OnMobile Global Ltd Management Discussions.


FY 19-20 saw the telecommunication industry and mobile apps eco-system paving the way for large technological advancements which will shape the industry and consumer behavior for the coming years. Consumer adoption has ensured 52% of all network connection are now on 4G networks, while 5G is already live in over 20 countries globally. IoT will be a key driver of the 5G era and number of IoT connections is expected to double between 2019 and 2025. 65% of the connections today are via smart phones and this number is expected to cross 80% by 2025. The plethora of apps available to consumers across the multiple app stores has crossed over 5 million which has led to people spending an average of 3 Hours 15 Minutes on their phones daily. All digital activity is being enabled with a "Mobile First" approach to match the increased information flows, reshaped social conventions and accessibility needs of the consumers.

The large adoption of 4G and the brisk advancement of 5G implementation will see a sharp upswing in the data consumption across all sectors and especially service offering which require high bandwidth and low latency requirements. A real value enhancer in the world of mobile gaming will be the experience with 5G, which will be more immersive and engaging than ever. 5G will also dramatically improve the multi-player gaming experience as it will be incredibly effective at boosting engagement by unleashing the full potential of cloud gaming and virtual reality. As 5G progresses towards large-scale commercial deployment, operators and service providers have begun trials of new use cases, and the results are encouraging them to rapidly adopt the next-gen technology.

The desire to provide an exceptional user experience for their consumers, thus differentiating them from their competition is encouraging partnerships and alliances between Operators, Content Partners and OTT players since keeping the consumer engaged and within their own eco-system is of paramount importance to the network service providers. Operators tend to own or collaborate with the companies producing entertaining content, for example, popular TV shows, live sports games, etc., hence trying to capitalize on content consumption for additional revenues. With mobile devices driving digital consumption, most of the data growth is attributed to different digital media especially entertainment services like video, audio and gaming services. This will only increase with the greater adoption of 5G and experiential offerings.

Another key trend with a sharp uptake in the market is contactless payments. Most of the large mobile phone manufacturers have embedded and implemented the same on their devices. In addition to this we have seen a rapid adoption in mobile wallets with over 2.1 billion people using them globally with especially large uptake in the developing markets. This provides a key additional channel via which consumers can now pay for their services.

The global app economy continues its rapid expansion, driven by increasing smartphone adoption, higher-speed wireless networks, and behavior changes in how users engage with digital content. Apps attract significant attention in part because they represent the first truly global market for digital goods, which can in principle be produced anywhere, distributed at almost no cost, and consumed wherever there is a network connection. The total number of app downloads across 2019 exceeded 200 billion, which is a 45% increase from the year 2016 and 2022 the market expects the total app installs to reach 258 Billion. In addition to downloading 204 billion apps, users also spent $120 billion on apps, subscriptions and other in-app purchases, a growth of 37% from 2016. Finally, the average consumer spend will reach US$26 per device by 2022, up by 23% from 2017.

Consumer Trends

Gaming, Music & Video Streaming are the driving forces for the digital services market. We are in the midst of a high-stakes and competitive Battle Royale, wherein gaming companies are aiming to be the market leaders in the digital services space. Its understandable why, as gaming is among the most truly crossdemographic activities and has started to evolve into a new form of social network that is transforming how users connect through shared experiences. Today, mobile gaming accounts for nearly 45% of the entire Gaming Market. Additionally, mobile gaming accounts for over one-third of all app downloads, three- fourth of consumer spend. Mobile gaming is a booming business which is worth US $68.5 Billion and is showing no signs of slowing down.

Video and Audio consumption via streaming especially OTT media has grown in popularity because a major chunk of global population has increased internet access. Global "Subscription Video on Demand (SVoD)" primarily via streaming, has grown rapidly with the market size pegged at $38.6 Billion and is projected to reach US$149.3 Billion by 2026, showing a CAGR of 18.3% from 2018 to 2026. It is safe to say that Video Streaming is replacing a lot of traditional video consumption mediums. "Music Streaming" is also not behind. "Paid subscriptions for music streaming services grew 32% Year on Year compared to 23% Year on Year growth of total Monthly Active Users. This suggests people are ready to pay for music streaming for a hassle-free service. Revenue in Music Streaming segment also showed a growth of nearly 20% and amounts to US$8.8 Billion, accounting to 80% of all recorded Music Revenues.

