SEC Filings

6-K
WNS (HOLDINGS) LTD filed this Form 6-K on 01/31/2019
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)
 
     Nine months ended December 31,  
     2018      2017      2018     2017  
     (US dollars in millions)        

North America (primarily the US)

   $ 245.0      $ 225.5        41.7     41.5

UK

     181.5        178.2        30.9     32.8

Australia

     58.3        49.8        9.9     9.2

Europe (excluding the UK)

     38.3        34.7        6.5     6.4

South Africa

     29.7        31.7        5.0     5.8

Rest of world

     34.6        22.9        5.9     4.2
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 587.4      $ 542.8        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, diversified businesses, insurance, shipping and logistics, consulting and professional services, and banking and financial services verticals, partially offset by lower volumes in our travel, and utilities 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 travel, diversified businesses, and banking and financial services verticals. The increase in revenue less repair payments (non-GAAP) from Australia was primarily attributable to a higher volume in our insurance, and consulting and professional services verticals, partially offset by a depreciation of the Australian dollar by an average of 4.5% against the US dollar for the nine months ended December 31, 2018 as compared to the average exchange rate for the nine months ended December 31, 2017, and lower volumes in our travel, shipping and logistics, and diversified businesses 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 1.1% against the US dollar for the nine months ended December 31, 2018 as compared to the average exchange rate for the nine months ended December 31, 2017, partially offset by lower volumes in our utilities, travel, banking and financial services, 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 2.6% against the US dollar for the nine months ended December 31, 2018 as compared to the average exchange rate for the nine months ended December 31, 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:

 

     Nine months ended December 31,        
     2018     2017     Change  
     (US dollars in millions)  

Employee costs

   $ 257.1     $ 246.7     $ 10.4  

Facilities costs

     66.2       63.4       2.8  

Depreciation

     15.0       14.6       0.5  

Repair payments

     11.3       12.5       (1.2

Travel costs

     8.8       9.8       (0.1

Legal and professional costs

     7.4       8.4       (1.0

Other costs

     21.3       19.4       1.9  
  

 

 

   

 

 

   

 

 

 

Total cost of revenue

   $ 387.1     $ 374.7     $ 12.4  
  

 

 

   

 

 

   

 

 

 

As a percentage of revenue

     64.7     67.5  

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 Bangalore, and Nasik, India and China and the addition of new facilities in India at Pune, Vizag, the Philippines, and Spain, higher other costs primarily due to an increase in subcontracting costs, and higher depreciation costs. The increase in cost of revenue was also contributed by an appreciation of the pound sterling against the US dollar by an average of 1.1% for the nine months ended December 31, 2018 as compared to the average exchange rate for the nine months ended December 31, 2017, which resulted in an increase of approximately $0.3 million. These increases were partially offset by lower repair payments, lower legal and professional costs, and lower travel cost. Further, a depreciation of the Indian rupee, South African rand, and Philippine peso against the US dollar by an average of 8.1%, 2.6%, and 5.0%, respectively, for the nine months ended December 31, 2018 as compared to the respective average exchange rates for the nine months ended December 31, 2017 resulted in a decrease of approximately $15.0 million in the cost of revenue.

 

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