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Annual Report 2016-17
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Personnel Expenses
Personnel E[penses for the year amounted to
`
19,826.63 Million against
`
15,654.23 Million for the previous year,
showing an increase of 26.65%. However, as a percentage of revenue, these e[penses increased to 68.88% during the
year as compared to 67.70% in the previous year, as shown in the following table:
Particulars
Financial year
2016-17
(In
`
Million)
Financial year
2015-16
(In
`
Million)
Change %
Salary, wages and bonus
16,980.13
13,156.03
29.07 %
Software professional charges
1,818.48
1,586.63
14.61%
Contribution to provident and other funds
338.85
263.08
28.80%
Gratuity e[penses
114.10
135.16
(15.58)%
Deoned contribution to other funds
114.75
113.06
1.49%
Staff welfare and beneots
400.79
365.79
9.57%
Employee stock compensation e[penses (ESOP)
59.53
34.48
72.65%
Total
19,826.63
15,654.23
26.65%
Percentage of Revenue
68.88%
67.70%
The main reasons for increase in Personnel E[penses are as below:
•
The personnel e[penses have mainly increased due to the salary cost of the employees joined at the overseas
locations through acquisitions.
•
Pay-hike which is effective from July 1, 2016
•
Increase in employee stock compensation. There was a new ESOP scheme introduced as a Silver Jubilee celebration
of the Company during the year.
Please refer Note 27 of the consolidated onancials for details.
Other Expenses
Operating and other e[penses for the year amounted to
`
4,304.29 Million against
`
3,554.00 Million in the previous
year. As a percentage of revenue, the e[penses decreased to 14.95% from 15.37%.
The main reasons for variations in Operating and other e[penses are as below:
•
Cost of purchased software licenses and support e[penses have increased by
`
91.32 Million primarily on account
of procurement of software and its maintenance for newly acquired businesses.
•
/egal and Professional fees increased by
`
186.68 Million because of management consultancy fees incurred for
strategic business matters and fees paid to various consultants hired at new geographies where Company has
opened its ofoces.
•
Rent e[penses increased by
`
179.13 Million due to opening of new ofoces/ e[pansion of e[isting ofoces in India and
abroad.
•
Advertisement and sponsorship fees have gone up by
`
75.26 Million because of increased participation in various
marketing events and brand building initiatives.
•
There has been an increase in the bad and doubtful debts by
`
131.29 Million which is recognized as per the policy
of the Company.
Please refer Note 28 of the consolidated onancials for details.
Proot Before Interest, Tax, Depreciation and Amortization and Exceptional Item
During the year, the Company reported Proot before interest, ta[, depreciation and amortization and e[ceptional item of
`
5,611.92 Million representing an increase of 19.71% over Proot before interest, ta[, depreciation and amortization and
e[ceptional item of
`
4,687.96 Million during the previous year. The margin of Proot before interest, ta[, depreciation
and amortization and e[ceptional item decreased to 19.50% during the year from 20.27% in the previous year. The net
decrease in the margin is mainly due increase in personnel cost as a percentage of revenue.