Financial Statement Analysis: IT Sector Companies

Financial Statement Analysis 1
Financial Statement Analysis
IT Sector Companies
ni
Table of Contents
Abstract………………………………………………………………………………………….3
Introduction to Companies Evaluated…………………………………………………………4-5
Research Methodology………………………………………………………………………….6
Basics of Ratios used for analysis……………………………………………………………..7-9
Company Financial Statement Analysis…………………………………………………….10-27
Inter Company Analysis……………………………………………………………………..28-34
Conclusion……………………………………………………………………………………….35
References……………………………………………………………………………………....36
Appendix…………………………………………………………………………………….37-46
Abstract
India is a service based economy and Indian IT companies are global leaders. We have made an
attempt to study and analyse the past 5-year financial statements of five major IT companies of
India and draw inference on the growth and business performance through multiple category
wise ratio analysis.
TCS, Tech Mahindra, Infosys, L&T Infotech and Wipro combined have a market
capitalisation of $246 billion. These are all cash positive businesses and generate ample cash
flow to further grow and expand, without seeking any debt. We have used five categorical ratios
to assess the financial figures reflected in the statements and drew comparisons amongst
themselves to get an overview of sectoral performance. Secondary data was collected from
audited annual reports of companies of past 5 years. Different tools for comparative analysis was
used to analyse the companies.

Introduction of Companies Evaluated

Tech Mahindra represents the connected world, offering
innovative and customer-centric information technology
experiences, enabling Enterprises, Associates and the Society to
Rise™. It is a USD 5.2 billion company with 123,400+
professionals across 90 countries, helping 981 global customers
including Fortune 500 companies. Its convergent, digital, design
experiences, innovation platforms and reusable assets connect across several technologies to
deliver tangible business value and experiences to its stakeholders. Tech Mahindra has been
recognised amongst India’s 50 best companies to work for in 2020 by the Great Place to Work®️
Institute.
It is part of the USD 21 billion Mahindra Group that employs more than 240,000 people
in over 100 countries. The Group operates in the key industries that drive economic growth,
enjoying a leadership position in tractors, utility vehicles, after-market, information technology
and vacation ownership.
Infosys is the second largest Indian multinational

company which provides IT service, business consulting and
outsourcing services to its clients across India, United States,
China, Australia, Japan, Middle East and Europe. It was
founded in 1981 by Mr N.R. Narayanmurthy along with five
cofounders. Infosys was listed on stock exchanges in India in February 1993 and on Nasdaq in
1999. It has a present annual revenue of ₹93,594 crore along with the market capitalisation of
₹4,80,291 crore. Infosys has acquired 14 global companies since 2003. It has a work force of
approximately 2,40,000 people.
L&T Infotech (NSE: LTI) is a global technology
consulting and digital solutions company helping more than
420 clients succeed in a converging world. The company has
operations in 32 countries, they accelerate their client’s
digital transformation with LTI’s Mosaic platform enabling
their mobile, social, analytics, IoT and cloud journeys. The company was founded in 1997 as a
subsidiary of Larsen & Toubro Limited. They are a team of more than 30,000 LTItes that enable
their clients to improve the effectiveness of their business and technology operations and deliver
value to their customers, employees and shareholders.
Wipro Limited, an Indian company leading global
information technology, consulting and business process services
company. Today Wipro Limited is the first PCMM Level 5 and
SEI CMM Level 5 certified IT Services Company globally.
Wipro provides comprehensive IT solutions and services,
including systems integration, Information Systems outsourcing,
package implementation, software application development and maintenance, and research and
development services to corporations globally. It has over 180,000 employees serving different
clients across six continents over more than 110 different countries. Wipro total revenue was
$9.0 billion for the year ended 31 March 2020. In the Indian market, Wipro is a leader in
providing IT solutions and services for the corporate segment in India offering system
integration, network integration, software solutions and IT services. Wipro also has profitable
presence in niche market segments of consumer products and lighting.
Tata Consultancy Services Limited (TCS) is one
of the biggest IT services, Consulting and BPO
organisation. Promoted by TATA group, the
company was incorporated in 1968, currently
having operations in 46 countries. It has significant
domestic presence in Media & Entertainment, Retail
& Distribution, transportation and life sciences & healthcare. It Global Network Delivery Model
is considered as a benchmark for excellence in software development. First IT company to
achieve the US$ 100 billion market capex value. It ranks 10 th in Fortune India 500 list of 2019
and 9th largest IT service company.
Research Methodology
This chapter explains the research methodology used for systematically analysing the
company and achieve the stated objective.
Objective of the study
The objective of the study is as follows
1. To analyse the financial position of different company in IT sector
2. To make a comparative analysis of companies in different years and between
each other
Scope of the study
This paper is confined to five years study from 2014-2015 to 2019-2020 of five different
companies in the IT sector. This period can b consider sufficient to cover short term and
medium-term fluctuations in the business or economic cycle and set reliability.
Research Design-Study has employed descriptive analysis, where data was collected and
presented for interpretation and analysing the company performance.
Data collection- secondary data collection was adopted, where data was collected from
published annual reports of the companies.
Method of Data Analysis-In the study have individually analyzed the company and then
employed comparative analysis for comparing companies in the IT Sector. For this various
analysis method has been adopted that are listed below
1. Common-Size Statement
2. Ratio Analysis
The analysis has been done considering various financial ratios. Major categories include
Return on Investment Ratios, Solvency Ratio, Liquidity Ratio, Profitability Ratio and Growth
Ratio.
1. Earnings per share: It is company's profit divided by the outstanding shares of its
common stock. The resulting number serves as an indicator of a company's profitability.
2. P/E Ratio: The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that
measures its current share price relative to its per-share earnings.
3. Return on Equity: Return on equity (ROE) is a measure of financial performance

calculated by dividing net income by shareholders' equity.
4. Return on Capital Employed (ROCE): Return on capital employed (ROCE) is

a financial ratio that can be used in assessing a company's profitability and capital
efficiency.
5. Debt/Equity: The debt-to-equity (D/E) ratio is calculated by dividing a company’s total

liabilities by its shareholder equity.
6. Current Ratio: The current ratio is a liquidity ratio that measures a company's ability to
pay short-term obligations or those due within one year.
7. Quick Ratio (Asset Test): The acid-test ratio uses a firm's balance sheet data as
an indicator of whether it has enough short-term assets to cover its short-term liabilities.
8. Net Profit Margin: The net profit margin is equal to how much net income or profit is
generated as a percentage of revenue. Net profit margin is the ratio of net profits
to revenues for a company or business segment.
9. Return on Total Assets (RoTA): Return on assets is a profitability ratio that provides
how much profit a company can generate from its assets.
10. 3yr CAGR Sales: Compound annual growth rate (CAGR) is the rate of return that would
be required for an investment to grow from its beginning balance to its ending balance,
assuming the profits were reinvested at the end of each year of the investment’s lifespan.
11. 3yr CAGR Net Profit: Above mentioned formula applies here as well, the end value
and the beginning value of net profits are considered for accounting.
DuPont Analysis (Five Factor DuPont- ROE):
Source: Xplaind.com
DuPont analysis give us ROE that shows what drives the ROE of the company. It uses Tax
Burden, Interest Burden, EBIT margin, Total financial leverage ratio and total asset turnover
ratio to determine the ROE.
Tax Burden- this ratio depicts the proportion of earning that is retained after paying taxes. If the
tax factor ratio is high that means company is able to retain is pretax earnings.
Interest Burden- it is the ratio between the earning after paying tax to earning before paying tax.
For having a high ratio company should decrease its interest expenses.
EBIT margin- it is also called as operating margin. It is the ratio between EBIT to net revenue
that measure the company’s operating performance.
Total Leverage ratio- also called as equity multiplier. It shows the capital structure of the
company. It measures the trade-off between debt and equity.
Total asset turnover ratio- it is the company’s asset utilization ratio. It measures the company’s
performance in terms of its efficiency in utilizing its assets. A higher ratio shows the efficiency
of the company, i.e. high earning on the assets invested.

Company Financial Statement Analysis

Tech Mahindra
Ratios 2016 2017 2018 2019 2020
Earnings per share 34.51 32.14 43.02 48.47 46.21
P/E Ratio 16.1 13.3 17.7 15.7 10.1
Return on Investment
Return on Equity 20.51 17.11 20.16 21.18 18.48
Return on Capital Employed (ROCE) 17.72 20.25 22.38 24.83 19.88
Solvency Ratio Debt/Equity 0.07 0.07 0.09 0.07 0.11
Current Ratio 2.66 2.55 2.29 2.09 2.12

Liquidity Ratio
Quick Ratio (Asset Test) 2.65 2.54 2.28 2.08 2.12
Net Profit Margin 11.41 9.79 12.3 12.53 10.58

Profitability Ratio
Return on Total Assets (RoTA) 13.28 10.79 12.48 12.84 10.79
3yr CAGR Sales 56.8 15.67 10.8 9.45 8.16

Growth Ratio
3yr CAGR Net Profit 59.68 -2.33 12.51 12.92 11.01
Table 1 Ratios for Tech Mahindra
Consolidated 5-year Ratio analysis

