
The researcher method is used in this study are secondary, which have some
limitations:
➢ There are different methods of analyzing the data apart from the methods used in
this study.
➢ Technical analysis is also used for calculating the intrinsic value which is not
considered.
➢ As the data sources are Secondary, the data collected cannot be accurate and
complete.
➢ There are also some inherent disadvantages in ratio analysis, which is not
considered.
35
CHAPTER 5 FINDING AND ANALYISIS
RATIO ANALYSIS:
Ratio analysis is a quantitative analysis of information contained in a company’s

financial Statements. Ratio analysis is used to evaluate various aspects of a company’s
operating and financial performance such as its efficiency, liquidity, profitability and
solvency.
Ration analysis involves evaluating the performance and financial health of a company
by using data from the current and historical financial statements. The data retrieved
from the statements is used to compare a company’s performance over time to assess
whether the company’s is improving or deteriorating.
The ratios used to evaluate the financial performance of company are:
1. CURRENT RATIO:
The current ratio is a liquidity ratio that measures a company’s ability to pay
short- term and long-term obligations. To gauge this ability, the current ratio
considers the current total assets of a company relative to that company’s
current total Liabilities. The formula for calculating a company’s current ratio is:
Current ratio = current assets / current liability
Year TCS INFOSYS WIPRO HCL TECH

MAHINDRA
2015 2.78 3.41 2.16 3.13 2.30
2016 3.41 4.50 1.71 3.80 2.26
2017 3.09 3.80 1.50 3.02 2.42
2018 2.85 3.83 1.37 3.04 2.25
2019 2.85 3.03 1.34 2.89 1.69
36
Ho: There is no significant difference in current ratio of companies in different year.
H1: There is significant difference in current ratio of companies in different year.
Groups Count Sum Average Variance

TCS 5 14.98 2.996 0.06738
INFOSYS 5 18.57 3.714 0.29973
WIPRO 5 8.08 1.616 0.11373
HCL 5 15.88 3.176 0.12903
TECH MAHINDRA 5 10.92 2.184 0.08083
ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 13.8839 4 3.470976 25.12651 1.48E-07 2.866081
Within Groups 2.7628 20 0.13814
Total 16.6467 24
INTERPRETATION:
The null hypothesis states that the mean hardness values of five different companies
are not different. The P value is 1.48E-07 which is greater than the significant level of
0.05; we can accept the null hypothesis. So there is no significant difference in ratio of
different companies in different years.
37
2. QUICK RATIO
The quick ratio is a measurement of how well a company can meet its short-
term finance liabilities. Also known as the acid test ratio, it can be calculated as
follows:
QUICK RATIO= CASH + MARKETABLE SECURITIES +ACCOUNTS

RECEIVABLES / CURRENT LIABILITIES
YEAR TCS INFOYSES WIPRO HCL TECH

MAHINDERA
2015 2.80 3.88 2.95 3.08 2.23
2016 3.27 4.47 2.49 3.54 2.20
2017 2.93 3.77 2.17 2.82 2.41
2018 2.67 3.74 1.85 2.75 2.20
2019 2.74 2.96 2.35 2.59 1.67
Ho: There is no significant difference in quick ratio of companies in different year.
H1: There is significant difference in quick ratio of companies in different year.
Anova: Single Factor

TCS 5 14.41 2.882 0.05617
INFOYSES 5 18.82 3.764 0.28973
WIPRO 5 11.81 2.362 0.16532
HCL 5 14.78 2.956 0.13783
TECH MAHINDERA 5 10.71 2.142 0.07727
ANOVA
38
Between Groups 7.914584 4 1.978646 13.62103 1.62E-05 2.866081
Within Groups 2.90528 20 0.145264
Total 10.81986 24
INTERPRETATION:
3. OPERATING PROFIT:
The operating profit margin ratio indicates how much profit a company makes
after paying for variables costs of production such as wages, raw material, etc. it
is also expressed as a percentage of sales and then shows the efficiency of a
company controlling the costs and expenses associated with business
operations. The formula calculated is as follows:
OPERATING PROFIT =OPERATING INCOME*100 / SALES
YEAR TCS INFOSYS WIPRO HCL TECH

MAHINDERA
2015 28.57 121.57 37.26 39.98 16.83
2016 31.50 68.93 37.68 38.22 16.27
2017 29.22 74.91 39.31 40.65 15.85
2018 28.56 79.19 19.79 42.30 16.49
2019 28.38 42.87 14.52 40.05 18.98
Ho: There is no significant difference in Operating Ratio of companies in different year.
39
H1: There is significant difference in Operating ratio of companies in different year.

TCS 5 146.23 29.246 1.68968
INFOSYS 5 387.47 77.494 806.1027
WIPRO 5 148.56 29.712 135.4565
HCL 5 201.2 40.24 2.14895
TECH MAHINDERA 5 84.42 16.884 1.49938
ANOVA
Between Groups 10767.22 4 2691.806 14.21383 1.2E-05 2.866081
Within Groups 3787.589 20 189.3794
Total 14554.81 24
INTERPRETATION:
4. GROSS PROFIT MARGIN:
40
Gross profit margin is a financial metric used to asses a company’s financial
health and business model by revealing the proportion of money left over from
revenues after accounting for the cost of goods sold (cogs) gross profit margin,
also known’s as gross margin, is calculated by dividing gross profit by revenues.
The formula for calculated gross profit margin is as follows:
GROSS PROFIT MARGIN = GROSS PROFIT *100 / SALES

MAHINDERA
2015 26.68 ~ 20.43 38.24 14.36
2016 29.80 27.03 18.87 36.16 13.67
2017 27.52 26.77 18.47 38.17 13.16
2018 26.86 25.67 17.75 38.26 13.72
2019 26.99 23.35 16.26 35.14 16.57
Ho: There is no significant difference in gross profit margin of companies in different

year.
H1: There is significant difference in gross profit margin of companies in different year.

