SEC Filings

20-F
WNS (HOLDINGS) LTD filed this Form 20-F on 05/16/2018
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Table of Contents

Notes:

 

(1) Segment revenue and revenue less repair payments (non-GAAP) include inter-segment revenue of $0.1 million for fiscal 2018, $0.1 million for fiscal 2017 and $0.4 million for fiscal 2016.
(2) Cost of revenue includes inter-segment expenses of $0.1 million for fiscal 2018, $0.1 million for fiscal 2017 and $0.4 million for fiscal 2016, and excludes share-based compensation expense of $3.8 million for fiscal 2018, $2.8 million for fiscal 2017 and $1.9 million for fiscal 2016, which are not allocable between our segments.
(3) Other costs include selling and marketing, general and administrative expense and foreign exchange gain/loss. Excludes share-based compensation expense of $26.8 million for fiscal 2018, $20.3 million for fiscal 2017 and $16.0 million for fiscal 2016, which are not allocable between our segments.

WNS Global BPM accounted for 95.3% of our revenue and 97.5% of our revenue less repair payments (non-GAAP) in fiscal 2018 as compared to 92.6% of our revenue and 96.4% of our revenue less repair payments (non-GAAP) in fiscal 2017 and 90.5% of our revenue and 95.8% of our revenue less repair payments (non-GAAP) in fiscal 2016.

WNS Global BPM

Segment Revenue

Revenue in the WNS Global BPM segment increased by 29.5% to $722.6 million in fiscal 2018 from $558.0 million in fiscal 2017. This increase was primarily attributable to the increase in the volume of transactions executed for existing and new clients, with $132.8 million being attributable to existing clients, including revenue from clients of acquired businesses and $29.4 million being attributable to new clients. In addition, we had an increase in hedging gain on our revenue by $2.4 million to $9.2 million in fiscal 2018 from $6.8 million in fiscal 2017. The increase was contributed by an appreciation of the pound sterling and South African rand against the US dollar by an average of 1.4% and 7.8%, respectively, as compared to the respective average exchange rates in fiscal 2017.

Revenue in the WNS Global BPM segment increased by 9.6% to $558.0 million in fiscal 2017 from $509.3 million in fiscal 2016. This increase was primarily attributable to the increase in the volume of transactions executed for new and existing clients, with $34.5 million being attributable to new clients, including revenue from clients of acquired businesses and $13.8 million being attributable to existing clients. In addition, we had an increase in hedging gain on our revenue by $0.4 million to $6.8 million in fiscal 2017 from $6.4 million in fiscal 2016. The increase was partially offset by a depreciation of the pound sterling and South African rand against the US dollar by an average of 13.4% and 2.3%, respectively, as compared to the respective average exchange rates in fiscal 2016.

Segment Operating Profit

Fiscal 2018 compared to Fiscal 2017

Segment operating profit in the WNS Global BPM segment increased by 25.6% to $141.0 million in fiscal 2018 from $112.3 million in fiscal 2017. The increase was primarily attributable to higher segment revenue and higher foreign exchange gains, partially offset by higher cost of revenue, higher general and administrative expenses and higher selling and marketing expense.

Our cost of revenue includes employee costs, facilities costs, depreciation, legal and professional costs, travel costs and other related costs. Employee related costs represent the largest component of our cost of revenue for the WNS Global BPM segment. Our cost of revenue increased by $106.9 million to $468.0 million in fiscal 2018 from $361.0 million in fiscal 2017, primarily on account of (i) an increase in employee costs by $78.4 million on account of higher headcount, (ii) an increase in facilities costs by $23.9 million due to an expansion of our existing facility in Pune, India, and the addition of new facilities in Pune and Vishakhapatnam, India and Philippines, (iii) an increase in depreciation cost by $3.1 million, and (iv) an increase in travel cost by $2.4 million. Also, the appreciation of the Indian rupee and South African rand against the US dollar by an average of 3.9% and 7.8%, respectively, in fiscal 2018, as compared to the respective average exchange rates in fiscal 2017, resulted in a higher cost of revenue of approximately $12.1 million.

Our other costs include selling and marketing expenses, general and administrative expenses and foreign exchange loss or gain. Our other costs increased by $28.8 million to $113.6 million in fiscal 2018 from $84.7 million in fiscal 2017, primarily on account of (i) an increase in general and administrative expenses by $20.7 million, and (ii) an increase in selling and marketing expenses by $8.2 million, partially offset by an increase in foreign exchange gain by $0.1 million.

General and administrative expenses increased by $20.7 million to $89.6 million in fiscal 2018 from $68.9 million in fiscal 2017, primarily due to an increase in employee costs as a result of higher salaries on account of a higher headcount and wage inflation, higher legal and professional expenses (including costs related to our acquisitions), higher other costs, and higher travel cost. Further, the appreciation of the Indian rupee and South African rand against the US dollar by an average of 3.9% and 7.8%, respectively, for fiscal 2018, as compared to the respective average exchange rates for fiscal 2017, resulted in an increase in general and administrative expenses.

 

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