 The earnings per share ratio of the company has shown an increasing trend from 2016 to
2020. It has gone up by nearly 34% over the period which is a good sign. It is a clear
indicator of the company’s profitability.
 Price per Earnings ratio has been fluctuating over the period of 5 years. From the given
data it is evident that the ratio has reduced by nearly 37.27%. This is a worrisome factor.
P/E ratio related a company’s share price to its earnings per share. A high P/E value
could also mean that investors feel that the company’s share is overvalued.
 The return on equity ratio for Tech Mahindra has also shown a declining trend. It has
gone down by roughly 10% in the given time frame. It tells us how a company is using its
assets to generate profits. A good ROE ratio depends from industry to industry.
 The return on capital employed (ROCE) has increased in the 5-year period. It has gone up
by nearly 12.20%. This ratio is used to evaluate how well a company uses its capital to
generate profits. However, the ROCE ratio YoY is down by nearly 20%.
 The Debt/Equity ratio, even though it is low considering the 5-year data, has displayed an
increasing trendline. This is not a good factor for the company as it has increased by
nearly 57.14%. It tells us how much of the company’s operations are being funded by
debt versus wholly earned funds.
 Current Ratio of the company has also been on a declining trend in the given time period.
It has gone down from 2.66 to 2.12, decreasing by roughly 20.3%. It helps us analyse if
the company will be able to cover its short-term debt with its current assets. The higher
the value, the better it will be.
 Quick asset ratio has shown a similar trendline when compared with current ratio. Quick
asset ratio, sometime also referred to as Asset Test Ratio, tells us the amount of liquid
assets compared to liabilities. This ratio has also gone done by 20% over the given time
frame.
 Net profit margin is simply the profit generated as a percentage of the total revenue of the
company. The higher this margin, the better it is. Tech Mahindra’s net profit margin has
been fluctuating slightly over the last 5 years. It has gone down by roughly 7.27% in this
time frame.
 Return on Total Assets (RoTA) is also down by nearly 18.75% for Tech Mahindra. It has
been fluctuating YoY in the given time frame. This ratio tells us about the EBIT
(earnings before interest and tax) compared to the company’s net assets.
 3-year CAGR for sales for Tech Mahindra is down by nearly 85.63%. It is the
compounded annual growth rate of sales in the given time frame. This is a worrisome
figure for the company and its investors. It has shown a declining trendline.
 3-year CAGR for Net Profit has shown a similar trendline like sales. It is down by
81.55%.
Common Size Statement
It is evident from the common size statement that the Long-Term Debt Ratio of the
company has reduced by nearly 45.20% which is a good sign for Tech Mahindra. Also, it
is noted that the company hasn’t declared any short-term obligations. Shareholder’s
equity has gone up by roughly 49.5%. Operating income is up by 39% in the period being
analyzed which is a positive sign. Lastly the profit margin for Tech Mahindra is also up
by 29% to Rs 3909.20cr in 2020. [Refer Annexure XX for data table]
Conclusion
Out of the 11 indicators used to analyse the company’s performance from the time of
2016-2020, it is observed that 9 of those indicators have shown a negative growth rate
which is not a good sign for the company and its investors. Earnings per share and ROCE
are the only 2 positive indicators for the company. Overall, the financial status of the
company looks poor based on these indicators alone.
Infosys
Ratios 2016 2017 2018 2019 2020
P/E Ratio 21 16.9 16.38 21.46 13.75
Return on Equity 21.84 20.8 24.68 23.71 25.35
Solvency Ratio Debt/Equity 0 0 0 0 0
Current Ratio 3.91 3.83 3.55 2.84 2.62

Liquidity Ratio
21.6 21 22.82 18.63 18.27
Net Profit Ratio 17.9 17.21 20.06 18.17 17.88
Profitability Ratio
Return on Total Assets (RoTA)
15.66 10.96 9.77 9.81 9.85
3yr CAGR Sales 12.69 10.51 9.17 4.53 4.98
Growth Ratio
3yr CAGR Net Profit 59.68 -2.33 12.51 12.92 11.01
Table 2 Ratios for Infosys

 EPS grew from 2016 to 2018 but declined sharply in 2019 and 2020. Even though the
revenue from operations has grown in past 5 years, the decline in EPS is a worrisome
thing for the investors.
 The Price to Earnings per share ratio has seen decline from 2016 to 2018 before shooting
up again in 2019. The Covid led to the market crash in March 2020, which tanked the
stock price of Infosys, resulting in lowest P/E in last 5 years in month of March 2020.
The stock prices are on a path of recovery and so is the P/E ratio for the company.
 RoE has displayed continuous growth since 2016, since the net income has surged. It is a
positive indicator for the long-term investors.
 As the EBIT has grown in last 5 years, the return on capital employed has also been
growing since 2016. It is an indicator of increase in operating profits, which ultimately is
good for the financial health and growth of the company.
 As the company is debt free, the Debt to Equity ratio is almost 0 in last 5 years.
 The current ratio for the company has been declining since 2016, which indicates that the
current liabilities of the company have grown, and the current assets have not grown pro
rata to it.
 As the company does not have any inventories, the acid test ratio is same as the current
ratio. The ability of the company to pay off its current liabilities from its current assets
has declined.
 Net profit margin has been fluctuating without a significant trend over the past 5 years.
Even the profit margins have been low in 2019 and 2020 as compared to previous three
years. This is not a good sign for the investors.
 Return on Total Assets again does not have a significant trend and has been range bound
in the range of 17%-20%. This indicates that with the increase in net income, the assets of
the company have also increased since 2016.
 The declining 3 yr sales CAGR is a negative indication for the long-term growth of the
company and raises doubts in the minds of potential investors.
 The 3 yr net profit CAGR has also declined drastically over the past 5 years, which again
is a negative sign for the growth of the company and the potential investors.

The long-term liabilities of the company have grown multi fold in past 5 years, while the
total assets have not grown in proportion, increasing the long-term debt percentage.
Current liabilities and short-term obligations of the company have grown over past 5
years but not as significantly as the long-term liabilities have grown. The operating
income has grown at a CAGR of 5.5% over past 5 years. Profit margin has declined by
2.8% over past 5 years, which is not a good indicator for long term growth of the
business.
Conclusion
Looking at the consolidated financial statements and several financial ratios for past 5
years, it can be concluded that even though the revenues and net profits for Infosys have
grown over the period, the growth has been declining. The expenses on human resources
and asset building have grown thus effecting the financial figures. The long-term IT
service market has promising opportunities and Infosys is expected to rebound in post
Covid era on the basis of its long-term vision, strong management and client base.
Wipro
Ratios 2016 2017 2018 2019 2020
P/E Ratio 16.13 15.34 14.41 16.25 17.59
Return on Equity 19.3 16.43 16.69 15.95 17.57
Solvency Ratio Debt/Equity 0.26 0.26 0.26 0.17 0.11
Current Ratio 2.3 2.35 2.37 2.67 2.4

Liquidity Ratio
Net Profit Margin 17.47 15.36 14.68 15.28 15.97

Profitability Ratio
3yr CAGR Sales 10.38 5.91 2.75 2.51 3.06

Growth Ratio
3yr CAGR Net Profit 13.22 3.38 -1.95 -2.44 2.08
Table 3 Ratios for Wipro Ltd.

 There is decreasing trend in the earnings per share ratio of the company. The FY’16 has
the highest earning per ratio value, and it has been decreased over 5 years from 2016 to
2020. There is a decline of 51% in FY’18 over FY’17 and there is further decline also.
We can see in FY’20 the value of earning per share has increased by 17.5% which is a
good sign for the company.
 Price per Earnings (P/E) ratio has been nearly constant over for 5 years. The data clearly
shows us that there is not drastic change over 5 years if we compare (FY’16 – FY’19) the
P/E ratio has increased and currently it is 17.59. A high P/E value ratio can generate
above-average returns over long periods but also mean that investors feel that the
company’s share is overvalued.
 The return on equity (ROE) ratio for Wipro ltd. has been highest in FY’16 but after that
there has been a decline in the ROE. The ROE of FY’20 has increased in comparison
with FY’19 by 10.15% which is a good sign for the potential investors. A good ROE ratio
means how a company is using its assets to generate profits.
 There has been ups and downs in the return on capital employed (ROCE). It tells us how
a company uses its capital to generate profits. FY’17 shows a drastic increase over last
financial year but in FY’18 it is decreased by 4%. The increase of 9% is seen in FY’20
over its previous year.
 Debt/Equity ratio has been constant over FY’16,17,18 but there is a decline of 53% in the
ratio for FY’19 which is a good sign. In FY’20 we can see again there is huge decline
over past year by 54%. The company is earning profit without taking fund from debt that
means the company have a good utilisation of their funds for generating revenue.
 The Current Ratio is nearly constant for three financial years but there is an increase
by12.60% in FY’19 over previous years, although higher value of current ratio is a good
sign for the company. In FY’20 we can see decrease in the value of current ratio by
11.25% (from 2.67 to 2.4) which is a thing to worry for the company. The company will
face difficulties in covering its short-term debt with its current assets.
 Although the Quick Asset Ratio is same as compared to Current Ratio, they have same
kind of pattern over 5 years. There has been downfall in FY’20 with its previous financial
year by 10.8% which means the ratio of liquid assets compared to liabilities has fallen for
that financial year.
 Net profit margin is constantly decreasing over 5 years. The value of margin that was
attain by the company in FY’16 was the highest in last 5 years. There has been a marginal
increase after FY’18 in upcoming both the financial years. In FY’19 the increase was of
4% and in FY’20 the value becomes 4.5% not an impactful change. The higher this
margin, the better it is for the company.
 There has been a lot of fluctuation over years in Return on Total Assets (RoTA). As
compared to FY’16 & FY’17 there was a drastic change in FY’18 nearly the value grown
by 82% but at the same time we can see in FY’19 the value fall by 80%. IN FY’20 the
value again rises by 10%. This ratio tells us about the EBIT (earnings before interest and
tax) compared to the company’s net assets.
 The 3-year CAGR for sales has been in negative for Wipro Ltd. The situation has
worsened in FY 18 but there was an improvement in FY’19 and the improvement can be
seen in FY’20 there is an increase of 21.9% over previous year. The investor can be
assured because the company has shown a growth in sales in FY’20.
 The figures for the 3-year CAGR for Net Profit are shocking for the company the only
growth in profit can be seen there has be downfall in the net profit constantly for 4 years.
Finally, in FY’20 we can see the value as 2.08 while in previous financial year it was
-2.44 means the net profit was negative previously.

