Financial Analysis of Wipro, Tech Mahindra, Mindtree and Oracle Financial Services Software

Sourik Syed

AFM PROJECT ROLL:H13053 COURSE:PGDHRM BATCH:2013-2015

1|Page THE INDIAN IT SECTOR Information technology in India is an industry consisting of two major components: IT Services and business process outsourcing (BPO). The sector has increased its contribution to India's GDP from 1.2% in FY1998 to 7.5% in FY2012. According to NASSCOM, the sector aggregated revenues of US$100 billion in FY2012, where export and domestic revenue stood at US$69.1 billion and US$31.7 billion respectively, growing by over 9%. The major cities that account for about nearly 90% of the sector's exports are Bangalore, Chennai, Hyderabad, Trivandrum, Delhi, Mumbai and Kolkata. Bangalore is considered to be the Silicon Valley of India because it is the leading IT exporter. Exports dominate the industry and constitute about 77% of the total industry revenue. However, the domestic market is also significant with a robust revenue growth. The industrys share of total Indian exports (merchandise plus services) increased from less than 4% in FY1998 to about 25% in FY2012.

2|Page

Competition
Name Last Price Market Cap.
(Rs. c r. )

Sales Net Profit Turnover

Total Assets

TCS Infosys Wipro HCL Tech Tech Mahindra Oracle Fin Serv MphasiS Mindtree Hexaware Tech Persistent Infotech Enter NIIT Tech Zensar Tech Financial Tech Polaris Tech Hinduja Global Rolta Tata Elxsi Infinite Comp Geometric Sasken Comm Hinduja Venture 3i Infotech Mastek Ramco System Thinksoft

2,213.05 3,729.75 552.7 1,379.65 1,775.25

4,33,476.30 48,426.14 12,786.34 32,725.37 2,14,175.73 36,765.00 1,36,274.17 33,517.30 96,431.55 12,517.82 41,397.54 6,001.89 9,116.00 36,059.00 5,650.20 28,275.50 3,704.72 10,852.88 652.52 5,287.30

3,145.15 409 1,420.85 134 990.2 347.65 389.5 379.4 313.85 138.9 572.75 72.1 363.55 155.35 98.3 189.4 275.2 8.3 171.3 177.25 252.25

26,456.07 8,595.61 5,941.33 4,018.34 3,960.80 3,890.52 2,361.76 1,750.24 1,446.17 1,382.72 1,180.55 1,163.18 1,132.03 632.21 623.26 570.69 565.69 475.29 422.16 279.77 256.58

2,937.70 3,321.48 2,361.80 912.47 996.75 1,051.56 1,108.30 837.66 450.9 1,853.99 703.41 1,310.94 604.69 454.72 352.25 362.71 93.53 365.47 401.02 175.18 157.83

1,029.26 539.51 338.9 285.6 181.81 184.35 167.86 121.53 322.88 167.06 54.01 -737.43 20.99 106.27 34.42 36.05 76.75 -255.36 30.18 -18.81 16.31

7,292.35 3,901.16 1,338.60 984.63 1,007.47 1,167.03 773.45 512.13 3,275.11 1,196.23 795.98 4,729.40 223.23 297.16 207.46 369.63 715.35 2,998.15 383.63 436.36 69.64

3|Page Wipro

Wipro Limited (formerly Western India Products Limited. It is an Indian multinational information technology (IT), consulting and outsourcing service company headquartered in Bangalore, Karnataka, India. As of September 2013, the company has 147,000 employees serving over 900 clients with a presence in 57 countries. Wipro is the third largest IT services company in India. On 31 March 2013, its market capitalisation was INR 1.07 trillion ($19.8 billion), making it India's 13th largest publicly traded company. Azim Premji is a major shareholder in Wipro with over 50% of shareholding. To focus on core IT Business, it demerged its non-IT businesses into a separate company named Wipro Enterprises Limited with effect from 31 March 2013. The demerged company offers consumer care, lighting, healthcare and infrastructure engineering and contributed to approx. 10% of the revenues of Wipro Limited in previous financial year. Brief History of Firm The company was incorporated on 29 December 1945, in Mumbai by Mohamed Hasham Premji as 'Western India Vegetables Products Limited', later abbreviated to 'Wipro'. It was initially set up as a manufacturer of vegetable ghee, vanaspati, and refined oils in Amalner, district Jalgaon, Maharashtra, under the trade names of Kisan, Sunflower and Camel. In 1966, after Mohamed Premjis death, his son Azim Premji returned home from Stanford University and took over Wipro as its chairman at the age of 21 During the 1970s and 1980s, the company shifted its focus to new business opportunities in the IT and computing industry, which was at a nascent stage in India at the time. On 7 June 1977, the name of the company changed from Western India Vegetable Products Limited, to Wipro Products Limited. The year 1980 marked the arrival of Wipro in the IT domain. In 1982, the name was changed from Wipro Products Limited to Wipro Limited. 19881992 In 1988, Wipro diversified its product line into heavy-duty industrial cylinders and mobile hydraulic cylinders. A joint venture company with the United States' General Electric in the name of Wipro GE Medical Systems Pvt. Ltd. was set up in 1989 for the manufacture, sales, and service of diagnostic and imaging products. Later, in 1991, tipping systems and Eaton hydraulic products were launched. In 1994, Wipro set up an overseas design centre, Odyssey 21, for undertaking projects and product developments in advanced technologies for overseas clients. Wipro Infotech and Wipro Systems were amalgamated with Wipro in April that year. In 1999, Wipro acquired Wipro Acer.[19] Wipro became a more profitable, diversified corporation with new products such as the Wipro Super Genius personal computers (PCs). In 1999, the product was the one Indian PC range to obtain USbased National Software Testing Laboratory (NSTL) certification for the Year 2000 (Y2K) compliance in hardware for all models. Wipro Limited joined hands with a global telecom major KPN (Royal Dutch telecom) to form a joint venture company Wipro Net Limited to provide internet services in India.*16+ The year 2000 was