TCS 5 137.85 27.57 1.652
INFOYSES 5 102.82 20.564 134.2587
WIPRO 5 91.78 18.356 2.33478
HCL 5 185.97 37.194 2.11778
TECH MAHINDERA 5 71.48 14.296 1.79733
ANOVA
41
Between Groups 1619.195 4 404.7986 14.23737 1.18E-05 2.866081
Within Groups 568.6423 20 28.43211
Total 2187.837 24
INTERPRETATION:
5. NET PROFIT MARGIN:

Net profit margin is the percentage of revenue remaining after all operating
expenses, interest, taxes and preferred stocks dividends (but not Common stock
dividends) have been deducted from a company’s total revenue. The formula is
given below:
NET PROFIT MARGIN = NET PROFIT *100 / SALES

MAHINDERA
2015 26.17 25.71 19.88 36.99 11.77
2016 26.87 23.51 18.35 35.12 15.35
2017 25.51 23.30 17.72 35.57 13.15
2018 25.92 26.08 17.27 33.35 16.90
2019 24.40 20.11 15.82 31.46 16.09
Ho: There is no significant difference between in net profit margin of companies in

different year.
42
H1: There is significant difference between in net profit margin of companies in different
year.

TCS 5 128.87 25.774 0.83423
INFOSYS 5 118.71 23.742 5.69497
WIPRO 5 89.04 17.808 2.20907
HCL 5 172.49 34.498 4.57337
TECH MAHINDERA 5 73.26 14.652 4.54262
ANOVA
Between Groups 1183.30538 4 295.82635 82.8447513 3.72E-12 2.866081
Within Groups 71.41704 20 3.570852
Total 1254.72242 24
INTERPRETATION:
6. DEBT TO EQUITY RATIO:
43
Debt to equity ratio is a long -term solvency ratio that indicates the soundness of
long terms financial policies of a company. it shows the relation between the
portion of assets financed by creditors and the portion of assets financed by
stockholders. as the debt to equity ratio expresses the relationship between
external equity (liability) and internal equity stockholder’s equity), it is also known
as “external- internal equity
DEBT EQUITY RATIO = TOTAL LIABILITY / SHAREHOLDER’S FUNDS
Year TCS INFOSYS WIPRO HCL TECH

MAHINDERA
2015 0.01 - 0.17 - -
2016 - - 0.16 - 0.01
2017 - - 0.13 - 0.01
2018 - - 0.11 - 0.01
2019 - - 0.10 - -
Ho: There is no significant difference between in debt equity ratio of companies in

different year.
H1: There is significant difference between in debt equity ratio of companies in different
year
44
TCS 5 0.01 0.002 0.00002
INFOSYS 5 0 0 0
WIPRO 5 0.67 0.134 0.00093
HCL 5 0 0 0
TECH MAHINDERA 5 0.03 0.006 0.00003
ANOVA
Between Groups 0.069816 4 0.017454 89.05102 1.89E-12 2.866081
Within Groups 0.00392 20 0.000196
Total 0.073736 24
INTERPRETATION:
7. RETURN ON CAPITAL EMPLOYEED:
45
Return on capital employed (ROCE) is a profitability ratio that measures
efficiently a company can generate profits its capital employed by comparing net
operating profit to capital employed the formula is given below:
ROCE = EBIT * 100 / CAPITAL ENPLOYED

MAHENDERA
2015 52.77 - 26.85 39.92 23.04
2016 45.03 28.81 23.25 27.07 26.59
2017 38.43 27.84 21.09 32.03 21.54
2018 42.00 31.45 22.17 33.14 23.79
2019 51.78 31.77 19.08 32.64 24.99
Ho: There is no significant difference in return on capital employed of companies in

different year.
H1: There is significant difference in return on capital employed of companies in

different year.

TCS 5 230.01 46.002 38.37177
INFOSYS 5 119.87 23.974 182.4384
WIPRO 5 112.44 22.488 8.31942
HCL 5 164.8 32.96 21.03335
TECH MAHENDERA 5 119.95 23.99 3.67625
46
ANOVA
Between Groups 1968.099 4 492.0248 9.691662 0.000158 2.866081
Within Groups 1015.357 20 50.76784
Total 2983.456 24
INTERPRETATION:
are not different. The P value is 0.000158 which is less than the significant level of 0.05;
we can reject the null hypothesis. So there is the significant difference in ratio of
different companies in different years
8. RETURN ON NET WORTH OR RETURN ON EQUITY:

