a study of dividend policy(1)

8/12/2019 A Study of Dividend Policy(1)

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A STUDY OF DIVIDEND POLICY

OF IT INDUSTRY

SUBJECT: FINANCIAL MANAGEMENTSUBMITTED TO : PROF. DIVYA


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GROUP MEMBERS

NAME Roll no Company

Pradeep Infosys

Shaikh Heena Safrin 1348 Wipro

Durgesh Singh 1349 TCS

Saif Abbas

Kinnari Vora 1358


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HISTORY IT Industry):[1]Information Technology in India is an Industry of two major components: IT Services and

Business Process Outsourcing(BPO).

The Sector has Increased its contribution to Indias GDP from 1.2% in 1998 to 7.5% in 2012.

According to NASSCOM, The sector aggregated Revenue of US$100 billion in 2012, where

exports and Domestic Revenue stood at US$69.1 billion and US$31.7 billion respectively

growing by over 9%.

BIG FIVE IT SERVICE COMPANIES:[1]

Firm Revenues Head QuartersTCS $11.57 Billion Mumbai

CognizantTechnology Services

$7.05 Billion Teaneck ,New Jersey

Infosys $6.69 Billion Banglore

Wipro $5.73 Billion Banglore

HCL Technologies $4.3 Billion Noida


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Major IT hubs:[1]

Rank City Description

1 Banglore Popularly known as the siliconvalley of India & leadingSoftware Exporter from India.

Banglore is considered to be aGlobal Information Technologyhub of India

2 Chennai Chennai is the 2ndlargestexporter of IT and ITES of India.And it is the BPO Hub of India,Chennai has the largestOperations hub of TCS, andCognizant

4 Hyderabad Hyderabad is a Major IT Hub inIndia which is also known asCyberabad which consist of

many Multinational corporationCompanies such as Google,Facebook, Microsoft, Amazon,Oracle and Electronic Arts etc

5 Mumbai The Financial capital of India,but recently many IT companieshave established offices.

6 Delhi The National Capital Regioncomprising Delhi, Gurgaon andNoida are clusters of software

development.

7 Pune Major Indian and InternationalFirms present in Pune. Pune isalso C-DAC headquarters.

8 Kolkata The City is amajor back-end operational hubfor IBM, Deloitte.

9 Bhubaneswar The capital city of Odisha, anemerging IT and education hub,

is one of India's fastestdeveloping cities.

10 Thiruvananthapuram The capital of Kerala, nowhouses all major IT companiesincluding Oracle, TCS, Infosys,and contributes in IT export ofIndia.


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Contribution of IT sector in Indias GDP:[2]

The Contribution by the IT sector in Indias GDP has increased from 6.4% in 2008 to

7.5% in 2012

[1] Source:http://en.m.wikipedia.org/wiki/Information_technology_in_india

[2] http://articles.economictimes.indiatimes.com/2012-05-18/news/31765463_1_growth-rate-

india-s-gdp-sachin-pilot


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History:

Established in 1980 as subsidiary of WIPRO limited listed on New York StockExchange.

WIPRO was initially set up in 1945 with main product of producing sunflowerVanaspati Oil and different soaps.

During 1970s and 1980s it shifted its focus and begin to look into businessopportunities in IT sector.

Wipro was the first company which marketed the first indigenous homemade PCfrom India in 1975.

In 1966 Azim Premji, took over as the chairman of the company at the age of 21 andtransformed it into one of the finest largest IT outsourcing services provider of the

world.

