Virtusa (VRTU) 10-Q6 Nov 132014 Q2 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
Document and Entity Information	Sep. 30, 2013	Oct. 30, 2013
Document and Entity Information	'	'
Entity Registrant Name	'VIRTUSA CORP	'
Entity Central Index Key	'0001207074	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--03-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	26,474,505
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Mar. 31, 2013
In Thousands, unless otherwise specified	Sep. 30, 2013	Mar. 31, 2013
Current assets:	'	'
Cash and cash equivalents	$64,939	$57,199
Short-term investments	37,262	29,452
Accounts receivable, net of allowance of $1,322 and $740 at September 30, 2013 and March 31, 2013, respectively	64,295	68,612
Unbilled accounts receivable	17,194	15,702
Prepaid expenses	9,920	7,562
Deferred income taxes	9,515	7,674
Restricted cash	6	350
Other current assets	6,402	8,333
Total current assets	209,533	194,884
Property and equipment, net of accumulated depreciation of $27,336 and $26,618 at September 30, 2013 and March 31, 2013, respectively	32,909	36,775
Long-term investments	8,155	8,319
Deferred income taxes	6,408	9,275
Goodwill	35,472	35,472
Intangible assets, net	14,696	15,692
Other long-term assets	2,916	3,502
Total assets	310,089	303,919
Current liabilities:	'	'
Accounts payable	6,762	9,231
Accrued employee compensation and benefits	19,486	17,683
Accrued expenses and other current liabilities	22,807	17,811
Income taxes payable	1,463	4,509
Total current liabilities	50,518	49,234
Long-term liabilities	8,302	2,478
Total liabilities	58,820	51,712
Commitments and guarantees	'	'
Stockholders' equity:	'	'
Undesignated preferred stock, $0.01 par value: Authorized 5,000,000 shares at September 30, 2013 and March 31, 2013; zero shares issued and outstanding at September 30, 2013 and March 31, 2013	'	'
Common stock, $0.01 par value: Authorized 120,000,000 shares at September 30, 2013 and March 31, 2013; issued 27,462,421 and 27,033,818 shares at September 30, 2013 and March 31, 2013, respectively; outstanding 25,605,718 and 25,177,115 shares at September 30, 2013 and March 31, 2013, respectively	275	270
Treasury stock, 1,856,703 common shares, at cost, at September 30, 2013 and March 31, 2013, respectively	-9,652	-9,652
Additional paid-in capital	177,187	173,056
Retained earnings	122,247	107,247
Accumulated other comprehensive loss	-38,788	-18,714
Total stockholders' equity	251,269	252,207
Total liabilities, undesignated preferred stock and stockholders' equity	$310,089	$303,919

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Mar. 31, 2013
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Mar. 31, 2013
Consolidated Balance Sheets	'	'
Accounts receivable, allowance (in dollars)	$1,322	$740
Property and equipment, accumulated depreciation (in dollars)	$27,336	$26,618
Undesignated preferred stock, par value (in dollars per share)	$0.01	$0.01
Undesignated preferred stock, Authorized shares	5,000,000	5,000,000
Undesignated preferred stock, shares issued	0	0
Undesignated preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$0.01	$0.01
Common stock, Authorized shares	120,000,000	120,000,000
Common stock, issued shares	27,462,421	27,033,818
Common stock, outstanding shares	25,605,718	25,177,115
Treasury stock, common shares	1,856,703	1,856,703

Consolidated_Statements_of_Inc

Consolidated Statements of Income (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Consolidated Statements of Income	'	'	'	'
Revenue	$94,301	$80,535	$184,790	$156,752
Costs of revenue	60,503	52,902	118,305	102,496
Gross profit	33,798	27,633	66,485	54,256
Operating expenses:	'	'	'	'
Selling, general and administrative expenses	24,022	20,204	47,780	39,958
Income from operations	9,776	7,429	18,705	14,298
Other income (expense):	'	'	'	'
Interest income	846	754	1,602	1,469
Foreign currency transaction losses	-959	-490	-573	-49
Other, net	218	-23	212	61
Total other income (expense)	105	241	1,241	1,481
Income before income tax expense	9,881	7,670	19,946	15,779
Income tax expense	2,403	1,907	4,946	3,877
Net income	$7,478	$5,763	$15,000	$11,902
Net income per share of common stock:	'	'	'	'
Basic (in dollars per share)	$0.29	$0.23	$0.59	$0.48
Diluted (in dollars per share)	$0.28	$0.23	$0.57	$0.47

Consolidated_Statements_of_Com

Consolidated Statements of Comprehensive Income (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Consolidated Statements of Comprehensive Income	'	'	'	'
Net income	$7,478	$5,763	$15,000	$11,902
Other comprehensive income (loss):	'	'	'	'
Foreign currency translation adjustments	-2,683	5,729	-10,928	-1,335
Pension plan adjustment	67	-8	143	-16
Unrealized gain (loss) on available-for-sale securities, net of tax	21	15	3	13
Unrealized (loss) gain on effective cash flow hedges, net of tax	-4,382	5,004	-9,292	1,802
Other comprehensive income (loss)	-6,977	10,740	-20,074	464
Comprehensive income (loss)	$501	$16,503	($5,074)	$12,366

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:	'	'
Net income	$15,000	$11,902
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation and amortization	5,153	4,160
Share-based compensation expense	3,530	2,620
Provision for doubtful accounts	639	440
Loss (gain) on sale of property and equipment	19	-110
Foreign currency losses, net	573	49
Excess tax benefits from stock option exercises	-1,783	'
Net change in operating assets and liabilities:	'	'
Accounts receivable and unbilled accounts receivable	2,920	-9,363
Prepaid expenses and other current assets	-1,563	-58
Other long-term assets	-317	-932
Accounts payable	-2,332	-2,921
Accrued employee compensation and benefits	-663	-3,929
Accrued expenses and other current liabilities	-2,826	-828
Income taxes payable	3,680	1,580
Other long-term liabilities	-125	167
Net cash provided by operating activities	21,905	2,777
Cash flows from investing activities:	'	'
Proceeds from sale of property and equipment	56	116
Purchase of short-term investments	-9,104	-5,918
Proceeds from sale or maturity of short-term investments	2,893	4,356
Purchase of long-term investments	-4,886	-5,837
Proceeds from sale or maturity of long-term investments	600	1,050
Decrease in restricted cash	322	2,423
Business acquisition	'	-2,775
Purchase of property and equipment	-3,487	-5,447
Net cash used in investing activities	-13,606	-12,032
Cash flows from financing activities:	'	'
Proceeds from exercise of common stock options	1,675	613
Purchases of common stock	'	-1,408
Principal payments on capital lease obligation	-9	-1,018
Excess tax benefits from stock option exercises	1,783	'
Net cash provided by (used in) financing activities	3,449	-1,813
Effect of exchange rate changes on cash and cash equivalents	-4,008	-441
Net increase (decrease) in cash and cash equivalents	7,740	-11,509
Cash and cash equivalents, beginning of period	57,199	58,105
Cash and cash equivalents, end of period	$64,939	$46,596

Nature_of_Business

Nature of Business	6 Months Ended
Nature of Business	Sep. 30, 2013
Nature of Business	'
Nature of Business	'
	(1) Nature of Business

	Virtusa Corporation (the “Company” or “Virtusa”) is a global information technology services company. The Company uses a global delivery model to provide a broad range of information technology, or IT, services, including IT consulting, technology implementation and application outsourcing. Using its enhanced global delivery model, innovative platforming approach and industry expertise, the Company provides cost-effective services that enable its clients to accelerate time to market, improve service and enhance productivity. Headquartered in Massachusetts, Virtusa has offices in the United States, the United Kingdom, Germany, Austria and Singapore and global delivery centers in Hyderabad, Chennai, Bangalore and Pune, India, Colombo, Sri Lanka, Budapest, Hungary, Kuala Lumpur, Malaysia and Manila, Philippines.

Unaudited_Interim_Financial_In

Unaudited Interim Financial Information	6 Months Ended
Unaudited Interim Financial Information	Sep. 30, 2013
Unaudited Interim Financial Information	'
Unaudited Interim Financial Information	'
	(2) Unaudited Interim Financial Information

	Basis of Presentation

	The accompanying unaudited consolidated financial statements have been prepared by the Company in accordance with U.S. generally accepted accounting principles and Article 10 of Regulation S-X under the Securities and Exchange Act of 1934, as amended, and should be read in conjunction with the Company’s audited consolidated financial statements (and notes thereto) for the fiscal year ended March 31, 2013 included in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission, or SEC, on May 29, 2013. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted pursuant to such SEC rules and regulations. In the opinion of the Company’s management, all adjustments considered necessary for a fair presentation of the accompanying unaudited consolidated financial statements have been included, and all material adjustments are of a normal and recurring nature. Operating results for the interim periods are not necessarily indicative of results that may be expected to occur for the entire fiscal year. Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation.

