SEC Filings

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


Table of Contents

Gross Profit

The following table sets forth our gross profit for the periods indicated:

 

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

Gross profit

   $ 137.0     $ 116.4     $ 20.6  

As a percentage of revenue

     34.3     31.7  

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

     35.0     32.5  

Gross profit as a percentage of revenue and revenue less repair payments (non-GAAP) increased primarily due to higher revenues, and lower cost of revenue as a percentage of revenue and revenue less repair payments (non-GAAP) as discussed above. Cost of revenue was also lower due to 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, partially offset 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, and a decrease in hedging gain in our revenue by $6.7 million to a loss of $0.7 million for the six months ended September 30, 2018 from a gain of $6.0 million for the six months ended September 30, 2017.

Our built up seats increased by 11.4% from 28,541 as at September 30, 2017 to 31,798 as at September 30, 2018, during which we expanded seating capacities in our existing delivery centers in Gurgaon, Bangalore, and Nasik, India and China and added new facilities in Pune and Vizag, India and the Philippines. This was part of our strategy to expand our delivery capabilities. Our total headcount increased by 9.7% from 35,121 as at September 30, 2017 to 38,516 as at September 30, 2018, and our seat utilization rate decreased from 1.23 for the six months ended September 30, 2017 to 1.21 for the six months ended September 30, 2018. This 0.03 decrease in seat utilization resulted in a decrease in our gross profit as a percentage of revenue by approximately 0.28% and our gross profit as a percentage of revenue less repair payments (non-GAAP) by approximately 0.28% in the six months ended September 30, 2018.

Selling and Marketing Expenses

The following table sets forth the composition of our selling and marketing expenses for the periods indicated:

 

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

Employee costs

   $ 16.8     $ 14.7     $ 2.0  

Other costs

     5.6       4.7       1.0  

Total selling and marketing expenses

   $ 22.4     $ 19.4     $ 3.0  

As a percentage of revenue

     5.6     5.3  

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

     5.7     5.4  

The increase in selling and marketing expenses was primarily due to an increase in employee costs as a result of an increase in sales headcount, wage inflation and higher share-based compensation, and an increase in other costs as a result of higher marketing expenses, higher travel costs, and higher legal and professional costs, and 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 of $0.2 million of selling and marketing expenses, partially offset by a depreciation of the Indian rupee against the US dollar by an average of 6.5% 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 a decrease of approximately of $0.1 million of selling and marketing expenses, and lower other miscellaneous costs.

 

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