There is a constant increase in other liabilities which has grown three times as compared
to 2016. As there is not much increase in total asset which means the company is dealing
with more liabilities. In 2020 there is almost 15.2% profit generated from the total
revenue which shows that the it has increased by almost 4.5% over previous year. The
Operating profit for Wipro is nearly 19% and has increased over 2.4% which is not a very
promising figure but its not in loss which is a good sign for the company as well as the
investors.
Another aspect the C.A.G.R. of both sales and profit has decreased in comparison to
previous year which is not good for the further business.
Conclusion
years, it can be concluded that even though the revenues and net profits for Infosys have
grown over the period, the growth has been declining. The expenses on human resources
and asset building have grown thus effecting the financial figures. The long-term IT
service market has promising opportunities and Infosys is expected to rebound in post
Covid era based on its long-term vision, strong management and client base.
The analysis on 11 different ratios that has been done above tells the whole scenario for a
company. Out of 11 there are 9 ration which is in the favour of company while 2 ratios
are not in favour. The company needs to improve its Current ratio and Quick ratio figures
although it was good in FY’19 but there has been a decrease in FY’20. After a brief
analysis the conclusion is that company is running smoothly and overall doing well.
Investors are getting high return and the net profit is also increased over previous years.
Overall, it is a good sign for the company. the only 3 positive indicators for the company
the financial status of the company looks good based on these indicators alone.
L&T Infotech
Ratios 2016 2017 2018 2019 2020

P/E Ratio 6.6 12.4 21.3 20.1 17.8
Return on Equity 39.36 30.97 28.8 30.97 28.12
Solvency Ratio Debt/Equity 0.03 0 0 0 0.01
Current Ratio 2.04 2.68 3.05 3.14 2.71

Liquidity Ratio
Net Profit Ratio 14.3 14.93 15.22 16.04 13.97

Profitability Ratio
3yr CAGR Sales 1701.48 1766.34 13.65 17.34 18.72

Growth Ratio
3yr CAGR Net Profit 842.23 890.2 13.1 21.91 16.13
Table 4 Ratios for L&T Infotech
Consolidated 5-year Ratio Analysis

 Earnings Per Share (EPS): The EPS ratio gradually increased from 2016 to 2018 but from
2018 to 2020 it took a much greater leap forward showcasing company’s increased
profitability. The company EPS has grown by 71.40% from 2016 to 2020.
 Initially Price per Earning ratio did grow at a rate of whopping 222.72% but it started to
show a slight decline in 2019 and has continued to do so in 2020 too, this is somewhat
alarming but an overall 169.7% increase from 2016 to 2020 shows that investors have
been reluctantly willing to pay a higher share price because of great growth expectations
from the company in future.
 Return on equity ratio has shown a decrease of 28.12% over this period of time. This
declining ROE indicated that the company is becoming less efficient at creating profits
and increasing shareholder value. ROE helps to measure a firm’s profitability from the
stockholder’s perspective. But still since the value of this ratio is a lot above 1 it means
there is profitable use of shareholder’s equity.
 Return on Capital Employed (ROCE) tells us what profits have been made on the
resources that were available to the firm. The L & T Infotech initially had a decreasing
ROCE of 42.03% up until 2018 but it rose by about 46% in the year 2019 but in the year
2020 yet again it dropped by about 21%. This shows a variable trend in the ROCE for the
company but ultimately the final value has decreased by 33% which is a factor that the
company should improve upon.
 Debt to Equity ratio has almost been 0 for the company throughout from 2016 to 2020
indicating that the company has almost no amount of financing by debt via lenders. But
this also often means that the investors are unlikely to invest in L & T Infotech because
the business isn’t realizing the potential profit or value it could gain by borrowing and
increasing its operation.
 The Current Ratio(CR) for the company has fluctuated but has always remained well
above 1 which indicates that company’s current assets are greater than current liabilities
which is always a desirable situation to be in. A high CR also shows that creditors are
more willing to extend credit to the company who can show that they have the resources
to pay obligations.
 Net Profit Margin for L & T Infotech has shown a gradual increase of 12.16% from 2016
to 2019 but in 2020 it has dropped by 13% which is a matter of real concern for the
company; since the Net profit margin indicates how much net income the company has
made over the total sales achieved. Therefore, decrease in the same suggests that there are
serious performance gaps which if the company identifies and it overcame them then it
would improve the profitability of business in the future.
 Return on Assets (RoTA) measures a company’s earnings before interest and taxes
(EBIT) relative to its total net assets. It can also be defined as the ratio between net
income and total average assets. The RoTA for the L & T Infotech has been seen
decreasing by 34% which shows the company has been underutilizing its own assets.
 3-year Compound Annual Growth Rate (CAGR) for Sales shows the increase or decrease
in sales over a span of 3 years. For L & T Infotech it has been seen gradually increasing
from 2018 onwards and up until 2020 it has shown an increase of about 37% which is a
really good sign for the company and its business.
 3-year Compound Annual Growth Rate (CAGR) for Net Profit is one of the most
accurate ways to calculate and determine returns for a company than can rise or fall in
value over time. This for L & T Infotech has been relatively fluctuating with showing a
good increase of 67.25% from 2018 to 2019 but in 2020 it did drop by showing a
decrease of 16.13%.

From the Balance-sheet and the Income statement of the company it can be seen that
company has earned a profit of 15.35% from 2016 to 2020 which was solely generated by the
total operating revenue (higher percentage than the other income) after the expenses incurred.
The company’s major expense is on Employee Benefits which has been about 56.25% out of the
total expenses. Also, there are no Long-Term Borrowings for the company and the Short-Term
Borrowings too have come zero in 2020 from a minute value of 1.68% in 2016. The Equity
Share capital has decreased from 0.52% in 2016 to 0.21% in 2020, which shows that the
company has been trying to increase shareholder value and produce a more efficient capital
structure. Also we can see a substantial increase in Long-Term Liabilities for the company in the
year 2020. There is a significant increase in company’s fixed assets in the year 2020 showing
that company has been acquiring and increasing the fixed asset volume. In the end, we have can
conclude that the company has been trying to be in a safe position over the period of time and
has taken steps to increase stability and not inculcate drastic changes or risks to generate more
drastic income and profits. The company has also tried to showcase its reliable nature to the
investors and has been trying to built a more efficient capital structure.
Conclusion
years, it can be concluded that even though the revenues and net profits for Infosys have grown
over the period, the growth has been declining. The expenses on human resources and asset
building have grown thus effecting the financial figures. The long-term IT service market has
promising opportunities and Infosys is expected to rebound in post Covid era on the basis of its
long-term vision, strong management and client base.
From all the 11 ratios in all that were implied to determine L&T Infotech’s performance,
the company has shown an average performance with a gradual increase in growth rate for 7 of
the ratios such as earnings per share, P/E ratio, Return on Equity, CAGR – Sales, etc. but it has
also raised concerns from negative growth in Return on Capital Employed, Return on Total
Assets, CAGR – Net profit and the Net Profit Margin. In conclusion the company looks to be in
fairly comfortable position but is underutilizing its assets and also there are some internal factors
that are producing some serious performance gaps which are needed to be identified and taken
care of in order to produce better results.
TATA Consultancy Services LTD
Ratios 2016 2017 2018 2019 2020

P/E Ratio 20.4 18.2 21.2 24.1 21.2
Return on Equity 34.14 30.49 30.3 35.18 38.44
Solvency Ratio Debt/Equity 0 0 0 0 0
Current Ratio 4.1 5.5 4.6 4.2 3.3

Liquidity Ratio
Net Profit Ratio 22.33 22.28 20.97 21.48 20.6

Profitability Ratio
3yr CAGR Sales 19.9 13 9.16 10.5 9.99

Growth Ratio
3yr CAGR Net Profit 20 10.9 8.86 9.05 7.17
Table 5 Ratios for TCS
Consolidated 5-year Ratio Analysis

 Earnings per share has witnessed continues rise in 5 years i.e increased by 39.94% that
shows investors are getting more and more return on their investment. This increasing
ratio tell us that the investors will be wanting to pay more to invest in the company.
 Price to earnings ratio of the company has been fluctuating as it has decreased by around
3.9 points this was due to the market fluctuation caused by covid19 pandemic news. So it
is not a worrisome issue.
 There has been increase in return on equity in last 3 years, it has increased by 28.30% in
2 years. This is because the company has increased its profit while maintaining its
shareholders’ fund and last year it has decreased its fund. This show that company is
generating higher and higher profit on assets that means company has excellent operation
and working efficiently.
 Return on capital employed (ROCE) has seen a continuous increase from last 4 years this
because continues increase in income of the company without much increase in capital
and using existing capital efficiently.
 Company’s debt to equity ratio is 0, this shows that creditors have a higher margin of
safety lending to the company and also company is funding it sources more from equity.
 Current ratio of the company has been decreasing from last 4 years but it has maintained
a good amount of ratio that is more than ideal ratio of 2:1. It shows that company is very
efficient to pay it obligations and there may be now defaults.
 2016-2019 saw a continuous increase in quick ration but it declined sharply by 30.82%
last financial year but it is still about the ideal ratio of 1:1.
 Net profit ratio and Return on Total Asset remains constant over the years this due to the
rise of profit and assets all together.
 3-year CAGR for Sales and Net Profit shows a continuous decline over the year except a
minor increase in 2019, company is reasoning this decline to increasing attrition rate
every year.