	Principles of Consolidation

	The consolidated financial statements reflect the accounts of the Company and its direct and indirect subsidiaries: Virtusa (India) Private Limited, Virtusa Consulting Services Private Limited and Virtusa Software Services Private Limited, each organized and located in India; Virtusa (Private) Limited, organized and located in Sri Lanka; Virtusa UK Limited, organized and located in the United Kingdom; Virtusa Securities Corporation, a Massachusetts securities corporation; InSource Holdings, Inc., a company incorporated in the State of Connecticut; InSource LLC, a Connecticut limited liability company located in Connecticut; Virtusa International, B.V., organized and located in the Netherlands; Virtusa Hungary Kft., organized and located in Hungary; Virtusa Germany GmbH, organized and located in Germany; Virtusa Switzerland GmbH, organized and located in Switzerland; Virtusa Singapore Private Limited, organized and located in Singapore; Virtusa Malaysia Private Limited, organized and located in Malaysia; Virtusa Philippines Inc., organized and located in the Philippines and Virtusa Austria GmbH, organized and located in Austria. All intercompany transactions and balances have been eliminated in consolidation.

	Use of Estimates

	The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including the recoverability of tangible assets, disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenue and expenses during the reported period. Management re-evaluates these estimates on an ongoing basis. The most significant estimates relate to the recognition of revenue and profits based on the percentage of completion method of accounting for fixed-price contracts, share-based compensation, income taxes, including reserves for uncertain tax positions, deferred taxes and liabilities and valuation of financial instruments, including derivative contracts and investments. Management bases its estimates on historical experience and on various other factors and assumptions that are believed to be reasonable under the circumstances. The actual amounts may vary from the estimates used in the preparation of the accompanying consolidated financial statements.

	Fair Value of Financial Instruments

	At September 30, 2013 and March 31, 2013, the carrying amounts of the Company’s financial instruments, which included cash and cash equivalents, accounts receivable, unbilled accounts receivable, restricted cash, accounts payable, accrued employee compensation and benefits and other accrued expenses, approximate their fair values due to the nature of the items. In addition, investment securities and derivative instruments are also financial instruments. See Note 5 for a discussion of the fair value of the Company’s other financial instruments.

Net_Income_per_Share

Net Income per Share	6 Months Ended
	Sep. 30, 2013
Net Income per Share	'
Net Income per Share	'
	(3) Net Income per Share

	Basic net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding for the period, and diluted earnings per share is computed by including common stock equivalents outstanding for the period in the denominator. Common stock equivalents include shares issuable upon the exercise of outstanding stock options and stock appreciation rights (“SARs”) and unvested shares of restricted stock and, in the case of options and SARs, net of shares assumed to have been purchased with the proceeds, using the treasury stock method. The following table sets forth the computation of basic and diluted net income per share for the periods set forth below:

		Three Months Ended				Six Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
	Numerators:
	Net income	$	7,478	$	5,763	$	15,000	$	11,902
	Denominators:
	Weighted average common shares outstanding	25,553,237		24,886,477		25,423,169		24,846,056
	Dilutive effect of employee stock options and unvested restricted stock	741,771		613,474		791,640		636,807
	Dilutive effect of stock appreciation rights	14,390		18,289		15,430		19,230
	Weighted average shares-diluted	26,309,398		25,518,240		26,230,239		25,502,093
	Net income per share-basic	$	0.29	$	0.23	$	0.59	$	0.48
	Net income per share-diluted	$	0.28	$	0.23	$	0.57	$	0.47

	During the three and six months ended September 30, 2013, options to purchase 26,204 and 71,795 shares of common stock, respectively, were excluded from the calculations of diluted earnings per share as their effect would have been anti-dilutive.

	During the three and six months ended September 30, 2012, options to purchase 586,191 and 527,449 shares of common stock, respectively, were excluded from the calculations of diluted earnings per share as their effect would have been anti-dilutive.

Investment_Securities

Investment Securities	6 Months Ended
	Sep. 30, 2013
Investment Securities	'
Investment Securities	'
	(4) Investment Securities

	At September 30, 2013 and March 31, 2013, all of the Company’s investment securities were classified as available-for-sale and were carried on its balance sheet at their fair market value. The Company used a fair market value hierarchy based on three levels of inputs was used to measure each security (see Note 5).

	The following is a summary of investment securities at September 30, 2013:

		Amortized		Gross		Gross			Fair
		Cost		Unrealized		Unrealized			Value
				Gains		Losses
	Available-for-sale securities:
	Corporate bonds:
	Current	$	8,125	$	4	$	(2	)	$	8,127
	Non-current	6,847		1		(7		)	6,841
	Auction-rate securities:
	Non-current	300		—		(3		)	297
	Agency and short-term notes:
	Current	156		—		—			156
	Non-current	1,016		1		—			1,017
	Time deposits:
	Current	28,979		—		—			28,979
	Total available-for-sale securities	$	45,423	$	6	$	(12	)	$	45,417

	The following is a summary of investment securities at March 31, 2013:

		Amortized		Gross		Gross			Fair
		Cost		Unrealized		Unrealized			Value
				Gains		Losses
	Available-for-sale securities:
	Corporate bonds:
	Current	$	6,846	$	4	$	(2	)	$	6,848
	Non-current	6,246		3		(7		)	6,242
	Auction-rate securities:
	Non-current	900		—		(7		)	893
	Agency and short-term notes:
	Non-current	1,184		—		—			1,184
	Time deposits:
	Current	22,604		—		—			22,604
	Total available-for-sale securities	$	37,780	$	7	$	(16	)	$	37,771

	The Company evaluates investments with unrealized losses to determine if the losses are other than temporary. The Company has determined that the gross unrealized losses at September 30, 2013 and March 31, 2013 are temporary. In making this determination, the Company considered the financial condition, credit ratings and near-term prospects of the issuers, the underlying collateral of the investments, and the magnitude of the losses as compared to the cost and the length of time the investments have been in an unrealized loss position. Additionally, while the Company classifies the securities as available for sale, the Company does not currently intend to sell such investments and it is more likely than not that the Company will not be required to sell such investments prior to the recovery of their carrying value, except as disclosed in Note 5.

Fair_Value_of_Financial_Instru

Fair Value of Financial Instruments	6 Months Ended
Fair Value of Financial Instruments	Sep. 30, 2013
Fair Value of Financial Instruments	'
Fair Value of Financial Instruments	'
	(5) Fair Value of Financial Instruments

	The Company uses a framework for measuring fair value under U.S. generally accepted accounting principles and enhanced disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company’s financial assets and liabilities reflected in the consolidated financial statements at carrying value include marketable securities and other financial instruments which approximate fair value. Fair value for marketable securities is determined using a market approach based on quoted market prices at period end in active markets. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following:

	· Level 1—Quoted prices in active markets for identical assets or liabilities.

	· Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

	· Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

	The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis at September 30, 2013:

		Level 1			Level 2		Level 3		Total
	Assets:
	Investments:
	Available-for-sales securities—current	$	—		$	37,262	$	—	$	37,262
	Available-for-sales securities—non-current	—			7,858		297		8,155
	Total assets	$	—		$	45,120	$	297	$	45,417
	Liabilities:
	Foreign currency derivative contracts	$	—		$	15,407	$	—	$	15,407
	Total liabilities	$	—		$	15,407	$	—	$	15,407

	The Company’s investments in auction-rate securities (see Note 4), which are listed in the table above under the column “Level 3” under “Investments: Available-for-sale securities—non-current”, are classified within Level 3 because there are currently no active markets or observable market prices. Therefore, the auction-rate securities were valued primarily based on an income approach using an estimate of future cash flows. The Company has estimated the fair value using a discounted cash flow analysis which considered the following key inputs: (i) the underlying structure and maturity of each security; (ii) the timing of expected future principal and interest payments; and (iii) discount rates that are believed to reflect current market conditions and the relevant risk associated with each security. The underlying assets of these auction-rate securities are generally student loans which are substantially backed by the U.S. federal government. In February 2008, auctions began to fail for these securities and each auction since then has failed. The Company classifies its investment in auction-rate securities as long-term investments, reflecting the fact that the Company’s auction-rate securities have underlying final maturities of greater than one year.