1. People spending an average of 3 Hours 15 Minutes on their phones daily, it wont be a mistake to say that Mobile itself is a trend. (https://kommandotech.com/)

2. The number of smartphone users in 2020 is 3.5 Billion (https://www.statista.com/)

3. The total number of app downloads across 2019 comes to a 204 billion (https://techcrunch.com/)

4. 33% of all app downloads, 74% of consumer spend & 10% of all time spent in app are on Mobile Games (https://techcrunch. com/2019/08/22/mobile-gaming-mints-money/)

Fueled by the adoption of mobile internet and growth of smartphones, we are gradually transitioning to a fully digital ecosystem. With the amount of time being spent on the mobile increasing year on year, consumers have little patience for poor experiences since their choices have rapidly expanded, which requires products to be able to fulfil and delight the customer from the get-go. With the emerging technologies and integration with IoT, there will be a time soon when the mobile will be ubiquitous in our life and it can never leave our person.


With the availability of newer technologies, variety and quality of services from telecom companies and OTT players increasing, profit margins are under pressure, and the lines between the service offering of telecom companies and the service providers who provide services over the network are blurring. Usage of voice and messaging services provided by OTT players are increasing in leaps and bounds and in some cases over taking the traditional usage of Voice calling and SMS over telecom networks. With operators under pressure and having to retain their customer base they are moving into offering bundled services tying up with multiple content providers and OTT players in some cases, leaving very little balance in operator wallet in terms of pre-paid balance or post-paid billing. In addition to this, the regulatory pressures in terms of customer privacy and data protection and security frameworks being implemented globally are evolving swiftly and companies are constantly striving to the achieve the benchmarks required. To address these challenges, most organizations are applying a gamut of technologies with the aim of achieving their goals of agility, efficiency and customer centricity.


FY 19-20 saw us improve our capabilities across our entire product line with significant focus on the digital delivery of our products. We created Progressive Web Apps (PWA) for our main products to provide a new access channel for those consumers who did not want to download and install an app while at the same time wished to get the same experience from Mobile Web. In addition to this we significantly improved the user experience on our RBT App which has more than 11 million installs and monthly active users (MAU) upwards of 1.4 Mil.

In tones we introduced SDKs with full service functionality which could be easily integrated into 3rd party apps, like operator selfcare apps which gave a large instant boost to the consumer access with the consumer not having to separately download our app. We also upgraded the RBT App, to version 2.0 and augmented it with the Hybrid Recommendation Engine (RE) which is based on collaborative filtering and includes features like "You may also like" and "Recommended for you" features delivered on a real time basis. The RE helps in giving the users an enhanced and personalized experience through improved recommendations. In India we also introduced wallet billing via PayTM, which gave

consumers an additional channel via which they could pay for our service. During the year we revamped our "Tonos de Espara" service for Telefonica Spain. We also launched our RBT service in 3 new countries in the Middle East thus expanding our reach to 5 out of the 6 GCC countries and our tones app was enhanced with Arabic support to offer a localized experience.

With a clear focus on services for children, we launched Vodafone Kids Planet service, an entertainment app with over 3,000 contents from Sanrio, Planeta Junior, Highlights for Children, Lingo Kids, Motion Pictures and many others, with a focus on Edutainment, addressed to kids from 3 to 12 years old. Kids Planet offers content in various languages such as Spanish, English, and Catalan, and allows downloads for offline consumption. It is ad-free, and with no in-app purchases, which is a critical parental requirement. Kids Planet is accessible on smartphones and tablets, with a one-month free trial. We also won a deal to launch a kids centric service with a large operator in Italy which went live in Q3.

Contests as a product showed very high user engagement and we made major improvements in key features including real time ranking, instant leaderboard, multimedia content support and Ad network integration. This also enabled consumers access to the service in a freemium model which is very popular. The stickiness of this service saw other partners like OEMs integrating to have our service on their delivery platforms. Across operators in Asia we launched event based contests, "Predict n Win" models and a contest to aid usage and retention (UnR) for prepaid subscribers in a leading operator. We also saw good uptake for the contest product in the middle eastern regions especially in the digital space.