From appendix table 10 we can see that company has negligible long-term borrowing to
the total assets and moderate short-term obligation whereas it has a very high percentage
contribution of share-holder’s equity in the total asset. There has been increase in share-holder
equity by 14.64% in 5 years that shows how much the company has been increasing its funding
by raising equity rather than raising funds from debt. From table 15 analysis of income statement
shows that company has excellent income from operation but a low profit margin that is because
of the employee benefit offered by the company that account to about half of the total revenue.
Conclusion
From above analysis we can conclude that overall performance of the company is
excellent as it has excellent performance in operations and efficiently utilizing it resources. It has
negligible obligations and high cash on hand to pay its liability. This analysis show that investors
can put high trust on the company and there is higher safety for creditors in case of any lending
to the company. Only problem with the company financials is the decreasing 3-years CAGR of
sales and net profit, company need to keep check on its growth rate as its decreasing
continuously that can create negative image of company in the market.
DuPont Analysis of Tech Mahindra
Tax factor: The company has a tax factor of approximately 1 throughout the 5-year analysis
period. This means that the company has been able to pay its taxes from its profits comfortably.
The company’s interest factor is also stable from 2016 to 2020. This implies that the company
has debt to pay but its annual interest payment ratio has been constant more or less.
EBIT margin is also stable throughout the period under consideration. Which means that the
earnings before interests and taxes have been growing proportionately with total revenue.
Total Leverage Ratio is down from 1.85 to 1.74 from 2016 to 2020. This implies that the total
revenue has not been growing in proportion with the shareholder equity which is a result of
decreased sales in comparison of equity.
The Asset Turnover Ratio of Tech Mahindra is down from 1.2 to 1.02 from 2016 to 2020. This
indicates that the company is increasing its sales but is not able to make proper use of its assets.
ROE has been largely influenced by Total Leverage Ratio. Since the TL has been decreasing
over the 5-year period, so is the ROE. Tax factor and Interest Factor have very minimal effect on
the ROE.
DuPont Analysis of Infosys
We have analysed the 5 factors DuPont analysis to obtain the returns on equity (RoE).
The net income has been close to 0.8 times the EBT for 2016-17 and has improved to 0.9 after
2018.Company has not paid any interest as the EBT to EBIT ratio has been 1 in the last 5 years.
EBIT margins have continuously declined since 2016 and sales have much improved in
comparison to total assets during these five years.
The company has a rising financial leverage ratio which implies total assets of the company grew
at a faster rate than what the equity grew at.
Rising asset turnover ratio and leverage have contributed towards the rise in RoE from 20% in
2016 to 25% in 2020. It signifies that the net income of Infosys has increased at a greater rate
than its shareholders’ equity has increased. This is a positive sign for long term growth and
investors sentiment.
DuPont Analysis of L&T
Here we have implemented the DuPont Analysis to breakdown the 5 drivers of ROE. Tax
Factor: Except for the year 2019, L&T Infotech has been able to comfortably manage its taxes
from the profit it earned over this period of time, since the Tax Factor has been close to 1
throughout the time span. Interest Factor: This has remained unchanged for the entire 5 years
indicating that the company's annual interest payment ration has also remained the same.EBIT
Margin: Throughout the period of analysis the EBIT margin has been stable suggesting that the
company’s earnings before interest and taxes have grown in proportion with total revenue
generated.
Total Leverage Ratio: From the year 2016 to 2020 the total leverage ratio has declined
drastically pointing towards the fact that total revenue has not been rising in proportion with the
shareholder equity which in turn is an output of decreased sales as compared to equity. Asset
Turnover Ratio: The asset turnover ratio (ATR) did decrease in 2017 but it then remained stable
from thereon up until 2019. In the year 2020 the ATR for L&T Infotech declined even further
this shows that the company has increased its sales but is not able to use its assets efficiently.
Return on Equity: The ROE has majorly been influenced by the Total Leverage Ratio. As the
TLR has declined drastically and so has ROE. The EBIT margin and the ATR have also shown
some minute influence over the ROE.
DuPont Analysis of Wipro

The company has a tax factor of approximately 1 throughout the 5 year analysis period. This
means that the company has been able to pay its taxes from its profits comfortably.
The company’s interest factor is also stable from 2016 to 2020. This implies that the company
has a debt to pay but its annual interest payment ratio has been constant more or less.
EBIT margin is also stable throughout the period under consideration. Which means that the
earnings before interests and taxes have been growing proportionately with total revenue.
Total Leverage Ratio is down from 1.2 TO 1.1 from 2016 to 2020. This implies that the total
revenue has not been growing in proportion with the shareholder equity which is a result of
decreased sales in comparison of equity.
The Asset Turnover Ratio of Wipro is nearly constant to 0.8 from 2016 to 2020. This indicates
that the company is increasing its sales but is not able to make proper use of its assets.
ROE has been largely influenced by the Total Leverage Ratio. Since the TL has decreased for
the first year and then been constant for the next 2 years and then increased in the 2020. Tax
factor and Interest Factor have very minimal effect on the ROE.
DuPont Analysis of TCS
Tax Factor of the company is constant throughout the five year analysis that shows the company
is constant in retaining its pretax earnings.
Interest Factor of the company is also constant and equal to 1 this is because company do not
have much debt obligation on which it should be paying interest that is a good sign for the
company. EBIT margin of the company is constant to but it is low because of the high employ
expenses done by the company.
The company’s Total leverage is increasing that is because of decreasing shareholders’ equity by
the company. This ratio is the major factor increasing the Return on Equity.
The higher Asset turnover ratio that is more than one states that company has more earning on
every asset invested.
ROE of the company has been increasing from 2017 that shows major contribution of total
leverage ratio as a main contributor.

Inter Company Analysis
The first observation we can make is that while the price to earnings ratio for each of the 5
companies declines from 2016 to 2017, only L&T Infotech showed an increase, that too
approximately double its value. There is no specific macro trend amongst the 5 companies over
the period of 5 years however Tech Mahindra and Infosys have a substantially reduced P/E Ratio
in 2020 compared to 2016 consider Wipro, TCS and L&T Infotech. Wipro didn’t have very
volatile P/E ratio, just like TCS. The other 3 firms had their ups and downs.
While Tech Mahindra, L&T Infotech and TCS have shown an increasing trend towards
earning per share, Infosys and Wipro haven’t been able to perform so well on this parameter in
the recent years. Amongst the 5 companies being analysed, EPS is the highest for TCS followed
by L&T Infotech when we look at the 5-year period. The decreasing EPS YoY is a worrisome
factor for the investors. Tech Mahindra has shown a fluctuating trend when it comes to EPS. For
Wipro, it has declined substantially in the given time frame, reducing by more than 50% of the
value in 2016.
From the above graph we can interpret that TCS has the highest RoE currently.
Analysing the trend Tech Mahindra, Infosys and Wipro have a constant RoE for years but very
low as compared to L&T Infotech and TCS. It can be seen that L&T Infotech has low earning
and a low shareholders’ equity whereas TCS has a high earning with high Shareholders’ equity.
Whereas low RoE for Tech Mahindra, Infosys and Wipro is due to low net earnings. TCS
performance is the highest as it has highest RoE that is highest return to the investors.
From the above graph we can see that here also TCS has highest ROCE this is because of
higher EBIT and relatedly lower capital employed while it can be seen that L&T Infotech’s
ROCE is decreasing reason for this is that it has been increasing its assets. TCS has
outperformed other companies in this ratio as well because of its higher earning whereas other
companies have comparably lower earning and higher proportion of capital employed
The Indian IT service sector is a positive cash flow industry and hence the capital
requirements for investment and financing purposes are easily met with company’s own money. The
above graph depicts Debt to Equity ratio of the five IT companies under consideration. The debt for
Infosys and TCS is close to zero, while and Wipro and Tech Mahindra also have a negligible debt,
hence very low D/E ratio. The D/E ratio has not been in a trend for Tech Mahindra in last five years,
while the same for Wipro has declined YoY. This signifies the self-sufficiency of top Indian IT service
companies. It is a positive sign for long term growth and signals that these companies have pockets
to invest in any future R&D and expansion plans.
Current Ratio is a solvency ratio which is used to analyze a company’s financial health and
repayment capabilities. The major trend for Tech Mahindra, Infosys and TCS has been declining in
last 5 years which signifies that company’s liabilities have increased at a rate greater than at which
its current assets have grown. The trends for Wipro and L&T Infotech show that the current ratio
increased in first 4 years but dropped in 2020. Overall, all the five companies have capability to pay
off at least 2X of their current liabilities with their current assets, in case of solvency. It is a positive
sign for long term financial health of the companies. Increase in current ratio also increases the
credibility of the business and builds positive sentiments in the market for prospect investors.
From the Quick Ratios (Asset Test) graph we can infer that in 2020, wherein most of the
companies were struggling to keep up, Infosys and L&T Infotech were the only two companies
with a Quick Ratio above 2.5; Indicating that these companies were in a much better position in
terms of short-term liquidity and financial health. The graph also shows that Tech Mahindra has
been in a poor state throughout this time span of 5 years. This produces the fact that Tech
Mahindra is more likely to struggle with paying debts or any other short-term liabilities as
compared to others.
As we can see from the graph, Infosys and TCS have outperformed every other company
in this ratio category. This shows that they are generating much higher profits than their
competitors and are thus attracting much more investors. Another inference about both of these
companies is that they may also have low operational cost as compared to others. Therefore,
showcasing the efficiency of the management of the companies. Here in this category yet again
Tech Mahindra has shown least values indicating that either its operating costs are too high or it
isn’t just generating enough profit. Anyways this highlights the poor state of the company.
Return on Total Assets (ROTA) tells how efficiently a company can generate its profit from
its asset. It is a way through which investor use to analyze about the company and its beneficial to
invest in it or not. From the above bar chart, we can easily say that the TCS is the leading in return
on total asset parameter in the IT sector. The investors are more inclined towards investing in TCS
rather than investing in rest four companies.
If we exclude TCS and compare the rest four L&T Infotech, Wipro, Infosys, Tech Mahindra then L&T
has a leading edge over others but for the FY20 we can see that there has been a huge decrease in
L&T. Although none of the above company listed has been performing well in FY20 but there is a
small increase in (RoTA) for Wipro but its marginal, in 2018 Wipro has the highest (RoTA) in last 5
year.
Comparative DuPont Analysis of IT Sector
0.9
0.8
0.7
0.6
Infosys
L&T
0.5 TCS
Tech Mahindra
0.4 Wipro
0.3
0.2
0.1
0
2016 2017 2018 2019 2020
The above graph shows the ROE through Five Factor DuPont Analysis of the companies. From the
above we can see that the Return on Equity ratio of L&T has a decreasing trend whereas for Tech
Mahindra and Wipro it is almost constant over the 5-year analysis. But it is showing an increasing
trend for Infosys and TCS. From the analysis that is done below it can be seen for the IT Sector
major contributor in the ratio is the total financial leverage ratio that is the driver of every company in
the sector
Conclusion
India is the most preferred destination for IT sector, it has grown to becoming the great power in
technology sector. With this shift to Artificial Intelligence and further shift brought in by the
Covid-19 can show a greater future for this sector where companies can take opportunity and
increase its performance. Form the above analysis we see that TCS is the highest performer as
compared to other companies. With further government initiatives we can see that the companies
have high scope for improvement in this sector.