	The following table provides a summary of changes in fair value of the Company’s Level 3 financial assets at September 30, 2013:

		Level 3
		Assets
	Balance at April 1, 2013	$	893
	Auction-rate securities redeemed at par	(600		)
	Total unrealized gains:
	Included in accumulated other comprehensive income	4
	Balance at September 30, 2013	$	297

Derivative_Financial_Instrumen

Derivative Financial Instruments	6 Months Ended
Derivative Financial Instruments	Sep. 30, 2013
Derivative Financial Instruments	'
Derivative Financial Instruments	'
	(6) Derivative Financial Instruments

	The Company evaluates its foreign exchange policy on an ongoing basis to assess its ability to address foreign exchange exposures on its consolidated balance sheets, statements of income and consolidated statement of cash flows from foreign currencies, including most significantly, the U.K. pound sterling, the Indian rupee and the Sri Lankan rupee. The Company enters into hedging contracts in accordance with its foreign exchange policy (as approved by the Company’s audit committee and board of directors) which permits hedging of material, known foreign currency exposures. Currently, the Company maintains three hedging programs, each with varying contract types, durations and purposes. The Company’s “Cash Flow Program” is designed to mitigate the impact of volatility in the U.S. dollar equivalent of the Company’s Indian rupee denominated expenses over a rolling 36-month period. The Cash Flow Program transactions currently meet the criteria for hedge accounting as cash flow hedges. The Company’s “Balance Sheet Program” involves the use of 30-day derivative instruments designed to mitigate the monthly impact of foreign exchange gains/losses on certain intercompany balances and payments. The Company’s “U.K. Revenue and Cost Program” involves the purchase of derivative instruments with maturities of up to 92 days and is designed to mitigate the impact of foreign exchange on U.K. pound sterling denominated revenue and costs in the quarter in which such instruments are purchased. The Company’s Balance Sheet Program and U.K. Revenue and Cost Program do not meet the criteria for hedge accounting and all gains and losses are recognized in consolidated statement of income under the same line item as the underlying exposure being hedged.

	The Company evaluates all of its derivatives based on market observable inputs, including both forward and spot prices for currencies. Any significant change in the forward or spot prices for hedged currencies would have a significant impact on the value of the Company’s derivatives. Changes in fair value of the designated cash flow hedges for the Company’s Cash Flow Program are recorded as a component of accumulated other comprehensive income (loss) (“AOCI”), net of tax, until the forecasted hedged transactions occur and are then recognized in the consolidated statement of income in the same line item as the item being hedged. The Company evaluates hedge effectiveness at the time a contract is entered into, as well as on an ongoing basis. If, and when, all or part of a hedge relationship is discontinued because the forecasted transaction is deemed probable of not occurring by the end of the originally specified period or within an additional two-month period of time thereafter, the contract, or the relative amount of the contract, is deemed “ineffective” and any related derivative amounts recorded in equity are reclassified to earnings. There were no gains (losses) that were reclassified from AOCI into earnings as a result of forecasted transactions that were considered probable of not occurring for the six month periods ended September 30, 2013 and 2012.

	Changes in the fair value of the derivatives purchased under the Balance Sheet Program are reflected in the Company’s consolidated statement of income and are included in foreign currency transaction gains (losses) for each period. Changes in the fair value of the derivatives purchased under the U.K. Revenue and Cost Program are also reflected in the Company’s consolidated statement of income and are included in the same line item as the underlying exposure being hedged for each period.

	The U.S. dollar notional equivalent market value, which consists of the notional value and net unrealized gain or loss, of all outstanding foreign currency derivative contracts, was $89,658 and $96,630, at September 30, 2013 and March 31, 2013, respectively. Unrealized net losses related to these contracts which are expected to be reclassified from AOCI to earnings during the next 12 months were $8,721 at September 30, 2013. At September 30, 2013, the maximum outstanding term of any derivative instrument was 33 months.

	The following table sets forth the fair value of derivative instruments included in the consolidated balance sheets at September 30, 2013 and March 31, 2013:

	Derivatives designated as hedging instruments

		September 30, 2013			March 31, 2013
	Foreign currency exchange contracts:
	Other current assets	$	—		$	884
	Other long-term assets	$	—		$	415
	Accrued expenses and other current liabilities	$	8,721		$	2,142
	Long-term liabilities	$	6,686		$	946

	The following tables set forth the effect of the Company’s foreign currency exchange contracts on the consolidated financial statements of the Company for the three and six months ended September 30, 2013 and 2012:

		Amount of Gain or (Loss) Recognized in AOCI on Derivative
		(Effective Portion)
	Derivatives Designated as Cash Flow	Three months ended September 30,						Six months ended September 30,
	Hedging Relationships	2013			2012			2013			2012
	Foreign currency exchange contracts	$	(8,579	)	$	4,682		$	(16,965	)	$	(1,839	)


	Location of Gain or (Loss) Reclassified	Amount of Gain or (Loss) Reclassified from AOCI into Income
	Location of Gain or (Loss) Reclassified	(Effective Portion)
	from AOCI into Income (Effective	Three months ended September 30,						Six months ended September 30,
	Portion)	2013			2012			2013			2012
	Costs of revenue	$	(1,463	)	$	(1,514	)	$	(2,057	)	$	(2,810	)
	Operating expenses	$	(905	)	$	(804	)	$	(1,290	)	$	(1,544	)

				Amount of Gain or (Loss) Recognized in Income on Derivatives
	Derivatives not Designated	Location of Gain or (Loss)		Three months ended						Six months ended
	Derivatives not Designated	Location of Gain or (Loss)		September 30,						September 30,
	as Hedging Instrument	Recognized in Income on Derivatives		2013			2012			2013			2012
	Foreign currency exchange contracts	Foreign currency transaction gains (losses)		$	(1,845	)	$	762		$	(3,454	)	$	(475	)
		Revenue		$	(379	)	$	(132	)	$	(480	)	$	(149	)
		Costs of revenue		$	130		$	90		$	184		$	105
		Selling, general and administrative expenses		$	17		$	10		$	21		$	11

Income_Taxes

Income Taxes	6 Months Ended
Income Taxes	Sep. 30, 2013
Income Taxes	'
Income Taxes	'
	(7) Income Taxes

	The Company’s effective tax rate was 24.3% and 24.8% for the three and six months ended September 30, 2013, as compared to an effective tax rate of 24.9% and 24.6% for the three and six months ended September 30, 2012. The decrease in the effective tax rate for three months ended September 30, 2013 was primarily due to certain discrete tax benefits recognized during the period. The marginal increase in the effective tax rate for the six months ended September 30, 2013 was due to the partial expiration of certain Special Economic Zone (SEZ) tax holidays, partially offset by savings generated from new SEZ tax holiday incentives located in Bangalore, India and effective for the fiscal year ending March 31, 2014.

	One of the Company’s Indian subsidiaries, Virtusa (India) Private Limited (“Virtusa India”), is an export oriented company. The Indian Income Tax Act of 1961 entitles taxpayers to claim tax exemption for a period of ten consecutive years for each Software Technology Park (“STP”) that it operates. Virtusa India operates two STPs, one in Chennai and one in Hyderabad, India. The STP tax holiday in Hyderabad, India expired on March 31, 2010 and the STP tax holiday in Chennai, India expired on March 31, 2011. For the three and six months ended September 30, 2013 and 2012, all profits in the STPs in Hyderabad and Chennai, India were fully taxable at the Indian statutory tax rate of 34.0% and 32.5%, respectively. In anticipation of, and to mitigate the impact of, the phase-out of the STP tax holidays in Hyderabad and Chennai, India, the Company located new Indian operations in areas designated as a SEZ under the SEZ Act of 2005 through two operating subsidiaries, Virtusa Software Services Private Limited and Virtusa Consulting Services Private Limited. The Company’s profits from its SEZ operations are eligible for certain additional income tax exemptions for a period of up to 15 years based on export income.

