SEC Filings

6-K
WNS (HOLDINGS) LTD filed this Form 6-K on 11/05/2018
Entire Document
 


Table of Contents

Furthermore, a weakening of the rate of exchange for the pound sterling, the US dollar or, to a lesser extent, the Australian dollar or the South African rand (in which our revenue is principally denominated) against the Indian rupee, or to a lesser extent, the South African rand (in which a significant portion of our costs are denominated) would also adversely affect our results. Fluctuations between the pound sterling, the Indian rupee, the Australian dollar or the South African rand, on the one hand, and the US dollar, on the other hand, also expose us to translation risk when transactions denominated in these currencies are translated into US dollars, our reporting currency. The exchange rates between each of the pound sterling, the Indian rupee, the Australian dollar and South African rand, on the one hand, and the US dollar, on the other hand, have changed substantially in recent years and may fluctuate substantially in the future. For example, the pound sterling appreciated against the US dollar by an average of 3.1%, the Indian rupee depreciated against the US dollar by an average of 6.5%, the Australian dollar depreciated against the US dollar by an average of 3.4%, and the South African rand depreciated by an average of 1.4% against the US dollar, for the six months ended September 30, 2018 as compared to the average exchange rate for the six months ended September 30, 2017. The appreciation of the pound sterling against the US dollar, and the depreciation of the Indian rupee and the South African rand against the US dollar for the six months ended September 30, 2018 positively impacted our results of operations whereas the depreciation of the Australian dollar against the US dollar negatively impacted our results of operations during that period.

Uncertainty about current global economic conditions could also continue to increase the volatility of our share price. We cannot predict the timing or duration of an economic slowdown or the timing or strength of a subsequent economic recovery generally or in our targeted industries, including the travel and leisure and insurance industries. If macroeconomic conditions worsen or current global economic conditions continue for a prolonged period of time, we are not able to predict the impact that such worsening conditions will have on our targeted industries in general, and our results of operations specifically.

Revenue

We generate revenue by providing business process management services to our clients. The following table shows our revenue (a GAAP financial measure) and revenue less repair payments (a non-GAAP financial measure) for the periods indicated:

 

     Three months ended
September 30,
     Change     Six months ended
September 30,
     Change  
     (US dollars in millions)            (US dollars in millions)         
     2018      2017      $      %     2018      2017      $      %  

Revenue

   $ 199.1      $ 186.5        12.6        6.8   $ 398.9      $ 366.6        32.2        8.8

Revenue less repair payments (non-GAAP)

   $ 195.5      $ 182.3        13.1        7.2   $ 391.5      $ 357.6        33.9        9.5

Our revenue is characterized by client, industry, service type, geographic and contract type diversity, as the analysis below indicates.

Revenue by Top Clients

For the three months ended September 30, 2018 and 2017, the percentage of revenue and revenue less repair payments (non-GAAP) that we derived from our largest clients were in the proportions set forth in the following table:

 

     As a percentage of revenue     As a percentage of revenue less
repair payments (non-GAAP)
 
     Three months ended September 30,     Three months ended September 30,  
     2018     2017     2018     2017  

Top client

     6.8     6.7     6.9     6.8

Top five clients

     26.4     30.0     26.9     30.7

Top ten clients

     42.8     43.8     43.6     44.9

Top twenty clients

     56.6     56.4     57.6     57.7

For the six months ended September 30, 2018 and 2017, the percentage of revenue and revenue less repair payments (non-GAAP) that we derived from our largest clients were in the proportions set forth in the following table:

 

     As a percentage of revenue     As a percentage of revenue less
repair payments (non-GAAP)
 
     Six months ended September 30,     Six months ended September 30,  
     2018     2017     2018     2017  

Top client

     6.7     7.1     6.8     7.3

Top five clients

     27.0     30.4     27.6     31.1

Top ten clients

     43.6     44.0     44.4     45.1

Top twenty clients

     56.8     56.0     57.8     57.4

52