Report on Ratio Analysis of Tech Mahindra

Ltd. and Wipro Ltd.

Financial Management-2 NCP-3 Project Report

by

Mahita Kodali- 22FMUCHH010490

Kandada Srija Reddy- 22FMUCHH011072

ICFAI Business School

ICFAI Foundation for Higher Education
Hyderabad
 April 2024

Report on Ratio Analysis of Tech Mahindra

Ltd. and Wipro Ltd.

Financial Management-2 NCP-3 Project Report

by

Mahita Kodali- 22FMUCHH010490

Kandada Srija Reddy- 22FMUCHH011072

A report submitted in fulfillment of the requirements of

NCP-3 Business Report Writing Project

Distribution List: Prof. Daman Jeet

Submission Date: 22nd April, 2024
Wipro Limited

Wipro Limited, headquartered in Bangalore, India, stands as one of the global leaders in
information technology, consulting, and business process services. Established in 1945 by M.H.
Premji, Wipro has since grown into a multinational corporation with a significant presence in
over 60 countries. Initially starting as a manufacturer of vegetable and refined oils, Wipro
transitioned into the IT sector in the 1980s, marking a pivotal moment in its history.

Company History
Wipro's journey began in 1945 when M.H. Premji founded Western India Vegetable Products
Limited in Amalner, Maharashtra, India. Over the decades, the company expanded its operations
into various sectors, including consumer goods, lighting, and healthcare. However, it was in the
1980s that Wipro shifted its focus to information technology and began providing software
services, marking a strategic pivot that would define its future trajectory. Since then, Wipro has
consistently evolved and adapted to the rapidly changing technological landscape, establishing
itself as a key player in the global IT industry.

Industry and Specialization

Wipro operates primarily in the information technology (IT) industry, offering a wide range of
services including IT consulting, system integration, application development and maintenance,
digital transformation, and cybersecurity solutions. The company specializes in leveraging
cutting-edge technologies such as artificial intelligence, data analytics, cloud computing, and
blockchain to deliver innovative solutions that empower businesses to thrive in the digital age.
With a strong focus on innovation and customer-centricity, Wipro has earned a reputation for
excellence and reliability, serving clients across various sectors including banking, healthcare,
manufacturing, retail, and telecommunications.

Historical Performance
Over the years, Wipro has demonstrated impressive growth and resilience, consistently adapting
to market dynamics and evolving customer needs. The company's financial performance reflects
its strong market position and strategic vision. With a track record of delivering value to its
stakeholders, Wipro has achieved significant milestones in terms of revenue growth,
profitability, and market capitalization. Moreover, Wipro's commitment to sustainability and
corporate social responsibility has earned it recognition as a responsible corporate citizen, further
enhancing its reputation and brand value in the global marketplace.
Tech Mahindra Limited
Tech Mahindra Ltd. is a prominent multinational corporation headquartered in Pune, India, and
part of the Mahindra Group conglomerate. Established in 1986 as a joint venture between
Mahindra & Mahindra Limited and British Telecommunications plc (BT), Tech Mahindra has
grown into a global leader in digital transformation, consulting, and business process outsourcing
services. With a strong focus on innovation and technology-driven solutions, Tech Mahindra has
established itself as a trusted partner for clients across various industries worldwide.

Company History
Tech Mahindra's journey began in 1986 when it was founded as a joint venture between
Mahindra & Mahindra Limited and British Telecommunications plc (BT), with the goal of
providing IT and networking solutions to clients globally. Over the years, Tech Mahindra
expanded its service offerings and geographic presence through strategic acquisitions and
partnerships, cementing its position as a leading player in the IT industry. Today, Tech Mahindra
boasts a diverse portfolio of services and a global footprint, serving clients across key sectors
such as telecommunications, healthcare, manufacturing, and banking.

Industry and Specialization

Tech Mahindra operates primarily in the information technology (IT) and business process
outsourcing (BPO) industry, offering a wide range of services including IT consulting,
application development, infrastructure management, cybersecurity, and digital transformation
solutions. The company specializes in harnessing emerging technologies such as artificial
intelligence, cloud computing, Internet of Things (IoT), and blockchain to deliver innovative
solutions that drive business growth and enhance customer experience. With a focus on agility,
efficiency, and digital disruption, Tech Mahindra helps organizations navigate complex
challenges and seize opportunities in today's rapidly evolving digital landscape.