Return on equity is the amount of net income returned as a percentage of
shareholders equity. Return on equity measures a corporation’s profitability by
reveling how much profit a company generates with the money shareholders
have invested. ROE is expressed as a percentage and calculated as:
RETURN ON EQUITY = NET WORTH * 100 / SHAREHOLDER’S EQUITY
47
MAHINDRA
2015 42.40 - 23.66 32.70 20.04
2016 35.49 20.78 19.89 21.95 23.75
2017 30.31 20.31 17.47 26.46 18.04
2018 33.27 25.44 18.27 26.70 20.46
2019 38.10 23.44 15.41 26.88 21.36
Ho: There is no significant difference in return on equity of companies in different year.
H1: There is significant difference in return on equity of companies in different year.
Anova:SingleFactor
TCS 5 179.57 35.914 21.35553
INFOYSES 5 89.97 17.994 105.5029
WIPRO 5 94.7 18.94 9.5629
HCL 5 134.69 26.938 14.59232
TECH MAHINDRA 5 103.65 20.73 4.3256
ANOVA
Between Groups 1114.453 4 278.6132 8.967894 0.000256 2.866081
Within Groups 621.3569 20 31.06785
Total 1735.81 24
48
INTERPRETATION:
9. INTEREST COVERAGE RATIO:

The interest coverage ratio is used to determine how easily a company can pay
their interest expenses on outstanding debt. The ratio is calculated by dividing a
company’s earnings expenses for the same period. The lower the ratio, the more
the company is burdened by debt expense.
INTEREST COVERAGE RATIO: EBIT / INTEREST EXPENSE

(IN Cr.) MAHINDRA
2015 302.89 - 30.09 127.95 334.63
2016 2,257.85 - 20.27 127.18 74.61
2017 1,880.13 - 23.84 151.47 61.79
2018 1,065.37 - 27.11 397.74 70.30
2019 240.44 - 19.80 621.69 126.92
Ho: there is no significant difference in interest coverage ratio of companies in different

year.
H1: there is significant difference between in interest coverage ratio of companies in

different year.
49
Anova:SingleFactor
TCS 5 5746.68 1149.336 828119.1
INFOYSES 5 0 0 0
WIPRO 5 121.11 24.222 19.52307
HCL 5 1426.03 285.206 48368.09
TECH MAHINDRA 5 668.25 133.65 13275.26
ANOVA
Between Groups 4568041 4 1142010 6.417361 0.001718 2.866081
Within Groups 3559128 20 177956.4
Total 8127169 24
INTERPRETATION:
50
10. ASSET TURNOVER RATIO:
Asset turnover ratio measures the value of a company's sales or revenues
generated relative to the value of its assets. The assets turnover ratio can often
be used as an indicator of the efficiency with which a company is deploying its
assets in generating revenue.
ASSETS TURNOVER RATIO = SALES / AVERAGE TOTAL ASSETS

MAHENDERA
2015 1.64 1.05 1.11 0.97 1.72
2016 1.55 0.99 1.01 0.66 1.53
2017 1.29 0.92 0,91 0.81 1.39
2018 1.26 0.94 0.90 0.82 1.21
2019 1.59 1.16 0.95 0.90 1.27
Ho: there is no significant difference between in assets turnover ratio of

companies in different year.
H1: there is significant difference between in assets turnover ratio of companies in

different year.
Anova:SingleFactor
TCS 5 7.33 1.466 0.03153
INFOYSES 5 5.06 1.012 0.00937
WIPRO 5 4.88 0.976 0.00748
HCL 5 4.16 0.832 0.01347
TECH MAHENDERA 5 7.12 1.424 0.04238
51
ANOVA
Between Groups 1.62528 4 0.40632 19.49151 1.13E-06 2.866081
Within Groups 0.41692 20 0.020846
Total 2.0422 24
INTERPRETATION:
11. EPS (EARNING PER SHARE):

EARNINGS PER SHARE (EPS) is the portion of a company’s profit allocated to
each outstanding share of common stock. Earnings per share serve as an
indicator of a company’s profitability. Earnings Per Share is calculated as:
EPS = (NET INCOME - DIVIDENDS ON PREFFERED STOCK) / AVERAGE

OUTSTANDING SHARES
52
MAHANDERA
2015 17.38 56.15 63.83 62.41 73.61
2016 65.37 56.12 56.51 42.84 63.91
2017 61.27 49.49 56.51 50.74 54.76
2018 63.22 53.58 92.95 77.02 74.10
2019 66.46 61.27 92.84 86.58 68.58
Ho: there is no significant difference between in earning per share of companies in

different year.
H1: there is significant difference between in earning per share of companies in different
year.

TCS 5 273.7 54.74 440.1691
INFOYSES 5 276.61 55.322 18.43697
WIPRO 5 362.64 72.528 354.6108
HCL 5 319.59 63.918 326.3611
TECH MAHANDERA 5 334.96 66.992 63.99097
ANOVA
Between Groups 1171.454 4 292.8636 1.216646 0.334966 2.866081
Within Groups 4814.276 20 240.7138
Total 5985.73 24
53
INTERPRETATION:
are not different. The P value is 0.334966 which is greater than the significant level of
12. DPS (DIVIDEND PER SHARE):

Dividend per share is a measure of the dividend payout per share of common
stock. The measures is used to estimate the amount of dividends that an income
investor night to receive if he or she were to buy a company’s common stock.
Dividend per share can be calculated as below:
DPS = D – SD / S
Whereas; D = sum of dividend over a period
SD = special, one Time dividend
S = share outstanding for the period

MAHINDRA
2015 79.00 59.50 12.00 30.00 6.00
2016 43.50 24.25 6.00 16.00 12.00
2017 47.00 25.75 2.00 24.00 9.00
2018 50.00 43.50 2.00 12.00 14.00
2019 30.00 21.50 2.00 8.00 14.00
54
Ho: there is no significant difference between in dividend per share of
H1: there is significant difference between in dividend per share of companies in

different year.