References
Financial Statements & Quarterly results|Investor Relations|TCS. (n.d.).

Www.Tcs.Com. https://www.tcs.com/financial-statements#year=2020-
21&quarter=quarter1
Annual Reports - Wipro. (n.d.). Www.Wipro.Com. https://www.wipro.com/en-

IN/investors/annual-reports/
Infosys - Annual Reports and Quarterly Results. (n.d.). Www.Infosys.Com.

https://www.infosys.com/investors/reports-filings.html
Investors. (n.d.). Www.Techmahindra.Com.

https://www.techmahindra.com/en-in/investors/
Annual Reports. (n.d.). LTI.

https://www.lntinfotech.com/investors/annual-reports/
AccountingCoach. (2018). AccountingCoach.Com.
https://www.accountingcoach.com/financial-ratios/explanation
Appendix A
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
EQUITIES AND LIABILITIES EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS SHAREHOLDER'S FUNDS
Equity Share Capital 435.5 438.8 441.7 443.7 435.8 Equity Share Capital 1.93% 1.68% 1.45% 1.33% 1.17%
TOTAL SHARE CAPITAL 435.5 438.8 441.7 443.7 435.8 TOTAL SHARE CAPITAL 1.93% 1.68% 1.45% 1.33% 1.17%
Reserves and Surplus 14,154.00 15,996.40 18,398.70 19,432.40 20,950.80 Reserves and Surplus 62.84% 61.37% 60.45% 58.10% 56.09%
TOTAL RESERVES AND SURPLUS 14,154.00 15,996.40 18,398.70 19,432.40 20,950.80 TOTAL RESERVES AND SURPLUS 62.84% 61.37% 60.45% 58.10% 56.09%
TOTAL SHAREHOLDERS FUNDS 14,589.50 16,435.20 18,840.40 20,282.40 21,812.30 TOTAL SHAREHOLDERS FUNDS 64.77% 63.05% 61.90% 60.64% 58.39%
Minority Interest 192.7 464.1 509.1 477.7 393.3
NON-CURRENT LIABILITIES NON-CURRENT LIABILITIES
Long Term Borrowings 196.6 385.3 771.1 208.6 178.7 Long Term Borrowings 0.87% 1.48% 2.53% 0.62% 0.48%
Deferred Tax Liabilities [Net] 0 9.5 5.8 1.1 35.6 Deferred Tax Liabilities [Net] 0.00% 0.04% 0.02% 0.00% 0.10%
Other Long Term Liabilities 147.3 527 606.2 333.4 2,107.60 Other Long Term Liabilities 0.65% 2.02% 1.99% 1.00% 5.64%
Long Term Provisions 531.1 620.1 555.1 580.1 669.1 Long Term Provisions 2.36% 2.38% 1.82% 1.73% 1.79%
TOTAL NON-CURRENT LIABILITIES 875 1,541.90 1,938.20 1,123.20 2,991.00 TOTAL NON-CURRENT LIABILITIES 3.88% 5.92% 6.37% 3.36% 8.01%
CURRENT LIABILITIES CURRENT LIABILITIES
Short Term Borrowings 805.5 834.2 954.9 1,196.10 2,249.50 Short Term Borrowings 3.58% 3.20% 3.14% 3.58% 6.02%
Trade Payables 2,275.80 1,805.90 2,036.80 2,489.30 3,256.60 Trade Payables 10.10% 6.93% 6.69% 7.44% 8.72%
Other Current Liabilities 2,199.70 3,365.90 4,522.10 6,250.60 4,983.30 Other Current Liabilities 9.77% 12.91% 14.86% 18.69% 13.34%
Short Term Provisions 354.7 387 403 395.2 436.4 Short Term Provisions 1.57% 1.48% 1.32% 1.18% 1.17%
TOTAL CURRENT LIABILITIES 5,635.70 6,393.00 7,916.80 10,331.20 10,925.80 TOTAL CURRENT LIABILITIES 25.02% 24.53% 26.01% 30.89% 29.25%
TOTAL CAPITAL AND LIABILITIES 22,524.70 26,066.50 30,437.20 33,446.90 37,353.50 TOTAL CAPITAL AND LIABILITIES 100.00% 100.00% 100.00% 100.00% 100.00%
ASSETS ASSETS
NON-CURRENT ASSETS NON-CURRENT ASSETS
Tangible Assets 2,434.10 3,172.80 3,171.60 2,793.70 3,978.30 Tangible Assets 10.81% 12.17% 10.42% 8.35% 10.65%
Intangible Assets 97.3 659.4 1,678.10 1,451.20 1,506.00 Intangible Assets 0.43% 2.53% 5.51% 4.34% 4.03%
Capital Work-In-Progress 629.4 372.9 239.9 276.3 50.1 Capital Work-In-Progress 2.79% 1.43% 0.79% 0.83% 0.13%
FIXED ASSETS 3,160.80 4,205.10 5,089.60 4,521.20 5,534.40 FIXED ASSETS 14.03% 16.13% 16.72% 13.52% 14.82%
Non-Current Investments 117.7 230.8 1,245.80 752 236 Non-Current Investments 0.52% 0.89% 4.09% 2.25% 0.63%
Deferred Tax Assets [Net] 532.2 267.4 576.6 609.1 844.3 Deferred Tax Assets [Net] 2.36% 1.03% 1.89% 1.82% 2.26%
Long Term Loans And Advances 0 0.9 5.2 4.3 4.5 Long Term Loans And Advances 0.00% 0.00% 0.02% 0.01% 0.01%
Other Non-Current Assets 1,895.40 2,407.90 2,640.30 3,178.20 4,174.30 Other Non-Current Assets 8.41% 9.24% 8.67% 9.50% 11.18%
TOTAL NON-CURRENT ASSETS 7,538.60 9,740.00 12,330.20 11,881.10 14,181.20 TOTAL NON-CURRENT ASSETS 33.47% 37.37% 40.51% 35.52% 37.96%
CURRENT ASSETS CURRENT ASSETS
Current Investments 1,124.80 2,164.70 3,444.90 6,589.90 5,612.30 Current Investments 4.99% 8.30% 11.32% 19.70% 15.02%
Inventories 40.3 61.1 65.9 75.2 35.8 Inventories 0.18% 0.23% 0.22% 0.22% 0.10%
Trade Receivables 5,770.50 5,337.70 6,497.90 6,958.60 7,577.20 Trade Receivables 25.62% 20.48% 21.35% 20.80% 20.29%
Cash And Cash Equivalents 4,018.00 3,218.60 3,044.30 2,358.70 3,148.30 Cash And Cash Equivalents 17.84% 12.35% 10.00% 7.05% 8.43%
Short Term Loans And Advances 0 428.6 150 0 0 Short Term Loans And Advances 0.00% 1.64% 0.49% 0.00% 0.00%
OtherCurrentAssets 4,032.50 5,115.80 4,904.00 5,583.40 6,798.70 OtherCurrentAssets 17.90% 19.63% 16.11% 16.69% 18.20%
TOTAL CURRENT ASSETS 14,986.10 16,326.50 18,107.00 21,565.80 23,172.30 TOTAL CURRENT ASSETS 66.53% 62.63% 59.49% 64.48% 62.04%
TOTAL ASSETS 22,524.70 26,066.50 30,437.20 33,446.90 37,353.50 TOTAL ASSETS 100.00% 100.00% 100.00% 100.00% 100.00%
Table 6 Balance Sheet and Common-size statement for Tech Mahindra

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Equity Share Capital 1144 1144 1088 2170 2122 Equity Share Capital 1.52% 1.37% 1.36% 2.56% 2.29%
TOTAL SHARE CAPITAL 1144 1144 1088 2170 2122 TOTAL SHARE CAPITAL 1.52% 1.37% 1.36% 2.56% 2.29%
TOTAL RESERVES AND SURPLUS60,600.00 67,838.00 63,835.00 62,551.00 63,031.00 TOTAL RESERVES AND SURPLUS 80.42% 81.38% 79.90% 73.82% 67.94%
Long Term Borrowings 0 0 0 0 0 Long Term Borrowings 0.00% 0.00% 0.00% 0.00% 0.00%
Deferred Tax Liabilities [Net] 252 207 541.00 672.00 968 Deferred Tax Liabilities [Net] 0.33% 0.25% 0.68% 0.79% 1.04%
Other Long Term Liabilities 115.00 153.00 320.00 422.00 5,100.00 Other Long Term Liabilities 0.15% 0.18% 0.40% 0.50% 5.50%
Long Term Provisions 0 0 0 0 0 Long Term Provisions 0.00% 0.00% 0.00% 0.00% 0.00%
TOTAL NON-CURRENT LIABILITIES 367.00 360.00 861.00 1,094.00 6,068.00 TOTAL NON-CURRENT LIABILITIES 0.49% 0.43% 1.08% 1.29% 6.54%
Short Term Borrowings 0 0 0 0 0 Short Term Borrowings 0.00% 0.00% 0.00% 0.00% 0.00%
Trade Payables 386.00 367.00 694.00 1,655.00 2,852.00 Trade Payables 0.51% 0.44% 0.87% 1.95% 3.07%
Short Term Provisions 512 405 492 576 572 Short Term Provisions 0.68% 0.49% 0.62% 0.68% 0.62%
TOTAL CAPITAL AND LIABILITIES75,350.00 83,355.00 79,890.00 84,738.00 92,768.00 TOTAL CAPITAL AND LIABILITIES 100.00% 100.00% 100.00% 100.00% 100.00%
ASSETS ASSETS
Intangible Assets 985 776 247 691 1,900.00 Intangible Assets 1.31% 0.93% 0.31% 0.82% 2.05%
Capital Work-In-Progress 960.00 1,365.00 1,606.00 1388 954 Capital Work-In-Progress 1.27% 1.64% 2.01% 1.64% 1.03%
Non-Current Investments 1817 6453 5756 4634 4137 Non-Current Investments 2.41% 7.74% 7.20% 5.47% 4.46%
Deferred Tax Assets [Net] 536.00 540.00 1,282.00 1,372.00 1,744.00 Deferred Tax Assets [Net] 0.71% 0.65% 1.60% 1.62% 1.88%
Long Term Loans And Advances 25.00 29 36.00 19 21 Long Term Loans And Advances 0.03% 0.03% 0.05% 0.02% 0.02%
Current Investments 75.00 9,970.00 6,407.00 6,627.00 4,655.00 Current Investments 0.10% 11.96% 8.02% 7.82% 5.02%
Inventories 0 0 0 0 0 Inventories 0.00% 0.00% 0.00% 0.00% 0.00%
Short Term Loans And Advances 303.00 272.00 239.00 241.00 239.00 Short Term Loans And Advances 0.40% 0.33% 0.30% 0.28% 0.26%
Table 7 Balance Sheet and Common-size statement for Infosys

