Virtusa (VRTU) 10-Q 9 Nov 18 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Sep. 30, 2018	Nov. 05, 2018
Document and Entity Information
Entity Registrant Name	VIRTUSA CORP
Entity Central Index Key	1,207,074
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		29,911,607
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q2

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Mar. 31, 2018
Current assets:
Cash and cash equivalents	$ 176,981	$ 194,897
Short-term investments	54,108	45,900
Accounts receivable, net of allowance of $2,914 and $3,328 at September 30, 2018 and March 31, 2018, respectively	162,497	151,455
Unbilled accounts receivable	96,605	103,829
Prepaid expenses	33,865	31,724
Restricted cash	1,298	301
Other current assets	19,221	21,229
Total current assets	544,575	549,335
Property and equipment, net	120,264	121,565
Investments accounted for using equity method	1,398	1,588
Long-term investments	1,410	4,140
Deferred income taxes	38,310	31,528
Goodwill	275,002	297,251
Intangible assets, net	94,212	96,001
Other long-term assets	15,728	11,772
Total assets	1,090,899	1,113,180
Current liabilities:
Accounts payable	27,717	29,541
Accrued employee compensation and benefits	62,925	71,500
Deferred revenue	6,175	7,908
Accrued expenses and other	109,677	91,306
Current portion of long-term debt	11,407	11,407
Income taxes payable	5,034	5,038
Total current liabilities	222,935	216,700
Deferred income taxes	17,462	21,341
Long-term debt, less current portion	314,524	288,227
Long-term liabilities	44,854	43,833
Total liabilities	599,775	570,101
Commitments and contingencies
Series A convertible preferred stock: par value $0.01 per share, 108,000 shares authorized, 108,000 shares issued and outstanding at September 30, 2018 and March 31, 2018; redemption amount and liquidation preference of $108,000 at September 30, 2018 and March 31, 2018, respectively	107,079	106,996
Redeemable noncontrolling interest	24,614
Stockholders' equity:
Undesignated preferred stock, $0.01 par value: Authorized 5,000,000 shares at September 30, 2018 and March 31, 2018; zero shares issued and outstanding at September 30, 2018 and March 31, 2018
Common stock, $0.01 par value: Authorized 120,000,000 shares at September 30, 2018 and March 31, 2018; issued 32,769,705 and 32,469,092 shares at September 30, 2018 and March 31, 2018, respectively; outstanding 29,889,706 and 29,589,093 shares at September 30, 2018 and March 31, 2018, respectively	328	325
Treasury stock, 2,879,999 and 2,879,999 common shares, at cost, at September 30, 2018 and March 31, 2018, respectively	(39,652)	(39,652)
Additional paid-in capital	231,196	260,612
Retained earnings	231,517	238,019
Accumulated other comprehensive loss	(64,233)	(40,681)
Total Virtusa stockholders' equity	359,156	418,623
Noncontrolling interest in subsidiaries	275	17,460
Total equity	359,431	436,083
Total liabilities, Series A convertible preferred stock, redeemable noncontrolling interest and stockholders' equity	$ 1,090,899	$ 1,113,180

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Mar. 31, 2018
Consolidated Balance Sheets
Accounts receivable, allowance (in dollars)	$ 2,914	$ 3,328
Series A convertible preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Series A convertible preferred stock, shares authorized	108,000	108,000
Series A convertible preferred stock, shares issued	108,000	108,000
Series A convertible preferred stock, shares outstanding	108,000	108,000
Series A convertible preferred stock, redemption amount	$ 108,000	$ 108,000
Series A convertible preferred stock, liquidation preference	$ 108,000	$ 108,000
Undesignated preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Undesignated preferred stock, shares authorized	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, shares authorized	120,000,000	120,000,000
Common stock, shares issued	32,769,705	32,469,092
Common stock, shares outstanding	29,889,706	29,589,093
Treasury stock, common shares	2,879,999	2,879,999

Consolidated Statements of Inco

Consolidated Statements of Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Consolidated Statements of Income (Loss)
Revenue	$ 305,520	$ 248,174	$ 605,551	$ 475,519
Costs of revenue	216,346	178,404	432,827	344,683
Gross profit	89,174	69,770	172,724	130,836
Operating expenses:
Selling, general and administrative expenses	75,155	59,491	144,781	114,487
Income from operations	14,019	10,279	27,943	16,349
Other income (expense):
Interest income	589	928	1,353	1,932
Interest expense	(4,514)	(1,413)	(8,768)	(3,071)
Foreign currency transaction losses, net	(9,355)	(1,480)	(20,113)	(1,557)
Other, net	819	778	1,443	884
Total other expense	(12,461)	(1,187)	(26,085)	(1,812)
Income before income tax (benefit) expense	1,558	9,092	1,858	14,537
Income tax (benefit) expense	(402)	1,500	5,463	2,298
Net income (loss)	1,960	7,592	(3,605)	12,239
Less: net income attributable to noncontrolling interests, net of tax	455	2,824	1,186	3,813
Net income (loss) available to Virtusa stockholders	1,505	4,768	(4,791)	8,426
Less: Series A Convertible Preferred Stock dividends and accretion	1,088	1,087	2,175	1,788
Net income (loss) available to Virtusa common stockholders	$ 417	$ 3,681	$ (6,966)	$ 6,638
Basic earnings (loss) per share available to Virtusa common stockholders (in dollars per share)	$ 0.01	$ 0.13	$ (0.23)	$ 0.23
Diluted earnings (loss) per share available to Virtusa common stockholders (in dollars per share)	$ 0.01	$ 0.12	$ (0.23)	$ 0.22

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Consolidated Statements of Comprehensive Income (Loss)
Net income (loss)	$ 1,960	$ 7,592	$ (3,605)	$ 12,239
Other comprehensive income (loss):
Foreign currency translation adjustments	(7,071)	821	(17,724)	4,426
Pension plan adjustment	113	47	(96)	92
Unrealized gain (loss) on available-for-sale securities, net of tax	(452)	(95)	(315)	204
Unrealized loss on effective cash flow hedges, net of tax	(3,337)	(4,153)	(7,138)	(8,208)
Other comprehensive loss	(10,747)	(3,380)	(25,273)	(3,486)
Comprehensive income (loss)	(8,787)	4,212	(28,878)	8,753
Less: comprehensive income (loss) attributable to noncontrolling interest, net of tax	200	2,045	(535)	3,307
Comprehensive income (loss) available to Virtusa stockholders	$ (8,987)	$ 2,167	$ (28,343)	$ 5,446

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income (loss)	$ (3,605)	$ 12,239
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	14,593	13,646
Share-based compensation expense	17,062	10,930
Provision (recovery) for doubtful accounts	(236)	723
Gain on disposal of property and equipment	(159)	(49)
Foreign currency transaction losses, net	20,113	1,557
Amortization of discounts and premiums on investments	76	185
Amortization of debt issuance cost	546	565
Deferred income taxes, net	(6,522)
Net change in operating assets and liabilities:
Accounts receivable and unbilled receivable	(1,975)	(4,492)
Prepaid expenses and other current assets	(11,238)	(4,450)
Other long-term assets	(4,009)	(815)
Accounts payable	232	740
Accrued employee compensation and benefits	(5,834)	(579)
Accrued expenses and other current liabilities	11,179	4,712
Income taxes payable	3,133	(3,586)
Other long-term liabilities	(73)	(1,494)
Net cash provided by operating activities	33,283	29,832
Cash flows from investing activities:
Proceeds from sale of property and equipment	451	180
Purchase of short-term investments	(68,803)	(50,549)
Proceeds from sale or maturity of short-term investments	60,571	62,829
Purchase of long-term investments		(12,273)
Business acquisition, net of cash acquired	(34)	(600)
Purchase of property and equipment	(18,875)	(8,195)
Net cash used in investing activities	(26,690)	(8,608)
Cash flows from financing activities:
Proceeds from revolving credit facility	32,000
Payment of debt	(6,250)	(81,000)
Payments of withholding taxes related to net share settlements of restricted stock	(7,602)	(2,431)
Series A Convertible Preferred Stock proceeds, net of issuance costs of $1,154		106,846
Repurchase of common stock		(30,000)
Principal payments on capital lease obligation	(43)	(124)
Payment of contingent consideration related to acquisition	(100)
Payment of redeemable noncontrolling interest	(28,396)
Payment of dividend on Series A convertible preferred stock	(2,092)	(1,035)
Net cash used in financing activities	(11,729)	(4,831)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(11,694)	1,753
Net (decrease) increase in cash, cash equivalents and restricted cash	(16,830)	18,146
Cash, cash equivalents and restricted cash, beginning of period	195,236	145,086
Cash, cash equivalents and restricted cash, end of period	178,406	163,232
Parent
Cash flows from financing activities:
Proceeds from exercise of common stock options	428	2,717
Subsidiaries
Cash flows from financing activities:
Proceeds from exercise of common stock options	$ 326	$ 196

