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Shaping the future of software driven business
Management Discussion and Analysis •
189
Financial Year
Revenue
Concentration
2018-19
2017-18
2016-17
2015-16
2014-15
Top 1
24.0%
25.9%
28.3%
19.9%
18.4%
Top 5
42.4%
43.9%
44.6%
36.6%
35.8%
Top 10
51.8%
53.5%
53.1%
45.5%
45.2%
High dependence on top customers exposes the Company to risk of vagaries of customers’ business.
The Company has added 2 (two) more customers in the client engagement size of more than $ 3 Million on an annual basis
taking total number of customers to 20 (Twenty) in this category. There is an addition of 4 (four) new customers in the annual
engagement size of $ 1 Million to $ 3 Million making it 57 during the year 2018-19.
Other Income
As explained in Note 26 of the consolidated financials, Other Income consists of income from investment of surplus funds in
the form of dividend from mutual funds, profit on sale of investments, interest on deposits and bonds, foreign exchange gain
and miscellaneous income. Other income has decreased from
`
1,191.01 Million for the year ended March 31, 2018 to
`
876.55
Million for the year ended March 31, 2019. This is primarily due to unfavourable foreign exchange rate movement which has
resulted into exchange loss of
`
243.10 Million for the financial year 2018-19 against exchange gain of
`
586.31 Million for the
financial year 2017-18.
The details of other income are given below:
Particulars
Financial year
2018-19
(In
`
Million)
Financial year
2017-18
(In
`
Million)
Change %
Investment income (including interest, dividend, fair value
gain/loss and profit on sale of investments)
765.66
500.71
52.91%
Foreign exchange gain
-
586.31
(100%)
Miscellaneous Income (including Advances and excess
provisions written back and profit on sale of fixed assets)
110.89
103.99
6.64%
Total
876.55
1,191.01
(26.40%)
Personnel Expenses
Personnel Expenses for the year amounted to
`
22,739.98 Million against
`
21,497.09 Million for the previous year, showing an
increase of 5.78%. As a percentage of revenue, these expenses were 67.56% during the year as compared to 70.86% in the
previous year,
The main reason for increase in Personnel Expenses is due to increase in headcount. The utilization of billable headcount
increased to 81.1% as against 79.2% in the previous year. The year also witnessed a shift of some of the onsite work to offshore
for few customers. These were the main reasons for the drop in the expenses as a percentage of revenue.
Please refer Note 27 of the consolidated financial statements for details.
Other Expenses
Operating and other expenses for the year amounted to
`
5,357.03 Million against
`
4,152.68 Million in the previous year. As a
percentage of revenue, the expenses increased to 15.92% from 13.69%.
The main reasons for variations in Operating and other expenses are as below:
•
Cost of purchased software licenses and support expenses have increased by
`
539.81 Million primarily due to increase in
procurement of software related to resell business.
•
As afore-referred, the Company has incurred a foreign exchange loss of
`
243.10 Million during the year due to unfavourable
foreign exchange rate movement.
•
Provision for doubtful deposits in IL&FS Group was made during current year for
`
182.50 Million. Please refer Note 46 of
the consolidated financials for details.
Please refer Note 28 of the consolidated financials for details.