Wipro is thethird largest IT services companyin India. Headquarter:

Bangalore, Karnataka, India

Zonal Offices of Wipro:Chennai, Kolkata, Mumbai, Pune, Hyderabad

WORLDWIDE Offices of Wipro:

United States of America, Canada, Mexico,

Latin America, China, Japan

Azim PremjiChairman

He has led Wipro since 1966. Wipro Limited is today a $5 billionrevenue. Presence in over 50 countries.
http://en.wikipedia.org/wiki/Information_technology_in_India#Recent_developmenthttp://en.wikipedia.org/wiki/Information_technology_in_India#Recent_developmenthttp://en.wikipedia.org/wiki/Information_technology_in_India#Recent_developmenthttp://en.wikipedia.org/wiki/Information_technology_in_India#Recent_development


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Wipro Group of CompaniesWipro Ltd.: Wipro Limited is a global provider of comprehensive IT solutions and services,

including Systems Integration, Consulting, Information Systems outsourcing, IT-enabled

services, and R&D services.

Wipro entered into the technology business in 1981 and has over 140,000 employees and clientsacross 54 countries today. IT revenues stood at $ 6.2 billion for the year ended 31 March 2013,

with a repeat business ratio of over 95%.

Wipro Consumer Care & Lighting: Wipro Consumer Care and Lighting (WCCLG), a business

unit of Wipro Limited operates in the FMCG segment offering a wide range of consumable

commodities. Established in 1945,

Wipro Infrastructure Engineering:

Wipro Infrastructure Engineering is the hydraulics business division of Wipro Limited and has

been in the business of manufacturing hydraulic cylinders, truck cylinders, and their components

and solutions since 1976.

Wipro GE Medical Systems Limited:

Wipro GE Medical Systems Limited is Wipros joint venture with GE Healthcare South Asia. It

is engaged in the research and development of advanced solutions to cater to patient and

customer needs in healthcare. This partnership, which began in 1990, today includes offerings

like gadgets and equipment for diagnostics, healthcare IT solutions and services to help

healthcare professionals combat cancer, heart disease, and other ailments.

Wipro services:

Analytics and Information Management BPO IT services Technology Infrastructure Services Product engineering Solution Consulting Services Business process Outsourcing Cloud services Application services Infrastructure management Services


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Wipro Industries:

Aerospace Banking Consumer goods Engineering And Construction Government Hi-Tech Manufacturing Medical Devices Pharmaceutical and Life sciences Retail Transportation Healthcare Insurance and many more

Wipro Merger:

Wipro Arabia Limited (WAL) is a joint venture between Wipro Limitedand Dar Al

Riyadh, a diversified group in Saudi Arabia with business interests in Engineering

Services, Industrial Products, Systems & Integration and Information Technology. WAL

provides enterprise customers with high value Information Technology Products,

Services, Solutions and Consulting Services in the Kingdom of Saudi Arabia.


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Share Holders

On 30 September 2013, 73.51% of theequity sharesof the company were owned by the

promoters:Azim Premji,his family members, partnership firms in which he is a partner and

Trusts formed by him/his family. The remaining 26.49% shares are owned by others.[10]

Shareholders (as on 30-September-2013) Shareholding[10]

