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Economic Analysis

India’s GDP growth is estimated at 5-6 per cent for FY15 according to the Reserve Banof India !RBI" as compared to 5#5$5 per cent estimation %& the Prime 'inister’ (conomic

 )dvisor& *o+nci, for FY 1$

GDP *omposition %& .ector !/01 estimate" .ervices2 66$13 !/01 est" Ind+str&2 143  )gric+,t+re2 16$3

India is c+rrent,& one of the wor,ds most attractive investment destinations$ 7ith theopening +p of foreign direct investment !FDI" in severa, sectors8 the co+ntr& is an e&e-catching destination for overseas investors$ 9he re,a:ation of norms %& the governmenthas a,so created a vast opport+nit& for foreign p,a&ers8 who are competing for a greaterro,e in the Indian maret$ 'a;or .ectors )ttracting

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 )pri,-?+ne /01 raised Rs 1/8151 crore !@.A /$01 %i,,ion" compared withRs 18/// crore !@.A /01$ mi,,ion" raised in the same =+arter in /01$

?apans Is+E+ 'otors aims to se,, 508000 pic+p vehic,es in India in thene:t few &ears to gain maret ,eadership$ 9he compan&8 which has a f+,,&owned s+%sidiar& in *hennai8 has earmared Rs 8000 crore !@.A

5$66 mi,,ion" for a 1/08000-+nits-per-&ear man+fact+ring faci,it& c,ose%&$

ent+re capita, !*" investments in India s+rged d+ring the first ha,f of /018 ref,ecting optimism a%o+t Indias entreprene+ria, ecos&stem$Investments in ear,& stage companies and start+ps grew near,& 0 per cent as compared with the same period in /018 according to datare,eased %& (rnst Yo+ng !(Y"$

Private e=+it& !P(" firm .)IF Partners p,ans to mae +p to eightinvestments in FY 15 across different sectors8 in an effort to significant,&ramp +p its investment pace in India and p,an for more e:its thro+gh thep+%,ic maret$

.overeign wea,th f+nds !.7Fs" and overseas pension f+nds p,an toinvest in India8 driven %& ,ie,ihood of economic recover& +nder a newsta%,e government$ )t ,east three sovereign f+nds from 7est )sia haveinvested over @.A 5 %i,,ion in the past eight months$

.o in n+t she,, the economic environment seems to %e cond+cive for %+siness and thereis ,ot of ass+rance from the government on the same$ 9here is ,ot of traction going for.ervices .ector8 *onstr+ction )ctivities8 9e,ecomm+nications8 *omp+ter .oftware and

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!uture "rowt Drivers #or IT/ITeS sector 

Ma$or %layers in IT Sectors

T&S: 9*. is a ,eader in the g,o%a, maretp,ace and among the top 10 techno,og& firms inthe wor,d$ Its contin+ed rapid growth is a testament to the certaint& c,ients e:perienceever& da&$ B+i,ding on more than 0 &ears of e:perience8 9*. adds rea, va,+e to g,o%a,organiEations thro+gh domain e:pertise p,+s so,+tions8 with proven s+ccess in the fie,d

and wor,d-c,ass service$

'ipro: 7ipro Jtd was esta%,ished in 15 as 7estern India egeta%,e Prod+cts Jtd at'aharashtra8 India$ Present,&8 it is a g,o%a, information techno,og&8 cons+,ting ando+tso+rcing compan& with a%o+t 16805 emp,o&ees serving over 00 c,ients in over 145cities across si: continents$ 9he compan& posted reven+es of @.A 4$ %i,,ion for FY 1$7ipro is g,o%a,,& recogniEed for its innovative approach towards de,ivering %+sinessva,+e and its commitment to s+staina%i,it&$ It champions optimiEed +ti,iEation of nat+ra,reso+rces8 capita, and ta,ent$ It he,ps c+stomers do %+siness %etter %& ,everaging itsind+str&-wide e:perience8 deep techno,og& e:pertise8 comprehensive portfo,io of servicesand vertica,,& a,igned %+siness mode,$ 9he compan&s 55K dedicated emergingtechno,ogies *entres of (:ce,,ence ena%,es to harness the ,atest techno,og& forde,ivering %+siness capa%i,it& to its c,ients$

In#osys: (sta%,ished in 118 Infos&s is an >Y.( ,isted g,o%a, cons+,ting and I9 servicescompan& with more than 158000 emp,o&ees$ From a capita, of @.A /508 the compan&has grown to %ecome a @.A $05 %i,,ion compan& with a maret capita,iEation ofappro:imate,& @.A %i,,ion$Infos&s pioneered the G,o%a, De,iver& 'ode, and %ecame the first I9 compan& from Indiato %e ,isted on >).D)$ 9he compan& is a g,o%a, ,eader in cons+,ting8 techno,og&8 ando+tso+rcing so,+tions$ It ena%,es c,ients in more than 0 co+ntries to o+tperform thecompetition and sta& ahead of the innovation c+rve$

