Infinite Computer Solutions India Ltd Management Discussions.


The acceleration in global activity that started in 2016 gathered steam in 2017, reflecting firmer domestic demand growth in advanced economies and improved performance in other large emerging market economies. Global growth is set to be just over 3.5% in this calendar year 2018, the fastest for seven years, with improved outcomes in both advanced economies and the EMEs. Confidence measures and levels of new orders for businesses remain strong. This long awaited lift to global growth, supported by policy stimulus, is being accompanied by solid employment gains, a moderate upturn in investment and a pick-up in trade growth. The continued expansion depends on robust global growth and governments support for right trade policies. However, there are signs that escalating trade tensions may already be affecting business confidence and investment decisions, which could compromise the current outlook. (Source: IMF and OECD).


Indian economic growth is giving a positive signal for the current and future scenario. It is projected to strengthen to above 7%, gradually recovering from the transitory adverse impact of rolling out the Goods and Services Tax (GST) and measures to choke off the black economy, including demonetisation. Indias GDP grew 7.2% in the third quarter of 2018, surpassing expectations and wresting back the mantle of fastest growing economy from China on the back of a rebound in industrial activity, especially manufacturing and construction, and an expansion in agriculture. Reserve Bank of India has estimated GDP growth in a range from 7.4% to 7.9% for the Financial Year 2019-2020. (Source: OECD and Economic Times)

Fiscal deficit for 2017-18 is revised to INR 5.95 lakh Cr at 3.5% of the GDP which is approximately the same as 2016-17 inspite of transformation in the economy. In addition to initiatives like; "Make in India", "Housing for All", "Digital India" government has also introduced "Sagar Mala" and "Bharat Mala" initiatives which is expected to boost the domestic growth of the country. (Source: IBEF and

Trading Economics)



The global information technology industry surpassed $4.5 trillion in 2017, according to the research consultancy IDC. If growth expectations materialize in the year ahead, spending will eclipse the $4.8 trillion mark.

The United States is the largest tech market in the world, representing 31% of the total, or approximately $1.5 trillion for 2018. In the

U.S., as well as in many other countries, the tech sector is one of the most significant contributors to GDP.

In the aggregate, the Asia-Pacific region, which encompasses Japan, China, Australia, India, and surrounding countries, accounts for one-third of the total. APEC has increased its share of the global IT pie, driven by the rise of countries such as China and India, and the slower growth rates experienced in parts of Europe and other markets. By 2032, China is projected to claim the mantle of worlds largest economy.


Table 1 Worldwide IT Spending Forecast (Billions of U.S. Dollars)

in Millions
2017 2017 2018 2018 2019 2019
Spending Growth (%) Spending Growth (%) Spending Growth (%)
Data Center Systems 178 4.4 179 0.6 179 (0.2)
Enterprise Software 355 8.9 389 9.5 421 8.4
Devices 667 5.7 704 5.6 710 0.9
IT Services 933 4.3 985 5.5 1,030 4.6
Communications Services 1,393 1.3 1,427 2.4 1,443 1.1
Overall IT 3,527 3.8 3,683 4.5 3,784 2.7

Source: Gartner (January 2018)

All workers employed by U.S. technology companies represent tech industry employment. In 2017, an estimated 6.1 million workers were employed in this category, an increase of 2.0% over 2016. For 2018, the growth outlook should roughly mirror the previous year.

In 2017, nearly 5.4 million individuals worked as technology professionals across the U.S. economy. This represents an increase of 2.1%,or nearly 110,000 net new jobs. Growth in the tech occupation category is also expected to hold steady in the year ahead.

Amid the wave of emerging technologies, artificial intelligence stands out as the one most likely to drive changes to the IT ecosystem. Technology solutions are growing more complex and technology demands are growing more specific. The answer to these issues is not found in constantly adding resources but in leveraging benefits of modern technology. AI requires significant compute resources (which can be procured in the cloud), various algorithms that allow learning (which can be baked into products or provided as a service), and contextual awareness (which can come from IoT devices or massive collections of data). By adding a layer of intelligence to the technical solutions they are building, companies can both manage a more extensive IT architecture and solve a broader range of problems. Not every Company will necessarily need the skills to build new AI functions, but they will at least need the skills to manage AI components so that they are not just dealing with mysterious black boxes producing unexplained output.



Outlook for the Indian information technology (IT) sector is cautiously positive in 2018 as challenges remain amidst prospects of greater IT spending with global and US economies improving- as per industry body Nasscom. More importantly, the industry has led the economic transformation of the country and altered the perception of India in the global economy. Indias cost competitiveness in providing IT services, which is approximately 3-4 times cheaper than the US, continues to be the mainstay of its Unique Selling Proposition (USP) in the global sourcing market. However, India is also gaining prominence in terms of intellectual capital with several global IT firms setting up their innovation centres in India.