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2017	Sep. 30, 2018	Mar. 31, 2018
Balance sheet classification
Cash and cash equivalents		$ 176,981	$ 194,897
Restricted cash in current assets		1,298	301
Restricted cash in other long-term assets		$ 127	$ 38
Restricted cash in other long-term assets, balance sheet location		us-gaap:OtherAssetsNoncurrent	us-gaap:OtherAssetsNoncurrent
Total restricted cash		$ 1,425	$ 339
Total cash, cash equivalents and restricted cash	$ 163,232	$ 178,406	$ 195,236
Series A Convertible Preferred Stock
Issuance costs	$ 1,154

Nature of the Business

Nature of the Business	6 Months Ended
	Sep. 30, 2018
Nature of the Business
Nature of the Business	(1) Nature of the Business Virtusa Corporation (the “Company”, “Virtusa”, “we”, “us” or “our”) is a global provider of digital engineering and information technology (“IT”) outsourcing services that accelerate business outcomes for our clients. We support Forbes Global 2000 clients across large, consumer facing industries like banking, financial services, insurance, healthcare, communications, and media and entertainment, as these clients seek to improve their business performance through accelerating revenue growth, delivering compelling consumer experiences, improving operational efficiencies, and lowering overall IT costs. We provide services across the entire spectrum of the IT services lifecycle, from strategy and consulting to technology and user experience (“UX”) design, development of IT applications, systems integration, testing and business assurance, and maintenance and support services, including infrastructure and managed services. We help our clients solve critical business problems by leveraging a combination of our distinctive consulting approach, unique platforming methodology, and deep domain and technology expertise. Our services enable our clients to accelerate business outcomes by consolidating, rationalizing and modernizing their core customer-facing processes into one or more core systems. We deliver cost-effective solutions through a global delivery model, applying advanced methods such as Agile, an industry standard technique designed to accelerate application development. We also use our consulting methodology, which we refer to as Accelerated Solution Design (“ASD”), which is a collaborative decision-making and design process performed with the client to ensure our solutions meet the client’s specifications and requirements. Our industry leading business transformational solutions combine deep domain expertise with our strengths in software engineering and business consulting to support our clients’ business-imperative initiatives across business growth and IT operations. Headquartered in Massachusetts, we have offices in the United States, Canada, the United Kingdom, the Netherlands, Germany, Switzerland, Sweden, Austria, the United Arab Emirates, Hong Kong, Japan, Australia and New Zealand, with global delivery centers in India, Sri Lanka, Hungary, Singapore and Malaysia, as well as near shore delivery centers in the United States.

Unaudited Interim Financial Inf

Unaudited Interim Financial Information	6 Months Ended
	Sep. 30, 2018
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, 2018 included in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission, or SEC, on May 25, 2018. 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. Principles of Consolidation The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of Virtusa Corporation and all of its subsidiaries that are directly or indirectly more than 50% owned or controlled. When the Company does not have a controlling interest in an entity, but exerts a significant influence on the entity, the Company applies the equity method of accounting. For those majority-owned subsidiaries that are not 100% owned by the Company, the interests of the minority owners are accounted for as noncontrolling interests. 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, intangible assets, contingent consideration 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, 2018 and March 31, 2018, the carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, unbilled accounts receivable, restricted cash, accounts payable, accrued employee compensation and benefits, other accrued expenses and long-term debt, approximate their fair values due to the nature of the items. See Note 5 of the notes to our consolidated financial statements for a discussion of the fair value of the Company’s other financial instruments. Recent accounting pronouncements Recently Adopted Accounting Pronouncements Unless otherwise discussed below, the adoption of new accounting standards did not have an impact on the consolidated financial statements. In May 2014, the FASB issued an Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“Accounting Standard Codification (“ASC”) Topic 606”) as well as other clarifications and technical guidance related to this new revenue standard, including ASC Topic 340-40, Other Assets and Deferred Costs — Contracts with Customers (“ASC 340-40”). ASC Topic 606 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. In March, April and May 2016, the FASB issued updates to the new revenue standard to clarify the implementation guidance on principal versus agent considerations for reporting revenue gross versus net, identifying performance obligations, accounting for licenses of intellectual property, transition, contract modifications, collectability, non-cash consideration and presentation of sales and other similar taxes with the same effective date. The standard permits the use of either the retrospective or modified retrospective method. The Company adopted the standard effective April 1, 2018 using the modified retrospective method applied to those contracts which were not completed as of that date. Upon adoption of ASC Topic 606 on April 1, 2018, the Company recorded a net increase to opening retained earnings of approximately $464, after a tax impact of $142. The impact of adoption primarily relates to the longer period of amortization for costs to fulfill a contract compared to the amortization period prior to adoption. The following table summarizes the cumulative effect of adopting ASC Topic 606 using the modified retrospective method of adoption as of April 1, 2018: Balance as of ASC Topic 606 Balance as of Balance Sheet : Assets Other current assets $ ) $ Deferred income taxes ) Other long-term assets Stockholders’ equity Retained earnings See Note 8 “Revenues” in the consolidated financial statements for additional information regarding revenues. In January 2016, the FASB issued an update (ASU 2016-01) to the standard on financial instruments. The update significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. The update also amends certain disclosure requirements. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Upon adoption, entities will be required to make a cumulative-effect adjustment to the statement of financial position as of the beginning of the first reporting period in which the guidance is effective. However, the specific guidance on equity securities without readily determinable fair value will apply prospectively to all equity investments that exist as of the date of adoption. The Company adopted this guidance on April 1, 2018. The adoption of this guidance did not have a material impact on the consolidated financial statements, therefore, the Company did not record any cumulative adjustments to the opening retained earnings in the consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Restricted Cash (Topic 230), which is intended to reduce diversity in practice on how changes in restricted cash are classified and presented in the statement of cash flows. This ASU requires amounts generally described as restricted cash to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The guidance is effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. The amendments in this update should be applied using a retrospective transition method to each period presented. The Company adopted the standard effective April 1, 2018 using the retrospective method. As a result of the adoption, the Company restated its consolidated statement of cash flows for all of the prior periods presented. The following table summarizes the impact of this standard on the Company’s consolidated cash flows for the six months ended September 30, 2017: As Reported Restated Effect Cash flows from investing activities: Increase in restricted cash $ ) $ — $ Net cash used in investing activities ) ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash ) Net increase in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, beginning of period Cash, cash equivalents and restricted cash, end of period In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715), “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”, a guidance on presentation of net periodic pension cost and net periodic postretirement benefit cost. The new standard requires that an employer disaggregate the service costs components of net benefit cost. The employer is required to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component, such as in other income and expense. The guidance is effective for fiscal years beginning after December 15, 2017. The Company adopted this guidance effective April 1, 2018. Upon adoption, the Company presented the service cost component in costs of revenue and selling, general and administrative expenses. The other components of net periodic pension cost are presented within other (income) expense in the Consolidated Statements of Income (Loss). The adoption of this guidance did not have a material impact on the consolidated financial statements, therefore, the Company did not retrospectively change the presentation of the financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation — Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting. The new standard is intended to simplify aspects of share-based compensation issued to non-employees by making the guidance consistent with accounting for employee share-based compensation. The guidance is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods, with early adoption permitted but no earlier than an entity’s adoption date of Topic 606. The Company early adopted this guidance effective April 1, 2018. The adoption of this guidance did not have an impact on the consolidated financial statements. New Accounting Pronouncements Unless otherwise discussed below, the Company believes the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial statements. In February 2016, the FASB issued an update (ASU 2016-02) to the standard on leases to increase transparency and comparability among organizations. The FASB subsequently issued ASU 2018-10 and ASU 2018-11 in July 2018, which provide clarifications and improvements to this new standard. ASU 2018-11 also provides the optional transition method which allows companies to apply the new lease standard at the adoption date instead of at the earliest comparative period presented. The new standard replaces the existing guidance on leases and requires the lessee to recognize a right-of-use asset and a lease liability for all leases with lease terms equal to or greater than twelve months. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases, the lessee would recognize total lease expense on a straight-line basis. For public business entities this standard is effective for the annual periods beginning after December 15, 2018, and interim periods within those annual periods. Early adoption of this new standard is permitted. Entities will be required to use a modified retrospective transition which provides for certain practical expedients. While the Company is continuing to assess the potential impact of this ASU, the Company anticipates this ASU will have a material impact on the consolidated balance sheets primarily due to recognizing a right-to-use-asset and a lease liability for operating leases. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Measurement of Credit Losses on Financial Instruments, which modifies the measurement of expected credit losses of certain financial instruments. This standard update requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect of this new standard will have on its consolidated financial statements and related disclosures. In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220). The amendments in this Update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The amendments in this Update also require certain disclosures about stranded tax effects. The guidance is effective for fiscal years beginning after December 15, 2018 with early adoption permitted, including interim periods within those years. The Company is currently evaluating the effect of this new standard will have on its consolidated financial statements and related disclosures.