Historical Performance
Tech Mahindra has demonstrated strong financial performance and strategic growth since its
inception. The company's revenue and profitability have steadily increased over the years, driven
by its focus on innovation, customer-centric approach, and operational excellence. Tech
Mahindra's ability to adapt to market dynamics and deliver value-added solutions has earned it
recognition as a trusted partner for clients worldwide. Moreover, the company's commitment to
sustainability and corporate social responsibility underscores its role as a responsible corporate
citizen, contributing to its positive brand reputation and market competitiveness.
Wipro Financial Statements
2020-2021
2021-2022
2022-2023
Tech Mahindra Financial Statements
2020-2021
2021-2022
2022-2023
Ratio Analysis (Formulae):
Liquidity Ratios:

Current Assets
 Current Ratio=
Current Liabilities
current assets−inventories
 Quick Ratio=
current liabilities
cash∧cash equivalents
 Cash Ratio=
current liabilities
current assets−current liabilities
 Working Capital Ratio=
total assets

Leverage Ratios:

total debt
 Debt ¿ Equity Ratio=
total equity
total debt
 Debt ¿ Assets Ratio=
total assets
total assets
 Equity Multiplier=
total equity
EBIT
 Interest Coverage Ratio=
Interest

Profitability Ratios:

Gross Profit
 Profit Margin Ratio= ×100
Sales
EBIT
 Operating Profit Ratio= ×100
Sales

Valuation Ratios:

profit after tax

 Returnon Assets= × 100
total assets
EBIT
 Returnon Capital Employed= × 100
total assets−current liabilities
profit after tax
 Returnon Investments= ×100
investments
 profit after tax
 Returnon Equity=
equity share capital

Important Values (in Rupees millions except earnings per share)

Tech Mahindra Ltd.
Metric 2020 2021 2022 2023
Earnings per Share 46.89 43.76 50.48 38.69
Current Assets 180431 200202 169650 173439
Total Assets 303220 333747 350048 360352
Current Liabilities 57138 59613 66364 83651
Non-Current Liabilities 11044 11672 12888 12358
Total Debt (total liabilities) 68182 71285 79252 96009
Total Equity 222734 250158 258492 252039
Inventories 358 242 405 236
EBIT 53322 55266 62846 49041
Depreciation 6674 6623 6599 8129
Sales 315916 305627 362489 437856
Profit after tax 45345 42391 49131 37775
Cash and Cash Equivalents 18038 9880 11944 10940
Investments 47603 90542 32563 108226
Interest Paid 667 632 636 1808
Equity Share Capital 4829 4841 4859 4871

Wipro Ltd.
Metric 2020 2021 2022 2023
Earnings per Share 14.88 17.81 22.2 16.75
Current Assets 457133 453795 517722 539778
Total Assets 653064 657363 803828 853076
Current Liabilities 164438 181324 231737 188428
Total Equity 464537 452416 543507 627623
Total Debt (total liabilities) 188527 204947 260321 225453
Inventories 1741 910 875 913
EBIT 110077 126848 152642 122689
Depreciation 11411 13493 14857 15921
Sales 528836 526823 642805 701076
Profit after tax 86807 100609 121353 91767
Cash and Cash Equivalents 104440 97832 48981 45270
Investments 77350 82067 165572 193728
Interest Paid 2558 2257 3579 5097
 Equity Share Capital 11427 10958 10964 10976

Ratio Calculations (Wipro Ltd.)

Current Ratio:

The current ratio measures a company's short-term liquidity by comparing its current assets to its
current liabilities. It indicates the company's ability to cover short-term obligations with available
assets. A ratio above 1 suggests sufficient liquidity, while below 1 may signal liquidity concerns.
It's useful for assessing financial health, comparing with industry peers, and guiding
management decisions regarding working capital.

Current Assets
Current Ratio=
Current Liabilities

457133 453795
2020= =2.78 2021= =2.50
164438 181324

517722 539778
2022= =2.23 2023= =2.86
231737 188428

Quick Ratio:

The quick ratio assesses a company's ability to meet short-term liabilities with its most liquid
assets, excluding inventory. It's calculated by dividing quick assets (cash, marketable securities,
accounts receivable) by current liabilities. A ratio above 1 indicates the company can cover
short-term obligations without relying on inventory sales. It provides a more conservative
measure of liquidity compared to the current ratio.

current assets−inventories
Quick Ratio=
current liabilities

457133−1741 453795−910
2020= =2.77 2021= =2.49
164438 181324

517722−910 539778−913
2022= =2.23 2023= =2.85
231737 188428

Cash Ratio:
The cash ratio measures a company's ability to cover its short-term liabilities solely with its cash
and cash equivalents.