Promotergroup led by Azim Premji 73.51%

Foreign Institutional Investors (FII) 08.82%

Indian Public 05.31%

Bodies Corporate 03.89%

Mutual Funds/UTI 01.90%

NRI 01.04%

Trusts/Others 00.84%

American Depositary Shares 01.93%

Total 100.0%
http://en.wikipedia.org/wiki/Common_stockhttp://en.wikipedia.org/wiki/Common_stockhttp://en.wikipedia.org/wiki/Common_stockhttp://en.wikipedia.org/wiki/Azim_Premjihttp://en.wikipedia.org/wiki/Azim_Premjihttp://en.wikipedia.org/wiki/Azim_Premjihttp://en.wikipedia.org/wiki/Wipro#cite_note-Shareholding-10http://en.wikipedia.org/wiki/Wipro#cite_note-Shareholding-10http://en.wikipedia.org/wiki/Wipro#cite_note-Shareholding-10http://en.wikipedia.org/wiki/Wipro#cite_note-Shareholding-10http://en.wikipedia.org/wiki/Wipro#cite_note-Shareholding-10http://en.wikipedia.org/wiki/Wipro#cite_note-Shareholding-10http://en.wikipedia.org/wiki/Corporate_promoterhttp://en.wikipedia.org/wiki/Corporate_promoterhttp://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Unit_Trust_of_Indiahttp://en.wikipedia.org/wiki/Unit_Trust_of_Indiahttp://en.wikipedia.org/wiki/Unit_Trust_of_Indiahttp://en.wikipedia.org/wiki/Non-resident_Indian_and_person_of_Indian_originhttp://en.wikipedia.org/wiki/Trust_lawhttp://en.wikipedia.org/wiki/Trust_lawhttp://en.wikipedia.org/wiki/American_depositary_receipthttp://en.wikipedia.org/wiki/American_depositary_receipthttp://en.wikipedia.org/wiki/American_depositary_receipthttp://en.wikipedia.org/wiki/Trust_lawhttp://en.wikipedia.org/wiki/Non-resident_Indian_and_person_of_Indian_originhttp://en.wikipedia.org/wiki/Unit_Trust_of_Indiahttp://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Corporate_promoterhttp://en.wikipedia.org/wiki/Wipro#cite_note-Shareholding-10http://en.wikipedia.org/wiki/Wipro#cite_note-Shareholding-10http://en.wikipedia.org/wiki/Azim_Premjihttp://en.wikipedia.org/wiki/Common_stock


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0.00%

73.51%

8.82%

5.31%3.89%

1.90%1.04% 0.84% 1.93%

Shareholders (as on 30-

September-2013)

Promoter group led by

Azim Premji

Foreign Institutional

Investors (FII)

Indian Public

Bodies Corporate

Mutual Funds/UTI


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Market share of IT companies in India:


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Capital Structure:

Period Instrument Capital (Rs inCrore)

PAIDUP

From To Authorised Issue Shares(nos) Face

Value

2012 2013 Equity Share 530 492.59 24629347302 2

2011 2012 Equity Share 530 491.75 2458756228 2

2010 2011 Equity Share 530 490.88 2454409145 2

2009 2010 Equity Share 330 293.64 1468211189 2

2008 2009 Equity Share 330 293 1465000000 2

Growth of Wipro for last 5 years:

Net sales:

Year Net sales

2009 21,507.30

2010 22,922.002011 26,300.50

2012 31,682.90

2013 33,226.50


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Total Income:

YearTotal Income(Rs in Crore)

2009 26,039.50

2010 27,699.10

2011 31,874.60

2012 38,444.50

2013 38,888.80

0.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

35,000.00

Net Sales

21,507.3022,922.00

26,300.50

31,682.9033,226.50

2009

2010

2011

2012

2013

Total Income (Rs in Crore)

26,039.5027,699.10

31,874.60

38,444.50 38,888.80

2009 2010 2011 2012 2013


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Net Profit:

YearNetProfit

2009 3,873.60

2010 4,593.20

2011 5,265.30

2012 5,596.90

2013 6,182.30

3,873.604,593.20

5,265.305,596.90

6,182.30

Net Profit

2009 2010 2011 2012 2013


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EPS (Rs in Crore)

Year EPS

2009 26.44

2010 31.28

2011 21.472012 22.78

2013 25.12

EPS Rs In Crore

26.44

31.28

21.4722.78 25.12

2009 2010 2011 2012 2013


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Dividend Per Share:

Year DPS

2009 4

2010 6

2011 6

2012 6

2013 7

0

1

2

3

4

5

6

7

DPS

4

6 6 6

7

Dividend Per Share

2009

2010

2011

2012

2013


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Equity Dividend (Rs in Crore)

Year

Equity Dividend

(Rs in Crore)2009 586

2010 880.9

2011 1,472.60

2012 1,475.20

2013 1,724.70

Equity Dividend (Rs in Crore)

586880.9

1,472.601,475.20 1,724.70

Equity Dividend

2009 2010 2011 2012 2013

a study of dividend policy(1)

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