For Videos and Editorials, we revamped the existing Emocion service with a modern design to make it a key destination for the Telefonica customers. The service was also migrated to HTTPs to make it more secure for the end users and also to ensure that all the services which are hosted on Emocion can start benefiting from the modern technologies like PWA, AMP, etc. We significantly enhanced the acquisition, payment and billing lifecycle management capabilities of the platform to be able to extend to them to multiple 3rd parties including large OTT players. Currently we have leading partners like Nubico and Tinder using the payment and voucher management capabilities of the platform to add subscribers to their service offering using operator billing interfaces. In addition to this the payment interface of the platform is now integrated with over 35 operators with multiple service offering being provided through the same.

In the gaming space, we have witnessed traction on the existing proposition by coming up with new avenues of distribution like mobile wallets, OEMs etc. Most significant of these distribution channels has been our integration with PhonePe, a large wallet service provider, to be the first gaming partner on their Switch

5. "Video Streaming (SVoD)" market size was pegged at $38.6 Billion and is projected to reach US$149.3 Billion by 2026. (https://www.businesswire.com/)

6. "Paid subscriptions for music streaming services grew 32% Year on Year compared to 23% Year on Year growth of total Monthly Active Users. (https://www.counterpointresearch.com/)

7. GSMA Report: The Mobile Economy 2020

8. Statista Data: Number of apps in leading app stores, most popular categories

Service. Existing gaming solution has also evolved to integrate with other third-party gaming services to offer a unified 3600 solution to telcos covering a range of offerings including Native gaming, HTML5 instant games, Social gaming etc. In parallel, we are investing resources in conceptualizing and developing a cloud gaming platform that will support our future aspirations in gaming.

Product-wise Performance Tones

• Tones App downloads have crossed 11 Mn+ with an active user base of 1.4 Mn monthly

• Bundled packs has boosted user acquisitions in Indian Market

• 5% growth in subscriber base from 63 Mn in Mar-19 to 66 Mn in Mar-20.

Growth in Key Markets

• Key operator in Bangladesh : 82% increase in active base from 3.4 Mn to 6.2 Mn

• Key operator in India : 51% increase in active base owing to bundle packs from 6.9 Mn to 10.5 Mn

De-Growth in Nigeria

• Nigeria : Over 85% drop in active base from 3.2 Mn to 400 K, in a major operator due to change in market regulations

New Operators on boarded: Lebara Saudi Arabia, Teletalk, Oreedoo Oman & Riyadh

Video & Editorial

• Subscriber base has grown by 10%, from 825K in FY 201819 to 909K in FY 2019-20

• Launched Sports portal in Oreedoo Oman, Oreedoo Qatar & bKash


• Launched games in Vivo Brazil, Vodafone Ghana,

Vodafone Qatar, Vodafone Greece and Zain Bahrain.


• Contest launched with Zain Bahrain

• Contest has been rolled out with 4 leading handset OEMs & payment wallets in Asia on ad-funded model, monthly 300K active users participating

• Active users have dropped from 9.2M in FY 2018-19 to 8.8 MN in FY 2019-20


The combination of lower prices and increased content is beginning to resonate with users whose appetite for service offerings are only growing. Infrastructural improvements, data affordability, better quality of content, speed of streaming and downloading is amplifying the digital growth and there is an increase in content aggregation. With a plethora of services and apps on offer, consumers are looking for a single destination which is customized to their requirements to consume the different types of content available on offer. OnMobile with

its new suite of digital services products aggregated at a single destination is ready to address the market demand. In addition to our strategy to go beyond the operator wallet will enable OnMobile to expand its service offerings beyond telecom users by enabling premium mobile entertainment services to OEMs and mobile wallet operators.

Across the world gaming as a sector is growing at a breakneck speed. Today mobile games account for 33% of all apps downloads and 74% of consumer spend on apps. Mobile gaming is a multi-billion-dollar market globally and consumers in India alone account for over USD 1 billion in spend on games, and this is only continuing to grow. OnMobile with its compressive gaming platform supporting unlimited games with both HTML5 and downloadable formats is poised to tap this market, with our current presence in over 35 markets globally. With the growing pace of 5G implementation which will provide high bandwidth low latency connection we are also experimenting with newer formats like streaming games, social gaming and e-sports which will improve the multiplayer landscape and increase engagement. In addition, the investment in Rob0 will strengthen our understanding of the user behavior on games and help us build a compelling eco-system with the best consumer experience leading to strong growth. Our platforms as an interface for billing and lifecycle management in multiple operators is also enabling us to become a bridge between OTT players who wish to enable operator billing and the telecom providers who wish to enhance the service offerings to their end consumers.