4|Page the year Wipro launched solutions for convergent networks targeted at Internet and telecom solution providers in the names of Wipro OSS Smart and Wipro WAP Smart.[21] In the same year, Wipro got listed on New York Stock Exchange. In February 2002, Wipro became the first software technology and Services Company in India to be certified for ISO 14001 certification. Wipro also achieved ISO 9000 certification to become the first software company to get SEI CMM Level 5 in 2002. Wipro Consumer Care and Lighting Group entered the market of compact fluorescent lamps, with the launch of a range of CFL, under the brand name of Wipro Smartlite. As the company grew, a study revealed that Wipro was the fastest wealth creator for 5 years (19972002).The same year witnessed the launch of Wipros own laptops with Intel's Centrino mobile processor. In April 2011, Wipro signed an agreement with Science Applications International Corporation (SAIC) for the acquisition of their global oil and gas information technology practice of the commercial business services business unit. The year 2012 saw Wipro make its 17th acquisition in IT business when it acquired Australian analytics product firm Promax Applications Group (PAG) for $35 million.[48][49] Wipro is the No. 1 employer of H-1B visa professionals in the United States in 2012. In 2012 Wipro Ltd. announced the demerger of its Consumer Care & Lighting (incl. Furniture business), Infrastructure Engineering (Hydraulics & Water business), and Medical Diagnostic Product & Services business into a separate company to be named Wipro Enterprises Ltd. Wipro's scheme of arrangement for demerger turned effective from 31 March 2013.

INTERPRETATIONS FROM HORIZONTAL, VERTICAL AND TREND ANALYSIS From Exhibit 1 , Exhibit 2, Exhibit 3, we see the following: A noticeable increase happened in secured loans which in turn increased the total liabilities in 2013 compared to its peers. A decrease in fixed assets for wipro happened in 2013 compared to its peers which is explained by the demerger in 2013 with its subsidiaries. Demerger of its subsidiary has also resulted in the reduction of its inventories by about 60 percent in 2013 A noticeable increase happened in investments in 2011 which is explained by the acquisition of SAIC in 2011. The acquisition showed its results in 2012 when the cash and bank balance increased by a considerable amount compared to its peers. Compared to its peers Wipro appears to have a very healthy cash and bank balance over the past 5 years. Except in 2010 when recession was at its peak.

5|Page Interpretations from Ratio Analysis and Comparison with Industry Average OPERATING PROFIT PER SHARE (i)Comparison with peers

Wipros operating profit per share has been fluctuating mildly in the last 5 years. Earnings per share are a major contributor to determining share price. The quality of the metric can be monitored by observing the investment required to generate the earning. Investment figures of the company in the past 5 years has been (in crores from 2009 to 2013, right to left ) 10,904.20 10,335.20 10,813.40 8,966.50 6,895.30 There was a sharp dip in EPS from 37.47 to 23.47 although there was an increase in investment .Thus in from 2010 to 2011 Wipro was not managing its investments efficiently enough. Its earnings for the year (in crores from 2009 to 2013, right to left) were as follows:

34570.00 32865.40 27012.80 23899.70 21023.10 Thus Wipro was issuing more shares at a rate greater than income generated and making inefficient use of investments in comparison to other years. With time, however it has regained ground reaching an EPS of Rs.28.15. The dip could have resulted due to business restructuring through mergers and other legal processes. For example, Wipro Yardley Consumer Care Private Limited, a subsidiary Company merged with Wipro Limited. Moreover the company was issuing loans from earnings to subsidiaries like Wipro Cyprus Private Limited and Wipro Holdings Mauritius. The recovery could be attributed to the company buying a 100 % stake in SAIC Gulf Limited and SAIC Europe Limited to increase its presence in the domain of petro technical data management. Comparison with industry average The operating profit per share according to the industry average is given below: 2013 2012 2011 2010 2009

77.95

63.19

44.32

50.30

49.15

The operating profit per share for Wipro is given below: 2013 2012 2011 2010 2009

28.15

24.58

23.47

37.47

32.48

6|Page The main reason I believe, for such a low operating profit per share is that Wipro (BSE : Rs.552.45) operates on a volume strategy rather than a margins strategy unlike much of its peer group like Infosys(BSE : Rs.3728.05) (above industry average),Tech Mahindra (BSE: Rs.1773.70) ,Oracle Financial Services ,Mind tree, HCL Tech. Thus it relies on an additional number of shares sold to generate profits. OPERATING PROFIT PERCENTAGE (ii) Comparison with peers

Wipros operating profit percentage increased in 2010 with respect to competitors like Mindtree and Tech Mahindra despite the onset of the global economic slowdown. This was primarily due to the decrease in interest payments made that year from other years for Wipro. Although Mindtree also a witnessed a decrease in the same year the quantity of decrease for Wipro was much larger. The otherwise similar trend can be explained by all companies in the sector bearing the brunt of the global economic slowdown and decline in profit received from IT services from clients in USA and Europe. 2013 shows a slow recovery for all companies. The trends in operating profit per share can be explained similarly. Comparison with industry average The operating profit percentage as industry average is given below:

2013 Operating Profit Margin(%)[Industry Average] 25.38

2012 22.87

2011 22.17

2010 25.04

2009 25.45

The operating profit percentage for Wipro is given below: 2013 20.86 2012 19.07 2011 21.9 2010 24 2009 22.12

The numbers seem to indicate that the volume based strategy is not working well enough for Wipro as though consistent it has been lagging the industry average. In the peer group chosen its performance is ahead of only Tech Mahindra whose profits were primarily stunted because it was engaged in a turnaround strategy post buying a major stake and subsequent acquisition of Tech Mahindra.

(iii) RETURN ON CAPITAL EMPLOYED Comparison with Peers

7|Page Return on Capital Employed is a financial ratio that measures a company's profitability and the efficiency with which its capital is employed. There has been a steady decline in return on net capital employed (ROCE)(return on net capital employed =net income before interest and tax /capital employed *100) with a sudden surge in 2013. However this has been mostly due to the demerging of the non performing divisions of consumer care and lighting, infrastructure engineering and medical diagnostic businesses into an unlisted firm Wipro Enterprises, while Wipro Ltd will be a publicly listed company focusing on IT services and products effective March 31, 2013. Thus stocks, shares and other capital investments of the companies were not taken into consideration in the denominator thus increasing the ratio. Comparison with Industry Average The Return on Capital Employed (ROCE) according to the industry average is given below: 2013 2012 2011 2010 2009

29.39

26.59

22.46

24.41

33.70

The Return on Capital Employed (ROCE) for Wipro is given below: 2013 2012 2011 2010 2009

26.72

22.04

22.44

23.06

26.77

As stated earlier, the decline shows that Wipro is not making efficient use of capital investments with respect to the industry average. However on further investigation we see that it occupies a comparable position with HCL Tech in terms financial performance and ranks within the top half of the companies chosen in the peer group to compute industry average. A few companies with exceptionally high values eg . TCS across the period and Tech Mahindra in 2009 was pushing up the industry average. Wipros slow Q4 results in 2012 and 2013 could be a reason for the larger difference in the last 2 years. (iv) RETURN ON ASSETS (including re-evaluations) Comparison with Peers

An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. The company shows a surge in Return on Assets (=Net Income/Total Assets) in 2010. This is primarily because of the exceptionally low interest payments in that year compared to others (net income was decreased less). There was a decline in 2011 but a recovery in later years. The performance in 2012 was particularly good and better than in 2013 despite the highest interest payments.