Earnings (Loss) per Share

Earnings (Loss) per Share	6 Months Ended
	Sep. 30, 2018
Earnings (Loss) per Share
Earnings (Loss) per Share	(3) Earnings (Loss) per Share Basic earnings (loss) per share available to Virtusa common stockholders (“EPS”) is computed by dividing net income (loss), less any dividends and accretion of issuance cost on the Series A Convertible Preferred Stock by the weighted average number of shares of common stock outstanding for the period. In computing diluted EPS, the Company adjusts the numerator used in the basic EPS computation, subject to anti-dilution requirements, to add back the dividends (declared or cumulative undeclared) applicable to the Series A Convertible Preferred Stock. Such add-back would also include any adjustments to equity in the period to accrete the Series A Convertible Preferred Stock to its redemption price. The Company adjusts the denominator used in the basic EPS computation, subject to anti-dilution requirements, to include the dilution from potential shares resulting from the issuance of restricted stock units, unvested restricted stock and stock options along with the conversion of the Series A Convertible Preferred Stock to common stock. The following table sets forth the computation of basic and diluted EPS for the periods set forth below: The components of basic earnings (loss) per share are as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 Numerator: Net income (loss) available to Virtusa stockholders $ $ $ ) $ Less: Series A Convertible Preferred Stock dividends and accretion Net income (loss) available to Virtusa common stockholders ) Denominator: Basic weighted average common shares outstanding Basic earnings (loss) per share available to Virtusa common stockholders $ $ $ ) $ The components of diluted earnings (loss) per share are as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 Numerator: Net income (loss) available to Virtusa common stockholders $ $ $ ) $ Add: Series A Convertible Preferred Stock dividends and accretion — — — — Net income (loss) available to Virtusa common stockholders ) Denominator: Basic weighted average common shares outstanding Dilutive effect of Series A Convertible Preferred Stock — — — — Dilutive effect of employee stock options and unvested restricted stock awards and restricted stock units — Weighted average shares-diluted Diluted earnings (loss) per share available to Virtusa common stockholders $ $ $ ) $ During the three months ended September 30, 2018 and 2017, unvested restricted stock awards and unvested restricted stock units issuable for, and options to purchase 20,617 and 62,576 shares of common stock, respectively, were excluded from the calculations of diluted earnings (loss) per share as their effect would have been anti-dilutive. For the three months ended September 30, 2018 and 2017, the weighted average shares of Series A Convertible Preferred Stock of 3,000,000 were excluded from the diluted earnings (loss) per share as their effect would have been anti-dilutive using the if-converted method. During the six months ended September 30, 2018 and 2017, unvested restricted stock awards and unvested restricted stock units issuable for, and options to purchase 1,710,551 and 180,367 shares of common stock, respectively, were excluded from the calculations of diluted earnings (loss) per share as their effect would have been anti-dilutive. For the six months ended September 30, 2018 and 2017, the weighted average shares of Series A Convertible Preferred Stock of 3,000,000 and 2,456,044, respectively, were excluded from the diluted earnings (loss) per share as their effect would have been anti-dilutive using the if-converted method.

Investment Securities

Investment Securities	6 Months Ended
	Sep. 30, 2018
Investment Securities
Investment Securities	(4) Investment Securities At September 30, 2018 and March 31, 2018, all of the Company’s investment securities were classified as available-for-sale securities and equity securities. These were carried on its balance sheet at their fair market value. A fair market value hierarchy based on three levels of inputs was used to measure each security (See Note 5 of the notes to our consolidated financial statements for a discussion of the fair value of the Company’s other financial instruments). The following is a summary of investment securities at September 30, 2018: Amortized Gross Gross Fair Available-for-sale securities : Corporate bonds: Current $ $ — $ ) $ Preference shares: Non-current — ) Time Deposits: Current — — Equity securities: Mutual funds: Current — Equity Shares/ Options: Non-current — Total available-for-sale and equity securities $ $ $ ) $ The following is a summary of investment securities at March 31, 2018: Amortized Gross Gross Fair Available-for-sale securities: Corporate bonds: Current $ $ — $ ) $ Non-current — ) Preference shares: Non-current — ) Agency and short-term notes: Current — ) Mutual funds: Current — Equity Shares/ Options: Non-current — Time deposits: Current — — Total available-for-sale securities $ $ $ ) $ 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, 2018 and March 31, 2018 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. Proceeds from sales of available-for-sale investment securities and equity securities and the gross gains and losses that have been included in earnings as a result of those sales were as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 Proceeds from sales or maturities of available-for-sale investment securities and equity securities $ $ $ $ Gross gains $ $ $ $ Gross losses ) ) ) ) Net realized gains on sales of available-for-sale investment securities and equity securities $ $ $ $

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Sep. 30, 2018
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, 2018: Level 1 Level 2 Level 3 Total Assets: Investments: Available-for-sales securities—current $ — $ $ — $ Equity securities—current — Available-for-sales securities—non-current — — Equity securities—non-current — Derivative financial instruments: Foreign currency derivative contracts — — Interest Rate Swap Contracts — — Total assets $ — $ $ — $ Liabilities: Foreign currency derivative contracts $ — $ $ — Total liabilities $ — $ $ $ The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis at March 31, 2018: Level 1 Level 2 Level 3 Total Assets: Investments: Available-for-sales securities—current $ — $ $ — $ Available-for-sales securities—non-current — — Foreign currency derivative contracts — — Interest Rate Swap Contracts — — Total assets $ — $ $ — $ Liabilities: Foreign currency derivative contracts $ — $ $ — Interest Rate Swap Contracts — — — — Contingent consideration — — Total liabilities $ — $ $ $

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Sep. 30, 2018
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 all foreign currencies, including most significantly the U.K. pound sterling and Indian rupee. The Company enters into hedging programs with highly rated financial institutions 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. There is no margin required, no cash collateral posted or received by us related to our foreign exchange forward contracts. The U.S. dollar notional value of all outstanding foreign currency derivative contracts was $173,461 and $140,347 at September 30, 2018 and March 31, 2018, respectively. Unrealized net losses related to these contracts which are expected to be reclassified from AOCI to earnings during the next 12 months are $8,331 at September 30, 2018. At September 30, 2018, the maximum outstanding term of any derivative instrument was 18 months. The Company also uses interest rate swaps to mitigate the Company’s interest rate risk on the Company’s variable rate debt. The Company’s objective is to limit the variability of cash flows associated with changes in LIBOR interest rate payments due on the Credit Agreement (See Note 13 to the consolidated financial statements), by using pay-fixed, receive-variable interest rate swaps to offset the future variable rate interest payments. The Interest Rate Swap agreements require the Company to make monthly fixed interest rate payments based on the amortized notional amount at a blended weighted average rate of 1.025% and the Company will receive 1-month LIBOR on the same notional amounts. The following table sets forth the fair value of derivative instruments included in the consolidated balance sheets at September 30, 2018 and March 31, 2018: Derivatives designated as hedging instruments September 30, 2018 March 31, 2018 Foreign currency exchange contracts: Other current assets $ $ Other long-term assets $ $ Accrued expenses and other $ $ Long-term liabilities $ $ — September 30, 2018 March 31, 2018 Interest rate swap contracts: Other long-term assets $ $ The following tables set forth the effect of the Company’s foreign currency exchange contracts and interest rate swap contracts on the consolidated financial statements of the Company for the three and six months ended September 30, 2018 and 2017: Amount of Gain or (Loss) Recognized in AOCI on Derivative Derivatives Designated as Cash Flow Three Months Ended September 30, Six Months Ended September 30, Hedging Relationships 2018 2017 2018 2017 Foreign currency exchange contracts $ ) $ $ ) $ Interest rate swaps $ $ $ $ ) Location of Gain ((Loss) Reclassified Amount of Gain (Loss) Reclassified from AOCI into Income (loss) from AOCI into Income (loss) (Effective Three Months Ended September 30, Six Months Ended September 30, Portion) 2018 2017 2018 2017 Revenue $ ) $ $ ) $ Costs of revenue $ ) $ $ ) $ Operating expenses $ ) $ $ ) $ Interest expense $ $ $ $ Amount of Gain or (Loss) Recognized in Income Derivatives not Designated Location of Gain or (Loss) Three Months Ended Six Months Ended as Hedging Instrument Recognized in Income (loss) on Derivatives 2018 2017 2018 2017 Foreign currency exchange contracts Revenue $ $ ) $ $ ) Costs of revenue $ ) $ $ ) $ Selling, general and administrative expenses $ ) $ $ ) $