The IT industry has also created significant demand in the Indian education sector, especially for engineering and computer science. The Indian IT and ITeS industry is divided into four major segments IT services, Business Process Management (BPM), software products and engineering services, and hardware.

Indian IT exports are projected to grow at 7-8 per cent in 2017-18 to US$ 126 billion, in addition to adding 130,000-150,000 new jobs during the same period. Indian technology companies expect Indias digital economy to have the potential to reach US$ 4 trillion by 2022, as against the Government of Indias estimate of US$ 1 trillion.

The computer software and hardware sector in India attracted cumulative Foreign Direct Investment (FDI) inflows US$ 29.825 billion from April 2000 to December 2017, according to data released by the Department of Industrial Policy and Promotion (DIPP).

Leading Indian IT firms like Infosys, Wipro, TCS and Tech Mahindra, are diversifying their offerings and showcasing leading ideas in blockchain,artificial intelligence to clients using innovation hubs, research and development centres, in order to create differentiated offerings.




Global mobility on demand market is expected to cross $ 228 billion by 2022, on account of growing traffic congestions, continuous initiatives being taken by several vehicles manufacturing players and increasing inclination of consumers.

Asia-Pacific region accounted for the largest share in global mobility on demand market in 2016; and China and Japan registered more than half of the demand for mobility on demand services in the region in the same year. Moreover, the region is anticipated to maintain its dominance in global mobility on demand market during the forecast period as well.

Infrastructure-as-a-Service (IaaS), currently growing at a 23.31% Compound Annual Growth Rate (CAGR), will outpace the overall market growth of 13.38% through 2020. Software-as-a-Service (SaaS) revenue is predicted to grow from $58.6B in 2017 to $99.7B in 2020. Taking into account the entire forecast period of 2016 2020, SaaS is on pace to attain 15.65% compound annual growth throughout the forecast period, also outpacing the total cloud market. (


The public cloud services market in India is slated to grow 35.9 per cent to reach US$ 1.3 billion according to IT consultancy, Gartner. Increased penetration of internet (including in rural areas) and rapid emergence of e-commerce are the main drivers for continued growth of data centre co-location and hosting market in India. The Indian Healthcare Information Technology (IT) market is valued at US$ 1 billion currently and is expected to grow 1.5 times by 2020. Indias business to business (B2B) e-commerce market is expected to reach US$ 700 billion by 2020 .

The countrys public cloud services revenue growth rate is the second highest globally after China. Public cloud is a virtual infrastructure

to store data and applications of multiple organisations and make them available through internet.

While software as a service (SaaS) continued to be the largest segment of the public cloud market in India with $694 million revenue in 2017 and expected to reach $932 million this year; Gartner has estimated that the fastest-growing segment of the public cloud market will be infrastructure as a service (IaaS) and expected to increase by 46% to $1 billion in 2018. IaaS is gaining as a business service since organisations are not interested in building their own data centre infrastructure, pointed out Gartner.

Enterprise mobility Managed mobility services to grow at 30.5% CAGR in 2014 2019 period. Approximately 40% of revenue growth by 2020 expected to come from new industries turning to offshoring and new geographies, particularly Asia-Pacific and Europe.

Digital technologies continue to define the sector and is likely to have a 23% revenue share by 2020 and >38% by 2025.Indian service providers face a significant opportunity as digital technologies continue to be embedded in an ever widening range of products and services.




The term Product Engineering, in Software Engineering terms, is a multi-dimensional solution approach that encompasses all the necessary processes to successfully launch and run software in the market. With such rapid changes, Product Engineering cannot be attributed to just one finished lifecycle; it is a continuous development model.

This comprehensive report predicts that the global product engineering services market will grow with a CAGR of 9.95% during the period 2016-2020.

Commenting on the report, an analyst from the research team said: IoT solutions are gaining traction in the market as demand for connected and intelligent solutions expands. IoT is no more a buzzword in the IT market and numerous vendors are offering IoT solutions for engineering services for numerous industry verticals, such as healthcare, energy, manufacturing, and automotive.

The rising popularity of industrial Internet of Things (IoT) is expected to have a positive influence on the growth of product engineering services market in the forthcoming years. Manufacturers are expected to use IoT to develop new hybrid business model and leverage latest technologies to stir up new product development with the objective of boosting revenue. The rising need for manufacturing stages to be cost efficient is anticipated to fuel the demand for product and component design services segment of product engineering services market.

Asia Pacific is anticipated to be the leading regional market for product engineering services due to the increasing demand to organize its huge workforce. Asia Pacific is expected to have a major traction in the product engineering services market due to the increasing need to organize the massive workforce in this region. An aging population heading towards retirement and an increasing size of multigenerational workforce in this region is displaying the demand for product engineering services among enterprises for resource management.