8|Page Comparison with Industry Average The return on assets as industry average is given below:

2013

2012

2011

2010

2009

289.05

238.95

177.37

170.55

138.87

The return on assets for Wipro is given below:

98.38

99.04

86.86

120.49

85.42

The return on assets for Wipro if compared with the industry average of the peer group is lower because a number of players like Oracle Financial Services, Tech Mahindra ,TCS, Oracle Financial Services Software rely more on margins and their return on assets are far higher. However, even In comparison with volume players like HCL, NIIT Technologies and Infotech Enterprises , Wipro is lagging by some distance. This indicates that Wipro has been inefficient in managing its assets to generate earnings.

(v)CURRENT RATIO AND QUICK RATIO Comparison with peers

Wipro showed a steady increase in current ratio and quick ratio till March 2012 (almost 2 in the last year)but suffered a dip in 2013.The decrease in short term solvency could be attributed to its lagging growth with respect to the industry and large peers in IT services like TCS and HCL. It shows a relative lack of liquidity in the system as inventory is not a significant factor in IT services. The same reason could be attributed to the pattern in quick ratio. Comparison with Industry Average The current and quick ratios for the period for companies chosen in peer group (industry average) are: 2013 Current Ratio Quick Ratio 2.87 2.99 2012 2.73 2.90 2011 2.82 2.88 2010 2.16 2.35 2009 2.16 2.27

The current and quick ratios for the period for Wipro are:

9|Page Current Ratio Quick Ratio 1.55 2.02 1.94 2.5 1.72 2.22 1.33 2.26 1.1 1.76

On observation of average figures we see that the liquidity status in terms of quick ratio, though healthy is lower than the competition. However current ratio is still mostly away from the ideal ratio of 2:1. On many occasions we see quick ratio>current ratio which might indicate negative inventories. However the average has been hauled up by companies like Infosys and Oracle Financial Services which have exceptionally high numbers. The nature of liquidity can be investigated further using the activity ratios like debt turnover ratio and inventory turnover ratio. (vi) DEBTOR TURNOVER RATIO Comparison with Peers The debtor turnover ratio is a measure of how fast the company is collecting on its debts and along with the quick ratio and current ratio can depict the short term solvency of the company. Comparison with Industry Average The debtor turnover ratio for the industry is depicted below: 2013 4.79 2012 4.89 2011 5.03 2010 4.73 2009 4.61

The debtor turnover ratio for Wipro is depicted below: 2013 4.04 2012 4.61 2011 4.87 2010 4.84 2009 5.32

Thus we see that the debtor turnover ratio is roughly the same as the industry average despite some companies like Infosys and Oracle Financial Services having much higher. This shows Wipro in a fairly good liquidity solvency situation. (vi) Comparison with peers Asset turnover ratio (Revenue/Assets) gives an indication of the amount of sales generated per unit currency invested in assets . This ratio is more useful for growth companies to check if in fact they are growing revenue in proportion to assets. Asset turnover measures a firm's efficiency at using its assets in generating sales or revenue - the higher the number the better. It also indicates pricing strategy: companies with low profit margins tend to have high asset turnover, while those with high profit margins have low asset turnover. For Wipro, it has been stable over the past 5 years with a small increasing trend in the past 4. This is a good sign as every unit currency invested is generating more sales. The asset turnover ratio of

10 | P a g e Wipro ranks favourably among the chosen companies and has similar numbers to all except Oracle Financial Services software. Comparison with industry average The asset turnover ratio for the industry is shown below: 2013 1.31 2012 1.37 2011 1.20 2010 1.28 2009 1.49

The asset turnover ratio for Wipro for the period is as follows: 2013
1.15

2012
1.14

2011
1.07

2010
1.12

2009
1.3

Again, we see Wipro trailing the industry average slightly but the average has been raised by companies like Mindtree ,TCS and Oracle Financial Services Software .However, its numbers are comparable other volume players like HCL , Infotech enterprises and leads companies like NIIT Infotech. A fairly high asset turnover ratio indicates that Wipro is generating decent earnings from its assets.

Financial Strengths of Firm (i)Despite working on low margins unlike much of its competition like Infosys ,Tech Mahindra and even TCS, Wipro manages to attract investors through a higher dividend payout ratio.It is their competitive strategy although firms like HCL are doing better than them currently due to Wipros slow sales in 2013. (ii)Days working capital is lower than peer set. Therefore ,it can convert working capital to revenue quicker. (iii)High asset turnover ratio which indicates higher revenue generated per unit investment in assets Weaknesses of firm (i) Profit per share is exceedingly low compared to both industry average as well as other volume players in the industry set.(eg: HCL) (ii) Low return on assets especially in 2012 ,2013 with respect to the completion. Hence potential investors would perceive less return on investment. (iii) Steady decline in ROCE which indicates inefficient use of capital investments.

11 | P a g e Recommendations (i)Focus on cost savings to increase profit margins .Measures may include more efficient manpower planning and differential compensation strategies. (ii)Although liquidity is in a fair state it should focus on improving it to match high volume competitors like HCL whose performance has been better of late.Liquidity may be temporarily increased through divestiture from unattractive markets. (iii)Focus on market for IT services since demand from abroad has increased and the global economy is coming out of recession.

