XML 13 R41.htm IDEA: XBRL DOCUMENT v3.20.1
Segment information
 12 Months Ended
Mar. 31, 2020
Text block [abstract]  
Segment information
34. Segment information
The Company is organized by the following operating segments: IT Services, IT Products, and India State Run Enterprise services segment (“
ISRE”
).
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 (“
TECH”
) business units 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
”), MFG, TECH and Communications (“
COMM
”). Key service offerings to customers include 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.
ISRE:
During the year ended March 31, 2019, the Company has organized ISRE as a separate segment, which was part of IT Services segment. This segment consists of IT Services offerings to entities or departments owned or controlled by Government of India and/ or any State Governments.
Comparative information has been restated to give effect to this change.
The Chairman 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, 2018 is as follows:
 
 
 
IT Services
 
 
IT Products
 
 
ISRE
 
 
Reconciling
Items
 
 
Total
 
 
BFSI
 
 
Health BU
 
 
CBU
 
 
ENU
 
 
TECH
 
 
MFG
 
 
COMM
 
 
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 profit/ (loss) 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
 
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 profit/ (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
 
 
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 
 
 
 
Information on reportable segment for the year ended March 31, 2020 is as follows:
 
 
 
IT Services
 
 
IT
Products
 
 
ISRE
 
 
Reconciling
Items
 
 
Total
 
 
BFSI
 
 
Health BU
 
 
CBU
 
 
ENU
 
 
TECH
 
 
MFG
 
 
COMM
 
 
Total
 
Revenue
 
 
184,457
 
 
 
78,240
 
 
 
97,008
 
 
 
76,443
 
 
 
75,895
 
 
 
48,158
 
 
 
33,840
 
 
 
594,041
 
 
 
11,010
 
 
 
8,400
 
 
 
(50
) 
 
 
613,401
 
Other operating income
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
1,144
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
1,144
 
Segment Result
 
 
34,132
 
 
 
12,027
 
 
 
16,729
 
 
 
12,176
 
 
 
14,312
 
 
 
9,252
 
 
 
5,336
 
 
 
103,964
 
 
 
(282
) 
 
 
(1,822
) 
 
 
149
 
 
 
102,009
 
Unallocated
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 
2,577
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
2,577
 
 
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment Result Total
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 
107,685
 
 
 
(282
) 
 
 
(1,822
) 
 
 
149
 
 
 
105,730
 
Finance expense
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 
(7,328
) 
Finance and other income
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 
24,081
 
Share of profit/ (loss) of associates accounted for using the equity method
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 
29
 
 
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 
 
 
Profit before tax
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 
122,512
 
Income tax expense
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 
(24,799
) 
 
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 
 
 
Profit for the year
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 
97,713
 
 
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 
 
 
Depreciation, amortization and impairment
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 
20,862
 
 
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,
 
 
  
2018
 
  
2019
 
  
2020
 
India
  
₹
43,099
 
  
₹
30,999
 
  
₹
30,158
 
Americas *
  
 
283,515
 
  
 
325,432
 
  
 
352,319
 
Europe
  
 
138,597
 
  
 
147,074
 
  
 
144,876
 
Rest of the world
  
 
81,148
 
  
 
85,555
 
  
 
86,048
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
  
₹
546,359
 
  
₹
589,060
 
  
₹
613,401
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
*
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, 2018, 2019 and 2020.
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)
Revenue from sale of company owned intellectual properties is reported as part of IT Services revenues
 
 
d)
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).
 
 
e)
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.
 
 
f)
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.
 
 
g)
Segment results for ENU and COMM industry vertical for the year ended March 31, 2018, are after considering the impact of provision by
₹
3,175 and
₹
1,437, respectively, for impairment of receivables and deferred contract cost. Refer to Note 25.
 
 
h)
Other operating income of
₹
Nil,
₹
4,344 and
₹
1,144 is included as part of IT Services segment result for the year ended March 31, 2018, 2019 and 2020, respectively. Refer to Note 26.
 
 
i)
Segment results for ENU industry vertical for the year ended March 31, 2019, are after considering the impact of
₹
5,141 ($ 75 million) paid to National Grid on settlement of a legal claim against the Company. Refer to Note 25
 
 
j)
Segment results for Health BU industry vertical for the year ended March 31, 2018 and 2019, are after considering the impact of impairment charges on certain software platform and intangible assets recognized on acquisitions. Refer to Note 25.
 
 
k)
Segment results of IT Services segment are after recognition of share-based compensation expense
₹
1,402,
₹
1,841, and
₹
1,229 for the year ended March 31, 2018, 2019 and 2020, respectively. The share-based compensation expense pertaining to other segments is not material.