The key vendors in the global product engineering services market include Altran, AVL, AKKA Technologies, Capgemini, ALTEN Group,HCL India, and IBM Corporation.


The financial performance discussed below is based on the consolidated financial results for the year ended March 31, 2018.


The authorized share capital of the Company is 500 million consisting of 50 million equity shares of 10 each. The paid up share capital stands at 336.6 million as on March 31, 2018. Increase in share capital is due to issue of bonus shares during the year.


Share Premium

Share premium stands at NIL million on March 31, 2018 compared to NIL million in the previous year.

General Reserve

General Reserve stands at 322.4 million on March 31, 2018 compared to 322.4 million in the previous year.

Capital Redemption Reserve

Capital redemption reserve stands at 107.2 million on March 31, 2018 compared to 110.3 million in the previous year. The decrease in capital redemption reserve is on account of issue of Bonus shares during the year.

Profit & Loss Account

The balance retained in the profit and loss account (Including OCI adjustments) as of March 31, 2018 is 8,039.7 million compared to 6,925.4 million as of March 31, 2017.

Forex Translation Reserve

The balance retained in the Forex translation reserve as of March 31, 2018 is 1,044.5 million compared to 986.6 million as of March 31, 2017.


Total shareholders funds increse to 9,847.3 million as of March 31, 2018 from 8,675.0 million as of the previous year, the increase was mainly due to the profit for the year.


Our loan funds have increased to 2.95 million as of March 31, 2018 from 2.68 million as of previous year.


Deferred tax liabilities as on March 31, 2018 were 139 million as compared to 201 million as of March 31, 2017.


Current liabilities and provisions were 9,154.8 million as of March 31, 2018 as compared to 9,467.2 million as of March 31, 2017.

Our working capital related borrowings has increased to 1,673.39 million as of March 31, 2018 as compared to 1,357.24 million in the previous year.

Trade Payables have decreased to 2,907.06 million from 2,976.93 million in the previous year.

Other Current Liabilities have increased to 632.45 million from 600.38 million in the previous year.


The movement in the Fixed Assets is shown in the table below:

in Millions
Assets Gross Block as on March 31, 2018 Gross Block as on March 2017
Land 666.3 655.6
Buildings 460.6 452.8
Computers 697.7 661.0
Office Equipment 186.5 179.0
Furniture & Fixtures 217.53 206.7
Vehicles 95.9 65.5
Leasehold Improvements 156.3 151.1
IT & Networking Equipment 1059.6 1,002.1
Plant & Machinery 40.3 40.3
Electrical Installations 61.7 59.9
Intangible assets
Software 2119.7 2,111.1
Good will 31.3 31.2
Franchisee fee - 10.0
TOTAL 5,793.4 5,626.3

The net block of fixed assets, capital work in progress decreased to 2,374.8 million from 2,543 million as on March 31, 2017.


Opening goodwill as shown in the Consolidated Balance Sheet was 666.34 million in respect of acquisition of 100% stock of India Comnet International Pvt Ltd by Infinite Computer Solutions Inc. which has increased to 668.65 million as on March 31, 2018, increase of 2.31 million over the previous years balance is due to exchange difference.


The Company has made several strategic investments in several wholly owned 100 % subsidiaries, the details of which are as per the table below.

Name of the Subsidiary Company Country of Incorporation Percentage of Ownership Interest as at
March 31, 2018 March 31, 2017
In nite Computer Solutions Pte. Ltd. Singapore 100% 100%
In nite Computer Solutions Inc. USA 100% 100%
In nite Computer Solutions Sdn, Bhd. Malaysia 100% 100%
In nite Computer Solutions (Shanghai) Co. Ltd China 100% 100%
In nite Computer Solutions Limited UK 100% 100%
India Comnet International Private Limited India 100% 100%
Subsidiary of Sr. No. 2 Subsidiary of Sr. No. 2
In nite Convergence Solutions Inc. USA 100% 100%
In nite Infocomplex Private Limited India 100% 100% -
In nite Infoworld Limited India 100% 100% -
In nite Infopark Limited India 100% 100% -
In nite Techhub Limited India 100% 100% -
In nite Techworld Limited India 100% 100% -
In nite Infocity Limited India 100% 100% -
In nite Techcity Limited India 100% 100% -
In nite Techsoft Limited India 100% 100% -
In nite Skytech Limited India 100% 100% -
In nite Thinksoft Limited India 100% 100% -
In nite Techmind Limited India 100% 100% -
In nite Techdata Limited India -
In nite Tech Ventures Limited India
In nite Computer Solutions Canada Inc. Canada 100% 100%
Subsidiary of Sr. No. 2 Subsidiary of Sr. No. 2
In nite Carehub LLC.(Closed on 4 Aug 2017) USA 51% 51%
Subsidiary of Sr. No. 2 Subsidiary of Sr. No. 2


Deferred tax asset as on March 31, 2018 was 138.7 million as compared to 243.8 million as of March 31, 2017.