TCS 5 249.5 49.9 323.05
INFOYSES 5 174.5 34.9 263.9563
WIPRO 5 24 4.8 19.2
HCL 5 90 18 80
TECH MAHINDRA 5 55 11 12
ANOVA
Between Groups 6814.34 4 1703.585 12.19973 3.49E-05 2.866081
Within Groups 2792.825 20 139.6413
Total 9607.165 24
INTERPRETATION:
55
13. P/E RATIO:
The price-to-earnings ratio (P/E) is a valuation method used to compare a
company’s current share price to its per-share earnings. The ratio can be
calculated as below:
P/E RATIO = MARKET VALUE PER SHARE / EARNING PER SHARE

MAHINDERA
2015 0.00 17.74 30.30 11.14 22.08
2016 270.50 19.31 29.58 15.02 13.62
2017 13.65 15.69 26.01 17.31 11.72
2018 13.60 15.58 26.33 17.63 18.36
2019 19.56 21.64 18.30 14.33 14.67
Ho: there is no significant difference between in price earnings ratio of

H1: there is no significant difference between in price earnings ratio of companies in

different year.
Anova: single factor

TCS 5 317.31 63.462 13446.75
INFOSYS 5 89.96 17.992 6.55637
WIPRO 5 130.52 26.104 22.66283
HCL 5 75.43 15.086 6.89123
TECH MAHINDERA 5 80.45 16.09 17.0618
56
ANOVA
Between Groups 8348.036 4 2087.009 0.772971 0.555555 2.866081
Within Groups 53999.69 20 2699.984
Total 62347.72 24
INTERPRETATION:
are not different. The P value is 0.555555 which is greater than the significant level of
57
COMPARATIVE SATEMENT:
A comparative statement is a document that compares a particular financial

statement with prior statements or with the same financial report generated
by another company.
COMPARATIVE STATEMENT OF BALANCE SHEET OF TCS:
PARTICULARS 2019 2018 Absolute % change

change
SOURCES OF FUNDS
Total share capital 375.00 191.00 184 96.34
Equity share capital 375.00 191.00 184 96.34
Preference share capital - - - -
Reserves 89,071.00 84,937.00 4,134 4.86
NET WORTH 89,446.00 85,128.00 4,318 5.07
Secured loans 44.00 54.00 -10 18.52
Unsecured loans 00.00 181.00 -181 100
Total debt 44.00 235.00 -191 -81.27
Minority Interest 453.00 402.00 51 12.86
TOTAL LIABILITIES 89,943.00 85,765.00 4,178 4.87
APPLICATION OF FUNDS
Gross block 26,401.00 24,477.00 31,924 130.42
Less depreciation 14,111.00 12,504.00 1,607 12.85
Net Block 12,290.00 11,973.00 317 2.65
Capital work in progress 963.00 1,278.00 -342 -26,76
Investments 29,330.00 36,008.00 -6,678 -18.54
58
Inventories 10.00 26.00 -16 -61.54
Sundry debtors 27,346.00 24,943.00 2,403 9.63
Cash and bank balance 12,848.00 7,161.00 5,687 79.42
TOTAL CURRENT ASSETS 12,848.00 32,130.00 -19,282 -60.01
Loans and advances 32,156.00 24,907.00 7,249 29.10
Total ca, loans & advances 72,360.00 57,037.00 15,323 26.86
Current liabilities 24,761.00 20,265.00 4,496 22.18
Provisions 239.00 266.00 -27 -10.15
Total CL and provisions 25,000.00 20,531.00 4,469 21.76
Net current assets 47,360.00 36,506.00 10,854 29.73
Total assets 89,943.00 85,765.00 4,178 4.87
COMPARATIVE STATEMENTS OF PROFIT & LOSS OF TCS:
59
PARTICULARS 2019 2018 ABSOLUTE %
CHANGE CHANGE
INCOME
Sales turnover 1,23,170.00 97,356.00 25,814 26.52
Net sales 1,23,170.00 97,356.00 25,814 26.52
Other income 7,627.00 5,803.00 18,24 31.43
Stock adjustment 0.00 0.00 0.00 0.00
Total income 1,30,797.00 1,03,159.00 27,638 26.79
EXPENDITURE
Operating and direct 2,003.00 1,920.00 83 4.32
expenses
Finance cost 170.00 30.00 140 466.67
Employee cost 59,377.00 51,499.00 7,878 15.29
Depreciation and amortization 1,716.00 1,647.00 69 4.18
expenses
Other expenses 26,826.00 16,046.00 10,780 67.18
Total expenditure 90,092.00 71,142.00 18,950 26.64
Operating profit 42,591.00 33,608.00 8,983 26.73
EBITDA 42,591.00 33,608.00 8,983 26.73
(+)Exceptional item 0 0 0 0
(-)Interest 170.00 30.00 140.00 466.67
EBIT 42,421.00 33,578.00 8,843 26.34
(-)Depreciation 1,716.00 1,647.00 69 4.18
EBT 40,705.00 31,931.00 8,774 27.47
(-)Taxes 9,943.00 6,878.00 3,065 44.56
Profit and loss of the year 30,762.00 25,053.00 5,709.00 22.78
60
COMPARATIVE STATEMENT OF BALANCE SHEET OF INFOSYS:

change
SOURCES OF FUNDS
Total share capital 1,086 99.45
2,178.00 1,092.00
Equity share capital 2,178.00 1,092.00 1,086 99.45
Reserves and surplus 60,533.00 62,410.00 -1,877 -3.01
TOTAL SHAREHOLDERS 62,711.00 63,502.00 -791 -1.25
FUNDS
TOTAL LIABILITIES 62,711.00 63,502.00 -791 -1.25
Gross block 20,578.00 18,079.00 2499 13.82
Less depreciation 10,081.00 8,922.00 1159 12.99
Net Block 10,497.00 91,57.00 1,340 14.63
Capital work in progress 1,212.00 1,442.00 -230 -15.95
Investments 18,139.00 17,899.00 240 1.34
Inventories 0.00 0.00 0.00 0.00
Sundry debtors 13,370.00 121,51.00 1,219 10.03
Cash and bank balance 15,551.00 16,770.00 -1,219 -7.26
Loans and advances 11,225.00 9,263.00 1,962 21.18
TOTALCURRENT ASSETS 40,146.00 38,184.00 1,962 5.14
TotalCA,loans & advances 51,371.00 47,447.00 3924 8.27
CURRENT LIABILITIES 13,467.00 9,250.00 4,217 45.58
Provisions 1,963.00 2,412.00 - 449 -18.62
Total CL & provisions 15,430.00 11,662.00 3,768 32.31
61
Net current assets 24,716.00 26,522.00 -1,806 -6.80
Total assets
62
COMPARATIVE STATEMENTS OF PROFIT &LOSS OF INFOSYS:
CHANGE CHANGE
Sales turnover 73,107.00 61,941.00 11166.00 18.03
Excise duty 0.00 0.00 0.00 0.00
Net sales 73,107 61,941 11,166.00 18.03

Other income 2,852 4,019 -1,167 -29.04
Total income 75,959 65,960 9,999 15.15
EXPENDITURE
Operating and direct expenses 171.00 162.00 9 5.56
Finance cost 0.00 0.00 0.00 0.00
Employee cost 38,296 32,472 5,824 17.94
Depreciation and amortization 0.00 0.00 0.00 0.00
expenses
Other expenses 12,633 9,399 3,234 34.41
Total expenditure 51,100 42,033 9,067 21.57
Operating profit 18,674 17,297 1,377 7.96
EBITDA 18,674 17,297 1,377 7.96
(+)Exceptional item 0.00 0.00 0.00 0.00
(-)Interest 0.00 0.00 0.00 0.00
EBIT 18,674.00 17,297.00 1,377 7.96
(-)Depreciation 1,599.00 1,408.00 191 13.56
EBT 17075.00 15889.00 1186.00 7.46
(-)Taxes 5,225.00 3,753.00 1472.00 39.22
63
Profit and loss of the year 11850.00 12136.00 -286 -2.356
COMPARATIVE STATEMENT OF BALANCE SHEET OF WIPRO:

change
SOURCES OF FUNDS
Total share capital 1,206.80 904.80 -302.00 -33.37
Equity share capital 1,206.80 904.80 -302.00 33.37
Reserves 48,185.20 41,357.80 -6,827.40 -16.50
NET WORTH 49,392.00 42,262.60 -7,129.40 -16.87
Secured loans 5,074.20 53.90 -5,020.30 -9314.10
Unsecured loans 0.00 4,666.20 4,666.20

100
Total debt 5,074.20 4,720.10 -354.10 -7.502
TOTAL LIABILITIES 54,466.20 46,982.70 -7,483.50 -15.93
Gross block 11,721.20 11,237.80 -483.40 -33.37
Less depreciation 7,320.20 6,870.80 -449.40 -33.37
Net Block 4,401.00 4,367.00 -34.00 16.86
Capital work in progress 2,112.70 1,290.60 -822.10 -63.69
Investments 30,249.10 30,682.80 433.70 1.41
Inventories 340.30 294.30 -46.00 15.63
64
Sundry debtors 10,648.60 9,502.00 -1,146.60 12.06
Cash and bank balance 10,390.20 2,322.00 -8,068.20 347.46
TOTAL CURRENT ASSETS 21,379.10 12,118.30 -9,260.80 -76.42
Loans and advances 8,856.20 10,212.60 1,356.40 13.28
Total ca, loans & advances 30,235.30 22,330.90 -7,904.40 35.39
Current liabilities 11,483.30 10,726.40 -756.90 7.05
Provisions 1,048.60 962.20 -86.40 -8.97
Total Cl and provisions 12,531.90 11,688.60 -843.30 -7.215
Net current assets 17,703.40 10,642.30 -7,061.10 -66.35
Total assets 54,466.20 46,982.70 -7,483.50 -15.93
65
COMPARATIVE STATEMENTS OF P&L OF WIPRO:

CHANGE CHANGE
Sales turnover 48,123.80 44,710.00 3413 7.63
Excise duty 0.00 0.00 0.00 0.00
Net sales 48,123.80 44,710.00 3413 7.63
Other income 2,568.60 2,479.60 89.00 3.58
Total income 98816.2 91899.6 6916.6 7.53
EXPENDITURE
Operating and direct expenses 12,505.10 0.00 12,505.10 0.00
Finance cost 524.90 384.30 140,6 36.58
Employee cost 23,808.50 21,756.20 2052.3 9.433
Depreciation and amortization 934.30 1,014.80 -80.5 -7.93
expenses
Other expenses 1,962.40 12,472.70 -10,510.3 -84.26
Total expenditure
Operating profit 8,761.10 8,953.80 -192.8 -2.15
EBITDA 8,761.10 8,953.80 -192.8 -2.15
(-)Interest 0.00 0.00 0.00 0.00
EBIT 8,761.10 8,953.80 -192.8 -2.15
(-)Depreciation 0.00 0.00 0..00 0.00
EBT 8,761.10 8,953.80 -192.8 -2.15
(-)Taxes 2,256.50 2,311.50 -55 -2.37
Profit and loss of the year 6504.6 6642.3 -137.7 -2.07
66
COMPARATIVE STATEMENT OF BALANCE SHEET OF HCL:
change
SOURCES OF FUNDS
Total share capital 271.00 278.00 -7 -2.52
Equity share capital 271.00 278.00 -7 -2.52
Reserves 30,168.00 27,285.00 2883 10.56
NET WORTH 30,439.00 27,563.00 2876 10.43
Secured loans 32.00 33.00 -1 -3.03
Unsecured loans 00.00 00.00 00.00 00.00
Total debt 32.00 33.00 -1 -3.03
TOTAL LIABILITIES 30,471.00 27,596.00 2875 10.42
Gross block 14,556.00 13,444.00 1112 8.27
Less depreciation 3,321.00 3,016.00 305 10.11
Net Block 11,235.00 10,428.00 807 7.74
Capital work in progress 212.00 298.00 -86 -28.85
Investments
Inventories 18.00 40.00 -22 -55
Sundry debtors 6,245.00 5,427.00 818 15.07
Cash and bank balance 6,273.00 2,325.00 3948 169.80
TOTAL CURRENT ASSETS 12,536.00 7,792.00 4744 60.88
Loans and advances 7,663.00 8,102.00 -439 -5.42
Total ca, loans & advances 20,199.00 15,894.00 4305 27.08
Current liabilities 6,291.00 4,622.00 1669 36.10
Provisions 694.00 600.00 94 15.67
67
Total Cl and provisions 6,985.00 5,222.00 1763 33.76
Net current assets 13,214.00 10,672.00 2542 23.81
Total assets 30,471.00 27,596.00 2875 10.43
68
COMPARATIVE STATEMENTS OF P&L OF HCL:
CHANGE CHANGE
Sales turnover 26,012.00 22,073.00 3939 17.85

Excise duty 0.00 0.00 0.00 0.00
Net sales 26,012.00 22,073.00 3939 17.85
Other income 26,805.00 22,753.00 4052 17.80
Total income 26,805.00 22,753.00 4052 17.80
EXPENDITURE
Operating and direct expenses 4,901.00 2,918.00 1983 67.95
Finance cost 16.00 23.00 -7 -30.43
Employee cost 8,079.00 7,365.00 714 9.69
Depreciation and amortization 1,276.00 893.00 383 42.88
expenses
Other expenses 2,450.00 2,263.00 187 8.26
Total expenditure 16722.00 13462 3260 24.216
Operating profit 10,418.00 10,418.00 0 0
EBITDA 10,418.00 10,418.00 0 0
(-)Interest 0.00 .00 0.00 0.00
EBIT 10,418.00 10,418.00 0 0
(-)Depreciation 0.00 0.00 0.00 0.00
EBT 10,418.00 10,418.00 0 0
(-)Taxes 1,746.00 1,763.00 -17 -0.96
Profit and loss of the year 8672.00 8655.00 17 0.19
69
COMPARATIVE STATEMENT OF BALANCE SHEET OF TECH
MAHINEDRA:

change
SOURCES OF FUNDS
Total share capital 491.70 489.70 -298.00 -60.85
Equity share capital 491.70 489.70 -298.00 -60.85
Preference share capital ~ ~ 0.00 0.00
Reserves 20,153.70 19,049.10 1104.6 5.79
NET WORTH 21,877.80 20,771.50 1106.3 5.33
Secured loans 4.30 145.00 -140.7 -97.03
Unsecured loans 0.00 0.00 0.00 0.00
Total debt 4.30 145.00 -140.7 -97.03
Minority Interest 0.00 0.00 0.00 0.00
TOTAL LIABILITIES 21,882.10 20,916.50 965.6 4.616
Gross block 6,709.90 7,073.90 -364.00 -5.145
Less depreciation 3,924.40 3,843.50 80.9 2.105

