SEC Filings

6-K
WNS (HOLDINGS) LTD filed this Form 6-K on 01/31/2019
Entire Document
 


Table of Contents

Gross Profit

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

 

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

Gross profit

   $ 211.5     $ 180.5     $ 31.0  

As a percentage of revenue

     35.3     32.5  

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

     36.0     33.3  

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, partially offset by a decrease in hedging gain on our revenue and revenue less repair payments (non-GAAP) by $8.5 million to a loss of $0.6 million (including a loss of $1.0 million reported in revenue and revenue less repair payments (non-GAAP) due to the adoption of IFRS 9, previously reported in foreign exchange loss / (gains), net) for the nine months ended December 31, 2018 from a gain of $7.9 million for the nine months ended December 31, 2017. 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 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, partially offset 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.

Our built up seats increased by 8.6% from 29,583 as at December 31, 2017 to 32,137 as at December 31, 2018, during which we expanded seating capacities in our existing delivery centers in Bangalore, and Nasik, India and China and added new facilities in Pune and Vizag, India, the Philippines, and Spain. This was part of our strategy to expand our delivery capabilities. Our total headcount increased by 9.1% from 35,657 as at December 31, 2017 to 38,892 as at December 31, 2018, and our seat utilization rate decreased from 1.22 for the nine months ended December 31, 2017 to 1.21 for the nine months ended December 31, 2018. This 0.01 decrease in seat utilization resulted in a decrease in our gross profit as a percentage of revenue and revenue less repair payments (non-GAAP) by approximately 0.14% in the nine months ended December 31, 2018.

Selling and Marketing Expenses

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

 

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

Employee costs

   $ 25.1     $ 22.4     $ 2.7  

Other costs

     8.2       7.6       0.6  
  

 

 

   

 

 

   

 

 

 

Total selling and marketing expenses

   $ 33.3     $ 29.9     $ 3.4  
  

 

 

   

 

 

   

 

 

 

As a percentage of revenue

     5.6     5.4  

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

     5.7     5.5  

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 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 of $0.1 million of selling and marketing expenses, partially offset by a depreciation of the Indian rupee against the US dollar by an average of 8.1% 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 a decrease of approximately of $0.3 million of selling and marketing expenses, lower other miscellaneous costs, and lower legal and professional costs.

 

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