	In addition, the Company’s Sri Lankan subsidiary, Virtusa (Private) Limited, is operating under a 12-year income tax holiday arrangement that is set to expire on March 31, 2019 and required Virtusa (Private) Limited to meet certain job creation and investment criteria by March 31, 2013. During the fiscal year ended March 31, 2013, the Company fulfilled its hiring and investment commitments and is eligible for tax holiday benefits through March 2019. The current agreement provides income tax exemption for all export business income. On June 12, 2013, the Sri Lankan Board of Investment (“BOI”) certified the Company has met required hiring and investment commitments to receive tax benefits for the fiscal year ended March 31, 2013. The BOI requires the Company to maintain such job additions through at least March 31, 2014 and receive annual certifications in order to receive future benefits. The Company believes it will continue to meet the job retention target. At September 30, 2013, the Company believes it is eligible for the entire 12-year tax holiday.

	The Company’s effective income tax rate is based on the composition of estimated income in different jurisdictions, including those where the Company is enjoying tax holidays, for the applicable fiscal year and adjustments, if any, in the applicable quarterly periods, for unrecognized tax benefits for uncertain income tax positions or other discrete items required to be reported during interim periods. The Company’s aggregate income tax rate in foreign jurisdictions is lower than its income tax rate in the United States due primarily to lower rates generally in jurisdictions in which the Company operates and tax holidays.

	Unrecognized tax benefits represent uncertain tax positions for which the Company has established reserves. At September 30, 2013 and March 31, 2013, the total liability for unrecognized tax benefits was $939 and $4,823, respectively, of which, a portion would impact the annual effective rate, if realized. Each fiscal year, unrecognized tax benefits may be adjusted upon the closing of the statute of limitations for income tax returns filed in various jurisdictions. During the six months ended September 30, 2013, the unrecognized tax benefits decreased by $3,884. The decrease in the unrecognized tax benefits during the six months ended September 30, 2013 is due to filing a change in accounting method for tax purposes requiring presentation as a deferred tax liability. The decrease in unrecognized tax benefits had no impact on the statement of operations.

	The Company files U.S. federal income tax returns as well as income tax returns in various states and foreign jurisdictions. Recently, the IRS conducted a routine audit of the Company’s fiscal years 2008 to 2011, pursuant to which the IRS made certain assessments. In connection with the audit, during the fourth quarter of fiscal year 2013, the Company executed a settlement arrangement with the IRS for all periods under audit to close out the audit. The Company had fully accrued for all such assessments and the settlement impact on the Company’s financial statements is properly reflected at September 30, 2013. The Company’s U.S. tax return for fiscal year 2012 is currently under examination. In addition, tax returns for various fiscal years are under examination by tax authorities of foreign jurisdictions. Currently, several issues are at various levels of appeal with the Indian tax authorities or tribunal court. While it is difficult to predict the final outcome, the Company believes its reserves represent the most likely outcome and continues to evaluate all tax return positions.

	Undistributed Earnings of Foreign Subsidiaries

	A substantial amount of the Company’s income before provision for income tax is from operations earned in its Indian and Sri Lankan subsidiaries subject to tax holiday. The Company intends to use accumulated and future earnings of foreign subsidiaries to expand operations outside the United States and accordingly, undistributed income is considered to be indefinitely reinvested. The Company does not provide for U.S. income taxes on foreign earnings. At September 30, 2013, the Company had $144.8 million of unremitted earnings from foreign subsidiaries and approximately $72.5 million of cash and short-term investments that would otherwise be available for potential distribution, if not indefinitely reinvested. Due to the various methods by which such earnings could be repatriated in the future, the amount of taxes attributable to the undistributed earnings is not practicably determinable.

Concentration_of_Revenue_and_A

Concentration of Revenue and Assets	6 Months Ended
Concentration of Revenue and Assets	Sep. 30, 2013
Concentration of Revenue and Assets	'
Concentration of Revenue and Assets	'
	(8) Concentration of Revenue and Assets

	Total revenue is attributed to geographic areas based on location of the client. Long-lived assets represent property, plant and equipment, intangible assets and goodwill, net of accumulated depreciation and amortization, and are attributed to geographic area based on their location. Geographic information is summarized as follows:

		Three Months Ended						Six Months Ended
		September 30,						September 30,
		2013			2012			2013		2012
	Client revenue:
	North America	$	67,740		$	63,353		$	135,006	$	123,135
	Europe	21,484			13,751			39,823		27,182
	Rest of world	5,077			3,431			9,961		6,435
	Consolidated revenue	$	94,301		$	80,535		$	184,790	$	156,752

		September 30,			March 31,
		2013			2013
	Long-lived assets, net of accumulated depreciation and amortization:
	United States	$	52,283		$	53,228
	Asia	30,119			34,367
	Europe	675			344
	Consolidated long-lived assets, net	$	83,077		$	87,939

	Revenue from significant clients as a percentage of the Company’s consolidated revenue was as follows:

		Three Months Ended				Six Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
	Customer 1	13.7	%	12.1	%	13.6	%	12	%
	Customer 2	12.6	%	9.2	%	11.9	%	9.7	%
	Customer 3	9.7	%	15.1	%	11.6	%	15	%

Debt

Debt	6 Months Ended
Debt	Sep. 30, 2013
Debt	'
Debt	'
	(9) Debt

	On July 31, 2013, the Company entered into an amendment to its $3,000 credit agreement with J.P. Morgan Chase Bank, N.A. to extend the expiration date until July 31, 2016. The primary purpose of this credit agreement is to support the Company’s foreign currency hedging programs. The credit agreement contains financial and reporting covenants and limitations. The Company is currently in compliance with all covenants contained in the credit agreement and believes that the credit agreement provides sufficient flexibility to enable continued compliance with its terms. Advances under the credit agreement accrue interest at an annual rate equal to LIBOR plus 2.5% or Prime Rate plus 2.5%.

	Beginning in fiscal 2009, the Company’s U.K. subsidiary entered into an agreement with a financial institution to sell, without recourse, certain of its Europe-based accounts receivable balances to the financial institution. During the six months ended September 30, 2013, $14,849 of receivables was sold under the terms of the financing agreement. Fees paid pursuant to this agreement were immaterial during the three and six months ended September 30, 2013. No amounts were outstanding under the financing agreement at September 30, 2013, but the Company may elect to use this program again in future periods. However, the Company cannot provide any assurances that this or any other financing facilities will be available or used in the future.

Pensions_and_postretirement_be

Pensions and post-retirement benefits	6 Months Ended
	Sep. 30, 2013
Pensions and post-retirement benefits	'
Pensions and post-retirement benefits	'
	(10) Pensions and post-retirement benefits

	The Company has noncontributory defined benefit plans covering its employees in India and Sri Lanka as mandated by the Indian and Sri Lankan governments. The following tables provide information regarding pension expense recognized:

		Three Months Ended						Six Months Ended
		September 30,						September 30,
		2013			2012			2013			2012
	Components of net periodic pension cost
	Service cost	$	128		$	112		$	268		$	226
	Interest cost	50			44			104			89
	Expected return on plan assets	(51		)	(46		)	(106		)	(93		)
	Amortization past service cost	2			3			5			6
	Amortization of actuarial loss	22			1			45			3
	Net periodic pension cost	$	151		$	114		$	316		$	231

	The Company expects to contribute approximately $411 in cash to the pension plans during the fiscal year ending March 31, 2014. During the six months ended September 30, 2013, the Company made cash contributions of $411 towards its plan for the fiscal year ended March 31, 2013 and $323 towards the plan for the fiscal year ended March 31, 2014.