Net Block 2,785.50 3,230.40 -44490 -1377.23
Capital work in progress 271.30 235.40 35.9 15.25
Investments 12,960.70 10,108.10 2852.6 28.22
Inventories 0.00 0.00 0.00 0.00
Sundry debtors 5,963.30 5,070.00 893.3 17.62
Cash and bank balance 1,208.50 1,929.30 -720.8 -37.36
TOTAL CURRENT ASSETS 7,171.80 7,171.80 0.00 0.00
70
Loans and advances 7,150.30 6,225.60 924.7 14.85
Total ca, loans & advances 14,322.10 13,224.90 1,097.2 8.29
Current liabilities 7,847.80 5,248.70 2599.1 49.52
Provisions 609.70 633.60 -23.9 -3.77
Total CL and provisions 8,457.50 5,882.30 2575.2 43.77
Net current assets 5,864.60 7,342.60 -1478 -20.13
Total assets 21,882.10 20,916.50 965.6 4.616
71
COMPARATIVE STATEMENTS OF P&L OF TECH MAHINEDRA:

CHANGE CHANGE
Sales turnover 27,219.60 23,661.20 3558.4 15.04

Excise duty 0.00 0.00 0.00 0.00
Net sales 27,219.60 23,661.20 3558.4 15.04
Other income 960.90 1,743.50 -782.6 -44.88
Total income 28,180.50 25,404.70 2775.8 10.93
EXPENDITURE
Operating and direct expenses 10,257.00 9,012.90 1244.1 13.80
Finance cost 43.10 70.80 -27.7 -39.12
Employee cost 8,444.00 8,106.50 337.5 4.16
Depreciation and amortization 658.70 656.20 2.5 0.0038
expenses
Other expenses 3,349.60 2,639.00 710.6 26.93
Total expenditure 22752.4 20485.4 2267 11.066
Operating profit 5,169.00 3,902.80 1266.2 32.44
EBITDA 5,169.00 3,902.80 1266.2 32.44
(-)Interest 0.00 0.00 0.00 0.00
EBIT 5,169.00 3,902.80 1266.2 32.44
(-)Depreciation 0.00 0.00 0.00 0.00
EBT 5,169.00 3,902.80 1266.2 32.44
(-)Taxes 1,046.90 907.20 139.7 15.39
Profit and loss of the year 4122.1 2995.6 1126.5 3.755
72
CHAPTER 6: CONCLUSION AND SUGGESTION
FINDINGS:
➢ By considering the average of current ratio, the financial services ltd has more
assets to pay off the short term and long term obligation which is followed by
Infosys and HCL. The current ratio of various companies has significant
difference in different years. They are not equal in different years.
➢ In the quick ratio, the Infosys has the capability to meet the short term financial
requirement. Wipro, TCS, tech Mahindra has also ability to pay the short term
financial requirement. The quick ratio of five companies does not have significant
difference in their ratio as they are equal in any terms.
➢ In operating profit margin, in this HCL and TCS has the efficiency in controlling
the cost and expenses associated with business operations. The operating profit
among the different companies does not differ significantly.
➢ In gross profit margin, HCL and TCS have the ability of proportion of the
revenues after the cost of goods sold. The gross profit does not differ with the
different companies.
➢ In net profit margin the remaining income is calculated after deducting operation
expenses, interest, taxes and dividend. The companies like HCL and TCS have
more net profit margin as compared to other companies which is financial
sounded company. The net profit margin of various companies does not have
any significant difference among them.
➢ Infosys and HCL Company do not have debt. They may possess the all equity
firm. Wipro have the long term financial soundness. The debt to equity posses
that the total equity, how much debt is there. The debt to equity has not any
significant difference among various years.
➢ The return on capital employed i9ndicates how effectively a firm generates
revenues from capital employed. TCS can effectively generate capital from it,
whereas Infosys cannot take into consideration. There is no significant difference
in ratio of different company.
73
➢ The return on net or return on equity of various companies does not differ
significantly. The TCS and HCL have high return on equity in compare to other
companies. They have the capability to make the high return on money invested
by the shareholders.
➢ TCS, tech Mahindra and HCL have high Interest coverage ratio which indicates
that they have the ability to pay the interest and the outstanding debt. The
interest coverage ratio of various companies may differ significantly.
➢ The assets turnover ratio among different companies does not differ significantly.
TCS and WIPRO have high assets turnover ratio which indicates how much
revenue is generated by using the assets of the company.
➢ The high EPS indicates the high profitability of the company. The companies like
Infosys and TCS have high EPS among the different years.
➢ The P/E ratio indicates valuing a company that measures its current share price
relative to It’s per share earnings.
➢ TCS shows the increasing trend in profit after interest and taxes which indicates
the high growth of the firm. The company is overall good from the paying of
interest, generating more return on the shareholders money, to pay off the
liabilities, high profitability to generate more return etc.
➢ Infosys may be the all equity firm has the high return on equity and also it shows
that the same or decreasing trend in the profit. But the firm has maintained the
profit.
➢ Wipro has the ability to pay the short term requirement and the long term
obligations and also have the financial soundness of the company. As the
Infosys, Wipro also have the same trend in the profit.
➢ HCL is also overall good firm as it is efficiently in controlling cost, ability to meet
short term obligations, generates revenues from the assets, high profitability, etc.
It has the high trend of increasing profit and performing well from the previous
years.
74
CONCLUSION:
➢ Here by it is concluded from the financial results, ANOVA and ratio analysis that
the companies like TCS and HCL has better performance than the other
companies.
➢ The investor should invest their money in these companies in order to make the
high return out of it.
➢ From the above findings, HCL, TCS, Infosys are showing the beast liquidity,
efficiently, profitability position and the best option available to investor to make
their investment decision in the it industry.
SUGGESTIONS:
➢ Apart from this analysis the investor should analysis the market by the other
methods also.
➢ The market functions vary from the demand and supply of the shares, and so
sometime it is not possible to predict accurately.
➢ While investing the investor has to take the other factors into the consideration
75
BIBLIOGRAPHY:
• Https://www.ibef.org/industry/information-technology-india.aspx
• https://www.tcs.com/
• www.moneycontol.com>markets>share/price> computers – software
• http://www,hcltechh.com
• http://www.wipro.com/en-IN/
• http://www.Intinfotech.com
• https://www.ibef.org/industry/engineering-india.aspx
• https://www.ibef.org/industry/indian-iT-and-iTeS-industry-analysis
• https://www.researchgate.net/publication/_A_study_on_fundamental_ana
lysis_of_selected_IT_companies_listed_at_NSE
• https://shodhganga.inflibnet.ac.in/bitstream/
• https://acadpubl.eu/hub/
• https://www.researchgate.net/publication/325967474_Fundamental_Analy
sis_of_Indian_Pharmaceutical_Companies
• http://www.ascgujarat.org/
• http://iosrjournals.org/iosr-jbm/
BOOKS:
Khan n jain
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A

