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Submitted to:
The principal;
Affiliated to:
Surbhi Bhansali
02
T.Y.BBA (FINANCE)
MS.
Prepared by:
Surbhi Bhansali
02
2
Student’s 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
myindebtedness 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,
3
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.
Finally, I would like to express my deep sense od gratitude to all those who are always
a source of inspiration for me, their involvement, unconditional co-operation and support
in the successful and timely preparation of this report.
4
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
5
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.
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.
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 centres 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.
Some of the major developments in the Indian IT and IT ’S sector are as follows:
Total export revenue of the industry is expected to grow 8.3 per cent year-on-
year to US$ 136 billion in FY19.
7
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 &ITeS 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.
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.
1. IT services.
2. Engineering services.
3. ITES-BPO services.
4. E-business.
Information Technology is
fragmented industry and
not a concentrated one. In
fragmented
industries, there is
absence of big dominant
10
Information technology
industry is a
fragmented industry,
which emphasis on free
entry and exit of firms into
the sector. Even though
such a
situation prevails in the
market, the major role is
played by the big giant
corporate like IBM, Infosys,
TCS,
Inforte, Wipro and others
Information Technology is
fragmented industry and
13
Information technology
industry is a
fragmented industry,
which emphasis on free
entry and exit of firms into
the sector. Even though
such a
situation prevails in the
market, the major role is
played by the big giant
corporate like IBM, Infosys,
TCS,
Inforte, Wipro and others
Information Technology is
fragmented industry and
18
Information technology
industry is a
fragmented industry,
which emphasis on free
entry and exit of firms into
the sector. Even though
such a
situation prevails in the
market, the major role is
played by the big giant
corporate like IBM, Infosys,
TCS,
Inforte, Wipro and others.
Information Technology is
fragmented industry and
23
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
28
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 capitalization .
In Jan 2015, TCS ends RIL's 23-year run as most profitable firm
TCS Honored with Four Stevie’s at the 2019 American Business Awards.
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:
29
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.
30
2. INFOSYS:
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.
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 work for support and sales. In
2016, 89% of its employees were based in India.
The attrition rate of Infosys Ltd. including its subsidiaries, for financial year
2019 was 21.5%.
The Infosys Leadership Institute (ILI), based in Mysuru, 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 Mysuru 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.
3. WIPRO:
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's 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.
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.
37
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, that 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
38
In 2004 Wipro joined the Billion Dollar club.It also partnered with Intel for I-
Shiksha.
In 2008, Wipro's entered the clean energy business with Wipro Eco Energy.
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.
40
4. HCL:
In 1976, a group of six engineers, all former employees of Delhi Cloth &
General Mills, led by Shiv Nadar, started a company that would make
personal computers. Initially floated as Microcomp Limited, Nadar and his
team (which also included Arjun Malhotra, AjaiChowdary, D.S.Puri, Yogesh
Vaidya and Subhash Arora) started selling teledigital calculators to gather
41
capital for their main product. On 11 August 1976, the company was
renamed Hindustan Computers Limited (HCL).
In 1976, a group of six engineers, all former employees of Delhi Cloth &
General Mills, led by Shiv Nadar, started a company that would make
personal computers.Initially floated as Micro comp Limited, Nadar and his
team started selling tele-digital calculators to gather capital for their main
product.
In July 1994, the company name was changed to HCL Consulting Limited
and eventually to HCL Technologies Limited in October 1999.
Business lines
5. TECH MAHENDRA:
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
as the highest bidder to acquire a controlling stake in the Company, subject to the
approval of the Hon'ble Company Law Board.
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.
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
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.
48
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.
practical implementation of the model; the prediction of future profitability, the length of
appropriate forecast horizon, and the determination of the appropriate discount rate.
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.
pharmaceutical industry in
India.
•(2009) Hemraj Verma
and Prakash
(2016) J Hema and V
Ariram in their research
paper titled, “
Fundamental analysis with
special
reference to
pharmaceutical companies
listed in NSE” stated that
an investor should analyze
the
market fundamentally and
technically before
52
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
58
market, but not in stock markets. Modern studies indicate that technical trading
strategies consistently generate economic profits in a variety of speculative markets.
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
taken for the study. The different patterns of stock prices of these companies give an
idea of future trend of these companies.
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 .
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.