Accumulated_Other_Comprehensiv

Accumulated Other Comprehensive Loss	6 Months Ended
	Sep. 30, 2013
Accumulated Other Comprehensive Loss	'
Accumulated Other Comprehensive Loss	'
	(11) Accumulated Other Comprehensive Loss

	Accumulated Other Comprehensive Income (Loss)	Three Months Ended						Six Months Ended
		September 30,						September 30,
	(In thousands, except per share amounts)	2013			2012			2013			2012
	Investment securities
	Beginning balance	$	(21	)	$	(10	)	$	(3	)	$	(8	)
	Other comprehensive income (loss) (OCI) before reclassifications net of tax of $0 for all periods	21			14			(3		)	11
	Reclassifications from OCI to other income — net of tax of $0 for all periods	—			1			6			2
	Comprehensive income (loss) on investment securities, net of tax of $0 for all periods	21			15			3			13

	Closing Balance	$	—		$	5		$	—		$	5

	Currency Translation Adjustments
	Beginning balance	$	(25,163	)	$	(20,173	)	$	(16,918	)	$	(13,109	)
	OCI before reclassifications	(2,683		)	5,729			(10,928		)	(1,335		)

	Closing Balance	$	(27,846	)	$	(14,444	)	$	(27,846	)	$	(14,444	)

	Cash Flow Hedges
	Beginning balance	$	(5,923	)	$	(7,726	)	$	(1,013	)	$	(4,524	)
	OCI before reclassifications net of tax of $(2,647), $1,384, $(5,503) and $(405)	(5,932		)	3,298			(11,462		)	(1,434		)
	Reclassifications from OCI to
	- Costs of revenue, net of tax of $505, $398, $724 and $720	958			1,116			1,333			2,090
	- Selling, general and administrative expenses, net of tax of $313, $214, $454 and $398	592			590			837			1,146
	Comprehensive income (loss) on cash flow hedges, net of tax of $(1,829), $1,996, ($4,326) and $717	(4,382		)	5,004			(9,292		)	1,802

	Closing Balance	$	(10,305	)	$	(2,722	)	$	(10,305	)	$	(2,722	)

	Benefit plans
	Beginning balance	$	(704	)	$	(710	)	$	(780	)	$	(702	)
	Reclassifications from OCI for prior service credit (cost) to:
	- Costs of revenue, net of tax of $0 for all periods	2			2			4			4
	- Selling, general and administrative expenses, net of tax of $0 for all periods	1			1			2			2

	Reclassifications from OCI for net actuarial gain (loss) amortization to:
	- Costs of revenue, net of tax of $0 for all periods	17			(8		)	35			(15		)
	- Selling, general and administrative expenses, net of tax of $0 for all periods	5			(3		)	10			(7		)
	Other adjustments	42			—			92			—
	Comprehensive income (loss) on benefit plans, net of tax of $0 for all periods	67			(8		)	143			(16		)

	Closing Balance	$	(637	)	$	(718	)	$	(637	)	$	(718	)
	Accumulated other comprehensive income (loss) at September 30, 2013	$	(38,788	)	$	(17,879	)	$	(38,788	)	$	(17,879	)

Subsequent_Events

Subsequent Events	6 Months Ended
Subsequent Events	Sep. 30, 2013
Subsequent Events	'
Subsequent Events	'
	(12) Subsequent Events

	On November 1, 2013, the Company acquired the business and assets of OSB Consulting LLC, a New Jersey limited liability company (“OSB”), pursuant to an Asset Purchase Agreement (the “Asset Purchase Agreement”) by and among OSB and the sole member of OSB (the “Sole Member”), dated as of November 1, 2013. The acquisition of OSB extends the Company’s service offerings to include a broader set of finance transformation services in the financial services and insurance domains, to existing and new clients, including service offerings targeted to enable clients to automate their finance and accounting processes, reporting capabilities, including SAP based capabilities, and regulatory compliance programs.

	The purchase price was approximately $7.0 million in cash. Approximately 10% of the purchase price is subject to a hold back by the Company for a period of 12 months as security for the sellers’ indemnification obligations under the Asset Purchase Agreement. The purchase price is subject to adjustment after the closing of up to an additional $6.0 million in earn-out consideration, in the aggregate, upon the achievement of certain revenue and operating margin targets for the five months ending March 31, 2014, the nine months ending December 31, 2014 and the twelve months ending December 31, 2015.

	Under the terms of the Asset Purchase Agreement, the Company agreed to offer employment to all of the employees of OSB, including certain key employees and the sole member of OSB.

	On October 29, 2013, the Company purchased multiple foreign currency forward contracts designed to hedge fluctuation in the Indian rupee against the U.S. dollar and U.K. pound sterling. The U.S dollar contracts have an aggregate notional amount of approximately 657,369 Indian rupees (approximately $9,784) and have an average settlement rate of 67.25 Indian rupees. The U.K. pound sterling contracts have an aggregate notional amount of approximately 471,798, Indian rupees (approximately £4,383) and have an average settlement rate of 108.00 Indian rupees. These contracts will expire at various dates during the 36 month period ending on September 30, 2016.

	On October 1, 2013 the Company purchased multiple foreign currency forward contracts designed to hedge fluctuation in the U.K. pound sterling against the U.S. dollar. The contracts have an aggregate notional amount of approximately £4,177 (approximately $6,733) and will expire on various dates during the period ending December 31, 2013. The weighted average U.K. pound sterling settlement rate associated with these contracts is approximately $1.612.

Unaudited_Interim_Financial_In1

Unaudited Interim Financial Information (Policies)	6 Months Ended
Unaudited Interim Financial Information (Policies)	Sep. 30, 2013
Unaudited Interim Financial Information	'
Basis of Presentation	'
	Basis of Presentation

	The accompanying unaudited consolidated financial statements have been prepared by the Company in accordance with U.S. generally accepted accounting principles and Article 10 of Regulation S-X under the Securities and Exchange Act of 1934, as amended, and should be read in conjunction with the Company’s audited consolidated financial statements (and notes thereto) for the fiscal year ended March 31, 2013 included in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission, or SEC, on May 29, 2013. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted pursuant to such SEC rules and regulations. In the opinion of the Company’s management, all adjustments considered necessary for a fair presentation of the accompanying unaudited consolidated financial statements have been included, and all material adjustments are of a normal and recurring nature. Operating results for the interim periods are not necessarily indicative of results that may be expected to occur for the entire fiscal year. Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation.
Principles of Consolidation	'
	Principles of Consolidation

	The consolidated financial statements reflect the accounts of the Company and its direct and indirect subsidiaries: Virtusa (India) Private Limited, Virtusa Consulting Services Private Limited and Virtusa Software Services Private Limited, each organized and located in India; Virtusa (Private) Limited, organized and located in Sri Lanka; Virtusa UK Limited, organized and located in the United Kingdom; Virtusa Securities Corporation, a Massachusetts securities corporation; InSource Holdings, Inc., a company incorporated in the State of Connecticut; InSource LLC, a Connecticut limited liability company located in Connecticut; Virtusa International, B.V., organized and located in the Netherlands; Virtusa Hungary Kft., organized and located in Hungary; Virtusa Germany GmbH, organized and located in Germany; Virtusa Switzerland GmbH, organized and located in Switzerland; Virtusa Singapore Private Limited, organized and located in Singapore; Virtusa Malaysia Private Limited, organized and located in Malaysia; Virtusa Philippines Inc., organized and located in the Philippines and Virtusa Austria GmbH, organized and located in Austria. All intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates	'
	Use of Estimates

	The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including the recoverability of tangible assets, disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenue and expenses during the reported period. Management re-evaluates these estimates on an ongoing basis. The most significant estimates relate to the recognition of revenue and profits based on the percentage of completion method of accounting for fixed-price contracts, share-based compensation, income taxes, including reserves for uncertain tax positions, deferred taxes and liabilities and valuation of financial instruments, including derivative contracts and investments. Management bases its estimates on historical experience and on various other factors and assumptions that are believed to be reasonable under the circumstances. The actual amounts may vary from the estimates used in the preparation of the accompanying consolidated financial statements.
Fair Value of Financial Instruments	'
	Fair Value of Financial Instruments

	At September 30, 2013 and March 31, 2013, the carrying amounts of the Company’s financial instruments, which included cash and cash equivalents, accounts receivable, unbilled accounts receivable, restricted cash, accounts payable, accrued employee compensation and benefits and other accrued expenses, approximate their fair values due to the nature of the items. In addition, investment securities and derivative instruments are also financial instruments. See Note 5 for a discussion of the fair value of the Company’s other financial instruments.