FINANCIAL ANALYSIS OF SELECTED COMPANIES IN IT SECTOR

Submitted for the partial fulfillment of the degree

Bachelor of Business Administration (BBA)

Agarwal Vidya Vihar English Medium College, Vesu– Surat.

Veer Narmad South Gujarat University, Surat.

UNDER THE GUIDANCE OF:

Mrs. KHUSHBOO JARIWALA

BBA (SEMESTER – VI)

MARCH – APRIL 2020

Name of the Student: Surbhi Bhansali (02)

It is my privilege to express my deep sense of gratitude to, Mrs. Khushboo Jariwala

Name of the Student: Surbhi Bhansali

The current report title is “financial analysis of selected it companies in it sector” is

4 Chapter 1. Introduction to Industry 2

5 Chapter 2. Introduction to company 8

6 Chapter 3. Literature Review 24

Indian IT companies have globally established their superiority in terms of cost

Investments and Development

Spending on information technology in India is expected to reach US$ 90 billion in 2019.

• About 200 Indian IT firms are present in around 80 countries.

The sector has been classified into many categories:

It sector can be further be categorized into information services(IS) outsourcing,

Engineering services includes industrial design, mechanical design, electronically

1. TATA CONSULTANCY SERVICE (TCS):

Tata Consultancy Services Limited (TCS) is an Indian multinational information

On 25 August 2004, TCS became a Publicly Listed Company.

TCS and its 67 subsidiaries provides a wide range of information technology-related

• Application development and maintenance (43.80%) value.

Tata Research Development and Design Centre

Infosys was co-founded in 1981 by CEO NarayanMurthy, Nandan Nilekani, S.

Infosys Limited is an Indian multinational corporation that provides business

Infosys is the second-largest Indian IT company after Tata Consultancy Services by

In 2012, Infosys announced a new office in Milwaukee, Wisconsin, to serve Harley-

Infosys provides software development, maintenance and independent validation

Its key products and services are:

• NIA – Next Generation Integrated AI Platform (formerly known as Manna)

The third-largest company in India, Bangalore-based Wipro Limited is an ever-growing

In 2006, Wipro acquired MangoInc. A US-based technology infrastructure is a

In April 2011, Wipro signed an agreement with Science Applications International

In 2012, Wipro acquired Australian Trade Promotions Management firm Prom ax

In 2017, Wipro Limited won a five-year IT infrastructure and applications managed

On 12 November 1991, a company called HCL Overseas Limited was incorporated as a

On 12 November 1991, a company called HCL Overseas Limited was incorporated as a

HCL Technologies operate in 44 countries, including its headquarters in Noida, India. It

1. Applications Services and Systems Integrations

HCL Infrastructure Services Division (ISD) is an IT services company.

Tech Mahindra Limited is an Indian multinational provider of information

Products and Services Offered

• ADMS Java & Open Source

Carter Randal7 (1992) offered to investors the underlying principles of winning on

Sunil Damodar'o (1993) evaluated the 'Derivatives' especially the 'futures' as a

Mark P. Bauman (1996) conducted a study named, “A Review of Fundamental

Jon Lynch conducted a study, “Share Market Analysis-Fundamental Vs Technical

Vanstone B. Finnie G. and Tan C. (2004) conducted a study entitled- “Enhancing

S. UmaPrabha, M. Malavika (2014), the aim of this paper is to make technical

Mrs. J. Nithya, Dr. G. Thamizhchelvan (2014), the objective of this paper is to

Kevin L, Partha Moharram (2014), this paper covers fundamental analysis

George j. Saranya D.Amrudha R. (2015), the study on the formation of candlestick