cash∧cash equivalents
Cash Ratio=
current liabilities

104440 97832
2020= =0.635 2021= =0.54
164438 181324

48981 45270
2022= =0.211 2023= =0.24
231737 188428

Working Capital Ratio:

The working capital ratio assesses a company's ability to cover short-term liabilities with current
assets after subtracting current liabilities. A positive ratio indicates sufficient working capital,
while a negative ratio suggests liquidity issues. It's vital for evaluating short-term financial health
and operational sustainability, guiding decision-making for investors, creditors, and
management.

current assets−current liabilities

Working Capital Ratio=
total assets

457133−164438 453795−181324
2020= =0.45 2021= =0.414
653064 657363

517722−231737 539778−188428
2022= =0.356 2023= =0.412
803828 853076

Debt-to-Equity Ratio:

The debt-to-equity ratio measures a company's leverage by comparing its total debt to
shareholders' equity. It's calculated by dividing total debt by total equity. A higher ratio indicates
higher financial risk due to increased reliance on debt financing, while a lower ratio suggests a
more conservative capital structure. It's crucial for evaluating the company's financial risk,
solvency, and long-term sustainability, guiding investment decisions and risk management
strategies.

total debt
Debt ¿ Equity Ratio=
total equity

188257 204947
2020= =0.41 2021= =0.453
464537 452416
 260321 225453
2022= =0.479 2023= =0.36
543507 627623

Debt-to-Asset Ratio:

The debt-to-asset ratio assesses a company's financial leverage by comparing its total debt to
total assets, indicating the proportion of assets financed by debt.

total debt
Debt ¿ Assets Ratio=
total assets

188257 204947
2020= =0.289 2021= =0.312
653064 657363

260321
2022= =0.324
803828

225453
2023= =0.264 Equity Multiplier Ratio
853076

The equity multiplier ratio assesses a company's leverage by comparing its total assets to
shareholders' equity. It's calculated by dividing total assets by total equity. A higher ratio
indicates higher financial leverage and risk, as assets are primarily funded by debt rather than
equity. Conversely, a lower ratio suggests a more conservative capital structure. It's essential for
evaluating the company's financial risk and leverage, guiding investment decisions and risk
management strategies.

total assets
Equity Multiplier=
total equity

653064 657363
2020= =1.41 2021= =1.453
464537 4522416

803828 853076
2022= =1.48 2023= =1.36
543507 627623

Interest Coverage Ratio:

The interest coverage ratio evaluates a company's ability to meet interest payments on its
outstanding debt. It's calculated by dividing earnings before interest and taxes (EBIT) by the
interest expense. A higher ratio indicates a stronger ability to cover interest payments, while a
lower ratio suggests potential difficulty meeting obligations. It's crucial for assessing financial
health, solvency, and the risk of default, guiding investment decisions and debt management
strategies.

EBIT
Interest Coverage Ratio=
Interest

110077 126848
2020= =43.03 2021= =56.20
2558 2257

152642 122689
2022= =42.64 2023= =24.07
3579 5097

Net Profit Margin Ratio:

The net profit ratio measures a company's profitability by comparing its net profit to revenue. It's
calculated by dividing net profit by total revenue. A higher ratio indicates more efficient
profitability management, while a lower ratio suggests lower profit margins. It's vital for
assessing operational efficiency, financial performance, and sustainability, guiding investment
decisions and strategic planning.

Profit after tax

Net Profit Margin Ratio= ×100
Sales

86807 100609
2020= ×100=16.41 % 2021= × 100=19.09 %
528836 526823

121353 91767
2022= ×100=18.88 % 2023= ×100=13.09 %
642805 701076

Operating Profit Ratio:

The operating profit ratio assesses a company's operating efficiency by comparing its operating
profit to revenue. It's calculated by dividing operating profit by total revenue. A higher ratio
indicates more effective cost management and operational performance, while a lower ratio
suggests lower operating efficiency. It's crucial for evaluating core business profitability,
financial performance, and operational effectiveness, guiding strategic decisions and
performance improvement initiatives.