Acquisitions

Acquisitions	6 Months Ended
	Sep. 30, 2018
Acquisitions
Acquisitions	(7) Acquisitions On March 12, 2018, (i) the Company entered into an equity purchase agreement by and among the Company, eTouch Systems Corp. (“eTouch US”) and each of the equity holders of eTouch US to acquire all of the outstanding shares of eTouch US, and (ii) certain of the Company’s Indian subsidiaries entered into a share purchase agreement by and among those Company subsidiaries, eTouch Systems (India) Pvt. Ltd (“eTouch India,” together with eTouch US, “eTouch”) and the equity holders of eTouch India to acquire all of the outstanding shares of eTouch India (together with the acquisition of eTouch US, the “Acquisition”). The Acquisition strengthens our digital engineering capabilities, and establishes a solid base in Silicon Valley. Under the terms of the equity purchase agreement and the share purchase agreement, on March 12, 2018, the Company acquired all of the outstanding shares of eTouch US and eTouch India for approximately $140,000 in cash, subject to certain adjustments, with up to an additional $15,000 set aside for retention bonuses to be paid to eTouch management and key employees, in equal installments on the first and second anniversary of the transaction. The purchase price is being paid in three tranches with $80,000 paid at closing, $42,500 on the 12-month anniversary of the close of the transaction, and $17,500 on the 18-month anniversary of the close of the transaction, subject in each case to certain adjustments. The Company utilized the net cash proceeds of a $70,000 delayed draw term loan funded pursuant to the Credit Agreement (as defined in note 13 to the consolidated financial statements) and $10,000 of cash on hand to make the payments due at the closing of the Acquisition. The Company paid an amount equal to $66,000 to the equity holders of eTouch US, and an amount equal to $14,000 to the equity holders of eTouch India, which together comprise the first of three tranches of the purchase price to be paid in connection with the closing of the Acquisition. The purchase price is subject to adjustment after the closing in the event the working capital associated with eTouch deviates from a threshold amount and other contractual adjustments. Under the purchase method of accounting, assets acquired and liabilities assumed are recorded at their estimated fair values. The Company may continue to adjust the preliminary estimated fair values after obtaining more information regarding asset valuations, liabilities assumed, and revision of preliminary estimates. During the three months ended September 30, 2018, the Company recorded $7,100 as a reduction of goodwill related to updating the fair value assessment of customer relationships and trademark and $308 as an increase in goodwill related to other adjustments. The following are the preliminary fair values of assets and liabilities based on information available as of September 30, 2018 and may be subject to change during the measurement period. A summary of the fair values for eTouch is as follows: Amount Useful Life Consideration Transferred: Cash paid at closing $ Fair value of the future payments Tax related liability Fair value of consideration Less: Cash acquired Total purchase price, net of cash acquired $ Assets and Liabilities: Cash and cash equivalents Accounts receivable Unbilled receivables Prepaid expenses Other current assets Property and equipment Other long-term assets Goodwill Trademark 2 years Customer relationships 10 - 15 years Accounts payable ) Deferred revenue ) Accrued expenses and other current liabilities ) Accrued employee compensation and benefits ) Income taxes payable ) Deferred income taxes ) Other long-term liabilities ) Total purchase price $ Acquisition costs are recorded in selling, general and administrative expenses. The primary items that generated goodwill are the value of the acquired assembled workforces and synergies between eTouch and the Company, neither of which qualify as an amortizable intangible asset.

Revenues

Revenues	6 Months Ended
	Sep. 30, 2018
Revenues
Revenues	(8) Revenues Effective April 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (“Topic 606”) as amended. The Company adopted the new guidance using the modified retrospective method by recognizing the cumulative effect of adoption as an adjustment to retained earnings as of April 1, 2018. Results for reporting periods beginning after April 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with Revenue Recognition (“Topic 605”). The impact of adoption of the new guidance on the Company’s consolidated financial statements as of April 1, 2018 is presented in Note 2 to the Company’s consolidated financial statements. Revenue recognition The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenues are recognized when control of the promised services is transferred to its customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The Company generally recognizes revenue for services over time as the Company’s performance creates or enhances an asset that the customer controls from fixed price contracts related to complex design, development and customization. For these contracts, the Company measures the progress and recognizes revenue using effort-based input methods, as the Company performs, based on actual efforts spent compared to the total expected efforts for the contract. The use of the effort based input method requires significant judgment relative to estimating total efforts, including assumptions relative to the length of time to complete the project and the nature and complexity of the work to be performed. Estimates of total efforts are continuously monitored during the term of the contract and are subject to revision as the contract progresses. When revisions in estimated contract revenue and efforts are determined, such adjustments are recorded in the period in which they are first identified. An input method is used to recognize revenue as the value of services provided to the customer is best represented by the hours expended to deliver those services. The Company generally recognizes revenue for services over time as the customer simultaneously receives and consumes the benefits as the Company performs for fixed-price contracts related to consulting or other IT services. For these contracts, the Company measures the progress and recognizes revenue using effort-based input methods as the Company performs based on actual efforts spent compared to the total expected efforts for the contract. The cumulative impact of any change in estimates of the contract revenue is reflected in the period in which the changes become known. The Company has applied the as-invoiced practical expedient to recognize revenues for services the Company renders to customers on time and material basis contracts. The Company generally recognizes revenue from fixed-price applications management, maintenance, or support engagements over time as customers receive and consume the benefits of such services and have applied the as-invoiced practical expedient to recognize revenue for services the Company renders to customers based on the amount the Company has a right to invoice, which is representative of the value being delivered. Contracts are often modified to account for changes in contract specification and requirements. The Company considers a contract modification when the modification either creates new or changes the existing enforceable rights and obligations. The accounting for modifications involves assessing whether the services added to an existing contract are distinct and whether the pricing is at the standalone selling price. Services added that are not distinct are accounted for on a cumulative catch up basis, while those that are distinct are accounted for prospectively, either as a separate contract if the additional services are priced at the standalone selling price, or as a termination of the existing contract and creation of a new contract if not priced at the standalone selling price. Certain customers may receive discounts, incentive payments or service level credits. A portion of the revenues relating to such arrangements are accounted for as variable consideration when the amount of revenue to be recognized can be estimated to the extent that it is probable that a significant reversal of any revenue will not occur. The Company estimates these amounts based on the expected amount to be provided to customers and adjusts revenues recognized. The Company’s estimates of variable consideration and determination of whether to include estimated amounts in the transaction price may involve judgment and are based largely on an assessment of the Company’s anticipated performance and all information that is reasonably available to us. From time to time, the Company may enter into contracts with customers that include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. The Company generally determines standalone selling prices based on an expected cost plus a margin approach. The Company’s warranties generally provide a customer with assurance that the related deliverable will function as the parties intended because it complies with agreed-upon specifications and is therefore not considered as an additional performance obligation in the contract. When the Company receives consideration from a customer prior to transferring services to the customer under the terms of a contract, the Company records deferred revenue, which represents a contract liability. The Company recognizes deferred revenue as revenue after the Company has transferred control of the services to the customer and all revenue recognition criteria are met. The Company’s payment terms vary by the type and location of its customers. The term between invoicing and when payment is due is not significant. As a practical expedient, the Company does not assess the existence of a significant financing component when the difference between payment and transfer of deliverables is one year or less. The Company reports gross reimbursable “out-of-pocket” expenses incurred as both revenues and cost of revenues. Any tax assessed by a governmental authority that is incurred as a result of a revenue transaction (e.g. sales tax) is excluded from the Company’s assessment of transaction prices. Costs to obtain and fulfill The Company’s costs to obtain contracts are generally expensed as incurred, as the liability is not solely a result of obtaining the contract. The costs to obtain contracts are triggered by multiple conditions such as being contingent on future performance, including continued employment and revenue recognized associated with the contract. The Company’s recurring operating costs for contracts with customers are recognized as expense as incurred. Certain eligible costs incurred in the initial phases of the Company’s application maintenance, business process outsourcing and infrastructure services contracts (i.e. set-up or transition costs) are capitalized when such costs (1) relate directly to the contract, (2) generate or enhance resources of the Company that will be used in satisfying the performance obligation in the future, and (3) are expected to be recovered. These costs are expensed ratably over the estimated life of the customer relationship, including expected renewals. In determining the estimated life of the customer relationship, the Company evaluates the contract term, the expected life of the enhanced assets as well as the rate of technological and industry change. Capitalized amounts are monitored regularly for impairment. Impairment losses are recorded when projected remaining undiscounted operating cash flows are not sufficient to recover the carrying amount of the capitalized costs to fulfill. The following table presents information related to the capitalized costs to fulfill, such as set-up or transition activities, for the six months ended September 30, 2018: Costs to Fulfill Balance at April 1, 2018 $ Costs capitalized Amortization expense ) Foreign currency translation adjustments ) Balance at September 30, 2018 $ Costs to fulfill are recorded in “Other current assets” and “Other long-term assets” in the consolidated balance sheets. The following table summarizes the impacts of changes in accounting policies after adoption of ASC 606 on the Company’s consolidated financial statements as of and for the three and six months ended September 30, 2018: As of September 30, 2018 As reported Pro-forma Amounts Impacts of the New Balance Sheet : Assets Other current assets (1) $ $ $ Total current assets Deferred income taxes (3) ) Other long-term assets (1) Total Assets $ Liabilities Deferred revenue (2) ) Total current liabilities ) Stockholders’ equity: Retained earnings Total liabilities, Series A convertible preferred stock and stockholders’ equity $ Three Months Ended Six Months Ended As reported Pro-forma Impact from As reported Pro-forma Impact from Revenue (2) $ $ $ ) $ $ Costs of revenue (1) ) ) Gross profit Operating expenses: Selling, general and administrative expenses — — Income from operations Other expense ) ) — ) ) — Income before income tax expense (benefit) Income tax (benefit) expense (3) ) ) Net income (loss) $ $ $ $ ) ) $ Less: net income attributable to noncontrolling interests, net of tax — — Net income (loss) available to Virtusa stockholders $ $ $ $ ) ) $ Less: Series A Convertible Preferred Stock dividends and accretion — — Net income (loss) available to Virtusa common stockholders ) ) Basic earnings (loss) per share available to Virtusa common stockholders $ $ — $ $ ) ) $ Diluted earnings (loss) per share available to Virtusa common stockholders $ $ — $ $ ) ) $ Notes (1) Reflects the impact of a longer period of amortization for costs to fulfill a contract. (2) Reflects the impact of changes in timing of revenue recognition on our software licenses and certain fixed-price application maintenance contracts. (3) Reflects the income tax impact of the above items. Receivables and Contract Balances The Company classifies its right to consideration in exchange for deliverables as either a receivable or a contract asset. A receivable is a right to consideration that is unconditional (i.e. only the passage of time is required before payment is due). The Company presents such receivables in accounts receivable or unbilled accounts receivable, in its consolidated statements of financial position at their net estimated realizable value. Contract assets included in unbilled accounts receivable are recorded when services have been provided but the Company does not have an unconditional right to receive consideration. Contracts assets are primarily related to unbilled amounts on fixed-price contracts utilizing the input method of revenue recognition. The timing between services rendered and timing of payment is less than one year. The Company recognizes an impairment loss when the contract carrying amount is greater than the remaining consideration receivable, less directly related costs to be incurred. The table below shows significant movements during the six months ended September 30, 2018 in contract assets: Contract Assets Balance at April 1, 2018 $ Revenues recognized during the period but not yet billed Amounts billed ) Other ) Balance at September 30, 2018 $ Contract liabilities comprise amounts billed to customers for revenues not yet earned. Such amounts are anticipated to be recorded as revenues when services are performed in subsequent periods. The table below shows significant movements in the deferred revenue balances during the six months ended September 30, 2018: Contract Balance at April 1, 2018 $ Amounts billed but not yet recognized as revenues Revenues recognized related to the opening balance of deferred revenue ) Other ) Balance at September 30, 2018 $ Remaining performance obligation ASC 606 requires that the Company discloses the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of September 30, 2018. This disclosure is not required for: (1) contracts with an original duration of one year or less, including contracts that can be terminated for convenience without a substantive penalty, (2) contracts for which the Company recognizes revenues based on the right to invoice for services performed, (3) variable consideration allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation in accordance with ASC 606-10-25-14(b), for which the criteria in ASC 606- 10-32-40 have been met, or (4) variable consideration in the form of a sales-based or usage-based royalty promised in exchange for a license of intellectual property. Many of the Company’s performance obligations meet one or more of these exemptions. As of September 30, 2018, the aggregate amount of transaction price allocated to remaining performance obligations, other than those meeting the exclusion criteria above, was $46,164 and will be recognized as revenue within 4 years. Disaggregation of Revenue The table below presents disaggregated revenues from the Company’s contracts with customers by geography, industry groups, service offerings and contract-type. The Company believes this disaggregation best depicts how the nature, amount, timing and uncertainty of its revenues and cash flows are affected by industry, market and other economic factors. Revenue by geography: Three Months Ended Six Months Ended North America $ $ Europe Rest of World Consolidated revenue $ $ Revenue by Customer’s Industry Groups Three Months Ended Six Months Ended Banking financial services insurance $ $ Communications and Technology Media & Information and Other Consolidated revenue $ $ Revenue by service offerings Three Months Ended Six Months Ended Application outsourcing $ $ Consulting Consolidated revenue $ $ Revenue by contract type Three Months Ended Six Months Ended Time-and-materials $ $ Fixed-price* Consolidated revenue $ $ *Fixed-price includes both retainer-billing basis and fixed-price progress towards completion

