SEC Filings

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

Table of Contents

Operating Data

Our profit margin is largely a function of our asset utilization and the rates we are able to recover for our services. One of the most significant components of our asset utilization is our seat utilization rate which is the average number of work shifts per day, out of a maximum of three, for which we are able to utilize our seats. Generally, an improvement in seat utilization rate will improve our profitability unless there are other factors which increase our costs such as an increase in lease rentals, large ramp-ups to build new seats, and increases in costs related to repairs and renovations to our existing or used seats. In addition, an increase in seat utilization rate as a result of an increase in the volume of work will generally result in a lower cost per seat and a higher profit margin as the total fixed costs of our built up seats remain the same while each seat is generating more revenue.

The following table presents certain operating data as at the dates indicated:


     As at March 31,  
     2018      2017      2016  

Total headcount(1)

     36,540        34,547        32,388  

Built up seats(2)

     30,390        28,008        26,407  

Used seats(2)

     22,550        20,795        20,063  

Seat utilization rate(3)

     1.22        1.23        1.21  



(1) Commencing fiscal 2018, we are including in our disclosed total head count the number of apprentices employed under the India government scheme, National Employability Enhancement Mission, pursuant to which apprentices undergo a three to 36 month apprenticeship to enhance their employability. There is no guarantee of employment with WNS following the completion of the apprenticeship. Our previously disclosed total head count does not include apprentices. The total head count and seat utilization rate presented for prior periods in the table above have been re-computed to include apprentices for comparative purposes.
(2) Built up seats refer to the total number of production seats (excluding support functions like Finance, Human Resource, Administration and seats dedicated for business continuity planning) that are set up in any premises. Used seats refer to the number of built up seats that are being used by employees. The remainder would be termed “vacant seats.” The vacant seats would get converted into used seats when we increase headcount.
(3) The seat utilization rate is calculated by dividing the average total headcount by the average number of built up seats to show the rate at which we are able to utilize our built up seats. Average total headcount and average number of built up seats are calculated by dividing the aggregate of the total headcount or number of built up seats, as the case may be, as at the beginning and end of the fiscal year by two.

We expect our total headcount in fiscal 2019 to increase as compared to fiscal 2018 as the impact of an increased flow of business from new and existing clients is expected to continue to increase our hiring requirements in fiscal 2019.

Foreign Exchange

Exchange Rates

We report our financial results in US dollars and our results of operations would be adversely affected if the pound sterling or, to a lesser extent, the Australian dollar depreciates against the US dollar, or if the Indian rupee or, to a lesser extent, the South African rand or the Philippine peso appreciates against the US dollar. Although a substantial portion of our revenue and revenue less repair payments (non-GAAP) is denominated in US dollars (46.5% and 47.6%, respectively, in fiscal 2018, 38.7% and 40.3%, respectively, in fiscal 2017 and 34.8% and 36.9%, respectively, in fiscal 2016), pound sterling (31.8% and 30.2%, respectively, in fiscal 2018, 39.6% and 37.0%, respectively, in fiscal 2017 and 46.9% and 43.8%, respectively, in fiscal 2016), and, to a lesser extent, Australian dollars (8.0% and 8.1%, respectively, in fiscal 2018, 7.2% and 7.5%, respectively, in fiscal 2017 and 6.9% and 7.3%, respectively, in fiscal 2016), and South African rand (5.6% and 5.8%, respectively, in fiscal 2018, 6.8% and 7.0%, respectively, in fiscal 2017 and 5.2% and 5.6%, respectively, in fiscal 2016), most of our expenses (net of payments to repair centers) are incurred and paid in Indian rupees (43.6% in fiscal 2018, 51.1% in fiscal 2017 and 54.2% in fiscal 2016) and, to a lesser extent, in South African rand (10.2% in fiscal 2018, 11.1% in fiscal 2017 and 11.0% in fiscal 2016) and Philippine pesos (9.5% in fiscal 2018, 9.4% in fiscal 2017 and 8.0% in fiscal 2016). The exchange rates between these currencies and the US dollar have changed substantially in recent years and may fluctuate substantially in the future.