12 | P a g e MINDTREE Mindtree is a information technology company with corporate headquarters in New Jersey, USA and Bangalore, India. Founded in 1999, the company employs over 13,000+ experts with annual revenue of USD 435+ million. Mindtree serves over 220 clients worldwide. Brief History of Firm In August 1999, Mindtree was co-founded by ten IT industry experts from Cambridge Technology Partners, Lucent Technologies, and Wipro. Mindtree was funded by capital firms, such as Walden International and Sivan Securities and later in 2001 from the Capital Group and Franklin Templeton.[4] Mindtree started as a consulting organization for Internet technologies. The 2001 attacks in WTC, US on September 11 and a subsequent economic downturn made the company expand its offerings into the information technology services. Mindtree went public on 12 December 2006 and was listed on Bombay Stock Exchange and National Stock Exchange. The IPO opened on 9 February 2007 and closed on 14 February 2007.[5] The IPO was oversubscribed more than 100 times.[6] Subroto Bagchi, co-founder and chairman, has written about its history.[7] Mindtrees business is structured around clients in key verticals, such as manufacturing, retail travel and transportation. The company has business analysts, technology experts and services specialists engineering for clients across these verticals. Acquisitions include: Company name ASAP Solutions[11] Year Business 2004 SAP implementation

Linc Software Services Application development and maintenance domains for mid-range 2005 [12] Pvt Ltd systems CoSystems (Indian division)

2005 Telecom Product engineering and testing services company. Aztecsoft acquired Disha Technologies a testing company in 2004

Aztecsoft

2008

Kyocera Wireless India 2009 Wireless services Pvt Ltd 7Strata 2010 Remote infrastructure management services

13 | P a g e INTERPRETATIONS FROM HORIZONTAL, VERTICAL AND TREND ANALYSIS From Exhibits 4, 5 and 6 we see that: Mindtree saw a reduction in the operating profit in 2011 which can be attributed to loss of business due to recession. Its saw in increase in Net worth in 2013 which can be attributed to profits made in the previous year which brought back the shareholders confidence. Increase in investment in 2012 and 2013 shows the inclination to expand and acquired smaller firms. Compared to its peers employee cost is very high for Mindtree for the past few years which shows an emphasis on hiring and retaining employees since the attrition is very high. Total asset have a high percentage of sundry debtor, loan and advances and a lower percentage of cash and bank balance. From trend analysis sale turnover has increased two fold and cash and bank balance has increased 6 fold which is a good sign for the investor.

Interpretations from Ratio Analysis and Comparison with Industry Average (i) Comparison with Peers Like its peers operating profit per share suffered a decline due to the economic slowdown. However unlike peers like Tech Mahindra and Wipro, Mindtree registered a quicker turnaround in 2012. The primary reason behind this is the sudden surge in additional revenue, (and operating profits)due to demand revival in the United States which resulted in an unexpected increase in foreign exchange earnings. Mindtree also witnessed an increase in onsite revenue with demand for faster development cycles. Comparison with Industry average The operating profit per share according to the industry average is given below: 2013 77.95 2012 63.19 2011 44.32 2010 50.30 2009 49.15

The operating profit per share for Mindtree : 2013

108.82

2012
72.34

2011
46.18

2010
59.13

2009
70.34

14 | P a g e We see Mindtree doing very well according to this metric and particularly well in the last 2 years because of demand revival in the US which brought unexpectedly large numbers of foreign exchange revenue.

(ii)OPERATING PROFIT MARGIN

Comparison with Peers Despite the significant increase in revenue in the last two years, Operating profit margin as a percentage of revenue has been slightly lower than peers like Tech Mahindra and Wipro. This is primarily because from 2012 Mindtree was on a recruitment spree to curb previously untenable attrition rates of 16.3 %. Comparison with industry average 2013 Operating Profit Margin(%)[Industry Average] 25.38 2012 22.87 2011 22.17 2010 25.04 2009 25.45

The corresponding figures for Mindtree are : 2013

19.13

2012
15.31

2011
12.25

2010
18.94

2009
26.39

Mindtree shows a much lower operating profit margin than its peers as it is still unable to use the economies of scale unlike its larger peers. Despite a tremendous 2013 it still lags the industry. A major reason is its renewed focus on retaining employees to curb very high attrition rates.

(iii)RETURN ON CAPITAL EMPLOYED RATIO Comparison with Peers There are two primary reasons why the decline Return on Capital Employed ratio (ROCE) was stemmed quicker by Mindtree than its peers. Firstly, its last significant capital investment was in 2010 when it acquired 7 Strata. The second reason is the additional revenue generated by the revival of the US market. Comparison with Industry Average The Return on Capital Employed (ROCE) according to the industry average is given below: 2013 2012 2011 2010 2009

15 | P a g e

29.39

26.59

22.46

24.41

33.70

The Return on Capital Employed (ROCE) for Mindtree is given below: 2013
31.71

2012
23.57

2011
18.41

2010
27.41

2009
33.70

From the figures we see that Mindtree is managing its capital investments efficiently and leads the market for 4 out of 5 years in the period. As stated previously, the reasons behind this is the relative lack of capital investment since 2010 and the surge in revenue in 2013.

(iv) CURRENT RATIO AND QUICK RATIO Comparison with Peers The company shows a remarkable current ratio and quick ratio for the period specified - a good indication of its short term solvency. However it is not possible to comment further without knowing whether the company has fast paying inventories or fast paying debtors. This will give us a better indication of the liquidity situation. Comparison with Industry Average The quick ratio and current ratio for the industry (peer group) is as follows: 2013
Current Ratio Quick Ratio

2012 2.73 2.90

2011 2.82 2.88

2010 2.16 2.35

2009 2.16 2.27

2.87 2.99

The corresponding figures for Mindtree is as follows:

Current Ratio Quick Ratio 2.39 2.59 1.80 2.14 2.55 2.46 1.6 1.54 1.43 1.38

From the figures we find that Mindtree lags the industry average of the period although again the numbers have been raised by a few outliers like Infosys, Oracle Financial Services Limited and NIIT Infotech. The short term solvency situation can be analysed further by looking at the inventory turnover and debtor turnover ratio. (v) DEBTOR TURNOVER RATIO Comparison with Peers To further comment on (v) we investigate the inventory turnover ratio and debtor turnover ratio, the latter of which is applicable in this case.It is higher among the competition chosen and is hence

16 | P a g e collecting its debts quicker which along with its quick ratios and current ratios for the period show a healthy short term solvency picture. Comparison with Industry Average The debtor turnover ratio for the industry is shown as: 2013 4.79 The same figures for Mindtree are: 2013
5.5

2012 4.89

2011 5.03

2010 4.73

2009 4.61

2012
5.55

2011
5.81

2010
5.02

2009
5.44

Thus we see the debtor turnover ratio is far above the industry average which combined with a fairly high current ratio and quick ratio accounts for a fairly good short term solvency situation.