Net_Income_per_Share_Tables

Net Income per Share (Tables)	6 Months Ended
	Sep. 30, 2013
Net Income per Share	'
Schedule of computation of basic and diluted net income per share	'


		Three Months Ended				Six Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
	Numerators:
	Net income	$	7,478	$	5,763	$	15,000	$	11,902
	Denominators:
	Weighted average common shares outstanding	25,553,237		24,886,477		25,423,169		24,846,056
	Dilutive effect of employee stock options and unvested restricted stock	741,771		613,474		791,640		636,807
	Dilutive effect of stock appreciation rights	14,390		18,289		15,430		19,230
	Weighted average shares-diluted	26,309,398		25,518,240		26,230,239		25,502,093
	Net income per share-basic	$	0.29	$	0.23	$	0.59	$	0.48
	Net income per share-diluted	$	0.28	$	0.23	$	0.57	$	0.47

Investment_Securities_Tables

Investment Securities (Tables)	6 Months Ended
	Sep. 30, 2013
Investment Securities	'
Schedule of investment securities	'
	The following is a summary of investment securities at September 30, 2013:

		Amortized		Gross		Gross			Fair
		Cost		Unrealized		Unrealized			Value
				Gains		Losses
	Available-for-sale securities:
	Corporate bonds:
	Current	$	8,125	$	4	$	(2	)	$	8,127
	Non-current	6,847		1		(7		)	6,841
	Auction-rate securities:
	Non-current	300		—		(3		)	297
	Agency and short-term notes:
	Current	156		—		—			156
	Non-current	1,016		1		—			1,017
	Time deposits:
	Current	28,979		—		—			28,979
	Total available-for-sale securities	$	45,423	$	6	$	(12	)	$	45,417

	The following is a summary of investment securities at March 31, 2013:

		Amortized		Gross		Gross			Fair
		Cost		Unrealized		Unrealized			Value
				Gains		Losses
	Available-for-sale securities:
	Corporate bonds:
	Current	$	6,846	$	4	$	(2	)	$	6,848
	Non-current	6,246		3		(7		)	6,242
	Auction-rate securities:
	Non-current	900		—		(7		)	893
	Agency and short-term notes:
	Non-current	1,184		—		—			1,184
	Time deposits:
	Current	22,604		—		—			22,604
	Total available-for-sale securities	$	37,780	$	7	$	(16	)	$	37,771

Fair_Value_of_Financial_Instru1

Fair Value of Financial Instruments (Tables)	6 Months Ended
Fair Value of Financial Instruments (Tables)	Sep. 30, 2013
Fair Value of Financial Instruments	'
Schedule of financial assets and liabilities measured at fair value on a recurring basis	'


		Level 1			Level 2		Level 3		Total
	Assets:
	Investments:
	Available-for-sales securities—current	$	—		$	37,262	$	—	$	37,262
	Available-for-sales securities—non-current	—			7,858		297		8,155
	Total assets	$	—		$	45,120	$	297	$	45,417
	Liabilities:
	Foreign currency derivative contracts	$	—		$	15,407	$	—	$	15,407
	Total liabilities	$	—		$	15,407	$	—	$	15,407
Schedule of changes in fair value of Level 3 financial assets	'


		Level 3
		Assets
	Balance at April 1, 2013	$	893
	Auction-rate securities redeemed at par	(600		)
	Total unrealized gains:
	Included in accumulated other comprehensive income	4
	Balance at September 30, 2013	$	297

Derivative_Financial_Instrumen1

Derivative Financial Instruments (Tables)	6 Months Ended
Derivative Financial Instruments (Tables)	Sep. 30, 2013
Derivative Financial Instruments	'
Schedule of fair value of derivative instruments included in the consolidated balance sheets	'


		September 30, 2013			March 31, 2013
	Foreign currency exchange contracts:
	Other current assets	$	—		$	884
	Other long-term assets	$	—		$	415
	Accrued expenses and other current liabilities	$	8,721		$	2,142
	Long-term liabilities	$	6,686		$	946
Schedule of effect of the foreign currency exchange contracts on the consolidated financial statements	'


		Amount of Gain or (Loss) Recognized in AOCI on Derivative
		(Effective Portion)
	Derivatives Designated as Cash Flow	Three months ended September 30,						Six months ended September 30,
	Hedging Relationships	2013			2012			2013			2012
	Foreign currency exchange contracts	$	(8,579	)	$	4,682		$	(16,965	)	$	(1,839	)


	Location of Gain or (Loss) Reclassified	Amount of Gain or (Loss) Reclassified from AOCI into Income
	Location of Gain or (Loss) Reclassified	(Effective Portion)
	from AOCI into Income (Effective	Three months ended September 30,						Six months ended September 30,
	Portion)	2013			2012			2013			2012
	Costs of revenue	$	(1,463	)	$	(1,514	)	$	(2,057	)	$	(2,810	)
	Operating expenses	$	(905	)	$	(804	)	$	(1,290	)	$	(1,544	)

				Amount of Gain or (Loss) Recognized in Income on Derivatives
	Derivatives not Designated	Location of Gain or (Loss)		Three months ended						Six months ended
	Derivatives not Designated	Location of Gain or (Loss)		September 30,						September 30,
	as Hedging Instrument	Recognized in Income on Derivatives		2013			2012			2013			2012
	Foreign currency exchange contracts	Foreign currency transaction gains (losses)		$	(1,845	)	$	762		$	(3,454	)	$	(475	)
		Revenue		$	(379	)	$	(132	)	$	(480	)	$	(149	)
		Costs of revenue		$	130		$	90		$	184		$	105
		Selling, general and administrative expenses		$	17		$	10		$	21		$	11

Concentration_of_Revenue_and_A1

Concentration of Revenue and Assets (Tables)	6 Months Ended
Concentration of Revenue and Assets (Tables)	Sep. 30, 2013
Concentration of Revenue and Assets	'
Schedule of revenue attributed to geographic areas based on location of the client	'


		Three Months Ended						Six Months Ended
		September 30,						September 30,
		2013			2012			2013		2012
	Client revenue:
	North America	$	67,740		$	63,353		$	135,006	$	123,135
	Europe	21,484			13,751			39,823		27,182
	Rest of world	5,077			3,431			9,961		6,435
	Consolidated revenue	$	94,301		$	80,535		$	184,790	$	156,752
Schedule of long-lived assets, net of accumulated depreciation and amortization attributed to geographic areas based on location of assets	'
		September 30,			March 31,
		2013			2013
	Long-lived assets, net of accumulated depreciation and amortization:
	United States	$	52,283		$	53,228
	Asia	30,119			34,367
	Europe	675			344
	Consolidated long-lived assets, net	$	83,077		$	87,939

Schedule of revenue from significant clients as a percentage of consolidated revenue	'

		Three Months Ended				Six Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
	Customer 1	13.7	%	12.1	%	13.6	%	12	%
	Customer 2	12.6	%	9.2	%	11.9	%	9.7	%
	Customer 3	9.7	%	15.1	%	11.6	%	15	%

Pensions_and_postretirement_be1

Pensions and post-retirement benefits (Tables)	6 Months Ended
	Sep. 30, 2013
Pensions and post-retirement benefits	'
Schedule of pension expense recognized	'


		Three Months Ended						Six Months Ended
		September 30,						September 30,
		2013			2012			2013			2012
	Components of net periodic pension cost
	Service cost	$	128		$	112		$	268		$	226
	Interest cost	50			44			104			89
	Expected return on plan assets	(51		)	(46		)	(106		)	(93		)
	Amortization past service cost	2			3			5			6
	Amortization of actuarial loss	22			1			45			3
	Net periodic pension cost	$	151		$	114		$	316		$	231

Accumulated_Other_Comprehensiv1

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Sep. 30, 2013
Accumulated Other Comprehensive Loss	'
Schedule of changes in accumulated other comprehensive income (loss) by component	'
	Accumulated Other Comprehensive Income (Loss)	Three Months Ended						Six Months Ended
		September 30,						September 30,
	(In thousands, except per share amounts)	2013			2012			2013			2012
	Investment securities
	Beginning balance	$	(21	)	$	(10	)	$	(3	)	$	(8	)
	Other comprehensive income (loss) (OCI) before reclassifications net of tax of $0 for all periods	21			14			(3		)	11
	Reclassifications from OCI to other income — net of tax of $0 for all periods	—			1			6			2
	Comprehensive income (loss) on investment securities, net of tax of $0 for all periods	21			15			3			13

	Closing Balance	$	—		$	5		$	—		$	5

	Currency Translation Adjustments
	Beginning balance	$	(25,163	)	$	(20,173	)	$	(16,918	)	$	(13,109	)
	OCI before reclassifications	(2,683		)	5,729			(10,928		)	(1,335		)

	Closing Balance	$	(27,846	)	$	(14,444	)	$	(27,846	)	$	(14,444	)

	Cash Flow Hedges
	Beginning balance	$	(5,923	)	$	(7,726	)	$	(1,013	)	$	(4,524	)
	OCI before reclassifications net of tax of $(2,647), $1,384, $(5,503) and $(405)	(5,932		)	3,298			(11,462		)	(1,434		)
	Reclassifications from OCI to
	- Costs of revenue, net of tax of $505, $398, $724 and $720	958			1,116			1,333			2,090
	- Selling, general and administrative expenses, net of tax of $313, $214, $454 and $398	592			590			837			1,146
	Comprehensive income (loss) on cash flow hedges, net of tax of $(1,829), $1,996, ($4,326) and $717	(4,382		)	5,004			(9,292		)	1,802