Series A Convertible Preferred

Series A Convertible Preferred Stock	6 Months Ended
	Sep. 30, 2018
Series A Convertible Preferred Stock
Series A Convertible Preferred Stock	(9) Series A Convertible Preferred Stock On May 3, 2017, the Company entered into an investment agreement with The Orogen Group (“Orogen”) pursuant to which Orogen purchased 108,000 shares of the Company’s newly issued Series A Convertible Preferred Stock, initially convertible into 3,000,000 shares of common stock, for an aggregate purchase price of $108,000 with an initial conversion price of $36.00 (the “Orogen Preferred Stock Financing”). Under the terms of the investment, the Series A Convertible Preferred Stock has a 3.875% dividend per annum, payable quarterly in additional shares of common stock and/or cash at the Company’s option. If any shares of Series A Convertible Preferred Stock have not been converted into common stock prior to May 3, 2024, the Company will be required to repurchase such shares at a repurchase price equal to the liquidation preference of the repurchased shares plus the amount of accumulated and unpaid dividends thereon. If the Company fails to effect such repurchase, the dividend rate on the Series A Convertible Preferred Stock will increase by 1% per annum and an additional 1% per annum on each anniversary of May 3, 2024 during the period in which such failure to effect the repurchase is continuing, except that the dividend rate will not increase to more than 6.875% per annum. In connection with the issuance of the Series A Convertible Preferred Stock, the Company incurred direct and incremental expenses of $1,154, including financial advisory fees, closing costs, legal expenses and other offering-related expenses. These issuance costs are recorded as a reduction to the proceeds received from issuance of Series A Convertible Preferred Stock. These direct and incremental expenses reduced the Series A Convertible Preferred Stock, and will be accreted through retained earnings as a deemed dividend from the date of issuance through the first possible known redemption date, May 3, 2024. During the three and six ended September 30, 2018 and 2017, the Company recorded accretions to the Series A Convertible Preferred Stock related to its issuance cost. Holders of Series A Convertible Preferred Stock are entitled to a cumulative dividend at the rate of 3.875% per annum, payable quarterly in arrears. During the six months ended September 30, 2018 and 2017, the Company has paid $2,092 and $1,035, respectively, as cash dividend on Series A Convertible Preferred Stock. As of September 30, 2018, the Company had declared and accrued dividends of $686 associated with the Series A Convertible Preferred Stock.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets
Goodwill and Intangible Assets	(10) Goodwill and Intangible Assets Goodwill: The Company has one operating segment. The following are details of the changes in goodwill balance at September 30, 2018: Amount Balance at April 1, 2018 $ Preliminary fair value adjustment ) Foreign currency translation adjustments ) Balance at September 30, 2018 $ The acquisition costs and goodwill balance deductible for our business acquisitions for tax purposes are $145,936. The acquisition costs and goodwill balance not deductible for tax purposes are $141,970 and relate to the Company’s TradeTech acquisition (closed on January 2, 2014), the Polaris acquisition and the eTouch India acquisition. Intangible Assets: The following are details of the Company’s intangible asset carrying amounts acquired and amortization at September 30, 2018. Weighted Average Gross Carrying Accumulated Net Carrying Amortizable intangible assets: Customer relationships $ $ $ Trademark Technology $ $ $ The intangible assets are being amortized based upon the pattern in which the economic benefits of the intangible assets are being utilized.