With the introductions of regulations such as the GDPR, users are concerned about the use of their online data leading to operators implementing stringent data protection, customer contact policies and also implementing limitations in double confirmation and reduction in promotional bandwidth which is a potential threat in acquiring customers for the operators across markets.

The global Telecom industry landscape is changing faster than ever. Diminishing legacy revenue streams driven by OTT competitors continues, forcing Telcos to consider new ways of staying relevant to consumer and businesses. While many have started their digital transformation journeys, the sector still is vulnerable to dynamic shifts in terms of technology, competitor actions and customer needs. Apart from this, with bundling of multiple services under one umbrella by the operators the available balance of the user is constantly shrinking. This requires us to constantly innovate and expand our services and revenue models from the traditional operator to find newer charging models like wallets, ad-funded services and freemium offerings to constantly stay relevant.


2020 - 2021 is going to be a challenging year for the world with the rapid advancement of the Covid-19 virus and its impact on the global economy. However, with the upswing in mobile data and content consumption during this period, OnMobile as a global leader in mobile entertainment, is expanding its suite of digital services and expects to gain even greater traction with operators & enterprises offering additional value-added services. We enable consumers with access to millions of local and international contents, which helps carriers in monetization and create a long tail effect. We drive content discoverability

and downloads with our AI powered intelligent campaign management platform & personalized recommendation engine. Our expansion into offering services with additional revenue models like ad-funded and freemium will enable us to expand our customer base in the coming year.

OnMobile was a pioneer in enabling the subscription model for service consumption, with more than 100+ million engaged consumers across 50+ countries paying for these services and this continues to grow. Our reliability as a billing and subscriber lifecycle management service provider for the carriers to manage their partner ecosystem will continue to be a lucrative and profitable business model with ever increasing features like pay per download, subscriptions, content bundles, pay per use, try n buy and much more. Finally, we are also actively working with operators to have our services included in the bundled packages offered to consumers and that has seen a positive response in multiple markets

Mobile gaming is forecasted to be the fastest-growing segment within the gaming industry and more so in India, one of the key markets for OnMobile. This has been further exemplified by gaming being one of the few industries showcasing supreme growth during the challenging times of COVID. We believe that popular and recently emerged gaming solutions are either focusing on a very niche professional gaming audience or making the experience very complex and hardware-dependent. With OnMobiles three distinct advantages - Recent strategic investments in Appland and Rob0, deep relations in the game developer community and global telco relationships, we are uniquely poised to fill the white space in the gaming industry by creating an offering that will be cutting edge, seamless in use and appealing to a vast section of the mobile gaming audience. In this pursuit, we have carved out a special project team comprised of skilled resources with the sole mission to deliver OnMobiles next-generation gaming solution during this financial year.

In addition to working with carriers, OnMobile has started to work actively with non-operators in providing product & content services like contests, games & videos. We have launched our offering with leading handset OEMs Samsung, Xiaomi, Gionee, Micromax in India and bKash a leading payment wallet provider in Bangladesh this year and the focus for the coming year would be to expand our reach to more enterprises and brand who want to offer digital entertainment products & services to drive acquisitions, build engagement & stickiness with their consumers.


Internal control and risk management are necessary prerequisites of corporate governance. The Corporate Governance Policy guides the conduct of affairs of the Company and clearly delineates the roles, responsibilities and authorities at each level with adequate system of internal controls. This ensures that all transactions are authorised, recorded and reported correctly and assets are safeguarded and protected against loss from unauthorized use or disposition. Properly documented policies, guidelines and procedures laid down for this purpose, stand widely communicated across the enterprise to provide the foundation for Internal Financial Controls with reference to the Companys operations and financial statements. Such Financial Statements are prepared on the basis of the Significant Accounting Policies, in line with the applicable Accounting Standards, that are reviewed by management and approved by the Audit Committee and the Board.

The Company recognizes that any internal control framework, no matter how well designed, has inherent limitations and accordingly, regular audit and review processes ensure that such systems are reinforced on an ongoing basis.