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(&): (sta%,ished in 118

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(arning Retention Ratio 4$6 6$6 40 4$ $0

*ash (arnings Retention Ratio 44$ 4/$ 4$/5 44$6 6$14

&*E+A"E +ATI*S 

 )d;+sted *ash F,ow 9ime 9ota, De%t 0$5 0$5 0$6 0$4/ 0$5

Financia, *harges *overage Ratio /$/6 //$1 /5$5 /$1 $//

Fin$ *harges *ov$Ratio !Post 9a:" 1$// 1$/ /1$ /$4 /4$4

From a%ove Ratio ana,&sis for I9 ind+str& we can ded+ce that I9 sector is performing goodeno+gh and is a%,e to withstand the downt+rn in the g,o%a, econom&$ It is showing a promisingf+t+re in &ears to come$

&ompany Analysis

9*. is a ,eader in the g,o%a, maretp,ace and among the top 10 techno,og& firms in the wor,d$ Itscontin+ed rapid growth is a testament to the certaint& c,ients e:perience ever& da&$ B+i,ding onmore than 0 &ears of e:perience8 9*. adds rea, va,+e to g,o%a, organiEations thro+gh domain

e:pertise p,+s so,+tions8 with proven s+ccess in the fie,d and wor,d-c,ass service$

ew c,ients2 15 7ith a %rand va,+e of over @.A 1 %i,,ion8 9*. conso,idates position as

one of the ,argest I9 p,a&ers D+ring FY1 reven+e reached to @.A 11$6 %i,,ion

Growth .tor& of 9*.

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+evenue 2reakup #or T&S

9*.’s 'a;or reven+e comes from I9 so,+tions and .ervices8 which stands more than /rd

of the tota, reven+e$ >e:t %igger ch+ns come from BPC and infrastr+ct+re services$

-alance Seet:

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Income Statement #or T&S 3%ast4 %resent4 and Estimated !uture5

&as !low #or T&S 3%ast4 %resent4 and Estimated !uture5

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!inancial Metrics #or T&S 3%ast4 %resent4 and Estimated !uture5

For the %e,ow ca,c+,ations of P(R and PB +s 6789 is used #or te current Market%rice o# T&S stock

&onclusion

If we see the va,+ation in terms of re,ative va,+ation techni=+es ,ie P(R and P B interms of *+rrent 'aret price !Rs /40" then the ratios are decreasing which is a sign ofthe +nderva,+e of the 9*. stoc in f+t+re so that f+ndamenta, ana,&sis sa&s to %+& the9*. stoc at the c+rrent Price$

Referenceshttp2india%+dget$nic$ins+rve&$asphttp2www$econom&watch$comwor,dLeconom&indiaind+str&-sector-ind+stries$htm,http2www$i%ef$orgdown,oadI9-and-I9e.-'arch-/01$pdf http2www$i%ef$orgdown,oadB*G-*II-I9-.+mmit-/041$pdf http2www$i%ef$orgresearchreportshttp2www$investmentg+r+india$com(=+it&L*ompan&LFinancia,s$asp:M*ompan&*odeN10/00idN1http2investmentg+r+india$commo%i,eResearchartic,es;an-/01I9-/6--1-PJ$pdf 

http://indiabudget.nic.in/survey.asphttp://www.economywatch.com/world_economy/india/industry-sector-industries.htmlhttp://www.ibef.org/download/IT-and-ITeS-March-2014.pdfhttp://www.ibef.org/download/BCG-CII-IT-Summit-290713.pdfhttp://www.ibef.org/research/reportshttp://www.investmentguruindia.com/Equity_Company_Financials.aspx?CompanyCode=13020033&id=1http://www.investmentguruindia.com/Equity_Company_Financials.aspx?CompanyCode=13020033&id=1http://investmentguruindia.com/mobile/Researcharticles/jan-2014/IT-26-9-14-PL.pdfhttp://www.economywatch.com/world_economy/india/industry-sector-industries.htmlhttp://www.ibef.org/download/IT-and-ITeS-March-2014.pdfhttp://www.ibef.org/download/BCG-CII-IT-Summit-290713.pdfhttp://www.ibef.org/research/reportshttp://www.investmentguruindia.com/Equity_Company_Financials.aspx?CompanyCode=13020033&id=1http://www.investmentguruindia.com/Equity_Company_Financials.aspx?CompanyCode=13020033&id=1http://investmentguruindia.com/mobile/Researcharticles/jan-2014/IT-26-9-14-PL.pdfhttp://indiabudget.nic.in/survey.asp