(vi) Asset turnover ratio (Net sales/Average total assets ) has consistently been increasing in the five year period which indicates that the company has been utilizing its assets very efficiently.

Strengths of Firm (i)Extremely good current and quick ratios coupled with an outstanding debtor turnover ratio indicate a strong liquidity presence and is indicative of very good short-term solvency. (ii) Return on Capital Employed ratio (ROCE) was stemmed quicker by than its peers. Firstly, its last significant capital investment was in 2010 when it acquired 7 Strata. The second reason is the additional revenue generated by the revival of the US market. (iii) Surge in revenue due to greater demand in US market and greater inflow of foreign exchange. (iv) Good operating profit per share with respect to industry set as well as high margin peers. Weaknesses of firm (i)Operating profit margins are lower than fellow high margin players like Tech Mahindra and Oracle Financial Services Software and even lower than Wipro. Although this was primarily because of a surge in recruitment expenses, this issue must be looked after to ensure sustainability in the long run. (ii)Expenses as a percentage of sales composition is too high and must be looked into.

17 | P a g e Recommendations (i)Focus on improving profit margins as it is currently too low to be tenable despite a great annual sales performance in 2013.One possible measure may through investments in R&D and acquisition in suitable firms. (ii) (i) can be achieved either through greater retained earnings or through debt liabilities .As the current ratio ,quick ratio and debt turnover ir the liquidity and activity position of the company is very stable it can afford to take institutional loans to make investments. (iii)Measures should be taken to reduce employee cost and there should be renewed focus on retention.

18 | P a g e TECH MAHINDRA Tech Mahindra Limited is an Indian multinational provider of information technology (IT), networking technology solutions and business support services (BPO) to the telecommunications industry. Tech Mahindra is a part of the Mahindra Group conglomerate. It is headquartered at Mumbai, India. Tech Mahindra is ranked #5 in India's software services firms and overall #111 in Fortune India 500 list for 2012. Its executive management team consists of Anand Mahindra (Chairman), Vineet Nayyar (Vice Chairman), C. P. Gurnani (CEO and MD), Manoj Chugh (Global Head sales), Sujit Baksi (President Corporate Affairs & Business Services Group), Milind Kulkarni (Chief Financial Officer), L. Ravichandran (President - IT Services), Amitava Roy (Chief Operating Officer) and Sujitha Karnad (Senior Vice President - HR & QMG for IT Services). Tech Mahindra, on June 25, 2013 announced the completion of Mahindra Satyams merger with itself. Post-merger, the new entity will become the fifth largest IT Company in the country with revenues of $2.7 billion. Milind Kulkarni would be the CFO of the combined entity which would have a team of 83,000 professionals, servicing 540 customers across 49 countries. It will have 15 overseas offices for BPO (business process outsourcing) operations and software development. Its revenue for 2012-13 was put at $2.7 billion (Rs. 16,000 crore). BRIEF HISTORY OF FIRM
1993 - Incorporation of MBT International Inc., the first overseas subsidiary 1994 - Awarded the ISO 9009 certification by BVQ 1995 - Established the UK branch office 2001 - Incorporated MBT GmbH, Germany incorporated. Re-certified to ISO 9001:1994 by BVQ 2002 - Assessed at Level 2 of SEI CMM by KPMG. Incorporated MBT Software Technologies Pte. Limited, Singapore 2005 - Merged MBT with Axes Technologies (India) Private Limited,including its US and Singapore subsidiaries.Assessed at Level 3 of SEI CMMI by KPMG 2006 - Name changed to Tech Mahindra Limited. Assessed at Level 4 of SEI People-CMM (PCMM) by QAI India. Raised Rs46.5 million ($1 million) from a hugely successful IPO to build a new facility in Pune, to house about 9,000 staff. Formed a JV with Motorola Inc. under the name CanvasM. 2007 - Acquired iPolicy Networks Private Limited. Launched the Tech M Foundation to address the needs of the underprivileged in our society. Assessed at Level 5 of SEI CMMI by KPMG 2009 - Tech M wins bid for fraud-hit Satyam Computer Services at Rs 58.90 per share outdoing Larsen & Toubro, the other player in the fray, which bid at Rs 45.90. Rebrands the company to Mahindra Satyam. 2010 - Tech Mahindra expands footprint in Latin America 2012 - Tech Mahindra acquires Hutchison Global Services for $87.1 million 2012 - Tech Mahindra buys 51% stake in Comviva 2013 - Tech Mahindra acquires Sweden-based Type Approval Lab. The lab was part of Sony Mobile Communication's internal test function and after acquisition it has become first European test lab of Tech Mahindra.

19 | P a g e

2013 - On June 24, Tech Mahindra and Mahindra Satyam merging process completed and the name of the parent company was retained for the merged entity with a new logo and motto.

INTERPRETATION FROM HORIZONTAL, VERTICAL AND TREND ANALYSIS From Exhibits 7, 8 and 9 Tech Mahindra saw a lack of increase in reserves from 2011 to 2012. It should be attributed to the fact that it at incurred cost in acquiring HGS and buying 51% stake in Comviva. Investments started to show up in 2010 when Tech Mahindra decided to expand to Latin America. Reduction in cash and back in 2012 due to incurred cost in acquiring HGS and buying 51% stake in Comviva. These acquisitions lead to an increase in the fixed assets of the company in 2013. The acquisitions caused increase in the current liabilities of the company in 2012. Mostly because of the debts taken to buy the companies. The acquisition also explains the increase in selling and admin expense in 2012. Due to these acquisitions tech Mahindra tries to cut down on its cost by reducing the miscellaneous expense like donation in 2012. The operating and net profits shows an increasing trend in 2013 when the company finally begins to stabilize its business in 2013 after the above mentioned changes The cash and bank balance appears to be very low percentage of total asset compared to its peers.