The Company has a set of Standard Operating Procedures (SOPs) that have been established for individual processes. In addition to this, the Company has identified and documented the risks and control for each process that has a relationship to the operations and financial reporting. The Company uses SAP and other internally developed ERP systems as a business enabler and also to maintain its Books of Account. The SOPs in tandem with transactional controls built into the ERP systems ensure appropriate segregation of duties, approval mechanisms and maintenance of supporting records. The Information Management Policy reinforces the control environment. The systems, SOPs and controls are reviewed by the management and audited by Internal Auditors whose findings and recommendations are reviewed by the Audit Committee and tracked through to implementation. The Company has in place adequate internal financial controls with reference to the Financial Statements. Such controls have been assessed during the year taking into consideration the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by The Institute of Chartered Accountants of India. Based on the results of such assessment carried out by management, no reportable material weakness or significant deficiencies in the design or operation of internal financial controls were observed.


The consolidated financial statements relate to OnMobile Global Limited, referred to as "the Company" and its subsidiaries and associates together referred to as "the Group".


(In Rs Million except EPS)

FY 2019-20 % of total revenue FY 2018-19 % oftotal revenue Growth %
Results from operations
Telecom Value Added Services 5,724.24 5,938.64 (4)
Other Income 171.70 290.13 (41)
Total Income 5,895.94 6,228.77 (5)
Cost of Sales and Services 2,547.33 43 2,442.41 39 4
Contest expenses, cost of software licenses and others 236.27 4 277.19 4 (15)
Employee Benefits expense 1,616.52 27 1,776.81 29 (9)
Finance costs 14.68 0 0.76 0 1831
Depreciation and amortization expense 185.17 3 272.23 4 (32)
Other expenses 943.24 16 1,146.25 18 (18)
Total Expenses 5,543.21 94 5,915.65 95 (6)
Profit before exceptional items and tax 352.73 6 313.12 5 13
Exceptional items 82.00 1 -
Profit before tax 434.73 7 313.12 5 39
Provision for taxation 158.90 3 124.25 2 28
Profit for the year 275.83 5 188.87 3 46
Share of Profit/(Loss) from Associate - 0 -
Profit/(Loss) attributable to Shareholders of the Company 275.83 5 188.97 3 46
Other Comprehensive income (Net) 146.27 2 (126.78) (2) (215)
Total Comprehensive income (loss) attributable to the Owners of the Company 422.10 7 62.09 1 580
EPS- Basic 2.61 0 1.79 0 46
EPS -Diluted 2.61 0 1.79 0 46


Revenue is derived from Telecom Value Added Services including Ring Back tones, Mobile entertainment and other services. Revenue from Telecom Value Added Services is recognized on providing the services in terms of revenue-sharing arrangements with the telecom operators. Revenue from Other Services including maintenance services are recognized proportionately over the period during which the services are rendered as per the terms of the contract.

The revenue for the FY 2019-20 was Rs 5,724.24 Million as against Rs 5,938.64 Million in FY 2018-19. As per INDAS 115, applicable from FY2019-20 onwards, the upfront customer contract acquisition fees amounting to 159.89 was reduced from revenues. Excluding this accounting adjustment, our FY19-20 revenues would have been 5,884.13 which is a de-growth of 54.51 Million. The decline is mainly on account of aggressive competition in the Indian market.

The segmentation of revenue by geography is as follows:

(In Rs Million)

FY 2019-20 % of total Revenues FY 2018-19 % of total Revenues Growth %
India 948.22 17 1,005.80 17 (6)
Outside India 4,776.02 83 4,932.84 83 (3)
Total Revenue 5,724.24 5,938.64 (4)

Other Income

Other Income was Rs 171.70 Million in the FY 2019-20 as compared to Rs 290.13 Million in FY 2018-19. FY 2019-20 includes 39.34 Million net gain on foreign currency transactions and translations and Rs 114.14 Million for interest earned on fixed deposits, profit from investments and dividend yield on mutual funds. For the previous year, Other Income comprised of 127.20 Million net loss on foreign currency transactions and translations and 129.39 Million for interest earned on fixed deposits and dividend yield on mutual funds.

The surplus funds of the Group continue to remain mainly invested in bank fixed deposits and debt funds in adherence to the Groups investment policy.

Cost of Sales and Services

Cost of Sales and Services consists of amount incurred towards content fee and contest expenses, cost of software licenses and other charges. Content fee is paid to content providers such as music label companies, royalty agencies, sports licensing authorities, games publishers and other content licensors, from whom content is procured by the Company. Cost of software licenses and other charges include the cost of software licenses and services used by the Company for providing services to the customers. During FY 2019-20, the cost of sales and services was Rs 2,783.60 Million as against Rs 2,719.60 Million incurred in FY 2018-19 with an increase of 2% mainly due to change in product mix.