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
EQUITIES AND LIABILITIES EQUITIES AND
SHAREHOLDER'S FUNDS LIABILITIESDER'S FUNDS
SHAREHOL
Equity Share Capital 494 486 905 1207 1143 Equity Share Capital 0.69% 0.62% 1.20% 1.46% 1.41%
TOTAL SHARE CAPITAL 49 4 4 86 90 5 12 07 1 14 3 TOTAL SHARE CAPITAL 0.69% 0.62% 1.20% 1.46% 1.41%
Reserves and Surplus 45651 51184 47022 55216 54179 Reserves and Surplus 63.39% 64.80% 62.12% 66.59% 66.66%
TOTAL RESERVES AND 4 56 51 51 18 4 47 0 22 5 52 1 6 54 17 9 TOTAL RESERVES AND 63.39% 64.80% 62.12% 66.59% 66.66%
SURPLUS SURPLUS
TOTAL SHAREHOLDERS 4 61 45 51 67 0 47 9 26 5 64 2 3 55 32 2 TOTAL SHAREHOLDERS 64.07% 65.42% 63.32% 68.04% 68.06%
FUNDS FUNDS
Minority Interest 221 239 241 264 188 0.31% 0.30% 0.32% 0.32% 0.23%
NON-CURRENT
NON-CURRENT LIABILITIES
LIABILITIES
Deferred Tax Liabilities [Net] 507 658 303 338 279 Deferred Tax Liabilities [Net] 0.70% 0.83% 0.40% 0.41% 0.34%
Other Long Term Liabilities 1096 1081 1167 1420 2990 Other Long Term Liabilities 1.52% 1.37% 1.54% 1.71% 3.68%
Long Term Provisions 463 424 179 208 377 Long Term Provisions 0.64% 0.54% 0.24% 0.25% 0.46%
TOTAL NON-CURRENT 38 02 41 2 4 6 17 5 48 04 4 13 0 TOTAL NON-CURRENT 5.28% 5.22% 8.16% 5.79% 5.08%
LIABILITIES LIABILITIES
Short Term Borrowings 10265 11674 7960 6809 5402 Short Term Borrowings 14.25% 14.78% 10.52% 8.21% 6.65%
Trade Payables 4902 4867 5120 6266 5840 Trade Payables 6.81% 6.16% 6.76% 7.56% 7.19%
Other Current Liabilities 5973 5653 7300 7255 9061 Other Current Liabilities 8.29% 7.16% 9.64% 8.75% 11.15%
Short Term Provisions 711 754 970 1106 1336 Short Term Provisions 0.99% 0.96% 1.28% 1.33% 1.64%
TOTAL CURRENT LIABILITIES 2 18 51 22 94 9 21 3 51 2 14 3 5 21 63 9 TOTAL CURRENT 30.34% 29.06% 28.21% 25.85% 26.62%
LIABILITIES
TOTAL CAPITAL AND 7 20 19 78 98 2 75 6 93 8 29 2 5 81 27 9 TOTAL CAPITAL AND 100.00% 100.00% 100.00% 100.00% 100.00%
LIABILITIES LIABILITIES
ASSETS ASSETS
Tangible Assets 5856 6067 4911 4767 6062 Tangible Assets 8.13% 7.68% 6.49% 5.75% 7.46%
Intangible Assets 1584 1592 1811 1376 3311 Intangible Assets 2.20% 2.02% 2.39% 1.66% 4.07%
Capital Work-In-Progress 381 738 1378 2142 1881 Capital Work-In-Progress 0.53% 0.93% 1.82% 2.58% 2.31%
FIXED ASSETS 78 20 83 9 7 8 10 0 82 85 11 25 4 FIXED ASSETS 10.86% 10.63% 10.70% 9.99% 13.85%
Non-Current Investments 491 710 887 815 1069 Non-Current Investments 0.68% 0.90% 1.17% 0.98% 1.31%
Deferred Tax Assets [Net] 429 310 691 560 601 Deferred Tax Assets [Net] 0.60% 0.39% 0.91% 0.68% 0.74%
Long Term Loans And Advances 0 0 0 0 0 Long Term Loans And 0.00% 0.00% 0.00% 0.00% 0.00%
Advances
Other Non-Current Assets 3158 3448 3995 4752 3682 Other Non-Current Assets 4.38% 4.37% 5.28% 5.73% 4.53%
TOTAL NON-CURRENT 2 17 37 25 09 2 25 0 78 2 57 3 4 29 29 4 TOTAL NON-CURRENT 30.18% 31.77% 33.13% 31.03% 36.04%
ASSETS ASSETS
Current Investments 20424 29203 24909 22072 18964 Current Investments 28.36% 36.97% 32.91% 26.62% 23.33%
Trade Receivables 9961 9485 10099 10049 10447 Trade Receivables 13.83% 12.01% 13.34% 12.12% 12.85%
Cash And Cash Equivalents 9905 5271 4493 15853 14450 Cash And Cash Equivalents 13.75% 6.67% 5.94% 19.12% 17.78%
Short Term Loans And Advances 0 0 0 0 0 Short Term Loans And 0.00% 0.00% 0.00% 0.00% 0.00%
Advances
OtherCurrentAssets 9453 9540 10778 8822 7938 OtherCurrentAssets 13.13% 12.08% 14.24% 10.64% 9.77%
TOTAL CURRENT ASSETS 5 02 83 53 89 0 50 6 16 5 71 9 1 51 98 5 TOTAL CURRENT ASSETS 69.82% 68.23% 66.87% 68.97% 63.96%
TOTAL ASSETS 7 20 19 78 98 2 75 6 93 8 29 2 5 81 27 9 TOTAL ASSETS 100.00% 100.00% 100.00% 100.00% 100.00%
Table 8 Balance Sheet and Common-size statement for Wipro

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Deferred Tax Liabilities [Net] 95.85 0 0.00 0.00 0 Deferred Tax Liabilities [Net] 2.96% 0.00% 0.00% 0.00% 0.00%
Other Long Term Liabilities 125.05 0.00 20.40 3.40 970.8 Other Long Term Liabilities 3.86% 0.00% 0.40% 0.05% 11.67%
Long Term Provisions 12.43 28.5 28 28.9 32.5 Long Term Provisions 0.38% 0.68% 0.55% 0.46% 0.39%
TOTAL NON-CURRENT LIABILITIES 233.33 28.50 48.40 32.30 1,003.30 TOTAL NON-CURRENT LIABILITIES 7.21% 0.68% 0.96% 0.52% 12.06%
Short Term Borrowings 54.48 0 0 0 0 Short Term Borrowings 1.68% 0.00% 0.00% 0.00% 0.00%
Trade Payables 267.84 335.40 370.80 446.30 684.20 Trade Payables 8.27% 7.96% 7.34% 7.17% 8.23%
Other Current Liabilities 267.84 714.50 737.70 832.80 1,152.30 Other Current Liabilities 8.27% 16.95% 14.60% 13.37% 13.86%
Short Term Provisions 504.96 157.6 176.1 201.7 248.1 Short Term Provisions 15.59% 3.74% 3.49% 3.24% 2.98%
ASSETS ASSETS
Tangible Assets 264.99 247.70 241.20 281.60 1,116.10 Tangible Assets 8.18% 5.88% 4.77% 4.52% 13.42%
Intangible Assets 55.35 38.2 31.5 33.1 35.40 Intangible Assets 1.71% 0.91% 0.62% 0.53% 0.43%
FIXED ASSETS 339.20 287.10 279.50 322.90 1,191.50 FIXED ASSETS 10.48% 6.81% 5.53% 5.19% 14.33%
Non-Current Investments 315.62 290.5 295.9 519.8 655 Non-Current Investments 9.75% 6.90% 5.86% 8.35% 7.88%
Deferred Tax Assets [Net] 0 143.9 191.9 156.4 213.5 Deferred Tax Assets [Net] 0.00% 3.42% 3.80% 2.51% 2.57%
Long Term Loans And Advances 424.91 31.1 38.4 46.7 55.1 Long Term Loans And Advances 13.12% 0.74% 0.76% 0.75% 0.66%
Other Non-Current Assets 0 385.6 262.1 340.3 215.1 Other Non-Current Assets 0.00% 9.15% 5.19% 5.47% 2.59%
Current Investments 6.74 940.6 1,264.40 1,740.20 2,218.50 Current Investments 0.21% 22.33% 25.03% 27.95% 26.68%
Cash And Cash Equivalents 122.18 190.6 249.8 215.4 371.4 Cash And Cash Equivalents 3.77% 4.52% 4.94% 3.46% 4.47%
Short Term Loans And Advances 939.79 15.4 23.5 6.3 16.4 Short Term Loans And Advances 29.02% 0.37% 0.47% 0.10% 0.20%
OtherCurrentAssets 0 805.5 1,118.60 1,149.30 1,203.50 OtherCurrentAssets 0.00% 19.12% 22.14% 18.46% 14.47%
Table 9 Balance Sheet and Common-size statement for L&T Infotech

