Segment reporting

12 Months Ended

Mar. 31, 2021

Disclosure of segment reporting [Abstract]

Disclosure of entity's operating segments [text block]

30. Segment reporting

The operating segments of the Group are as under:

Network-centric services - Domestic data, international data wholesale voice and network managed services

Data Center-centric IT Services

Data Center services:  Co-location services

Cloud and managed services: IT infra services, IT transformation services, remote and onsite infrastructure managed services and delivery platforms

Technology integration services: Data Center build, network integration, information security, end user computing and collaborative tools and solutions

Applications integration services: Application development and maintenance, application testing, mobility solutions, eLearning, portals, online assessment tools, process and automation.

The Chief Operating Decision Maker (“CODM”), i.e., The Board of Directors and the senior management, evaluate the Group’s performance and allocate resources to various strategic business units that are identified based on the products and services that they offer and on the basis of the market served. The measure of profit / loss reviewed by the CODM is “Earnings/loss before interest, taxes, depreciation and amortization” also referred to as “segment operating income / loss”. Revenue in relation to segments is categorized based on items that are individually identifiable to that segment.

Bandwidth costs, which form a significant part of the total expenses, is allocated to Network Services. Manpower costs of Technology resources rendering services to support Infrastructure operations, Managed services and Application services, are identified to respective operating segments specifically. The Group believes that the resulting allocations are reasonable.

Certain expenses, such as depreciation, technology infrastructure and administrative overheads, which form a significant component of total expenses, are not allocable to specific segments as the underlying services are used interchangeably. Management believes that it is not practical to provide segment disclosure of these expenses and, accordingly, they are separately disclosed as “unallocated” and adjusted only against the total income of the Group.

A significant part of the property, plant and equipment used in the Group’s business are not identifiable to any of the reportable segments and can be used interchangeably between segments. Management believes that it is not feasible to provide segment disclosures relating to total assets and liabilities since meaningful segregation of available data is onerous.

The Group’s operating segment information for the years ended March 31, 2021, 2020 and 2019, are presented below:

Year ended March 31, 2021

				Data Center-centric IT services
	Network-			Data			Cloud and			Technology			Applications
	centric			Center			Managed			Integration			Integration			Total			Total
	Services			Services			Services			Services			Services			(B)=			(C) =
	(A)			(i)			(ii)			(iii)			(iv)			(i)+(ii)+(iii)+(iv)			(A)+(B)
Segment revenue		11,760,182			5,540,937			1,947,038			3,610,407			1,460,978			12,559,360			24,319,542
Allocated segment expenses		(8,317,800	)		(2,846,826	)		(1,650,154	)		(3,445,222	)		(1,744,432	)		(9,686,634	)		(18,004,434	)
Segment operating income / (loss)		3,442,382			2,694,111			296,884			165,185			(283,454	)		2,872,726			6,315,108
Unallocated expenses:
Selling, general and administrative expenses																				(1,244,856	)
Depreciation and amortization																				(2,835,632	)
Other income / (expense), net																				155,993
Finance income																				172,319
Finance expenses																				(962,656	)
Profit / (loss) before tax																				1,600,276
Income tax (expense) / benefit																				(68,414	)
Profit / (loss) for the year																				1,531,862

From the fiscal year 2021-2022, our operating segment would be re-classified as Network Services, Data Center Services and Digital Services. The Digital Services will comprise of Network Managed Services, Cloud Managed Services, Technology Integration Services and Applications Integration Services. This re-alignment is pursuant to internal re-organisation of business by transferring businesses to wholly owned subsidiaries viz., Data Center business to Sify Infinit Spaces Limited and Network Managed Services, Cloud Managed Services, Technology Integration Services and Applications Integration Services businesses to Sify Digital Services Limited. This re-organisation would bring in appropriate performance measurement indicators for these businesses which have diverse asset capitalization, long term funding requirements, working capital requirements and regulatory requirements.

Year ended March 31, 2020

				Data Center-centric IT services
	Network-			Data			Cloud and			Technology			Applications
	centric			Center			Managed			Integration			Integration			Total			Total
	Services			Services			Services			Services			Services			(B)=			(C) =
	(A)			(i)			(ii)			(iii)			(iv)			(i)+(ii)+(iii)+(iv)			(A)+(B)
Segment revenue		12,676,990			3,823,690			1,594,335			3,037,861			1,819,191			10,275,077			22,952,067
Allocated segment expenses		(9,493,900	)		(2,076,043	)		(1,550,412	)		(2,854,222	)		(1,643,588	)		(8,124,265	)		(17,618,165	)
Segment operating income / (loss)		3,183,090			1,747,647			43,923			183,639			175,603			2,150,812			5,333,902
Unallocated expenses:
Selling, general and administrative expenses																				(1,260,308	)
Depreciation and amortization																				(2,290,777	)
Other income / (expense), net																				97,155
Finance income																				193,877
Finance expenses																				(1,054,133	)
Profit / (loss) before tax																				1,019,716
Income tax (expense) / benefit																				(314,339	)
Profit / (loss) for the year																				705,377

Year ended March 31, 2019

				Data Center-centric IT services
	Network-			Data			Cloud and			Technology			Applications
	centric			Center			Managed			Integration			Integration			Total			Total
	Services			Services			Services			Services			Services			(B)=			(C) =
	(A)			(i)			(ii)			(iii)			(iv)			(i)+(ii)+(iii)+(iv)			(A)+(B)
Segment revenue		11,601,041			3,144,900			1,474,099			3,486,942			1,839,903			9,945,844			21,546,885
Allocated segment expenses		(8,991,908	)		(2,015,123	)		(1,227,540	)		(3,241,351	)		(1,930,673	)		(8,414,687	)		(17,406,595	)
Segment operating income / (loss)		2,609,133			1,129,777			246,559			245,591			(90,770	)		1,531,157			4,140,290
Unallocated expenses:
Selling, general and administrative expenses																				(1,070,249	)
Depreciation and amortization																				(1,533,912	)
Other income / (expense), net																				217,216
Finance income																				46,314
Finance expenses																				(728,344	)
Profit / (loss) before tax																				1,071,315
Income tax (expense) / benefit																				(2,612	)
Profit / (loss) for the year																				1,068,703

*The Chief Operating Decision Maker (CODM) has evaluated and grouped Data Center services, cloud and managed services, technology integration services and applications integration services into Data Center and IT services. There are no changes in the components of Network service segment. Accordingly, the segment information has been presented.

Geographic segments

The Group has two geographic segments India and rest of the world. Revenues from the geographic segments based on domicile of the customer are as follows:

			Rest of the
Description	India		world		Total
Revenues
Year ended March 31, 2021		20,292,816		4,026,726		24,319,542
Year ended March 31, 2020		17,808,889		5,143,178		22,952,067
Year ended March 31, 2019		16,879,558		4,667,327		21,546,885

The Group does not disclose information relating to non-current assets located in India and rest of the world as the necessary information is not available and the cost to develop it would be excessive.

During the year, Group does not have more than 10% of the total revenue from one customer.