FUNDAMENTAL ANALYSIS

INFORMATION TECHNOLOGY
(INDUSTRY)
INTRODUCTION
• India’s IT Services industry was born in Mumbai in1967 with the creation of Tata
Consultancy services
• 80% of country’s software exports were from SEEPZ in 1990s
• India is the largest exporter of IT
• IT contribution to India’s total export was less than 4% in the year 1998 and now it
is contributing around 30-35%
FEATURE GROWTH AND CONTRIBUTION TO ECONOMY
• India is leading , sourcing destination across the world , approximately 55%
market share of US$200-250 billon global service sourcing business in 2019-2020
• Indian IT Industry contributes around 7.7% to country’s GDP and it is expected to
grow to 10% in 2025
• IT Industry’s revenue was estimated at around US$ 191 billon in FY2020. It is
estimated to reach US$350 billon by 2025 and digital economy is estimated to
reach Rs 6989000 crore by 2025
 PORTERS FIVE FORCE MODEL (INDUSTRY)
• Bargaining power of buyers
• Rivalry among existing players
• Threat of new entrants
• Bargaining power of suppliers
• Threat from substitutes
 SWOT ANALYSIS

• STRENGTHS • WEAKNESS
 Highly skilled, English speaking workforce  High rate of attrition

 Cost of industry  The cost of telecom and network infrastructure is

high
 Global and 24*7 delivery
• OPPORTUNITY • THREAT
 Great scope for product innovation.  Increase competition
 Federal support and digital infrastructure  Unstable campus IT recruitment
 Time to invest more in India  Global economic slowdown
COMPANY ANALYSIS

PRESENTED BY
JITHESH
SAHANA
SADHVI
 INTRODUCTION
• Company Name : Infosys Ltd
• Type : Public
• Industry : IT Services, IT Consulting
• Founded : 7 th July 1981
• Founders : N.R. Narayana Murthy,
Nandan Nilekani, S. Gopalakrishnan,
S .D Shibulal, K. Dinesh,
N.S. Raghavan, Ashok Arora
• Headquarters : Bangalore, Karnataka, India
• Area Served : Worldwide
• Key People : Nandan Nilekani (Chairman),
Salil Parekh (MD & CEO)
• Services : IT Services, Outsourcing, Consulting,
Managed Services
• Revenue : 93,594 Crore (US$ 13 Billion) (2020)
• Number of Employees : 2,42,371 (March 2020)
 INTRODUCTION
• Infosys is the second largest Indian IT
company after Tata Consultancy Services
(TCS) by 2017 revenue figures and 596 th
largest public company in the world based on
revenue.
• Infosys provides software development,
maintenance and independent validation
services to companies in finance, insurance,
manufacturing and other domains.
• Known Product – Finacle
• Key products and services are – NIA, Infosys
Consulting, Infosys Information Platform,
EdgeVerve Systems, Panaya Cloud Suite,
Skava, Engineering Services, Digital
Marketing
 SWOT ANALYSIS
STRENGTH WEAKNESS
• Cost advantage due to a presence in India • Not covering growing markets
• Provides strong end to end business solutions • Not been able to tackle the challenge present by
the new entrants
• Global and 24/7 delivery capability
• Need more investment in new technologies
• Strong brand portfolio
• Superb performance in new markets
• Good returns on capital expenditure
 SWOT ANALYSIS
OPPORTUNITIES THREATS
• Invest in young technology companies • Rising wage inflation in India
• Growth in spend on digital transformational • Intense competition
technologies
• Focus on emerging markets
 CASH FLOW STATEMENT
Particulars 2020 2019

