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ISSN 2348 - 8891

Financial Analysis Of Tcs And Wipro With Respect To Ratio Analysis Dr.Rupesh Kumbhaj*, Dr.Yuvraj Kumbhaj*

Introduction
Information technology (IT) is concerned with the development, management, and use of computerbased information systems. The Information Technology Association ofAmerica has defined information technology (IT) as “the study, design, development, application, implementation, support or management of computer-based information systems”, but the term has also been applied more narrowly to describe a branch of engineering dealing with the use of computers and telecommunications equipment to store, retrieve, transmit and manipulate data. Although commonly used to refer to computers and computer networks, IT encompasses other information-distribution technologies such as television and telephones, a wider field more explicitly known as information and communications technology. The information technology (IT) industry has become of the most robust industries in the world. IT, more than any other industry or economic facet, has an increased productivity, particularly in the developed world, and therefore is a key driver of global economic growth. Economies of scale and insatiable demand from both consumers and enterprises characterize this rapidly growing sector. Features of the IT Industry at a Glance:

·

Economies of scale for the information technology industry are high.

·

Unlike other common industries, the IT industry is knowledge-based.

·

Efficient utilization of skilled labor forces in the IT sector can help an economy achieve a rapid pace of economic growth.

·

The IT industry helps many other sectors in the growth process of the economy including the services and manufacturing sectors.

Big IT Services companies
Fiscal Headquar
Year
ters

Firm

Revenues

Employees

TCS

$10.17
billion

243,545

2012

Mumbai

Wipro

$6.30 billion

135,920

2012

Bangalore

Infosys

$7.99 billion

151,151

2012

Bangalore

HCL
$4.2 billion
Technologies

89,319

2012

Noida

*Assistant Professor, Rainessance College of Commerce and Management, Indore. Altius Shodh Journal of Management & Commerce

ISSN 2348 - 8891

The Role of the IT Industry:
The IT industry can serve as a medium of e-governance, as it assures easy accessibility to information. The use of information technology in the service sector improves operational efficiency and adds to transparency. It also serves as a medium of skill formation. Growth of IT industries gets attention from every corner ex: Investors, job-seekers, government, competitors etc; and all wants financial analysis of the companies for various purposes. Financial analysis (also referred to as financial statement analysis or accounting analysis or Analysis of finance) refers to an assessment of the viability, stability and profitability of a business, sub-business or project. Among various methods available for analyzing financial statement Ratio analysis is a method of analyzing financial statement to determine the overall financial strength of a business. Hence this research project presents "A COMPARATIVE STUDY ON FINANCIAL ANALYSIS OF IT COMPANIES WITH SPECIAL REFERENCE TO TCS AND WIPRO".

Objective:
The objectives of this research are:

To analyze and compare financial position of TCS and Wipro.

To understand current financial health of a company.

To compare profitability of the companies.

To compare liquidity of the companies.

To compare potential of the companies.

Conceptual framework:
Financial analysis:
Financial analysis is an aspect of the overall business finance function that involves examining historical data to gain information about the current and future financial health of a company. It refers to an assessment of the viability, stability and profitability of a business, sub-business or project. Finance is the language of business.

Users of result of financial analysis:

Trade creditors are interested in firm’s ability to meet their claims over a very short period of time. Their analysis will, therefore, be confined to the evaluation of the firm’s liquidity position. Suppliers of long-term debt, on the other hand...

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Keywords

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