INTERPRETATIONS FROM RATIO ANALYSIS AND COMPARISON WITH INDUSTRY AVERAGE (i)OPERATING PROFIT PER SHARE Comparison with Peers Tech Mahindras operating profit per share declined severely from 2009-2012. A primary reason for the above could be the fact that Tech Mahindra invested in a three year turnaround strategy for Satyam post the accounting scandal of 2009(which resulted in the severe dip in 2010) .However the company has shown a remarkable turnaround in 2013 with the investment in Satyam bearing fruit. This attracted more global clients in the recovery period post the global economic slump with U.S and Europe contributing to 29% and 43 % of its revenue in the last quarter of 2013. Moreover its cure or close ensures a check on non performing investments thus neutralising the possibility of a hit on net earnings. Most of the competition witnessed less severe decline due to the economic slowdown. Comparison with Industry Average The operating profit per share according to the industry average is given below: 2013 77.95 2012 63.19 2011 44.32 2010 50.30 2009 49.15

20 | P a g e

The corresponding figures for Tech Mahindra are as follows:

2013
91.98

2012
67.95

2011
75.48

2010
89.4

2009
102.71

Although the numbers indicate an enviable position for Tech Mahindra, it must be remembered that it is a high margin player .Its performance in comparison to other high margin players like Infosys, Oracle Financial Services Software is much lower and a cause for concern. (ii)RETURN ON CAPITAL EMPLOYED Comparison with Peers The same reason sharp decline in return on net capital employed (ROCE) (return on net capital employed =net income before interest and tax /capital employed *100) compared to peers. There was a huge increase in capital investment to buy a major stake in Satyam. Institutional investors like Abu Dhabi Investment Authority were involved. Thus there was more capital invested in Satyam which in turn was earning very little due to the problems in that period. Hence the sharp dip in the ratio. That is , income generated was not proportionate to the capital investment made in Satyam in the period. Comparison with Industry Average The industry average for the metric is as shown: 2013 2012 2011 2010 2009

29.39

26.59

22.46

24.41

33.70

The corresponding number for Tech Mahindra is as follows: 2013

17.51

2012
16.05

2011
16.18

2010
19.97

2009
61.76

As explained above, Tech Mahindra employed a huge capital investment in Satyam and embarked on a three year turnaround strategy. Thus the numbers are far below average as Satyam was not adding revenue to to offshoot the surge in capital investment.

21 | P a g e (iii) OPERATING PROFIT MARGIN Comparison with Peers Operating profit margin as a percentage of revenue declined sharply from 28.69% to 16.52% from 2010 to 2012 and shows a mild improvement to 19.63% in 2013. The reasons is the same as stated above and the steady decline initially was due to the integration of the business with the Mahindra group after it lost face in the Satyam scam. Comparison with industry average 2013 Operating Profit Margin(%)[Industry Average] 25.38 2012 22.87 2011 22.17 2010 25.04 2009 25.45

The corresponding figures for Tech Mahindra are: 2013

19.63

2012
16.52

2011
19.14

2010
24.38

2009
28.69

As explained above, Tech Mahindra employed a huge capital investment in Satyam and embarked on a three year turnaround strategy. Thus the numbers are far below average as Satyam was not adding revenue to to offshoot the surge in capital investment.

(v) CURRENT RATIO AND QUICK RATIO Comparison with peers Tech Mahindra shows a rather worrisome fluctuation in current ratio with respect to the competition but is mainly due to its acquisitions. The dip in 2010 can be explained due to the acquisition of majority stake in Satyam for which its debt liabilities increased. The dip at the end of 2012 can be explained by the merging of Tech Mahindra and Mahindra Satyam whereby the assets and liabilities of the latter were added to the former and the relatively poor financial position of Satyam obviously hurt the ratio. The quick ratio however paints a better a picture and the one major fluctuation occurs from 2011 to 2012 which can be explained by the merger of Tech Mahindra and Mahindra Satyam which might have required outflows of liquid assets. To investigate further we look at the debt turnover ratio and inventory turnover ratio and gauge its liquidity position Comparison with industry average The quick ratio and current ratio for the industry (peer group) is as follows: 2013 2012 2011 2010 2009

22 | P a g e

Current Ratio Quick Ratio

2.87 2.99

2.73 2.90

2.82 2.88

2.16 2.35

2.16 2.27

The corresponding figures for Tech Mahindra are as follows: 2013

Current Ratio Quick Ratio 0.95 1.32

2012
0.98 1.23

2011
1.58 2.49

2010
1.5 2.14

2009
1.9 1.88

These figures indicate that Tech Mahindra is grossly underperforming with respect to the industry and has a worrisome short term solvency position ever since the 2009 scandal. However much depends on the nature of inventory and debt collection which shall be investigated below. (vi) INVENTORY TURNOVER RATIO AND DEBTOR TURNOVER RATIO Comparison with peers An incredibly high inventory turnover ratio indicates exceptionally fast moving inventory and reasonable debtor ratio varying from 4.39 to 4.85 and increasing after a slight dip indicates that it has been collecting on its debts well. This may alleviate some of the fears from the low current ratio. Comparison with Industry Average The debtor turnover ratio for the industry is shown as: 2013 4.79 2012 4.89 2011 5.03 2010 4.73 2009 4.61

The same figures for Tech Mahindra are: 2013

4.59

2012
4.34

2011
4.59

2010
4.85

2009
4.56

Thus the reasonably fast debtor turnover ratio indicates that it collects on its debts quickly to ensure liquidity in the system. This alleviates the situation somewhat but Mahindra must look to increase current assets to become a better destination for short term investments.For this Satyam must turn profitable and soon.

23 | P a g e (vii) Asset turnover ratio (Net sales/Average total assets) took a major hit in 2010 from a very formidable position in 2009. This was after the accounting fraud exposition which had a severe impact on its reputation with potential customers and thus ability to make sales. Strengths of Firm (i)Incredibly high inventory turnover ratio and decent turnover ratio somewhat alleviate the lack of liquidity in the company as it ensures that liquidity collections are done fast and so is inventory . (ii)High retained earnings provides scope for further investments in subsequent years (iii)Cash earnings retention ratio indicates good cash flow in the company Weakness of Firm (i)Lowest operating profit per share in industry set and peer group. This is primarily because of the prolonged recovery stage post the accounting fraud exposition (ii)Very high debt as a composition of liabilities. This is probably because of the initial acquisition of Satyam and then the merger in 2012 sues to which it had to borrow heavily from institutional investors. (iii) Very low current and quick ratio is worrisome as a measure of amount of liquid cash and thus short term solvency. Recommendations (i)The current ratio must be improved and revenue generated should be directed to pay back debt liabilities. Liquidity in the company may be increased through breaking fixed assets, selling off unproductive assets (ii) In the meantime it has to negotiate longer payment times with its vendors and creditors especially if looking to make more investments (iii) Take long term loans to pay short term debts.

