Wipro Limited - Revenue Analysis & Operating Metrics 2006-2011

Wipro Limited Financial Performance 2006-2011

Financial Performance:

• Wipro saw revenue growth slowing down during 2009 (10% YoY) due to recession caused by 2008 Global Financial Crisis but revenue growth doubled in 2010 (20% YoY) which highlighted the fact that Wipro did well during 2010 compared to its peers.  
• 2011 (17% YoY) is a different story as the company struggled with its Dual CEO structure and was forced to replace them by single CEO in January 2011 and there were other organizational changes too which affected its revenue growth. Its peers did tremendously well in 2011. 
• Wipro reduced its operating expenses significantly in 2009 due to the cost cutting measures that the company adopted and since then there has been constant rise in expenses along with revenues. With significant organization and leadership changes the company is planning to recover its lost growth. 

Wipro Limited Geography Mix 2006-2011

Geography Analysis:

• Dependency on the North American is constantly being reduced as evident in the above chart but still 55% revenues are from that region. 
• Europe is the second largest market but the revenues have fallen since 2009 and constant at 26%-27% and the region is struggling to cope with Sovereign Debt crisis. 
• India & Middle East market is growing significantly particularly in India it has won some big contracts from Government of India and other State governments. 
• APAC and other markets are also seeing good growth and Japan is constant. 

Wipro Limited Vertical Revenue Mix 2006-2011

Vertical Analysis:

• Like its peers Wipro is also dependent on BFSI vertical for majority of its revenues and it is one of the significant player. 
• Manufacturing is the second largest and constant growing vertical. Retail & Transportation too has been constantly growing over the years. 
• Wipro is a significant player in the Energy  & Utilities vertical and has maintained constant revenues. Technology vertical revenues have been falling and Telecom vertical revenues are constant. 
• Communication and Media and Healthcare Services have also seen good growth in the last few years. 

Wipro Limited Services Revenue Mix 2006-2011

Services Segment Analysis:

• Application Development & maintenance services is the largest service offering but dependency on the offering has reduced over years as Wipro was looking to increase revenues from other services. 
• Revenues from Technology Infrastructure services saw significant growth and the company had invested significantly for increasing the revenues in this service offering. 
• Testing services is constant revenue contributor. Package Implementation too constant revenue generator. 
• Wipro also focused on constantly increasing the BPO revenues. 

Wipro Limited Contract Type 2009-2011

Time & Material contracts are the most preferred. But the Fixed price contracts are also seeing growth since 2009.

Wipro Limited Onsite/Offshore Mix 2006-2011

Onsite has always been dominant contributor for Wipro. Except in 2009-2010 when clients to reduce cost favored offshore. In 2011 onsite saw growth.

Source: Company Investors site                                      Website: www.wipro.com/investors