Trade Receivables

Trade Receivables increased to 7,536.02 million after provision for doubtful debts amounting to 8.1 million as of March 31, 2018 from 6,385.3 million after provision for doubtful debts amounting to 7.4 million as of March 31, 2017.

The Days Sales Outstanding (DSO) as appears in financials is 117 days for the year ended March 31, 2018 as compared to 111 days for the previous year.

Cash and Cash Equivalents

The cash and cash equivalents at the end of March 31, 2018 are 2,805.5 million as compared to 2,812.8 million as on March 31, 2017. The bank balances in India include both rupee accounts and foreign currency accounts. The bank balances in overseas current accounts are of the Companys overseas subsidiaries, its branches and an overseas collection account.

Short Term Loans and Advances

Loans and advances as on March 31, 2018 were 15.5 million as compared to 19.3 million as on March 31, 2017.

Other Current Assets

Other Current Assets decreased to 5,018.8 million as of March 31, 2018 from 5,188.2 million on March 31, 2017.


The financial year 2018 was a good for Infinite. The year saw Infinite grow its top line by 17.98% in INR terms to 27,917.2 million and 22.83% in USD terms to USD 433.15 million. We have classified our revenues into four geographic segments comprising the Americas, Europe, Asia Pacific and Domestic (India). The geographic breakdown of revenues contained in the following table, is based on the location of the specific client entity for which the project has been executed, irrespective of the location where the invoice is raised or whether the work is performed onsite or from our offshore delivery centres in India.

in Millions

Geographical location March 31, 2018 March 31, 2017
Domestic 1,843.2 1,157.9
Americas 24,827.6 21,090.2
Europe 121.7 133.0
APAC 1124.8 1,281.7

Our revenues are generated from Time and Material, Fixed Price and Revenue share projects. On time-and-material contracts revenues are recognized as the related services are rendered. Revenue from fixed price contracts is recognized as per the proportionate completion method. Revenue from revenue share contracts is recognized as and when it accrues.

The segmentation of software services by project type is as follows:

Project Type FY 2018 FY 2017
Fixed Price/SOW 19.0% 20.0%
Revenue Share 9.2% 11.7%
Time and Material 71.8% 68.3%

Our revenues are also segmented into onsite and offshore revenues. Onsite revenues are those where the services are provided at our clients locations while offshore revenues are those where the services are provided from our software development centers located in India. This segmentation is as follows:

Revenue Mix FY 2018 FY 2017
Onsite 85.3 % 84.6 %
Offshore/Domestic 14.7 % 15.4 %

The services performed onsite typically generate higher revenues per-capita, but at a lower gross margin in percentage as compared to services performed at our own facilities. Therefore, any increase in onsite effort impacts our margins. The growth in revenue is due to an all-round growth in various segments of the business mix and is mainly due to growth in business volumes.


Other income for the year ended March 31, 2018 is 85.14 million, as compared to the previous years income of 119.8 million. Decrease of 34.7 million is mainly due to reduction in Interest earning.


The overall expenditure of the Company increased by 18.84% over the last year to 26,300.6 million. The expenses mainly consist of manpower cost, other expenses, financial cost and depreciation.


Manpower related expenses include salaries, wages and bonus, contribution to provident fund and other funds, staff welfare costs and expenses towards contractual Services. These expenses increased by 18.41% in the fiscal year 2018 over fiscal year 2017.


The administration and other expenses have increased by 30.1% in fiscal 2018.

The Company incurred interest expense of 32.9 million in fiscal 2018 on borrowings as compared to 10.6 million in fiscal 2017.


This year saw our EBITDA increase in INR terms to 2,011.5 million and in USD terms to USD 31.21 million. EBITDA margins as a percentage of revenue was 7.2% in fiscal 2018 as compared to 8.3% in fiscal 2017.


Profit before tax, prior period and extraordinary items is 1,425.58 million in fiscal 2018 from 1,651.51 million in fiscal 2017. Profit before tax as a percentage of revenue was 5.1% in fiscal 2018 as compared to 7% in fiscal 2017.


The provision of current tax and deferred tax for the year ended March 31, 2018 is 308.6 million as compared to 443.7million in the previous year. The effective tax rate in these years is 21.65 % and 26.87 % respectively.


The Profit after Tax (PAT), for the year ended March 31, 2018 was 1,113.8 million and in USD 17.28 million. Profit after tax as a percentage of revenue was 4% in fiscal 2018 and 5.17% fiscal 2017.