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
The chapter focuses on the methodology and the techniques used for the collection,
classification and tabulation of the data.
RESEARCH DESIGN
62
Descriptive design is those designs which are concerned with describing the
characteristics of particular individual or the group. In descriptive and diagonostic study,
the researcher must be able to define clearly what he wants to measures and must find
adequate method for measuring it.
POPUALATION:
SAMPILING:
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.
The next step was to select the source of data. There are mainly two types of data are:
Secondary data
Primary data
SECONDARY DATA:
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:
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
SAMPALING TECHNIQUES:
64
There are mainly two sample techniques classified into one of two categories:
PROBABILTY SAMPLING:
NON PROBANILITY:
1. Convenience sampling
2. Judgmental sampling
3. Quota sampling
4. Snowball sampling
OBJECTIVES:
65
1. To carry out the financial analysis of IT sector in order to suggest the script for
the investment.
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 shall be drawn from the published annual
report of the IT companies.
The data is collected from the balance sheet and profit and loss statement of selected
companies.
A. Qualitative data
B. Quantitative data
DATA ANALYISIS:
66
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:
LIMITATIONS:
The researcher method is used in this study are secondary, which have some
limitations:
67
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.
68
RATIO ANALYSIS:
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.
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:
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 1.48
70
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:
ANOVA
Source of
Variation SS df MS F P-value F crit
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
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
72
ANOVA
Source of Variation SS df MS F P-value F crit
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:
ANOVA
Source of Variation SS df MS F P-value F crit
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:
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:
ANOVA
Source of Variation SS df MS F P-value F crit
1183.3053
Between Groups 8 4 295.82635 82.8447513 3.72E-12 2.866081
Within Groups 71.41704 20 3.570852
1254.7224
Total 2 24
INTERPRETATION:
ANOVA
Source of Variation SS df MS F P-value F crit
0.06981
Between Groups 6 4 0.017454 89.05102 1.89E-12 2.866081
Within Groups 0.00392 20 0.000196
0.07373
Total 6 24
78
Anova:SingleFacto
r
Groups Count Sum Average Variance
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
Source of Variation SS df MS F P-value F crit
0.00025 2.86608
Between Groups 1114.453 4 278.6132 8.967894 6 1
Within Groups 621.3569 20 31.06785
Total 1735.81 24
81
Anova: Single
82
Factor
SUMMARY
Groups Count Sum Average Variance
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
Source of Variation SS df MS F P-value F crit
Between Groups 4568041 4 1142010 6.417361 0.001718 2.866081
Within Groups 3559128 20 177956.4
Total 8127169 24
83
Anova:SingleFacto
r
Groups Count Sum Average Variance
TCS 5 7.33 1.466 0.03153
INFOYSES 5 5.06 1.012 0.00937
WIPRO 5 4.88 0.976 0.00748
84
ANOVA
Source of
Variation SS df MS F P-value F crit
Between Groups 1.62528 4 0.40632 19.49151 1.13E-06 2.866081
0.02084
Within Groups 0.41692 20 6
Total 2.0422 24
DPS = D – SD / S
Whereas; D = sum of dividend over a period
SD = special, one Time dividend
S = share outstanding for the period
S 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
ANOVA
Source of Variation SS df MS F P-value F crit
2.86608
Between Groups 6814.34 4 1703.585 12.19973 3.49E-05 1
2792.82
Within Groups 5 20 139.6413
9607.16
Total 5 24
88
COMPARATIVE SATEMENT:
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
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
INCOME
Sales turnover 1,23,170.00 97,356.00 25,814 26.52
Excise duty 0.00 0.00 0.00 0.00
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 expenses 2,003.00 1,920.00 83 4.32
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
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APPLICATION OF FUNDS
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
Net current assets 24,716.00 26,522.00 -1,806 -6.80
Total assets
APPLICATION OF FUNDS
Gross block 11,721.20 11,237.80 -483.40 -33.37
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APPLICATION OF FUNDS
Gross block 6,709.90 7,073.90 -364.00 -5.145
APPLICATION OF FUNDS
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
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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
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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 HAS 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.
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.
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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 mantined 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.
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.
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Suggestions:
Apart from this analysis the investor should analysis the market by the other
methods also.
The market functions from the demand and supply of the shares, so sometime it
is not possible to predict accurately.
While investing the investor has to take the other factors into the consideration.
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/
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