	Closing Balance	$	(10,305	)	$	(2,722	)	$	(10,305	)	$	(2,722	)

	Benefit plans
	Beginning balance	$	(704	)	$	(710	)	$	(780	)	$	(702	)
	Reclassifications from OCI for prior service credit (cost) to:
	- Costs of revenue, net of tax of $0 for all periods	2			2			4			4
	- Selling, general and administrative expenses, net of tax of $0 for all periods	1			1			2			2

	Reclassifications from OCI for net actuarial gain (loss) amortization to:
	- Costs of revenue, net of tax of $0 for all periods	17			(8		)	35			(15		)
	- Selling, general and administrative expenses, net of tax of $0 for all periods	5			(3		)	10			(7		)
	Other adjustments	42			—			92			—
	Comprehensive income (loss) on benefit plans, net of tax of $0 for all periods	67			(8		)	143			(16		)

	Closing Balance	$	(637	)	$	(718	)	$	(637	)	$	(718	)
	Accumulated other comprehensive income (loss) at September 30, 2013	$	(38,788	)	$	(17,879	)	$	(38,788	)	$	(17,879	)

Net_Income_per_Share_Details

Net Income per Share (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Numerators:	'	'	'	'
Net income	$7,478	$5,763	$15,000	$11,902
Denominators:	'	'	'	'
Weighted average common shares outstanding	25,553,237	24,886,477	25,423,169	24,846,056
Dilutive effect of employee stock options and unvested restricted stock (in shares)	741,771	613,474	791,640	636,807
Dilutive effect of stock appreciation rights (in shares)	14,390	18,289	15,430	19,230
Weighted average shares-diluted	26,309,398	25,518,240	26,230,239	25,502,093
Net income per share-basic (in dollars per share)	$0.29	$0.23	$0.59	$0.48
Net income per share-diluted (in dollars per share)	$0.28	$0.23	$0.57	$0.47
Options excluded from the calculations of diluted earnings per share (in shares)	26,204	586,191	71,795	527,449

Investment_Securities_Details

Investment Securities (Details) (USD $)	Sep. 30, 2013	Mar. 31, 2013
In Thousands, unless otherwise specified	Sep. 30, 2013	Mar. 31, 2013
Investment Securities	'	'
Amortized Cost	$45,423	$37,780
Gross Unrealized Gains	6	7
Gross Unrealized Losses	-12	-16
Fair Value	45,417	37,771
Corporate bonds \| Current	'	'
Investment Securities	'	'
Amortized Cost	8,125	6,846
Gross Unrealized Gains	4	4
Gross Unrealized Losses	-2	-2
Fair Value	8,127	6,848
Corporate bonds \| Non-current	'	'
Investment Securities	'	'
Amortized Cost	6,847	6,246
Gross Unrealized Gains	1	3
Gross Unrealized Losses	-7	-7
Fair Value	6,841	6,242
Auction-rate securities \| Non-current	'	'
Investment Securities	'	'
Amortized Cost	300	900
Gross Unrealized Losses	-3	-7
Fair Value	297	893
Agency and short-term notes \| Current	'	'
Investment Securities	'	'
Amortized Cost	156	'
Fair Value	156	'
Agency and short-term notes \| Non-current	'	'
Investment Securities	'	'
Amortized Cost	1,016	1,184
Gross Unrealized Gains	1	'
Fair Value	1,017	1,184
Time deposits \| Current	'	'
Investment Securities	'	'
Amortized Cost	28,979	22,604
Fair Value	$28,979	$22,604

Fair_Value_of_Financial_Instru2

Fair Value of Financial Instruments (Details) (Recurring, USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified	Sep. 30, 2013
Level 2	'
Investments:	'
Available-for-sale securities - current	$37,262
Available-for-sale securities - non-current	7,858
Total assets	45,120
Liabilities:	'
Foreign currency derivative contracts	15,407
Total liabilities	15,407
Level 3	'
Investments:	'
Available-for-sale securities - non-current	297
Total assets	297
Total	'
Investments:	'
Available-for-sale securities - current	37,262
Available-for-sale securities - non-current	8,155
Total assets	45,417
Liabilities:	'
Foreign currency derivative contracts	15,407
Total liabilities	$15,407

Fair_Value_of_Financial_Instru3

Fair Value of Financial Instruments (Details 2) (Auction-rate securities, USD $)	6 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013
Auction-rate securities	'
Summary of changes in fair value of the Company's Level 3 financial assets	'
Balance at the beginning of the period	$893
Auction-rate securities redeemed at par	-600
Total unrealized gains:	'
Included in accumulated other comprehensive income	4
Balance at the end of the period	$297

Derivative_Financial_Instrumen2

Derivative Financial Instruments (Details) (Foreign currency exchange contracts, USD $)	6 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Mar. 31, 2013
Derivative Financial Instruments and Trading Activities	'	'	'
Number of hedging programs maintained	3	'	'
U.S. dollar notional equivalent market value	$89,658	'	$96,630
Maximum outstanding term of derivative instruments	'33 months	'	'
Derivatives designated as hedging instruments	'	'	'
Derivative Financial Instruments and Trading Activities	'	'	'
Period hedged by Cash Flow Program	'36 months	'	'
Additional period after which the contract is deemed ineffective	'2 months	'	'
Amount reclassified to earnings as a result of hedge ineffectiveness	0	0	'
Unrealized net losses related to derivative instruments expected to be reclassified from AOCI into earnings during the next 12 months	8,721	'	'
Other current assets	'	'	884
Other long-term assets	'	'	415
Accrued expenses and other current liabilities	8,721	'	2,142
Long-term liabilities	$6,686	'	$946
Derivatives not Designated as Hedging Instrument	'	'	'
Derivative Financial Instruments and Trading Activities	'	'	'
Maturity period of Balance Sheet Program derivatives	'30 days	'	'
Maximum maturity period of UK Revenue and Cost Program derivatives	'92 days	'	'

Derivative_Financial_Instrumen3

Derivative Financial Instruments (Details 2) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Costs of revenue	'	'	'	'
Derivative Financial Instruments	'	'	'	'
Amount of Gain or (Loss) Reclassified from AOCI into Income (Effective Portion)	($1,463)	($1,514)	($2,057)	($2,810)
Operating expenses	'	'	'	'
Derivative Financial Instruments	'	'	'	'
Amount of Gain or (Loss) Reclassified from AOCI into Income (Effective Portion)	-905	-804	-1,290	-1,544
Derivatives Designated as Cash Flow Hedging Relationships \| Foreign currency exchange contracts	'	'	'	'
Derivative Financial Instruments	'	'	'	'
Amount of Gain or (Loss) Recognized in AOCI on Derivative (Effective Portion)	-8,579	4,682	-16,965	-1,839
Derivatives not Designated as Hedging Instrument \| Foreign currency exchange contracts \| Costs of revenue	'	'	'	'
Derivative Financial Instruments	'	'	'	'
Amount of Gain or (Loss) Recognized in Income on Derivatives	130	90	184	105
Derivatives not Designated as Hedging Instrument \| Foreign currency exchange contracts \| Foreign currency transaction gains (losses)	'	'	'	'
Derivative Financial Instruments	'	'	'	'
Amount of Gain or (Loss) Recognized in Income on Derivatives	-1,845	762	-3,454	-475
Derivatives not Designated as Hedging Instrument \| Foreign currency exchange contracts \| Revenue	'	'	'	'
Derivative Financial Instruments	'	'	'	'
Amount of Gain or (Loss) Recognized in Income on Derivatives	-379	-132	-480	-149
Derivatives not Designated as Hedging Instrument \| Foreign currency exchange contracts \| Selling, general and administrative expenses	'	'	'	'
Derivative Financial Instruments	'	'	'	'
Amount of Gain or (Loss) Recognized in Income on Derivatives	$17	$10	$21	$11