Income Taxes

Income Taxes	6 Months Ended
	Sep. 30, 2018
Income Taxes
Income Taxes	(11) Income Taxes The Company applies an estimated annual effective tax rate to its year-to-date operating results to determine the interim provision (benefit) for income tax expense. The Company’s effective tax (benefit) rate was (25.8%) and 294.0% for the three and six months ended September 30, 2018, as compared to an effective tax rate of 16.5% and 15.8% for the three and six months ended September 30, 2017. The Company’s effective tax rate for the three and six months ended September 30, 2018 was significantly impacted by electing disregarded entity treatment for certain foreign subsidiaries, Global Intangible Low—taxed Income (“GILTI”) provisions and executive compensation limitations enacted in the Tax Cuts and Jobs Act (the “Tax Act”), enacted on December 22, 2017 by the U.S. government. The Company’s reported effective tax rate is also impacted by jurisdictional mix of profits and losses in which the Company operates, foreign statutory tax rates in effect, unusual or infrequent discrete items requiring a provision during the period and certain exemptions or tax holidays applicable to the Company. During the three and six months ended September 30, 2018, the Company elected to treat several foreign entities as disregarded entities. The earnings of these subsidiaries will be subject to US taxation as well as local taxation with a corresponding foreign tax credit, at the election of the Company. The election resulted in a deferred tax charge of $6,288 during the six months ended September 30, 2018. The election also makes available to the Company benefits of foreign tax credits. The Company’s income tax provision for the three and six months ended September 30, 2018 includes a reasonable estimate of the expected impact of GILTI and executive compensation limitations of the Tax Act impacting our operating results for the 2019 fiscal year. The Company’s aggregate income tax rate in foreign jurisdictions is comparable to its income tax rate in the United States, as a result of the Tax Act , other than in jurisdictions in which the Company has tax holiday benefits. The Tax Act contains several key tax provisions that have impacted the Company, including the reduction of the corporate income tax rate to 21% effective January 1, 2018. The Tax Act also includes a variety of other changes, such as a deemed repatriation tax on accumulated foreign earnings, a limitation on the tax deductibility of interest expense, acceleration of business asset expensing, and reduction in the amount of executive pay that could qualify as a tax deduction, among others. The lower corporate income tax rate required the Company to remeasure its U.S. deferred tax assets and liabilities as well as reassess the realizability of its deferred tax assets and liabilities. ASC Topic 740, Income Taxes, requires the Company to recognize the effect of the tax law changes in the period of enactment. However, the Securities and Exchange Commission has issued Staff Accounting Bulletin 118, Income Tax Accounting Implications of the Tax Cuts and Job Act (“SAB 118”), which will allow the Company to record provisional amounts during a measurement period of up to one year after the enactment of the Tax Act to finalize the recording of the related tax impacts. During the fiscal year ended March 31, 2018, the Company recorded a provisional charge of $17,834 for deemed repatriation of unremitted earnings and a provisional charge of $4,890 primarily to remeasure the Company’s opening U.S. deferred tax assets to reflect the lower statutory rate at which they will be realized. Both provisional charges are based on the Company’s reasonable estimates. During the three and six months ended September 30, 2018, the Company recorded no additional provisional charge for deemed repatriation of unremitted earnings or remeasurement of deferred tax assets to reflect the lower statutory rate at which they will be realized. The $17,834 for deemed repatriation will be paid over the next 8 years. In July 2018, the Company paid approximately $1,427 related to deemed repatriation. As of September 30, 2018, of the remaining deemed repatriation balance, approximately $1,427 is included in income taxes payable and $14,980 is included in long-term liabilities in the consolidated balance sheet as of September 30, 2018. Due to the complexities involved in determining the previously unremitted earnings of all our foreign subsidiaries, the Company is still in the process of obtaining, preparing and analyzing the computations of accumulated earnings and profits balances as of September 30, 2018. The Company is continuing to analyze certain aspects of the Tax Act and may refine its estimates, which could potentially affect the measurement of its net deferred tax assets or give rise to new deferred tax amounts. The U.S. Government and state tax authorities are expected to continue to issue guidance regarding the Tax Act, which may result in adjustments to the Company’s provisional estimates. The final determination of these provisional amounts will be completed as additional information becomes available, but no later than one year from the enactment date. The changes included in the Tax Act are broad and complex. The final impacts of the Tax Act may differ from the above estimate, possibly materially, due to, among other things, changes in interpretations of the Tax Act, any legislative action to address questions that arise because of the Tax Act, any changes in accounting standards for income taxes or related interpretations in response to the Tax Act, or any updates or changes to estimates the Company has utilized to calculate the impacts, including impacts from changes to current year earnings estimates and foreign exchange rates of foreign subsidiaries. The U.S. Tax Act subjects a U.S. shareholder to GILTI earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income , states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. The Company has elected to provide for GILTI in the year incurred. The Company’s results for the six months ended September 30, 2018 include a reasonable estimate for the impact of GILTI. Given the complexity of the GILTI provisions, and future guidance that might be released, the Company continues to evaluate the effects of the GILTI provisions on our results. The Company continues to review the anticipated impacts of the base erosion anti-abuse tax (“BEAT”), which is effective for our fiscal year ended March 31, 2019. The Company has not recorded any impact associated with BEAT in the tax rate for the six months ended September 30, 2018 given the Company’s understanding of current guidance. A valuation allowance is required if, based on available evidence, it is more likely than not that all or some portion of the asset will not be realized due to the inability of the Company to generate sufficient taxable income in a specific jurisdiction. Net loss in the United States has decreased during the six months ended September 30, 2018 compared with the months ended September 30, 2017. The Company has $31,343 of net deferred tax assets in the United States at September 30, 2018. The Company has not completed its valuation allowance assessment related to the Tax Act, primarily related to the impact of the GILTI, interest expense limitation and executive pay, which might impact the need for a valuation allowance. However, as a result of the Company’s election to treat several foreign entities as disregarded entities, U.S. taxable income has significantly increased. The Company also has a deferred tax asset in the United Kingdom for loss carryovers, which in the determination of management is more likely than not to be utilized before expiration. The Company’s Indian subsidiaries operate several development centers in areas designated a special economic zone, or SEZ, under the SEZ Act of 2005. In particular, the Company was approved as an SEZ Co-developer and has built a campus on a 6.3 acre parcel of land in Hyderabad, India that has been designated as an SEZ. As an SEZ Co-developer, the Company is entitled to certain tax benefits for any consecutive period of 10 years during the 15 year period starting in fiscal year 2008. The Company has other units at various stages of tax holiday benefit. 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 retain certain job creation and investment criteria through the expiration of the holiday period. During the fiscal year ended March 31, 2018, the Company believes it had fulfilled its hiring and investment commitments and is eligible for tax holiday through March 2019. At September 30, 2018, the Company believes it is eligible for continued benefits for the entire 12-year tax holiday. Due to the geographical scope of the Company’s operations, the Company is subject to tax examinations in various jurisdictions. The Company’s ongoing assessments of the more-likely-than-not outcomes of these examinations and related tax positions require judgment and can increase or decrease the Company’s effective tax rate, as well as impact the Company’s operating results. The specific timing of when the resolution of each tax position will be reached is uncertain. The Company does not believe that the outcome of any ongoing examination will have a material effect on its consolidated financial statements within the next twelve months. The Company’s major taxing jurisdictions include the United States, the United Kingdom, India and Sri Lanka. In the United States, the Company remains subject to examination for all tax years ended after March 31, 2015. In the foreign jurisdictions, the Company generally remains subject to examination for tax years ended after March 31, 2005. The Company has been under income tax examination in India, the U.K. and the United States. The Company is currently appealing assessments in India for fiscal years ended March 31, 2005 through 2014. In the United Kingdom, the Company is currently under examination for transfer pricing matters for the year ended March 2014. In the United States, the IRS has initiated an examination of fiscal years ended March 31, 2015 and March 31, 2017. Unrecognized tax benefits represent uncertain tax positions for which the Company has established reserves. At September 30, 2018 and March 31, 2018, the total liability for unrecognized tax benefits was $6,702 and $7,544, respectively. 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, 2018, the unrecognized tax benefits decreased by $842 and decreased by $24 during the six months ended September 30, 2017. The decrease in unrecognized tax benefits in the six months period ending September 30, 2018 was predominantly due to foreign currency movements and the settlement of a prior period position offset by increases for incremental interest accrued on existing uncertain tax 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 and is 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 indefinitely reinvested. The Company does not provide for U.S. income taxes on foreign currency translation or applicable withholding tax until a distribution is declared. At September 30, 2018, the Company had approximately $180,348 of cash, cash equivalents, short-term and long-term investments that would otherwise be available for potential distribution, if not indefinitely reinvested. If required, such cash and investments could be repatriated to the United States. 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 As

Concentration of Revenue and Assets	6 Months Ended
	Sep. 30, 2018
Concentration of Revenue and Assets
Concentration of Revenue and Assets	(12) Concentration of Revenue and Assets Total revenue is attributed to geographic areas based on the 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 2018 2017 2018 2017 Client revenue: United States of America $ $ $ $ United Kingdom Rest of World Consolidated revenue $ $ $ $ September 30, March 31, Long-lived assets, net of accumulated depreciation and amortization: United States of America $ $ India Rest of World Consolidated long-lived assets, net $ $ Revenue from significant clients as a percentage of the Company’s consolidated revenue was as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 Customer 1 % % % %

Debt

Debt	6 Months Ended
	Sep. 30, 2018
Debt
Debt	(13) Debt On February 6, 2018, the Company entered into a credit agreement (the “Credit Agreement”) dated as of February 6, 2018, by and among the Company, its guarantor subsidiaries party thereto, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as joint book runners and lead arrangers. The Credit Agreement replaced the prior $300,000 credit agreement with J.P. Morgan Securities and Merrill Lynch, Pierce, Fenner & Smith Incorporated and provides for a $200,000 revolving credit facility and a $250,000 term loan and delayed-draw term loan. On August 14, 2018, the Company drew down $32,000 from the credit facility to finance the Polaris Consulting & Services Limited (“Polaris”) delisting open offer. The Company is required under the terms of the Credit Agreement to make quarterly principal payments on the term loan. For the fiscal year ending March 31, 2019, the Company is required to make principal payments of $3,125 per quarter. The Credit Agreement includes customary maximum debt to EBITDA and minimum fixed charge coverage covenants. The term of the Credit Agreement is five years ending February 6, 2023. At September 30, 2018, the interest rates on the term loan and line of credit were 4.75% and 4.65%, respectively. At September 30, 2018, the Company was in compliance with its debt covenants and has provided a quarterly certification to its lenders to that effect. The Company believes that it currently meets all conditions set forth in the Credit Agreement to borrow thereunder and it is not aware of any conditions that would prevent it from borrowing part or all of the remaining available capacity under the existing revolving credit facility at September 30, 2018 and through the date of this filing. Current portion of long-term debt The following summarizes our short-term debt balances as of: September 30, 2018 March 31, 2018 Notes outstanding under the revolving credit facility $ — $ — Term loan- current maturities Less: deferred financing costs — current ) ) Total $ $ Long-term debt, less current portion The following summarizes our long-term debt balance as of: September 30, 2018 March 31, 2018 Term loan $ $ Borrowings under revolving credit facility Less: Current maturities ) ) Deferred financing costs, long-term ) ) Total $ $ In July 2016, the Company entered into 12-month forward starting interest rate swap transactions to mitigate Company’s interest rate risk on Company’s variable rate debt (See Note 6 to the consolidated financial statements). Beginning in fiscal 2009, the Company’s U.K. subsidiary entered into an agreement with an unrelated financial institution to sell, without recourse or continuing involvement, certain of its European-based accounts receivable balances from one client to such third party financial institution. During the six months ended September 30, 2018, $15,230 of receivables were 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, 2018. No amounts were due as of September 30, 2018, 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 utilized in the future.