24 | P a g e ORACLE FINANCIAL SERVICES SOFTWARE Oracle Financial Services Software Limited (formerly called i-flex Solutions Limited BSE: 532466) is a subsidiary of Oracle Corporation. It is an IT solution provider to the banking industry. It claims to have more than 900 customers in over 145 countries.[2] Oracle Financial Services Software Limited is ranked No. 9 in IT companies of India and overall ranked No. 253 in Fortune India 500 list in 2011.

Brief History of Firm Part of Citicorp Oracle Financial Software Limited was a part of Citicorp's (now Citigroup) wholly owned subsidiary called Citicorp Overseas Software Ltd (COSL). In 1991, Mr. Ravi Apte carved out a separate company called Citicorp Information Technologies Industries Ltd. (CITIL) out of COSL and named Mr. Rajesh Hukku to head CITIL. While COSL's mandate was to serve Citicorps internal needs globally and be a cost center, CITIL's mandate was to be profitable by serving not only Citicorp but the whole global financial software market. COSL was the brain child of Mr. Ravi Apte, who convinced Citicorp, while working for Citibank, to start COSL as the offshore captive. Many of the executive management of Oracle Financial Services, including Rajesh Hukku, R.Ravisankar and NRK Raman were at COSL and moved to CITIL when it was formed. i-flex CITIL started off with universal banking product MicroBanker (which became successful in some English speaking parts of Africa and other developing regions over the next 34 years) and the retail banking product Finware. In the mid-90s, CITIL developed FLEXCUBE at its Bangalore development center after a significant development effort spanning more than 18 months. After the launch of FLEXCUBE, all of CITIL's transactional banking products were brought under a common brand umbrella. CITIL changed its name to i-flex solutions to reflect its growing independence from Citicorp and to strengthen its FLEXCUBE brand. The name CITIL also made the prospective client banks hesitant about trusting the company with their data, since the name alluded to a close link with Citibank which could be one of their competitors. The first version of MicroBanker was created at COSL by Ravi Sankaran who migrated to Australia before CITIL was formed. COSL started selling MicroBanker to non-Citi banks in Africa. Ravi Apte the founder CEO of COSL decided to carve out CITIL to focus on non-Citi business. Because non-Citi was the primary target for MicroBanker, MicroBanker was moved to CITIL. The Entry of Oracle Corporation In 2006, i-flex became a majority-owned subsidiary of Oracle Corporation. Oracle built its stake through a series of purchases, first buying Citigroup's 41% stake in i-flex solutions for US$593 million in August 2005, a further 7.52% in March and April 2006, and 3.2 per cent in an open-market purchase in mid-April 2006.

25 | P a g e On 14 August 2006, i-flex solutions announced it would acquire Mantas, a US-based anti-money laundering and compliance software company for US$122.6 million. The company part-funded the transaction through a preferential share allotment to majority shareholder Oracle Corporation. Following its acquisition by Oracle, i-flex has begun an expansion plan reportedly to capitalize on its owner's brand and financial strength.[citation needed] It has invested to expand capacity at its existing locations in India which is reportedly sufficient to accommodate 17,000 employees compared with over 10000 staff already employed by the company in August 2007.[citation needed] On 12 January 2007, after an open offer price to minority shareholders, Oracle increased its stake in i-flex to around 83%.[5] On 4 April 2008, the board of directors of i-flex solutions approved a proposal to change the name of the company to Oracle Financial Services Limited, subject to regulatory and shareholder approvals. A press release issued by the company said that "The proposed new name reflects the company's close strategic and operational alignment with its parent, Oracle Corporation, which owns 81 percent of the company." It added that the current management team under N.R.K. Raman, CEO and Managing Director, will continue to run the operations of the company.[6] On 24 October 2010, Oracle announced the appointment of Chaitanya M Kamat (Chet Kamat) as Managing Director and Chief Executive Officer of Oracle Financial Services Software Limited. Mr. Kamat has also joined the Board of Directors. The outgoing CEO and MD, N.R.K.Raman retired from these posts after 25 distinguished years of service. Now Oracle Financial Services Software Limited is a major part of Oracle Financial Services Global Business Unit (FSGBU) under Mr.Sonny Singh who is the Vice President & Group Head of Oracle FSGBU World Wide Interpretations from Horizontal, Vertical and Trend Analysis From Exhibits 10, 11, 12 we see that: The net sales have increase over the past 5 years. It is increasing at an incrementing rate. An exponential increase has occurred in cash and bank balance in 2013 which can be a good sign as the economy is improving and OFSS is seeking this opportunity to grab hold of the banking services sector. Company has withdrawn its fixed deposits and recovered cash from sundry debtors to increase the liquidity which could be a prospect of future investment. Fixed assets appear to be very less percentage of the total assets compared to its peers and the company sees a more amount of accumulated depreciation than its peers. Therefore the liquidity could be a move to increase and acquire fress fixed assets. Trend analysis shows a dip in income in 2010 which can be attributed to recession as the banking sector was in disarray. The company has recovered well thereafter and has shown a steady increase which has the brought back stakeholder confidence and attracted investors.

26 | P a g e Interpretations from Ratio Analysis and Comparison with Industry Average (i) Comparison with Peers Among all the companies chosen, Oracle Financial Services software is the only who did not suffer a decline in operating profit per share despite the economic slowdown. A primary reason could be the pride of place it enjoys among its clients, mostly banking companies, as the leading technology solutions provider. Thus, it is a source of competitive advantage with respect to similar divisions of other companies. Another major reason could be its increasingly good performance in the product front. Comparison with Industry Average The operating profit per share according to the industry average is given below: 2013 77.95 2012 63.19 2011 44.32 2010 50.30 2009 49.15

The figures for the same metric for OFSS are as follows: 2013 133.59 2012 117.85 2011 110.91 2010 101.76 2009 78.08

The operating profits for OFSS are very encouraging. It leads the representative group chosen as the industry .Although higher numbers are expected due to OFSS being a high margin player, it leads the pack even among high margin players like Infosys ,Tech Mahindra, Mindtree. This bodes well for its financial strength. (iii) OPERATING PROFIT MARGIN Comparison with Peers

Operating profit margin as a percentage of revenue follows a similar trend and is consistently above the companies chosen from the peer group. Thus, OFSS is and has been in a strong position to pay for its fixed costs like interest on debt in the period. A net increase in operating income significantly helped its cause.