Cash flow from Operating Activities 17003.00 14841.00

Cash flow from Investing Activities -239.00 -575.00

Cash flow from Financing Activities -17591.00 -14512.00

NET CASH FLOW -919.00 -303.00

 RATIO
Year\ ratio
ANALYSIS
2016 2017 2018 2019 2020

Current Ratio 3.91 3.88 3.55 2.84 2.62

Debt Equity 0.53 0.44 0.42 0.40 0.40

Ratio

Net Profit 20.58 20.098 21.84 18.01 17.78

Ratio

Operating profit 25.02 24.68 24.32 21.96 21.34

ratio

EPS 59 63 71 35 39
COMPANY ANALYSIS
 INTRODUCTION
• Company Name : TCS ltd
• Type : Public
• Industry : IT Services, IT Consulting
• Founded : 01.03.1968
• Founders : TATA SONS
Faquir chand kohli, J.R.D TATA
• Headquarters : Mumbai, Maharashtra, India
• Area Served : world wide
• Key People : Natarajan (Chairman),
Rajesh Gopinath (MD & CEO)
• Services : IT Services, Outsourcing, Consulting,
Managed Services
• Revenue : 161541 Crore (US$ 23 Billion) (2020)
• Number of Employees : 417929 (March 2020)
 SWOT ANALYSIS
STRENGTH WEAKNESS
 Client from different market • Legal battels
 Geographic footprint • Decline in performance by diligent
 Strategically established partnership network
 SWOT ANALYSIS
OPPORTUNITIES
• Digital transformation technologies
• Cloud based solution
• Machine to Machine(M2M) solution
THREATS
• Immigration restriction
• Intense competition
• High attrition rate
 RATIO 2016
ANALYSIS
2017 2018 2019 2020

Dividend pay 46.56 50.42 51.42 67.05 69.48

out ratio

Current Ratio 1.65 3.59 2.77 3.07 4.01

Net Profit 26.72 25.44 27.62 27.70 33.17

Margin Ratio

Retention Ratio 30.51 32.94 48.58 49.57 53.43

EPS 61.59 66.71 67.46 83.87 86.19

COMPANY ANALYSIS

WIPRO LTD.

PRESENTED BY
SHREYA
SANJANA
HARSHITHA
 INTRODUCTION
• Company Name : Wipro Ltd
• Type : Public
• Founded : 29 th Dec 1945
• Headquarters : Bangalore, Karnataka, India
• Services : IT Services
• Revenue : 63862.60 Crore
• Number of Employees : 175000 (March 2020)
 SWOT ANALYSIS
STRENGTH
• Strong brand portfolio
• Performance in market good
• Strong dealer community
WEAKNESS
• Inventory is High
• Investment in R&D is below the fastest
• Need More investment in new technology
 OPPORTUNITIES THREATS
• Taxation policy • Intense Competition
• Inflation and interest rate • New entrant
• decrease in cost of transportation • Exchange rate
 RATIO ANALYSIS

2016 2017 2018 2019 2020

Current Ratio 2.30 2.35 2.37 2.67 2.40
Debt Equity 0.26 0.26 0.26 0.17 0.11
Ratio
Net Profit 17.47 15.36 14.68 15.28 15.97
Ratio
Operating 23.51 20.98 19.86 20.81 21.23
Ratio
COMPANY ANALYSIS

HCL TECHNOLOGY
 INTRODUCTION
• HCL Enterprise was found in the year 1976.
• HCL Technologies limited is an Indian Multinational information technology and consulting
company headquartered in Noida, Uttar Pradesh, India.
• The company has offices in 44 countries including United Kingdom, United States, France
and Germany with a worldwide network of R&D innovation labs delivery Centers and
1,47,123 employees.
• HCL Technologies is on the forbes 2000 list. It is among the top 20 th largest publicly traded
companies in India with a market capitalisation of $21.5 billion as of may 2019.
• It operates across sectors including aerospace and defense, automotive, banking, capital
markets chemical and process industries, energy and utilities, healthcare, hi-tech, industrial
manufacturing, consumer goods, insurance, life sciences manufacturing, media and
entertainment mining and natural resource, oil and gas , retail, telecom, and travel,
transportations, logistics and hospitality.
SWOT ANALYSIS
STRENGTHS OPPORTUNITIES
• It’s core strategy in the market • Adoption of technology
• Strategic alliance and partnership • Expected growth
• Geographic reach and global presence • Research and engineering
• Diversified portfolio of services • Mid market segment
WEAKNESS THREAT
• Struggle to retain existing clients • Competition
• Inefficent use of asset to generate profit • Risk of foreign exchange
• Resource allocation • Global spending decline on IT
• Visa policy of US
FINANCIAL ANALYSIS
• The book value of the company is Rs 188.92
• Earning per share is 40.75 which is the highest of last10 years
• Equity dilution is 0
• Revenue of the company in FY 2020 is 71295.00 crore
• Debt equity ratio is 0.1
• Current ratio is 1.62
• Return on equity 21.51%
• Net profit margin 15.5%
 CURRENT RATIO DEBT EQUITY NET PROFIT (%) EPS
RATIO
INFOSYS 2.62 0.40 17.78 39

TCS 4.01 0.00 33.17 86.19

WIPRO 2.40 0.11 15.97 17.02

HCL 1.62 0.1 15.5 40.75