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Long Term Borrowings 196.6 385.3 771.1 208.6 178.7 Long Term Borrowings 0.87% 1.48% 2.53% 0.62% 0.48%
Deferred Tax Liabilities [Net] 0 9.5 5.8 1.1 35.6 Deferred Tax Liabilities [Net] 0.00% 0.04% 0.02% 0.00% 0.10%
Other Long Term Liabilities 147.3 527 606.2 333.4 2,107.60 Other Long Term Liabilities 0.65% 2.02% 1.99% 1.00% 5.64%
Long Term Provisions 531.1 620.1 555.1 580.1 669.1 Long Term Provisions 2.36% 2.38% 1.82% 1.73% 1.79%
TOTAL NON-CURRENT LIABILITIES 875 1,541.90 1,938.20 1,123.20 2,991.00 TOTAL NON-CURRENT LIABILITIES 3.88% 5.92% 6.37% 3.36% 8.01%
Short Term Borrowings 805.5 834.2 954.9 1,196.10 2,249.50 Short Term Borrowings 3.58% 3.20% 3.14% 3.58% 6.02%
Trade Payables 2,275.80 1,805.90 2,036.80 2,489.30 3,256.60 Trade Payables 10.10% 6.93% 6.69% 7.44% 8.72%
Short Term Provisions 354.7 387 403 395.2 436.4 Short Term Provisions 1.57% 1.48% 1.32% 1.18% 1.17%
ASSETS ASSETS
Intangible Assets 97.3 659.4 1,678.10 1,451.20 1,506.00 Intangible Assets 0.43% 2.53% 5.51% 4.34% 4.03%
Non-Current Investments 117.7 230.8 1,245.80 752 236 Non-Current Investments 0.52% 0.89% 4.09% 2.25% 0.63%
Deferred Tax Assets [Net] 532.2 267.4 576.6 609.1 844.3 Deferred Tax Assets [Net] 2.36% 1.03% 1.89% 1.82% 2.26%
Long Term Loans And Advances 0 0.9 5.2 4.3 4.5 Long Term Loans And Advances 0.00% 0.00% 0.02% 0.01% 0.01%
Current Investments 1,124.80 2,164.70 3,444.90 6,589.90 5,612.30 Current Investments 4.99% 8.30% 11.32% 19.70% 15.02%
Inventories 40.3 61.1 65.9 75.2 35.8 Inventories 0.18% 0.23% 0.22% 0.22% 0.10%
Short Term Loans And Advances 0 428.6 150 0 0 Short Term Loans And Advances 0.00% 1.64% 0.49% 0.00% 0.00%
Table 10 Balance Sheet and Common-size statement for TCS

Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Income INCOME
TOTAL OPERATING
26,494.20 29,140.80 30,772.90 34,742.10 36,867.70 Total Operating Revenues 98.37% 97.40% 95.60% 98.49% 96.87%
REVENUES
Other Income 439.4 777.6 1,416.50 534.2 1,192.40 Other Income 1.63% 2.60% 4.40% 1.51% 3.13%
TOTAL REVENUE 26,933.60 29,918.40 32,189.40 35,276.30 38,060.10 Total Revenue 100.00% 100.00% 100.00% 100.00% 100.00%
EXPENSES EXPENSES
Cost Of Materials Consumed 0 0 0 0 0 Cost Of Materials Consumed 0.00% 0.00% 0.00% 0.00% 0.00%
Operating And Direct
3,572.70 3,611.20 3,888.00 4,349.70 5,440.80 Operating And Direct Expenses 13.26% 12.07% 12.08% 12.33% 14.30%
Expenses
Employee Benefit Expenses 13,947.50 15,453.90 16,624.00 17,507.90 18,810.00 Employee Benefit Expenses 51.78% 51.65% 51.64% 49.63% 49.42%
Finance Costs 97 128.6 162.4 133.2 191.9 Finance Costs 0.36% 0.43% 0.50% 0.38% 0.50%
Depreciation And Amortisation
758.9 978.1 1,085.00 1,129.20 1,445.80 Depreciation And Amortisation Expenses 2.82% 3.27% 3.37% 3.20% 3.80%
Expenses
Other Expenses 4,703.40 5,891.30 5,551.30 6,547.60 6,890.80 Other Expenses 17.46% 19.69% 17.25% 18.56% 18.11%
TOTAL EXPENSES 23079.5 26063.1 27310.7 29667.6 32996.8 Total Expenses 85.69% 87.11% 84.84% 84.10% 86.70%
PROFIT/LOSS BEFORE
EXCEPTIONAL, Profit/Loss Before Exceptional,
3,854.10 3,855.30 4,878.70 5,608.70 5,063.30 14.31% 12.89% 15.16% 15.90% 13.30%
EXTRAORDINARY ITEMS ExtraOrdinary Items And Tax
AND TAX
Profit/Loss Before Tax 3,854.10 3,855.30 4,878.70 5,608.70 5,063.30 Profit/Loss Before Tax 14.31% 12.89% 15.16% 15.90% 13.30%
Tax Expenses-Continued
Tax Expenses-Continued Operations 0.00% 0.00% 0.00% 0.00% 0.00%
Operations
Current Tax 1,034.20 969.8 1,176.80 1,378.60 1,237.80 Current Tax 3.84% 3.24% 3.66% 3.91% 3.25%
Deferred Tax -204.1 32.3 -84.2 -124.2 -77.4 Deferred Tax -0.76% 0.11% -0.26% -0.35% -0.20%
Total Tax Expenses 830.1 1,002.10 1,092.60 1,254.40 1,160.40 Total Tax Expenses 3.08% 3.35% 3.39% 3.56% 3.05%
Profit/Loss After Tax And Profit/Loss After Tax And Before
3,024.00 2,853.20 3,786.10 4,354.30 3,902.90 11.23% 9.54% 11.76% 12.34% 10.25%
Before ExtraOrdinary Items ExtraOrdinary Items
Profit/Loss From Continuing
3,024.00 2,853.20 3,786.10 4,354.30 3,902.90 Profit/Loss From Continuing Operations 11.23% 9.54% 11.76% 12.34% 10.25%
Operations
Profit/Loss For The Period 3,024.00 2,853.20 3,786.10 4,354.30 3,902.90 Profit/Loss For The Period 11.23% 9.54% 11.76% 12.34% 10.25%
Minority Interest -33.7 -38 13.6 8.8 135.6 Minority Interest -0.13% -0.13% 0.04% 0.02% 0.36%
Table 11 Income Statement and common-size statement for Tech Mahindra

Income INCOME
TOTAL OPERATING REVENUES 62,441.00 68,484.00 70,522.00 82,675.00 90,791.00 Total Operating Revenues 95.24% 95.70% 95.67% 96.63% 97.01%
Other Income 3123 3080 3,193.00 2882 2,803.00 Other Income 4.76% 4.30% 4.33% 3.37% 2.99%
TOTAL REVENUE 65,564.00 71,564.00 73,715.00 85,557.00 93,594.00 Total Revenue 100.00% 100.00% 100.00% 100.00% 100.00%
EXPENSES EXPENSES 0.00% 0.00% 0.00% 0.00% 0.00%
Operating And Direct Expenses 4,805.00 5,430.00 6,167.00 12,814.00 13,981.00 Operating And Direct Expenses 7.33% 7.59% 8.37% 14.98% 14.94%
Finance Costs 0 0 0 0 170 Finance Costs 0.00% 0.00% 0.00% 0.00% 0.18%
Depreciation And Amortisation Expenses 1459 1703 1,863.00 2,011.00 2,893.00 Depreciation And Amortisation Expenses 2.23% 2.38% 2.53% 2.35% 3.09%
Other Expenses 6,151.00 6,791.00 6,451.00 4,376.00 3,656.00 Other Expenses 9.38% 9.49% 8.75% 5.11% 3.91%
TOTAL EXPENSES 46,821.00 51,583.00 53,374.00 64,516.00 71,587.00 Total Expenses 71.41% 72.08% 72.41% 75.41% 76.49%
PROFIT/LOSS BEFORE EXCEPTIONAL, 18,743.00 19,981.00 20,341.00 21,041.00 22,007.00
Profit/Loss Before Exceptional,
EXTRAORDINARY ITEMS AND TAX 28.59% 27.92% 27.59% 24.59% 23.51%
ExtraOrdinary Items And Tax
Tax Expenses-Continued Operations Tax Expenses-Continued Operations 0.00% 0.00% 0.00% 0.00% 0.00%
Current Tax 5,318.00 5653 4,581.00 5,727.00 5,775.00 Current Tax 8.11% 7.90% 6.21% 6.69% 6.17%
Deferred Tax -67 -55 -340 -96 -407 Deferred Tax -0.10% -0.08% -0.46% -0.11% -0.43%
Total Tax Expenses 5,251.00 5,598.00 4,241.00 5,631.00 5,368.00 Total Tax Expenses 8.01% 7.82% 5.75% 6.58% 5.74%
Profit/Loss After Tax And Before 13,492.00 14,383.00 16,100.00 15,410.00 16,639.00 Profit/Loss After Tax And Before
20.58% 20.10% 21.84% 18.01% 17.78%
ExtraOrdinary Items ExtraOrdinary Items
Profit/Loss From Continuing 13,492.00 14,383.00 16,100.00 15,410.00 16,639.00
Profit/Loss From Continuing Operations 20.58% 20.10% 21.84% 18.01% 17.78%
Operations
Profit/Loss For The Period 13,492.00 14,383.00 16,100.00 15,410.00 16,639.00 Profit/Loss For The Period 20.58% 20.10% 21.84% 18.01% 17.78%
Minority Interest 0 0 0 -6 -45 Minority Interest 0.00% 0.00% 0.00% -0.01% -0.05%
Table 12 Income Statement and common-size statement for Infosys