EBIT
Operating Profit Ratio= ×100
Sales

110077 126848
2020= ×100=20.81 % 2021= × 100=24.08 %
528836 526823

152642 122689
2022= ×100=23.75 % 2023= ×100=17.50 %
642805 701076

Return on Assets:

The return on assets (ROA) ratio evaluates a company's profitability by measuring its ability to
generate earnings from its assets. It's calculated by dividing net income by total assets. A higher
ratio indicates more efficient asset utilization and profitability, while a lower ratio suggests lower
profitability relative to asset investments. It's essential for assessing operational effectiveness,
financial performance, and asset management efficiency, guiding investment decisions and
strategic planning.

profit after tax

Returnon Assets= × 100
total assets

86807 100609
2020= ×100=13.29 % 2021= ×100=15.30 %
653064 657363

121353 91767
2022= ×100=15.09 % 2023= ×100=10.76 %
803828 853076
Return on Capital Employed:

The return on capital employed (ROCE) ratio evaluates a company's profitability by measuring
its ability to generate returns from its capital investments. It's calculated by dividing operating
profit by capital employed. A higher ratio indicates more efficient utilization of capital and
profitability, while a lower ratio suggests lower returns relative to capital invested. It's crucial for
assessing overall business performance, financial efficiency, and the effectiveness of capital
allocation, guiding investment decisions and strategic planning.

EBIT
Returnon Capital Employed= × 100
total assets−current liabilities
110077
2020= ×100=22.53 %
653064−164438
126848
2021= × 100=26.65 %
657363−181324
152642
2022= × 100=26.68 %
803828−231737
122689
2023= × 100=18.46 %
853076−188428

Return on Investments:

The return on investments (ROI) ratio measures the profitability of an investment relative to its
cost. It's calculated by dividing the net profit from the investment by the initial investment cost.
A higher ROI indicates a more profitable investment, while a lower ROI suggests lower returns
relative to the investment cost. It's essential for evaluating the effectiveness of investments,
guiding decision-making on resource allocation, and assessing the overall financial performance
of investment initiatives.

profit after tax

Returnon Investments= ×100
investments

86807 100609
2020= ×100=112.23 % 2021= × 100=122.59 %
77350 82067
 121353 91767
2022= × 100=73.29 % 2023= ×100=47.37 %
165572 193728

Return on Equity:

The return on equity (ROE) ratio evaluates a company's profitability by measuring its ability to
generate returns for shareholders from their equity investments. It's calculated by dividing net
income by shareholders' equity. A higher ratio indicates more efficient utilization of equity and
profitability, while a lower ratio suggests lower returns relative to shareholders' equity. It's
crucial for assessing shareholder value creation, financial performance, and the effectiveness of
equity investment, guiding investment decisions and strategic planning.

profit after tax

Returnon Equity=
equity share capital

86807 100609
2020= =7.6 2021= =9.18
11427 10958

121353 91767
2022= =11.07 2023= =8.36
10964 10976

Earnings per Share:

Earnings per share (EPS) measures a company's profitability by indicating the portion of
earnings allocated to each outstanding share of common stock. It's calculated by dividing net
income attributable to comm. on shareholders by the average number of outstanding shares. A
higher EPS suggests higher profitability per share, while a lower EPS indicates lower
profitability. EPS is crucial for assessing shareholder value and financial performance, guiding
investment decisions, and comparing company performance over time or against competitors.

2020=14.88 2021=17.81 2022=22.2 2023=16.75

Ratio Calculations (Tech Mahindra Ltd.)

Current Ratio:

Current Assets
Current Ratio=
Current Liabilities

180341 200202
2020= =3.16 2021= =3.36
57138 59613
 169650 173439
2022= =2.56 2023= =2.073
66364 83651

Quick Ratio:

current assets−inventories
Quick Ratio=
current liabilities

180341−358 200202−242
2020= =3.15 2021= =3.35
57138 59613

16950−405
2022= =2.55
66364

173439−236
2023= =2.071Cash ratio:
83651

cash∧cash equivalents
Cash Ratio=
current liabilities

18038 9880
2020= =0.32 2021= =0.17
57138 59613

11944
2022= =0.18
66364

10940
2023= =0.13
83651

Working Capital Ratio:

current assets−current liabilities

Working Capital Ratio=
total assets

180431−57138 200202−59613
2020= =0.41 2021= =0.42
303220 333747
 169650−66364
2022= =0.295
350048

173439−83651
2023= =0.25Debt-to-Equity Ratio:
360352

total debt
Debt ¿ Equity Ratio=
total equity

68182 71285
2020= =0.31 2021= =0.28
222734 250158

79252 96009
2022= =0.31 2023= =0.38
258492 252039

Debt-to-asset Ratio:

total debt
Debt ¿ Assets Ratio=
total assets

68182 71285
2020= =0.22 2021= =0.21
303220 333747

79252 96009
2022= =0.23 2023= =0.27
350048 360352

Equity Multiplier:

total assets
Equity Multiplier=
total equity

303220 333747
2020= =1.36 2021= =1.33
222734 250158

350048 360352
2022= =1.35 2023= =1.42
258942 252039
Interest Coverage Ratio:

EBIT
Interest Coverage Ratio=
Interest

53322 55266
2020= =79.9 2021= =87.4
667 632

62846 49041
2022= =98.8 2023= =27.12
636 1808

Net-Profit Margin Ratio:

Net Profit After Tax

Profit Margin Ratio= ×100
Sales

45345 42391
2020= ×100=14.35 % 2021= ×100=13.87 %
315916 305627

49131 37775
2022= × 100=13.55 % 2023= × 100=8.63 %
362489 437856

Operating Profit Margin Ratio

EBIT
Operating Profit Ratio= ×100
Sales

53322 55266
2020= ×100=16.88 % 2021= ×100=18.08 %
315916 305627

62846 49041
2022= × 100=17.34 % 2023= × 100=11.20 %
362489 437856

Return on Assets:

profit after tax

Returnon Assets= × 100
total assets

45345 42391
2020= ×100=14.95 % 2021= ×100=12.70 %
303220 333747

49131 37775
2022= × 100=14.04 % 2023= × 100=10.48 %
350048 360352
Return on Capital Employed:

EBIT
Returnon Capital Employed= × 100
total assets−current liabilities

53322 55266
2020= × 100=21.67 % 2021= × 100=20.16 %
303220−57138 333747−59613

62846 49041
2022= ×100=22.15 % 2023= ×100=17.72 %
350048−66364 360352−83651

Return on Investments:

profit after tax

Returnon Investments= ×100
investments

45345 42391
2020= ×100=95.26 % 2021= ×100=46.82 %
47603 90542

49131 37775
2022= ×100=150.88 % 2023= ×100=34.90 %
32563 108226

Return on Equity:

profit after tax

Return on Equity=
equity share capital

45345 42391
2020= =9.39 2021= =8.76
4829 4841

49131 37775
2022= =10.11 2023= =7.76
4859 4871

Earnings Per Share:

2020=48.89

2021=73.76
 2022=50.48

2023=38.69

Comparative Analysis
Ratio W20 TM20 W21 TM21 W22 TM22 W23 TM23
Current Ratio 2.78 3.16 2.5 3.36 2.23 2.56 2.86 2.073
Quick Ratio 2.77 3.15 2.49 3.35 2.23 2.55 2.85 2.071
Cash Ratio 0.635 0.32 0.54 0.17 0.211 0.18 0.24 0.13
Working Capital Ratio 0.45 0.41 0.414 0.42 0.356 0.295 0.412 0.25
Debt-to-Equity Ratio 0.41 0.31 0.453 0.28 0.479 0.31 0.36 0.28
Debt-to-Asset Ratio 0.289 0.22 0.312 0.21 0.324 0.23 0.264 0.27
Equity Multiplier 1.41 1.36 1.453 1.33 1.48 1.35 1.36 1.42
Interest Coverage Ratio 43.03 79.9 56.2 87.4 42.64 98.8 24.07 27.12
Net Profit Margin Ratio 16.41% 14.35% 19.09% 13.87% 18.88% 13.55% 13.09% 8.63%
Operating Profit Margin Ratio 20.81% 16.88% 24.08% 18.08% 23.75% 17.34% 17.50% 11.20%
Return on Assets Ratio 13.29% 14.95% 15.30% 12.70% 15.09% 14.04% 10.76% 10.48%
Return on Capital Employed
Ratio 22.53% 21.67% 26.65% 20.16% 26.68% 22.15% 18.46% 17.72%
Retrun on Investments Ratio 112.23% 95.26% 122.59% 46.82% 73.29% 150.88% 47.37% 34.90%
Return on Equity Ratio 7.6 9.39 9.18 8.76 11.07 10.11 8.36 7.76
Earnings per Share 14.88 48.89 17.81 73.76 22.2 50.48 16.75 38.69

Comparative Study Year 2022:

Operating Ratio: Wipro (23.74%) is higher than Tech Mahindra (13.55%). This suggests Tech
Mahindra is more efficient in managing its operating expenses.

Rerun on assets: Wipro (15.09%) is higher than Tech Mahindra (14.03%). This suggests Wipro
is more effectively using its profits to generate profit.

Current Ratio: Tech Mahindra (2.55) is higher than Wipro (2.23). This indicates Tech Mahindra
has a greater ability to meet its short-term obligations.