Redeemable noncontrolling inter

Redeemable noncontrolling interest	6 Months Ended
	Sep. 30, 2018
Redeemable noncontrolling interest
Redeemable noncontrolling interest	(14) Redeemable noncontrolling interest In connection with the Company’s Indian Subsidiary, Virtusa Consulting Services Private Limited (“Virtusa India”) delisting offer of Polaris and subsequent stock exchange approvals, effective August 1, 2018, the Polaris common shares were delisted in accordance with SEBI Delisting Regulations. For a period of one year following the date of delisting, Virtusa India will, in compliance with SEBI Delisting Regulations, permit the public shareholders of Polaris to tender their shares for sale to Virtusa India at the exit price of INR 480 per share. In connection with the Polaris delisting offer, during the three months ended September 30, 2018, Virtusa India purchased 4,141,816 shares, or approximately 4.0% of Polaris common stock from shareholders for an aggregate purchase price of approximately $28,396. As of September 30, 2018, the Polaris common stock held by noncontrolling interest shareholders was 3,626,167, or approximately 3.5% of Polaris’ basic shares of common stock outstanding. In accordance with ASC 480, Distinguishing Liabilities from Equity , the Company has recorded the fair value of these shares as well as comprehensive income attributable to noncontrolling interest totaling $24,614 and presented this in the mezzanine section of the consolidated balance sheet as redeemable noncontrolling interest. As of September 30, 2018, the Company had approximately $1,245 of Polaris stock options at fair value that were reclassified to current liabilities related to a deemed cash settlement modification resulting from the delisting offer.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
	Sep. 30, 2018
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss	(15) Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive income (loss) by component were as follows for the three and six months ended September 30, 2018 and 2017: Three Months Ended Six Months Ended Accumulated Other Comprehensive Income (Loss) 2018 2017 2018 2017 Investment securities Beginning balance $ $ $ $ Other comprehensive income (loss) (OCI) before reclassifications net of tax of $(2), $(32), $19 and $84 ) ) ) Reclassifications from OCI to other income, net of tax of $(1), $(40), $21 and $0 ) ) ) Less : Noncontrolling interests, net of tax $15, $19, $11 and $(22) ) Comprehensive income (loss) on investment securities, net of tax of $12, $(53), $51 and $62 ) ) ) Closing Balance $ ) $ $ ) $ Currency Translation Adjustments Beginning balance $ ) $ ) $ ) $ ) OCI before reclassifications ) ) Less: Noncontrolling interests ) Comprehensive income (loss) on currency translation adjustment ) ) Closing Balance $ ) $ ) $ ) $ ) Cash Flow Hedges Beginning balance $ ) $ $ $ OCI before reclassifications net of tax of $(1,677), $153, $(3,189), and $403 ) ) ) ) Reclassifications from OCI to - Revenue, net of tax of $282, $(1,010), $406 and $(1,907) ) ) - Costs of revenue, net of tax of $163, $(594), $89 and $(1,160) ) ) - Selling, general and administrative expenses, net of tax of $85, $(342), $45 and $(661) ) ) - Interest expenses, net of tax of $(61), $(14), $(114) and $(14) ) ) ) ) Less: Noncontrolling interests, net of tax $(6), $214, $42 and $367 ) Comprehensive loss on cash flow hedges, net of tax of $(1,214), $(1,593), $(2,721) and $(2,972) ) ) ) ) Closing Balance $ ) $ $ ) $ Benefit plans Beginning balance $ ) $ ) $ ) $ ) OCI before reclassifications net of tax of $29, $0, $348, $0 for all periods $ ) $ — $ ) $ — Reclassifications from OCI for prior service credit (cost) to: - Costs of revenue, net of tax of $0 for all periods — — - Selling, general and administrative expenses, net of tax of $0 for all periods — — — — - Other income (expense), net of tax of $0 for all periods Reclassifications from OCI for net actuarial gain (loss) amortization to: - Costs of revenue, net of tax of $0 for all periods — — - Selling, general and administrative expenses, net of tax of $0 for all periods — — - Other income (expense), net of tax of $0 for all periods Other adjustments Less: Noncontrolling interests, net of tax $0 for all periods — — Comprehensive income (loss) on benefit plans, net of tax of $0 for all periods ) Closing Balance $ ) $ ) $ ) $ ) Accumulated other comprehensive loss at September 30, 2018 $ ) $ ) $ ) $ )

Unaudited Interim Financial I_2

Unaudited Interim Financial Information (Policies)	6 Months Ended
	Sep. 30, 2018
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, 2018 included in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission, or SEC, on May 25, 2018. 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.
Principles of Consolidation	Principles of Consolidation The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of Virtusa Corporation and all of its subsidiaries that are directly or indirectly more than 50% owned or controlled. When the Company does not have a controlling interest in an entity, but exerts a significant influence on the entity, the Company applies the equity method of accounting. For those majority-owned subsidiaries that are not 100% owned by the Company, the interests of the minority owners are accounted for as noncontrolling interests.
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, intangible assets, contingent consideration 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, 2018 and March 31, 2018, the carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, unbilled accounts receivable, restricted cash, accounts payable, accrued employee compensation and benefits, other accrued expenses and long-term debt, approximate their fair values due to the nature of the items. See Note 5 of the notes to our consolidated financial statements for a discussion of the fair value of the Company’s other financial instruments.
Recent accounting pronouncements	Recent accounting pronouncements Recently Adopted Accounting Pronouncements Unless otherwise discussed below, the adoption of new accounting standards did not have an impact on the consolidated financial statements. In May 2014, the FASB issued an Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“Accounting Standard Codification (“ASC”) Topic 606”) as well as other clarifications and technical guidance related to this new revenue standard, including ASC Topic 340-40, Other Assets and Deferred Costs — Contracts with Customers (“ASC 340-40”). ASC Topic 606 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. In March, April and May 2016, the FASB issued updates to the new revenue standard to clarify the implementation guidance on principal versus agent considerations for reporting revenue gross versus net, identifying performance obligations, accounting for licenses of intellectual property, transition, contract modifications, collectability, non-cash consideration and presentation of sales and other similar taxes with the same effective date. The standard permits the use of either the retrospective or modified retrospective method. The Company adopted the standard effective April 1, 2018 using the modified retrospective method applied to those contracts which were not completed as of that date. Upon adoption of ASC Topic 606 on April 1, 2018, the Company recorded a net increase to opening retained earnings of approximately $464, after a tax impact of $142. The impact of adoption primarily relates to the longer period of amortization for costs to fulfill a contract compared to the amortization period prior to adoption. The following table summarizes the cumulative effect of adopting ASC Topic 606 using the modified retrospective method of adoption as of April 1, 2018: Balance as of ASC Topic 606 Balance as of Balance Sheet : Assets Other current assets $ ) $ Deferred income taxes ) Other long-term assets Stockholders’ equity Retained earnings See Note 8 “Revenues” in the consolidated financial statements for additional information regarding revenues. In January 2016, the FASB issued an update (ASU 2016-01) to the standard on financial instruments. The update significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. The update also amends certain disclosure requirements. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Upon adoption, entities will be required to make a cumulative-effect adjustment to the statement of financial position as of the beginning of the first reporting period in which the guidance is effective. However, the specific guidance on equity securities without readily determinable fair value will apply prospectively to all equity investments that exist as of the date of adoption. The Company adopted this guidance on April 1, 2018. The adoption of this guidance did not have a material impact on the consolidated financial statements, therefore, the Company did not record any cumulative adjustments to the opening retained earnings in the consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Restricted Cash (Topic 230), which is intended to reduce diversity in practice on how changes in restricted cash are classified and presented in the statement of cash flows. This ASU requires amounts generally described as restricted cash to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The guidance is effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. The amendments in this update should be applied using a retrospective transition method to each period presented. The Company adopted the standard effective April 1, 2018 using the retrospective method. As a result of the adoption, the Company restated its consolidated statement of cash flows for all of the prior periods presented. The following table summarizes the impact of this standard on the Company’s consolidated cash flows for the six months ended September 30, 2017: As Reported Restated Effect Cash flows from investing activities: Increase in restricted cash $ ) $ — $ Net cash used in investing activities ) ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash ) Net increase in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, beginning of period Cash, cash equivalents and restricted cash, end of period In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715), “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”, a guidance on presentation of net periodic pension cost and net periodic postretirement benefit cost. The new standard requires that an employer disaggregate the service costs components of net benefit cost. The employer is required to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component, such as in other income and expense. The guidance is effective for fiscal years beginning after December 15, 2017. The Company adopted this guidance effective April 1, 2018. Upon adoption, the Company presented the service cost component in costs of revenue and selling, general and administrative expenses. The other components of net periodic pension cost are presented within other (income) expense in the Consolidated Statements of Income (Loss). The adoption of this guidance did not have a material impact on the consolidated financial statements, therefore, the Company did not retrospectively change the presentation of the financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation — Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting. The new standard is intended to simplify aspects of share-based compensation issued to non-employees by making the guidance consistent with accounting for employee share-based compensation. The guidance is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods, with early adoption permitted but no earlier than an entity’s adoption date of Topic 606. The Company early adopted this guidance effective April 1, 2018. The adoption of this guidance did not have an impact on the consolidated financial statements. New Accounting Pronouncements Unless otherwise discussed below, the Company believes the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial statements. In February 2016, the FASB issued an update (ASU 2016-02) to the standard on leases to increase transparency and comparability among organizations. The FASB subsequently issued ASU 2018-10 and ASU 2018-11 in July 2018, which provide clarifications and improvements to this new standard. ASU 2018-11 also provides the optional transition method which allows companies to apply the new lease standard at the adoption date instead of at the earliest comparative period presented. The new standard replaces the existing guidance on leases and requires the lessee to recognize a right-of-use asset and a lease liability for all leases with lease terms equal to or greater than twelve months. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases, the lessee would recognize total lease expense on a straight-line basis. For public business entities this standard is effective for the annual periods beginning after December 15, 2018, and interim periods within those annual periods. Early adoption of this new standard is permitted. Entities will be required to use a modified retrospective transition which provides for certain practical expedients. While the Company is continuing to assess the potential impact of this ASU, the Company anticipates this ASU will have a material impact on the consolidated balance sheets primarily due to recognizing a right-to-use-asset and a lease liability for operating leases. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Measurement of Credit Losses on Financial Instruments, which modifies the measurement of expected credit losses of certain financial instruments. This standard update requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect of this new standard will have on its consolidated financial statements and related disclosures. In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220). The amendments in this Update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The amendments in this Update also require certain disclosures about stranded tax effects. The guidance is effective for fiscal years beginning after December 15, 2018 with early adoption permitted, including interim periods within those years. The Company is currently evaluating the effect of this new standard will have on its consolidated financial statements and related disclosures.

