SEC Filings

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


Table of Contents

Operating profit as a percentage of revenue and revenue less repair payments (non-GAAP) is higher due to higher revenues, lower cost of revenue as a percentage of revenue and revenue less repair payments (non-GAAP), and lower general and administrative expenses as a percentage of revenue and revenue less repair payments (non-GAAP), partially offset by lower foreign exchange gains, higher selling and marketing expenses as a percentage of revenue and revenue less repair payments (non-GAAP), and higher amortization of intangible assets.

Other Income, net

The following table sets forth our other income, net for the periods indicated:

 

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

Other income, net

   $ (10.0    $ (7.7    $ (2.3

Other income was higher primarily due to a movement from dividend scheme to growth scheme in relation to our liquid mutual fund investments and higher yield on our cash and cash equivalents and investments.

Finance Expense

The following table sets forth our finance expense for the periods indicated:

 

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

Finance expense

   $ 2.5      $ 3.1      $ (0.6

Finance expense, net decreased primarily on account of principal repayment on loans resulting in lower interest on lower principal amounts outstanding on long term loans taken for the acquisition of Denali and HealthHelp.

Income tax expense

The following table sets forth our income tax expense for the periods indicated:

 

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

Income tax expense

   $ 19.2      $ 8.1      $ 11.1  

The increase in income tax expense was primarily due to higher taxable profits and a non-recurring tax benefit of $1.7 million resulting from a corporate legal entity restructuring for the nine months ended December 2017, and on account of a lower non-recurring tax benefit of $4.8 million due to a benefit of $0.4 million for the nine month ended December 31, 2018 as compared to a benefit of $5.2 million for the nine months ended December 31, 2017 arising from the 2017 US Tax Reforms that reduced US corporate tax rate on our deferred tax balances, which was partially offset by one-time tax credit of $0.9 million on account of recognition of deferred tax asset on past tax losses for the nine months ended December 31, 2018.

Profit after tax

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

 

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

Profit after tax

   $ 75.8     $ 61.9     $ 13.9  

As a percentage of revenue

     12.7     11.1  

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

     12.9     11.4  

The increase in profit after tax was primarily on account of higher operating profit, higher other income, and lower finance expenses, partially offset by an increase in income tax expense as explained above.

 

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