Comparison with industry average 2013 Operating Profit Margin(%)[Industry Average] 25.38 2012 22.87 2011 22.17 2010 25.04 2009 25.45

27 | P a g e The figures for OFSS for the metric chosen are shown below: 2013 38.22 2012 37.97 2011 39.41 2010 38.03 2009 29.55

With higher incomes, the profit figures for OFSS also look very favourable and once again it leads the industry set. Thus it is raking in faster than any other player in the industry set and is in a strong position to pay for any fixed costs .

(ii) RETURN ON ASSETS Comparison with peers An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. Calculated by dividing a company's annual earnings by its total assets, ROA is displayed as a percentage. Sometimes this is referred to as "return on investment". The company shows the highest return on assets among the peers chosen which is a key indicator of its consistent financial performance in the period. The reasons could be attributed to those mentioned in (i).Thus it shows thst OFSS is the best investment destination in the industry set for the period. Comparison with Industry Average The industry average for the metric chosen is shown below: 2013 289.05 2012 238.95 2011 177.37 2010 170.55 2009 138.87

The corresponding figures for OFSS are shown below:

2013

2012

2011

2010

2009

867.46

743.91

613.89

498.15

418.94

An outstanding return on assets year on year makes OFSS a brilliant investment destination.

28 | P a g e (iv) CURRENT RATIO AND QUICK RATIO Comparison with peers The company shows the highest current ratio and quick ratio for the period specified - a good indication of its short term solvency. A negligible difference between the two indicates that the company holds little inventory. However it is not possible to comment further without knowing whether the company has fast paying inventories or fast paying debtors. This will give us a better indication of the liquidity situation.

Comparison with industry averages The quick ratio and current ratio for the industry (peer group) is as follows: 2013
Current Ratio Quick Ratio

2012 2.73 2.90

2011 2.82 2.88

2010 2.16 2.35

2009 2.16 2.27

2.87 2.99

The quick ratio and current ratio for the OFSS is as follows: Current Ratio Quick Ratio 6.98 6.91 6.89 6.82 7.02 6.92 6.1 6.04 4.46 4.42

The numbers obviously indicate a tremendous amount of liquidity in the system and extremely strong short term solvency. However one must investigate the activity ratios like inventory turnover ratio to find out about the nature of liquidity in the system. (v)DEBTOR TURNOVER RATIO Comparison with Peers To further comment on (v) we investigate the inventory turnover ratio and debtor turnover ratio, the latter of which is applicable in this case. Despite the high current ratio and quick ratio we see the lowest debtor turnover ratio among the peer group which indicates that the company is taking very long for debt collection. This could be due to the somewhat restricted client base of OFSS with respect to the competition and its dependence on them due to which they take deferred payments. It might also be a consequence of specific product offerings of Oracle as compared to more diversification by the competition. Comparison with Industry Average The debtor turnover ratio for the industry is shown as: 2013 4.79 2012 4.89 2011 5.03 2010 4.73 2009 4.61

29 | P a g e The figures for the same for OFSS are: 2013 2.78 2012 2.72 2011 2.87 2010 2.19 2009 2.13

Thus we see that despite a high current ratios and quick ratios, OFSS is severely lagging the industry in all years with respect to debt collections. As mentioned earlier ,a possible reason could be the relatively high buying power of its clients and the somewhat niche quality of its services. (vi) ASSET TURNOVER RATIO Comparison with peers Asset turnover ratio (Net sales/Average total assets) has consistently been on the decline in the five year period which indicates an inefficient use of assets. However this has primarily been due to the sharp increase in total assets year after year (which has been increasing the denominator at a faster pace than the numerator) as shown below: 2013 Total Assets 2012 2011 2010 2009

7,292.35 6,247.04 5,150.34 4,178.07 3,509.43

Comparison with industry average The asset turnover ratio as an industry average is shown below: 2013 1.31 The corresponding figures for OFSS are: 2013 0.43 2012 0.46 2011 0.51 2010 0.58 2009 0.7 2012 1.37 2011 1.20 2010 1.28 2009 1.49

We see OFSS trailing the industry average significantly and is among the lowest in the industry set .However as mentioned before the low figures can be attributed to the huge increases in total assets year on year. Increase in net sales is not able to increase proportionately with increase in assets.

30 | P a g e Strengths of Firm (i) Very high operating profit on shares. (ii)Highest profit margin as a percentage of sales is indicative of very good financial strength (iii)Highest return on assets in industry set is indicative of OFSS being a very good investment destination. (iv)Highest current and liquidity ratio in industry set is indicative of very high liquid cash and thus short term solvency. Weaknesses of firm (i)Lowest debtor turnover ratio in peer group indicates that it takes longest to receive account receivables. Recommendations (i)Since delayed payments are the only problem and there is a relatively high buying power of customers, OFSS can focus on a diversification strategy to build a stronger client base. (ii)Incentivise early payment of bills

31 | P a g e CONCLUSION The four companies have been chosen to represent the top bracket of the Indian IT sector. The companies chosen employ either high volume or high margins and the effects of their respective strategies on their financial stability have been investigated. Each strategy apparently has both advantages and pitfalls and it is up to the company to find the right balance to elevate their respective positions in the pecking order and challenge for top positions with TCS and Infosys who still command a lions share of the market share of the sector.

Limitations of Project (i)For industry comparisons only average has been considered .There are often outliers with exceptionally high or low values which greatly affect the averages.For a more detailed analysis both average and median values should be considered. (ii) The industry average has been computed with a representative set of the Indian sector whose positions are similar to the firms chosen. Inclusion of the entire sector might pose deviations.

32 | P a g e References (i) (ii) (iii) (iv) (v) www.wikipedia.org www.ndtv.profit.com www.moneycontrol.com www.money.rediff.com www.accountingcoach.com

33 | P a g e Appendix Exhibit 1,2,3 and the financial ratios of Wipro are attached as follows:

wipro.xlsx

Exhibit 4,5,6 and the financial ratios of Mindtree are attached as follows :

mindtree.xlsx

Exhibit 7,8,9 and the financial ratios of Tech Mahindra are attached as follows :

TechMahindra Fin analysis.xlsx

Exhibit 10,11,12 and the financial ratios of Oracle Financial Services Software is as follows:

oracle financial services.xlsx

Industry averages have been computed in the following file

industry average.xlsx