(In Rs Million)

FY 2019-20 % of total revenue FY 2018-19 % oftotal revenue Growth %
Content fee 2,547.33 45 2,442.41 39 4
Contest expenses, cost of software licenses and others 236.27 4 277.19 4 (15)
Cost of sales and Services 2,783.60 49 2,719.60 43 2

Employee Benefits Expense

Employee Benefits Expense comprise of salaries paid to employees, contribution made to various employee welfare funds and expenses incurred towards welfare of the employees.

During the FY 2019-20, the Group incurred a cost of Rs 1,616.52 Mi llion as agai nst Rs 1 ,776.81 Mi lli on i n FY 201 8-1 9, th us representing a decrease of 9% from the previous year. The decrease was primarily on account of manpower rationalization measures undertaken in international geographies like UK.

The total employee strength of OnMobile Global Limited and its subsidiaries as on March 31, 2020 was 702.

Finance Charges

Finance Charges represent interest on finance Lease Liabilities. During FY 2019-20, group adopted Ind AS 116 Accounting of Lease resulting in the above charge.

Depreciation and Amortization

The Group provided a sum of 185.17 Million and Rs 272.23 Million towards Depreciation and Amortization for the FY 2019-20 and FY 2018-19, respectively, thus representing a fall of 32% over the previous year. Decrease in Depreciation and Amortization is on account of reduction in depreciation and amortization charges for up front customer contract fees which is regrouped as a reduction in revenues as per INDAS 115 amounting to Rs 159.89 million. This decrease is partially offset by the amortization of Leased assets under INDAS 116 introduced in FY20-21 amounting to Rs 48.72 million.

Depreciation and Amortization on assets is provided on a monthly basis using the straight-line method based on useful/commercial lives of these assets as estimated by the Management, other than for market development and deployment rights, which is amortized over its useful/ commercial life in time proportion of its economic benefits, that are expected to accrue to the Company. The amortization method is reviewed at each year- end for any significant change in the expected pattern of the economic benefits. Expenditure incurred on research and development is not being capitalized.

Other Expenses

In the FY 2019-20, Other Expenses decreased by 18% to 943.24 Million as against Rs 1,146.25 Million incurred in FY 2018-19. The break- up of the expenses is as follows:

(In Rs Million)
FY 2019-20 % oftotal revenue FY 2018-19 % oftotal revenue Growth %
Legal, professional & consultancy charges(including Remuneration to Auditors) 210.47 4 250.43 4 (16)
Marketing Expenses 295.90 5 339.06 6 (13)
Rent and other facilities cost 65.66 1 131.00 2 (50)
Travelling and Conveyance 101.79 2 124.18 2 (18)
FY 2019-20 % of total revenue FY 2018-19 % oftotal revenue Growth %
Communication charges 39.74 1 52.31 1 (24)
Rates and taxes 13.35 0 19.42 0 (31)
Others 216.33 4 229.85 4 (6)
Total 943.24 16 1,146.25 19 (18)

Exceptional Items

Exceptional item in FY 2019-20 is 82.00 Million and nil for FY 2018-19. Exceptional item refers to gain due to reversal of Rs 314 Million of contingent consideration payable to Appland netted against impairment of goodwill arising out of Appland acquisition amounting to Rs 232 Million.

Profit before Tax

The Profit/(Loss) before Tax of Rs 434.73 Million in the current FY 2019-20, as compared to Rs 313.12 Million during the previous year, represents a 39% increase in profitability over the previous year.

Provision for Taxation

The amount provided for taxation in the current FY 2019-20 is 158.90 Million as against 124.25 Million provided in FY 201819 and this represents a 28% increase in tax expense over the previous year. Effective tax rate in FY 2019-20 has come down to 36.5% from 39.7% in FY 2018-19.

Other Comprehensive Income

Other Comprehensive income for the year 2019-20 includes gain of 158.30 Million on account of exchange differences in translating the financial statements of foreign operations and loss of 12.03 Million due to re-measurements of defined benefit liabilities. Other Comprehensive income /(loss) was 146.26 Million in FY 2019-20 as compared to (126.78) Million in the FY 2018-19.

