30. Segment information

During the year March 31, 2019, the Company have organized India State Run Enterprise segment (ISRE) as a separate segment, which was earlier part of IT Services segment.

The Company is now organized by the following operating segments: IT Services, IT Products and India State Run Enterprise segment (ISRE).

Comparative information has been restated to give effect to the above changes.

IT Services: The IT Services segment primarily consists of IT Service offerings to customers organized by industry verticals. Effective April 1, 2018, consequent to change in organization structure, the Company reorganized its industry verticals. The Manufacturing (MFG) and Technology Business unit (TECH) are split from the former Manufacturing & Technology (MNT) business unit.

The revised industry verticals are as follows: Banking, Financial Services and Insurance (BFSI), Health Business unit (Health BU) previously known as Health Care and Life Sciences Business unit (HLS), Consumer Business unit (CBU), Energy, Natural Resources & Utilities (ENU), Manufacturing (MFG), Technology (TECH) and Communications (COMM). Key service offerings to customers includes software application development and maintenance, research and development services for hardware and software design, business application services, analytics, consulting, infrastructure outsourcing services and business process services.

Comparative information has been restated to give effect to the above changes.

IT Products: The Company is a value added reseller of desktops, servers, notebooks, storage products, networking solutions and packaged software for leading international brands. In certain total outsourcing contracts of the IT Services segment, the Company delivers hardware, software products and other related deliverables. Revenue relating to the above items is reported as revenue from the sale of IT Products.

India State Run Enterprise segment (ISRE): This segment consists of IT Services offerings to entities/ departments owned or controlled by Government of India and/ or any State Governments.

The Chairman and Managing Director of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by IFRS 8, “Operating Segments.” The Chairman of the Company evaluates the segments based on their revenue growth and operating income.

Assets and liabilities used in the Company’s business are not identified to any of the operating segments, as these are used interchangeably between segments. Management believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous.

Information on reportable segment for the year ended March 31, 2017 is as follows:


	IT Services																	IT Products			ISRE			Reconciling Items			Total
	BFSI		Health BU		CBU		ENU		TECH		MFG		COMM		Total			IT Products			ISRE			Reconciling Items			Total
Revenue		133,332		81,980		78,101		68,223		72,069		46,907		38,584		519,196			25,922			9,244			(183	)		554,179
Other operating income		—		—		—		—		—		—		—		4,082			—			—			—			4,082
Segment Result		25,721		9,524		15,928		14,485		16,634		6,843		6,125		95,260			(1,680	)		(2,326	)		(506	)		90,748
Unallocated																(951	)		—			—			—			(951	)

Segment Result Total																98,391			(1,680	)		(2,326	)		(506	)		93,879
Finance expense																												(5,942	)
Finance and other income																												22,419

Profit before tax																												110,356
Income tax expense																												(25,213	)

Profit for the year																												85,143

Depreciation, amortization and impairment																												23,107

Information on reportable segment for the year ended March 31, 2018 is as follows:


	IT Services																IT Products		ISRE		Reconciling Items			Total
	BFSI		Health BU		CBU		ENU		TECH		MFG		COMM		Total		IT Products		ISRE		Reconciling Items			Total
Revenue		144,139		74,136		77,914		67,841		73,947		46,081		33,658		517,716		17,998		10,694		(49	)		546,359
Segment Result		24,549		9,624		12,619		8,097		14,680		7,007		3,236		79,812		362		454		319			80,947
Unallocated																3,347		—				—			3,347

Segment Result Total																83,159		362		454		319			84,294
Finance expense																									(5,830	)
Finance and other income																									23,999
Share of net profit of associates accounted for using the equity method																									11

Profit before tax																									102,474
Income tax expense																									(22,390	)

Profit for the year																									80,084

Depreciation, amortization and impairment																									21,124

Information on reportable segment for the year ended March 31, 2019 is as follows:


	IT Services																IT Products			ISRE			Reconciling Items			Total
	BFSI		Health BU		CBU		ENU		TECH		MFG		COMM		Total		IT Products			ISRE			Reconciling Items			Total
Revenue		175,262		75,081		89,313		72,830		76,591		46,496		32,680		568,253		12,312			8,544			(49	)		589,060
Other operating income		—		—		—		—		—		—		—		4,344		—			—			—			4,344
Segment Result		33,831		8,638		16,828		7,081		15,916		8,327		4,396		95,017		(1,047	)		(1,829	)		283			92,424
Unallocated																3,142		—						—			3,142

Segment Result Total																102,503		(1,047	)		(1,829	)		283			99,910
Finance expense																											(7,375	)
Finance and other income																											22,923
Share of net loss of associates accounted for using the equity method																											(43	)

Profit before tax																											115,415
Income tax expense																											(25,242	)

Profit for the year																											90,173

Depreciation, amortization and impairment																											19,474

The Company has four geographic segments: India, Americas, Europe and Rest of the world. Revenues from the geographic segments based on domicile of the customer are as follows:


	Year ended March 31,
	2017		2018		2019
India	₹	46,555	₹	43,099	₹	30,999
Americas*		290,719		283,515		325,432
Europe		133,909		138,597		147,074
Rest of the world		82,996		81,148		85,555

	₹	554,179	₹	546,359	₹	589,060

*	Substantially related to operations in the United States of America.

No customer individually accounted for more than 10% of the revenues during the year ended March 31, 2017, 2018 and 2019, respectively.

Management believes that it is currently not practicable to provide disclosure of geographical location wise assets, since the meaningful segregation of the available information is onerous.

Notes:

a) “Reconciling items” includes elimination of inter-segment transactions and other corporate activities.

b) Revenue from sale of traded cloud-based licenses is reported as part of IT Services revenues.

c) For the purpose of segment reporting, the Company has included the impact of “foreign exchange gains / (losses), net” in revenues (which is reported as a part of operating profit in the consolidated statement of income).

d) For evaluating performance of the individual operating segments, stock compensation expense is allocated on the basis of straight-line amortization. The differential impact of accelerated amortization of stock compensation expense over stock compensation expense allocated to the individual operating segments is reported in reconciling items.

e) The Company generally offers multi-year payment terms in certain total outsourcing contracts. These payment terms primarily relate to IT hardware, software and certain transformation services in outsourcing contracts. The finance income on deferred consideration earned under these contracts is included in the revenue of the respective segment and is eliminated under reconciling items.

f) Segment results for ENU and COMM industry vertical for the year ended March 31, 2018, is after considering the impact of provision by ₹ 3,175 and ₹ 1,437, respectively, for impairment of receivables and deferred contract cost. Refer Note 21.

g) Net gain from the sale of hosted data center services, Workday and Cornerstone OnDemand business and disposal of Wipro Airport IT Services Limited, amounting to ₹ 4,344, is included as part of IT services segment result for the year ended March 31, 2019, respectively. Refer Note 22.

h) Segment results for ENU industry vertical for the year ended March 31, 2019, is after considering the impact of ₹ 5,141 ($ 75) paid to National Grid on settlement of a legal claim against the Company.

i) Segment results for Health BU industry vertical for the year ended March 31, 2018 and 2019, is after considering the impact of impairment charges on certain software platform and intangible assets recognized on acquisitions. Refer Note 21.

j) Segment results of IT Services segments is after recognition of share-based compensation expense ₹ 1,550, ₹ 1,402 and ₹ 1,841 for the year ended March 31, 2017, 2018 and 2019, respectively. The share-based compensation expense pertaining to other segments is not material.