Quick Ratio: (Assuming the quick ratio data for Wipro was provided and has the same values as
the current ratio), both companies would have the same quick ratio 2.23 for Wipro and likely
2.55 for Tech Mahindra). The quick ratio considers only the most liquid current assets, so the
identical values suggest similar short-term liquidity after accounting for the most immediately
convertible assets.
Cash Ratio: Both the companies Wipro (0.22) and Tech Mahindra (0.17) are less than 0.5 is
considered risky as the entity has twice as much short-term debt compared to cash.

Debt to Equity Ratio: Tech Mahindra (0.30) is lower than Wipro (0.47) .This indicates Tech
Mahindra has a more conservative financing structure with less debt relative to equity.

Debt to asset ratio: Wipro (0.32) is more than Tech Mahindra (0.22). Wipro has high leverage
compared to Tech Mahindra.

Equity multiplier: Wipro (1.47) is higher than Tech Mahindra (1.35) this suggests that larger
portion of Wipro’s assets are funded by debt, when compared with Tech Mahindra.

Return on Capital Employed (ROCE): Wipro (26.68%) is higher than Tech Mahindra (22.15%).
This suggests Wipro is more efficiently generating profit from its capital than Wipro.

Interest Coverage Ratio: Wipro (42.6) is higher than Tech Mahindra (1.92). A lower interest
coverage ratio suggests a higher risk of defaulting on interest payments, here Tech Mahindra has
a higher risk of defaulting on interest payments.

Net Profit Margin Ratio: Tech Mahindra (17.33%) is lower than Wipro (18.87%). This suggests
Wipro is slightly more efficient at converting revenue into profit.

Return on Equity (ROE): Wipro (11.06) is higher than Tech Mahindra (10.11). This means
Wipro is generating a higher return on shareholder investment.

Earnings per Share (EPS): Wipro (22.2) is lower than Tech Mahindra (50.48). This indicates
higher EPS for Tech Mahindra, potentially translating to a higher stock price.

For the Year 2023:

Operating Ratio: Wipro (17.5%) is higher than Tech Mahindra (8.62%). This suggests Tech
Mahindra is more efficient in managing its operating expenses.

Rerun on assets: Wipro (10.75%) is higher than Tech Mahindra (10.48%). This suggests Wipro
is more effectively using its profits to generate profit.

Current Ratio: Tech Mahindra (2.86) is higher than Wipro (2.07). This indicates Tech Mahindra
has a greater ability to meet its short-term obligations.

Quick Ratio: (Assuming the quick ratio data for Wipro was provided and has the same values as
the current ratio), both companies would have the same quick ratio 2.85 for Wipro and likely
2.07 for Tech Mahindra). The quick ratio considers only the most liquid current assets, so the
identical values suggest similar short-term liquidity after accounting for the most immediately
convertible assets.

Cash Ratio: Both the companies Wipro (0.24) and Tech Mahindra (0.13) are less than 0.5 is
considered risky as the entity has twice as much short-term debt compared to cash.

Debt to Equity Ratio: Tech Mahindra (0.38) is higher than Wipro (0.35) .This indicates Wipro
has a more conservative financing structure with less debt relative to equity.

Debt to asset ratio: Wipro (0.26) is more than Tech Mahindra (0.26). Since both companies has
ratio both companies are equally leveraged.

Equity multiplier: Wipro (1.35) is lower than Tech Mahindra (1.42) this suggests that larger
portion of Tech Mahindra’s assets are funded by debt, when compared with Wipro.

Return on Capital Employed (ROCE): Wipro (18.45%) is higher than Tech Mahindra (17.7%).
This suggests Wipro is more efficiently generating profit from its capital than Wipro.

Interest Coverage Ratio: Wipro (24.07) is higher than Tech Mahindra (0.45). A lower interest
coverage ratio suggests a higher risk of defaulting on interest payments, here Tech Mahindra has
a higher risk of defaulting on interest payments.

Net Profit Margin Ratio: Tech Mahindra (11.2%) is lower than Wipro (13.08%). This suggests
Wipro is slightly more efficient at converting revenue into profit.

Return on Equity (ROE): Wipro (8.3) is higher than Tech Mahindra (7.7). This means Wipro is
generating a higher return on shareholder investment.

Earnings per Share (EPS): Wipro (16.75) is lower than Tech Mahindra (38.69). This indicates
higher EPS for Tech Mahindra, potentially translating to a higher stock price.