Total Comprehensive Income for the year

The Total Comprehensive Income is Rs 422.10 Million in the current FY 2019-20, as compared to Rs 62.09 Million during the previous FY 2018-19.


Non-Current Assets

Property, Plant and Equipment, Capital Work-in-Progress and Intangible Assets

The Company incurred an amount of Rs 105.76 Million ( 808.27 Million in the previous year which included goodwill arising out of Appland acquisition: Rs 763 Mn) as capital expenditure during the FY2019-20.

Capital Work-in-Progress represents the cost of the assets that are not ready for their intended use at the Balance Sheet date. There is an increase of Rs 1.16 Million in Capital Work-in-Progress on account of assets put to use during the FY 2019-20.

Non-current Financial Assets

Non-current Financial Assets include Investments, Loans and Other Financial Assets. Non-Current Financial Assets as on

March 31, 2020 are 339.21 Million as compared to 64.70 Million as on March 31, 2019, representing increase of 274.51 Million. The increase is primarily on account of re-grouping of Investments to Non-current.

Other Non-Current Assets

Other Non-Current Assets as on March 31, 2020 are 1,986.79 Million as compared to Rs 1954.58 Million as on March 31, 2019, representing increase of Rs 32.21 Million. The decrease is primarily on account of increase in deferred tax assets.

Current Assets

Current Investments

Current Investments as on March 31, 2020 is Rs 1,554.94 Million as compared to Rs 1,916.50 Million as at March 31, 2019. Reason for reduction is regrouping to Non-Current Investments.

Trade receivables

The Trade Receivables (net of Provision for Doubtful Trade Receivables) amount to 1,598.85 Million as on March 31, 2020 as against Rs 1,651.26 Million as on March 31, 2019.

Cash and cash equivalents

Cash and cash equivalents as on March 31, 2020 is Rs 2744.86 Million as against a balance of Rs 2,722.54 Million as on March 31, 2019. The Group generated net cash of 171.56 Million from operating activities.


Loans and advances outstanding as on March 31, 2020 is Rs 12.69 Million as compared to Rs 11.24 Million outstanding as on March 31, 2019, thus representing an increase of 1.45 Million mainly on account of security deposits reclassified to non-current.

Other financial assets

The Other financial assets as on March 31, 2020 is Rs 795.08 Million as compared to Rs 633.01 Million as on March 31, 2019, representing a decrease of 162.07 Million. The increase was mainly on account unbilled revenue and accrued interest on deposits.

Other current assets

Other current assets as on March 31, 2020 is 634.79 Million as compared to Rs 488.13 Million outstanding as on March 31,2019, representing an increase of 146.66 Million mainly on account of increase in Prepaid expenses and Balances with Statutory Authorities.

Equity and Liabilities Equity

Equity Share Capital

The Authorized Share Capital of the Group is Rs 1,500 Million, comprising of 149,500,000 equity shares of Rs 10/-each and 500,000 preference shares of Rs 10/- each.

As at March 31,2020, the Group has 105,696,202 equity shares of Rs 10/- each as Issued, Subscribed and Paid-up Capital which was same as at March 31,2019.

Other Equity

A summary of the Other Equity is given below:

( Millions)

As at March 31, 2020 As at March 31, 2019
Capital Redemption Reserve 154.00 154.00
Securities premium 2,403.49 2,403.49
Stock Options outstanding 153.92 142.53
General Reserve 13.20 13.20
Foreign Currency Translation Reserve 104.51 (53.79)
Retained Earnings 2,021.09 1,936.39
Other items of Other Comprehensive Income (6.89) 5.14
Total 4,843.32 4,600.96

Foreign Currency Translation Reserve comprises of the exchange difference relating to the translation of the financial results and net assets of the Companys foreign operations from their respective functional currencies to the Companys presentation currency.

The surplus retained in the Statement of Profit and Loss as at March 31, 2020 is Rs 2,021.09 Million.

The total Net Worth of the Group as at March 31, 2020 is Rs 5,900.28 Million with the book value of each share being 55.82/- (Face value of Rs 10/- each). The corresponding numbers for the previous FY are Rs 5,657.96 Million and Rs 53.53 respectively.


Non-Current Liabilities Lease liabilities

The Lease liabilities outstanding as on March 31, 2020 are 106.87 Million as compared to NIL as on March 31, 2019. This represents Long term maturities of Finance Lease obligation as per IND AS 116 Accounting of Leases.