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended		6 Months Ended
Income Taxes (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Mar. 31, 2013
Income Taxes	'	'	'	'	'
Effective tax rate (as a percent)	24.30%	24.90%	24.80%	24.60%	'
Income Taxes	'	'	'	'	'
Total liability for unrecognized tax benefits which would impact the annual effective rate, if realized	$939,000	'	$939,000	'	$4,823,000
Decrease in unrecognized tax benefits	'	'	3,884,000	'	'
Unremitted earnings from foreign subsidiaries	144,800,000	'	144,800,000	'	'
Cash and short-term investments available for distribution if not indefinitely reinvested	$72,500,000	'	$72,500,000	'	'
India	'	'	'	'	'
Income Taxes	'	'	'	'	'
Number of subsidiaries which is export oriented	'	'	1	'	'
Statutory tax rate (as a percent)	34.00%	32.50%	34.00%	32.50%	'
India \| Indian operations in areas designated as a SEZ	'	'	'	'	'
Income Taxes	'	'	'	'	'
Income tax exemption period	'	'	'15 years	'	'
Number of subsidiaries eligible for tax holiday on export income	'	'	2	'	'
India \| Virtusa India	'	'	'	'	'
Income Taxes	'	'	'	'	'
Income tax exemption period	'	'	'10 years	'	'
Number of STPs operated	'	'	2	'	'
India \| Virtusa India \| Chennai	'	'	'	'	'
Income Taxes	'	'	'	'	'
Number of STPs operated	'	'	1	'	'
India \| Virtusa India \| Hyderabad	'	'	'	'	'
Income Taxes	'	'	'	'	'
Number of STPs operated	'	'	1	'	'
Sri Lanka \| Virtusa (Private) Limited	'	'	'	'	'
Income Taxes	'	'	'	'	'
Income tax exemption period	'	'	'12 years	'	'

Concentration_of_Revenue_and_A2

Concentration of Revenue and Assets (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Mar. 31, 2013
Concentration of Revenue and Assets	'	'	'	'	'
Consolidated revenue	$94,301	$80,535	$184,790	$156,752	'
Consolidated long-lived assets, net	83,077	'	83,077	'	87,939
North America	'	'	'	'	'
Concentration of Revenue and Assets	'	'	'	'	'
Consolidated revenue	67,740	63,353	135,006	123,135	'
Europe	'	'	'	'	'
Concentration of Revenue and Assets	'	'	'	'	'
Consolidated revenue	21,484	13,751	39,823	27,182	'
Consolidated long-lived assets, net	675	'	675	'	344
Rest of world	'	'	'	'	'
Concentration of Revenue and Assets	'	'	'	'	'
Consolidated revenue	5,077	3,431	9,961	6,435	'
United States	'	'	'	'	'
Concentration of Revenue and Assets	'	'	'	'	'
Consolidated long-lived assets, net	52,283	'	52,283	'	53,228
Asia	'	'	'	'	'
Concentration of Revenue and Assets	'	'	'	'	'
Consolidated long-lived assets, net	$30,119	'	$30,119	'	$34,367

Concentration_of_Revenue_and_A3

Concentration of Revenue and Assets (Details 2)	3 Months Ended		6 Months Ended
Concentration of Revenue and Assets (Details 2)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Customer 1	'	'	'	'
Concentration of Revenue and Assets	'	'	'	'
Revenue from significant clients as a percentage of consolidated revenue	13.70%	12.10%	13.60%	12.00%
Customer 2	'	'	'	'
Concentration of Revenue and Assets	'	'	'	'
Revenue from significant clients as a percentage of consolidated revenue	12.60%	9.20%	11.90%	9.70%
Customer 3	'	'	'	'
Concentration of Revenue and Assets	'	'	'	'
Revenue from significant clients as a percentage of consolidated revenue	9.70%	15.10%	11.60%	15.00%

Debt_Details

Debt (Details) (USD $)	6 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Jul. 31, 2013	Sep. 30, 2013	Sep. 30, 2013
		Line of credit agreement	Line of credit agreement	Line of credit agreement
			LIBOR	Prime Rate
Debt	'	'	'	'
Maximum borrowing capacity under the credit agreement	'	$3,000	'	'
Variable rate basis	'	'	'LIBOR	'Prime Rate
Interest rate added to the base rate (as a percent)	'	'	2.50%	2.50%
Receivables sold under the terms of the financing agreement	14,849	'	'	'
Amounts due related to a financing agreement to sell certain accounts receivable balances	$0	'	'	'

Pensions_and_postretirement_be2

Pensions and post-retirement benefits (Details) (Pension benefits, USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Pension benefits	'	'	'	'
Pensions and post-retirement benefits	'	'	'	'
Service cost	$128	$112	$268	$226
Interest cost	50	44	104	89
Expected return on plan assets	-51	-46	-106	-93
Amortization of past service cost	2	3	5	6
Amortization of actuarial loss	22	1	45	3
Net periodic pension cost	151	114	316	231
Expected cash contributions to the plans in current fiscal period	411	'	411	'
Cash contributions to the plans for the previous fiscal year	'	'	411	'
Cash contributions to the plans	'	'	$323	'

Accumulated_Other_Comprehensiv2

Accumulated Other Comprehensive Loss (Details) (USD $)

Sep. 30, 2013

Mar. 31, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

In Thousands, unless otherwise specified

Investment securities

Currency Translation Adjustments

Cash Flow Hedges

Benefit plans

Benefit plans, prior service credit (cost)

Benefit plans, net actuarial gain (loss)

Reclassification out of accumulated other comprehensive income

Changes in accumulated other comprehensive income (loss)

Balance at the beginning of the period

($38,788)

($18,714)

($17,879)

($21)

($10)

($3)

($8)

($25,163)

($20,173)

($16,918)

($13,109)

($5,923)

($7,726)

($1,013)

($4,524)

($704)

($710)

($780)

($702)

Other comprehensive income (loss) before reclassifications net of tax

-3

-2,683

5,729

-10,928

-1,335

-5,932

3,298

-11,462

-1,434

Other comprehensive income (loss) (OCI) before reclassifications, tax effect

-2,647

1,384

-5,503

-405

Reclassifications from OCI to:

Other income, net of tax

Other income, tax effect

Costs of revenue, net of tax

958

1,116

1,333

2,090

-8

-15

Costs of revenue, tax effect

505

398

724

720

Selling, general and administrative expenses, net of tax

592

590

837

1,146

-3

-7

Selling, general and administrative expenses, tax effect

313

214

454

398

Other adjustments

Comprehensive income (loss), net of tax

-4,382

5,004

-9,292

1,802

-8

143

-16

Comprehensive income (loss), tax effect

-1,829

1,996

-4,326

717

Balance at the end of the period

($38,788)

($18,714)

($17,879)

($27,846)

($14,444)

($27,846)

($14,444)

($10,305)

($2,722)

($10,305)

($2,722)

($637)

($718)

($637)

($718)

Subsequent_Events_Details

Subsequent Events (Details) (Subsequent event)	0 Months Ended							0 Months Ended
	Oct. 29, 2013	Oct. 29, 2013	Oct. 29, 2013	Oct. 29, 2013	Oct. 29, 2013	Oct. 01, 2013	Oct. 01, 2013	Nov. 01, 2013	Nov. 01, 2013
	Derivatives designated as hedging instruments	Derivatives designated as hedging instruments	Derivatives designated as hedging instruments	Derivatives designated as hedging instruments	Derivatives designated as hedging instruments	Derivatives designated as hedging instruments	Derivatives designated as hedging instruments	OSB	OSB
	Foreign currency forward contracts	Foreign currency forward contracts	Foreign currency forward contracts	Foreign currency forward contracts	Foreign currency forward contracts	Foreign currency forward contracts	Foreign currency forward contracts	USD ($)	Maximum
		U.S. Dollar and Indian Rupee Forward Contract	U.S. Dollar and Indian Rupee Forward Contract	U.K. Pound Sterling and Indian Rupee Forward Contract	U.K. Pound Sterling and Indian Rupee Forward Contract	U.S. Dollar and U.K. Pound Sterling Forward Contract	U.S. Dollar and U.K. Pound Sterling Forward Contract		USD ($)
		USD ($)	INR	GBP (£)	INR	USD ($)	GBP (£)
Subsequent Events	'	'	'	'	'	'	'	'	'
Purchase price in cash	'	'	'	'	'	'	'	$7,000,000	'
Holdback percentage	'	'	'	'	'	'	'	10.00%	'
Holdback period	'	'	'	'	'	'	'	'12 months	'
Additional earn-out consideration	'	'	'	'	'	'	'	'	6,000,000
Aggregate notional amount of foreign currency forward contracts	'	$9,784,000	657,369,000	£ 4,383,000	471,798,000	$6,733,000	£ 4,177,000	'	'
Weighted average settlement rate	'	67.25	67.25	108	108	1.612	1.612	'	'
Foreign currency forward contracts expiration period	'36 months	'	'	'	'	'	'	'	'