SEC Filings

20-F
WNS (HOLDINGS) LTD filed this Form 20-F on 05/16/2018
Entire Document
 


Table of Contents

Other Estimates

Allowance for Doubtful Trade Receivables

We make estimates of the uncollectability of our trade receivable based on historical trends and other factors such as ageing and economic trends. Adverse economic conditions or other factors that might cause deterioration of the financial health of customers could change the timing and levels of payments received and necessitate a change in estimated losses.

Accounting for Defined Benefit Plans

In accounting for pension and post-retirement benefits, several statistical and other factors that attempt to anticipate future events are used to calculate plan expenses and liabilities. These factors include expected return on plan assets, discount rate assumptions and rate of future compensation increases. To estimate these factors, actuarial consultants also use estimates such as withdrawal, turnover, and mortality rates which require significant judgment. The actuarial assumptions used by us may differ materially from actual results in future periods due to changing market and economic conditions, regulatory events, judicial rulings, higher or lower withdrawal rates, or longer or shorter participant life spans.

Results of Operations

The following table sets forth certain financial information as a percentage of revenue and revenue less repair payments (non-GAAP) for the periods indicated:

 

     As a percentage of  
     Revenue     Revenue less repair payments
(non-GAAP)
 
     Year ended March 31,     Year ended March 31,  
     2018     2017     2016     2018     2017     2016  

Cost of revenue

     66.4     66.9     65.0     65.6     65.6     62.9

Gross profit

     33.6     33.1     35.0     34.4     34.4     37.1

Operating expenses:

            

Selling and marketing expenses

     5.5     5.4     5.5     5.6     5.6     5.8

General and administrative expenses

     15.5     15.2     14.0     15.9     15.9     14.9

Foreign exchange loss / (gains), net

     (2.0 )%      (2.4 )%      (2.0 )%      (2.0 )%      (2.5 )%      (2.1 )% 

Impairment of goodwill

           3.6                 3.7      

Amortization of intangible assets

     2.0     3.4     4.5     2.1     3.6     4.7

Operating profit

     12.5     7.8     13.0     12.8     8.2     13.7

Other (income) / expense, net

     (1.5 )%      (1.4 )%      (1.5 )%      (1.5 )%      (1.5 )%      (1.6 )% 

Finance expense

     0.6     0.1     0.0     0.6     0.1     0.1

Provision for income taxes

     2.0     2.9     3.8     2.1     3.0     4.0

Profit

     11.4     6.3     10.7     11.7     6.5     11.3

The following table reconciles revenue (a GAAP financial measure) to revenue less repair payments (a non-GAAP financial measure) and sets forth payments to repair centers and revenue less repair payments (non-GAAP) as a percentage of revenue for the periods indicated:

 

     Year ended March 31,  
     2018      2017      2016      2018     2017     2016  
     (US dollars in millions)                     

Revenue

   $ 758.0      $ 602.5      $ 562.2        100.0     100.0     100

Less: Payments to repair centers

     17.0        24.1        31.2        2.2     4.0     5.5

Revenue less repair payments (non-GAAP)

   $ 741.0      $ 578.4      $ 531.0        97.8     96.0     94.5

 

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