Other Financial liabilities

The Long-term liabilities outstanding as on March 31, 2020 are 75.67 as compared to INR 235.97 Mn as on March 31, 2019 which pertains to Contingent Consideration for Appland acquisition due to reversal.

Long-term provisions

The Long-term Provisions outstanding as on March 31, 2020 are Rs 38.84 Million as compared to Rs 38.06 Million as on March 31, 2019, thus representing an increase of Rs 0.78 Million. The increase is primarily on account of increase in provision for compensated absences based on accumulated leave credits of the employees.

Deferred Tax Liability

Deferred Tax Assets and Liabilities are recognized for the future tax consequences of temporary differences between carrying values of the assets and liabilities and their respective tax bases and are measured using enacted tax rates applicable on the Balance Sheet date. Deferred Tax Assets are recognized subject to managements judgment that realization is virtually certain. The Deferred Tax Liability (net) represents the deferred tax liability of the Group and as on March 31, 2020 is Rs 7.31 Million as compared to Rs 1.36 Million as on March 31,2019.

Current Liabilities

The Current Liabilities outstanding as on March 31, 2020 are Rs 2,728.50 Million as compared to Rs 2,792.32 Million as on March 31,2019, thus representing a decrease of Rs 63.82 Million. Decrease is mainly on account of reduction in contingent consideration payable to Appland amounting to Rs 103.29 Mn offset by increase in trade payable by Rs 125.24 Mn.


As at March 31, 2019 As at March 31, 2019
Debtors Turnover 0.28 0.28
Inventory Turnover N.A N.A
Interest Coverage Ratio N.A N.A
Current Ratio 2.02 1.97
Debt Equity Ratio N.A N.A
Operating Profit Margin (%) 3.91 1.45
Net Profit Margin (%) 4.82 3.18

Debtors turnover ratio as on March 31, 2020 is 0.28 and remain almost the same as last year. Current ratio as on March 31, 2020 is 2.02 and 1.97 as on March 31,2019. Headcount rationalization and cost optimization initiatives undertaken in current year has improved Operating profit margin to 3.91% from 1.45% last year. Net profit margin % has gone up in the current year March 2020 to 4.82% as compared to 3.18% in the last year because of increased profits and lower tax expense.


FY 2019-20 was a year with clear focus on transforming the Organization, reskilling employees and aligning their performance to our business imperatives.

Talent Management & Employee Engagement

Continuing with our efforts towards attracting and retaining the right talent, in 2019-20 our focus has been on a sustainable employee experience throughout the life cycle. Right from attracting the best from the talent pool to induction, to performance management and learning, we have endeavoured employee delight at every step.

Sourcing a right mix of diverse candidates through different channels with a huge focus on resuming campus hiring has seen us hiring MBAs apart from Engineers from campuses this year. We also engaged several interns to support on market surveys and special assignments. Our special emphasis was on diversity hire and we attracted some great talent through our employee referral program called Work Mate. A robust buddy system, and quarterly induction program have helped employees settle down quickly and smoothly into performance mode.

In line with our business priorities, we enhanced our skill profile through our internal system of trainings on various products and technologies. We embarked on an ambitious program to identify and develop high potential employees through various development interventions such as individualised /group coaching and participation in cross-functional special projects.

This program was named OTP - Onmobile Transformers Program and was kicked-off in August 2019.

We also institutionalised a bi-monthly employee e-newsletter which encapsulates business updates from all regions, employee engagement bites and spotlight. In spotlight section, various teams are featured with information on roles & responsibilities.

With an objective to provide a platform for our women colleagues to network with industry experts, identify coaches for career development and obtain guidance on various topics of interest, weve signed up with a virtual collaboration platform called Thiinkequal.

We believe that an engaged, happy employee is most productive and so introduced a fun at work concept where employees take a break and participate in fun activities. In line with this philosophy, we engaged employees actively in various celebrations ranging from festivals to sports which came in for much appreciation.


Statements in the Management Discussion and Analysis describing the industry projections and estimates (which are based on reliable third party sources) as well as Companys objectives, estimates, projections and expectations may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could influence the Companys operations include economic developments within the country, demand and supply conditions in the industry, changes in Government regulations, tax laws and other factors such as litigation and labour relations.