INCOME INCOME
Total Operating Revenues 51,244.00 55,448.40 54,487.10 59,018.90 61,137.60 Total Operating Revenues 95% 95% 96% 96% 96%
Other Income 2,752.20 2,622.60 2,548.70 2,613.80 2,725.00 Other Income 5% 5% 4% 4% 4%
Total Revenue 53,996.20 58,071.00 57,035.80 61,632.70 63,862.60 Total Revenue 100% 100% 100% 100% 100%
EXPENSES EXPENSES 0% 0% 0% 0% 0%
Cost Of Materials Consumed 0.2 0 0 0 0 Cost Of Materials Consumed 0% 0% 0% 0% 0%
Operating And Direct Expenses 0 0 0 14,460.80 13,901.10 Operating And Direct Expenses 0% 0% 0% 23% 22%
Employee Benefit Expenses 24,553.40 26,808.10 27,222.30 29,977.40 32,657.10 Employee Benefit Expenses 45% 46% 48% 49% 51%
Finance Costs 558.2 594.2 583 737.5 732.8 Finance Costs 1% 1% 1% 1% 1%
Depreciation And Amortisation 1,496.10 2,310.00 2,111.70 1,946.70 2,085.50 Depreciation And Amortisation
3% 4% 4% 3% 3%
Expenses Expenses
Other Expenses 12,899.90 14,622.30 14,983.80 1,623.80 1,098.90 Other Expenses 24% 25% 26% 3% 2%
Total Expenses 42,502.50 47,031.70 46,794.70 50,086.20 51,613.60 Total Expenses 79% 81% 82% 81% 81%
Profit/Loss Before Exceptional, 11,493.70 11,039.30 10,241.10 11,546.50 12,249.00 Profit/Loss Before Exceptional,
21% 19% 18% 19% 19%
ExtraOrdinary Items And Tax ExtraOrdinary Items And Tax
Profit/Loss Before Tax 11,493.70 11,039.30 10,241.10 11,546.50 12,249.00 Profit/Loss Before Tax 21% 19% 18% 19% 19%
Tax Expenses-Continued
Tax Expenses-Continued Operations 0% 0% 0% 0% 0%
Operations
Current Tax 2,575.70 2,650.10 2,633.40 2,364.90 2,432.40 Current Tax 5% 5% 5% 4% 4%
Deferred Tax -39.1 -128.7 -394.3 159.4 47.7 Deferred Tax 0% 0% -1% 0% 0%
Total Tax Expenses 2,536.60 2,521.40 2,239.10 2,524.30 2,480.10 Total Tax Expenses 5% 4% 4% 4% 4%
Profit/Loss After Tax And Before 8,957.10 8,517.90 8,002.00 9,022.20 9,768.90 Profit/Loss After Tax And Before
17% 15% 14% 15% 15%
Profit/Loss From Continuing 8,957.10 8,517.90 8,002.00 9,022.20 9,768.90 Profit/Loss From Continuing
17% 15% 14% 15% 15%
Operations Operations
Profit/Loss For The Period 8,957.10 8,517.90 8,002.00 9,022.20 9,768.90 Profit/Loss For The Period 17% 15% 14% 15% 15%
Minority Interest -49.2 -24.8 -0.3 -14.2 -49.5 Minority Interest 0% 0% 0% 0% 0%
Table 13 Income Statement and common-size statement for Wipro

INCOME INCOME
Total Operating Revenues 5,569.52 6,182.90 6,906.40 8,907.20 10,184.20 Total Operating Revenues 94.27% 96.89% 92.93% 96.44% 96.02%
Other Income 338.61 198.3 525.4 329 421.7 Other Income 5.73% 3.11% 7.07% 3.56% 3.98%
Total Revenue 5,908.13 6,381.20 7,431.80 9,236.20 10,605.90 Total Revenue 100.00% 100.00% 100.00% 100.00% 100.00%
EXPENSES EXPENSES 0.00% 0.00% 0.00% 0.00% 0.00%
Operating And Direct Expenses 667.06 1,414.10 1,628.60 1,931.60 2,173.60 Operating And Direct Expenses 11.29% 22.16% 21.91% 20.91% 20.49%
Finance Costs 10.36 3.2 13.8 4.3 72 Finance Costs 0.18% 0.05% 0.19% 0.05% 0.68%
Depreciation And Amortisation 103.45 108.9 91.3 88.1 208.4 Depreciation And Amortisation
1.75% 1.71% 1.23% 0.95% 1.96%
Expenses Expenses
Other Expenses 590.25 73.3 94.9 123.8 162.1 Other Expenses 9.99% 1.15% 1.28% 1.34% 1.53%
Total Expenses 4,754.95 5,197.00 5,963.40 7,276.50 8,598.90 Total Expenses 80.48% 81.44% 80.24% 78.78% 81.08%
Profit/Loss Before Exceptional, 1,153.17 1,184.20 1,468.40 1,959.70 2,007.00 Profit/Loss Before Exceptional,
19.52% 18.56% 19.76% 21.22% 18.92%
ExtraOrdinary Items And Tax ExtraOrdinary Items And Tax
Tax Expenses-Continued Tax Expenses-Continued
0.00% 0.00% 0.00% 0.00% 0.00%
Current Tax 162.71 293.4 333 447.6 353 Current Tax 2.75% 4.60% 4.48% 4.85% 3.33%
Deferred Tax 52.33 -46.8 -24.7 37 101.6 Deferred Tax 0.89% -0.73% -0.33% 0.40% 0.96%
Total Tax Expenses 215.04 246.6 308.3 484.6 454.6 Total Tax Expenses 3.64% 3.86% 4.15% 5.25% 4.29%
Profit/Loss After Tax And Before 938.13 937.6 1,160.10 1,475.10 1,552.40 Profit/Loss After Tax And Before
15.88% 14.69% 15.61% 15.97% 14.64%
Profit/Loss From Continuing 938.13 937.6 1,160.10 1,475.10 1,552.40 Profit/Loss From Continuing
15.88% 14.69% 15.61% 15.97% 14.64%
Profit/Loss For The Period 938.13 937.6 1,160.10 1,475.10 1,552.40 Profit/Loss For The Period 15.88% 14.69% 15.61% 15.97% 14.64%
Minority Interest -0.2 -0.2 -0.4 0.4 -0.4 Minority Interest 0.00% 0.00% -0.01% 0.00% 0.00%
Table 14 Income Statement and common-size statement for L&T Infotech

Table 15 Income Statement and common-size statement for TCS

Financial Statement Analysis: IT Sector Companies

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Financial Statement Analysis: IT Sector Companies

Uploaded by

Copyright:

Available Formats

Financial Statement Analysis 1

Financial Statement Analysis

Introduction to Companies Evaluated…………………………………………………………4-5

Basics of Ratios used for analysis……………………………………………………………..7-9

Company Financial Statement Analysis…………………………………………………….10-27

Inter Company Analysis……………………………………………………………………..28-34

wise ratio analysis.

used to analyse the companies.

Introduction of Companies Evaluated

Infosys is the second largest Indian multinational

company and achieve the stated objective.

Objective of the study

The objective of the study is as follows

1. To analyse the financial position of different company in IT sector

2. To make a comparative analysis of companies in different years and between

Scope of the study

medium-term fluctuations in the business or economic cycle and set reliability.

presented for interpretation and analysing the company performance.

published annual reports of the companies.

analysis method has been adopted that are listed below

3. Return on Equity: Return on equity (ROE) is a measure of financial performance

4. Return on Capital Employed (ROCE): Return on capital employed (ROCE) is

5. Debt/Equity: The debt-to-equity (D/E) ratio is calculated by dividing a company’s total

DuPont Analysis (Five Factor DuPont- ROE):

ratio to determine the ROE.

that measure the company’s operating performance.

company. It measures the trade-off between debt and equity.

of the company, i.e. high earning on the assets invested.

Company Financial Statement Analysis

Solvency Ratio Debt/Equity 0.07 0.07 0.09 0.07 0.11

Current Ratio 2.66 2.55 2.29 2.09 2.12

Net Profit Margin 11.41 9.79 12.3 12.53 10.58

3yr CAGR Sales 56.8 15.67 10.8 9.45 8.16

Table 1 Ratios for Tech Mahindra

Consolidated 5-year Ratio analysis

Common Size Statement

Solvency Ratio Debt/Equity 0 0 0 0 0

Current Ratio 3.91 3.83 3.55 2.84 2.62

Table 2 Ratios for Infosys

Consolidated 5-year Ratio analysis

Common Size Statement

Solvency Ratio Debt/Equity 0.26 0.26 0.26 0.17 0.11

Current Ratio 2.3 2.35 2.37 2.67 2.4

Net Profit Margin 17.47 15.36 14.68 15.28 15.97

3yr CAGR Sales 10.38 5.91 2.75 2.51 3.06

Table 3 Ratios for Wipro Ltd.

Consolidated 5-year Ratio analysis

Common Size Statement

Ratios 2016 2017 2018 2019 2020

Solvency Ratio Debt/Equity 0.03 0 0 0 0.01

Current Ratio 2.04 2.68 3.05 3.14 2.71

Net Profit Ratio 14.3 14.93 15.22 16.04 13.97

3yr CAGR Sales 1701.48 1766.34 13.65 17.34 18.72

Table 4 Ratios for L&T Infotech

Consolidated 5-year Ratio Analysis

Common Size Statement

Ratios 2016 2017 2018 2019 2020

Solvency Ratio Debt/Equity 0 0 0 0 0

Current Ratio 4.1 5.5 4.6 4.2 3.3

Net Profit Ratio 22.33 22.28 20.97 21.48 20.6

3yr CAGR Sales 19.9 13 9.16 10.5 9.99

Table 5 Ratios for TCS

Consolidated 5-year Ratio Analysis