SEC Filings

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


Table of Contents

Revenue Less Repair Payments (non-GAAP) by Geography

The following table sets forth the composition of our revenue less repair payments (non-GAAP) based on the location of our clients in our key geographies for the periods indicated:

 

     Revenue less repair
payments

(non-GAAP)
     As a percentage of
revenue less repair
payments

(non-GAAP)
 
     Six months ended September 30,  
     2018      2017      2018     2017  
     (US dollars in millions)               

North America (primarily the US)

   $ 163.4      $ 148.7        41.7     41.6

UK

     122.8        121.0        31.4     33.8

Australia

     37.5        30.4        9.6     8.5

Europe (excluding the UK)

     24.4        21.6        6.2     6.0

South Africa

     20.7        21.3        5.3     6.0

Rest of world

     22.7        14.7        5.8     4.1
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 391.5      $ 357.6        100.0     100.0
  

 

 

    

 

 

    

 

 

   

 

 

 

The increase in revenue less repair payments (non-GAAP) in North America (primarily the US) was primarily attributable to higher volumes in our healthcare, insurance, diversified businesses, shipping and logistics, consulting and professional services, and banking and financial services verticals, partially offset by lower volumes in our utilities, and travel verticals. The increase in revenue less repair payments (non-GAAP) from the Rest of world region was primarily attributable to higher volumes in our shipping and logistics, and healthcare verticals, partially offset by lower volumes in our diversified businesses, banking and financial services, and travel verticals. The increase in revenue less repair payments (non-GAAP) from Australia was primarily attributable to a higher volume in our insurance vertical, partially offset by a depreciation of the Australian dollar by an average of 3.4% 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, and lower volumes in our travel, utilities, and shipping and logistics verticals. The increase in revenue less repair payments (non-GAAP) from Europe (excluding the UK) was primarily attributable to higher volumes in our travel, banking and financial services, utilities, shipping and logistics, and consulting and professional services verticals, partially offset by lower volumes in our insurance, healthcare, and diversified businesses verticals. The increase in revenue less repair payments (non-GAAP) from the UK was primarily attributable to higher volumes in our insurance, diversified businesses, consulting and professional services, and healthcare verticals, and an appreciation of the pound sterling by an average of 3.1% 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, partially offset by lower volumes in our utilities, banking and financial services, travel, and shipping and logistics verticals. The decrease in revenue less repair payments (non-GAAP) from South Africa was primarily attributable to lower volumes in our diversified businesses, consulting and professional services, and shipping and logistics verticals, and a depreciation of the South African rand 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, partially offset by higher volumes in our banking and financial services, utilities, and travel verticals.

Cost of Revenue

The following table sets forth the composition of our cost of revenue for the periods indicated:

 

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

Employee costs

   $ 173.6     $ 165.2     $ 8.4  

Facilities costs

     44.8       42.1       2.7  

Depreciation

     9.9       9.8       0.1  

Repair payments

     7.4       9.0       (1.7

Travel costs

     6.5       6.4       0.1  

Legal and professional costs

     5.1       4.9       0.2  

Other costs

     14.7       12.9       1.7  
  

 

 

   

 

 

   

 

 

 

Total cost of revenue

   $ 261.9     $ 250.3     $ 11.6  
  

 

 

   

 

 

   

 

 

 

As a percentage of revenue

     65.7     68.3  

The increase in cost of revenue was primarily due to higher employee cost on account of higher headcount and wage inflation, higher facilities costs on account of the expansion of existing facilities in Gurgaon, Bangalore, and Nasik, India and China and the addition of new facilities in India at Pune, Vizag, and the Philippines, higher other costs primarily due to an increase in subcontracting costs, higher legal and professional costs, higher depreciation costs, and higher travel cost. The cost of revenue was also driven by an appreciation of the pound sterling against the US dollar by an average of 3.1% for the six months ended September 30, 2018 as compared to the average exchange rate for the six months ended September 30, 2017, which resulted in an increase of approximately $0.4 million. These increases were partially offset by lower repair payments. Further, a depreciation of the Indian rupee, South African rand, and Philippine peso against the US dollar by an average of 6.5%, 1.4%, and 5.3%, respectively, for the six months ended September 30, 2018 as compared to the respective average exchange rates for the six months ended September 30, 2017 resulted in a decrease of approximately $8.2 million in the cost of revenue.

 

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