Unaudited Interim Financial I_3

Unaudited Interim Financial Information (Tables)	6 Months Ended
	Sep. 30, 2018
Recent accounting pronouncements
Summary of cumulative effect of adopting ASC Topic 606 using the modified retrospective method	Balance as of ASC Topic 606 Balance as of Balance Sheet : Assets Other current assets $ ) $ Deferred income taxes ) Other long-term assets Stockholders’ equity Retained earnings
ASU 2016-18
Recent accounting pronouncements
Summary of impact of accounting standard adoption	As Reported Restated Effect Cash flows from investing activities: Increase in restricted cash $ ) $ — $ Net cash used in investing activities ) ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash ) Net increase in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, beginning of period Cash, cash equivalents and restricted cash, end of period

Earnings (Loss) per Share (Tabl

Earnings (Loss) per Share (Tables)	6 Months Ended
	Sep. 30, 2018
Earnings (Loss) per Share
Schedule of components of basic earnings (loss) per share	Three Months Ended Six Months Ended 2018 2017 2018 2017 Numerator: Net income (loss) available to Virtusa stockholders $ $ $ ) $ Less: Series A Convertible Preferred Stock dividends and accretion Net income (loss) available to Virtusa common stockholders ) Denominator: Basic weighted average common shares outstanding Basic earnings (loss) per share available to Virtusa common stockholders $ $ $ ) $
Schedule of components of diluted earnings (loss) per share	Three Months Ended Six Months Ended 2018 2017 2018 2017 Numerator: Net income (loss) available to Virtusa common stockholders $ $ $ ) $ Add: Series A Convertible Preferred Stock dividends and accretion — — — — Net income (loss) available to Virtusa common stockholders ) Denominator: Basic weighted average common shares outstanding Dilutive effect of Series A Convertible Preferred Stock — — — — Dilutive effect of employee stock options and unvested restricted stock awards and restricted stock units — Weighted average shares-diluted Diluted earnings (loss) per share available to Virtusa common stockholders $ $ $ ) $

Investment Securities (Tables)

Investment Securities (Tables)	6 Months Ended
	Sep. 30, 2018
Investment Securities
Summary of investment securities	The following is a summary of investment securities at September 30, 2018: Amortized Gross Gross Fair Available-for-sale securities : Corporate bonds: Current $ $ — $ ) $ Preference shares: Non-current — ) Time Deposits: Current — — Equity securities: Mutual funds: Current — Equity Shares/ Options: Non-current — Total available-for-sale and equity securities $ $ $ ) $ The following is a summary of investment securities at March 31, 2018: Amortized Gross Gross Fair Available-for-sale securities: Corporate bonds: Current $ $ — $ ) $ Non-current — ) Preference shares: Non-current — ) Agency and short-term notes: Current — ) Mutual funds: Current — Equity Shares/ Options: Non-current — Time deposits: Current — — Total available-for-sale securities $ $ $ ) $
Schedule of proceeds from sales of available-for-sale investment securities and equity securities and gross gains and losses included in earnings as a result	Three Months Ended Six Months Ended 2018 2017 2018 2017 Proceeds from sales or maturities of available-for-sale investment securities and equity securities $ $ $ $ Gross gains $ $ $ $ Gross losses ) ) ) ) Net realized gains on sales of available-for-sale investment securities and equity securities $ $ $ $

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Sep. 30, 2018
Fair Value of Financial Instruments
Schedule of financial assets and liabilities measured at fair value on a recurring basis	The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis at September 30, 2018: Level 1 Level 2 Level 3 Total Assets: Investments: Available-for-sales securities—current $ — $ $ — $ Equity securities—current — Available-for-sales securities—non-current — — Equity securities—non-current — Derivative financial instruments: Foreign currency derivative contracts — — Interest Rate Swap Contracts — — Total assets $ — $ $ — $ Liabilities: Foreign currency derivative contracts $ — $ $ — Total liabilities $ — $ $ $ The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis at March 31, 2018: Level 1 Level 2 Level 3 Total Assets: Investments: Available-for-sales securities—current $ — $ $ — $ Available-for-sales securities—non-current — — Foreign currency derivative contracts — — Interest Rate Swap Contracts — — Total assets $ — $ $ — $ Liabilities: Foreign currency derivative contracts $ — $ $ — Interest Rate Swap Contracts — — — — Contingent consideration — — Total liabilities $ — $ $ $

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	6 Months Ended
	Sep. 30, 2018
Derivative Financial Instruments
Schedule of fair value of derivative instruments included in the consolidated balance sheets	Derivatives designated as hedging instruments September 30, 2018 March 31, 2018 Foreign currency exchange contracts: Other current assets $ $ Other long-term assets $ $ Accrued expenses and other $ $ Long-term liabilities $ $ — September 30, 2018 March 31, 2018 Interest rate swap contracts: Other long-term assets $ $
Schedule of effect of the Company's foreign currency exchange and interest rate swap contracts on the consolidated financial statements	Amount of Gain or (Loss) Recognized in AOCI on Derivative Derivatives Designated as Cash Flow Three Months Ended September 30, Six Months Ended September 30, Hedging Relationships 2018 2017 2018 2017 Foreign currency exchange contracts $ ) $ $ ) $ Interest rate swaps $ $ $ $ ) Location of Gain ((Loss) Reclassified Amount of Gain (Loss) Reclassified from AOCI into Income (loss) from AOCI into Income (loss) (Effective Three Months Ended September 30, Six Months Ended September 30, Portion) 2018 2017 2018 2017 Revenue $ ) $ $ ) $ Costs of revenue $ ) $ $ ) $ Operating expenses $ ) $ $ ) $ Interest expense $ $ $ $ Amount of Gain or (Loss) Recognized in Income Derivatives not Designated Location of Gain or (Loss) Three Months Ended Six Months Ended as Hedging Instrument Recognized in Income (loss) on Derivatives 2018 2017 2018 2017 Foreign currency exchange contracts Revenue $ $ ) $ $ ) Costs of revenue $ ) $ $ ) $ Selling, general and administrative expenses $ ) $ $ ) $

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Sep. 30, 2018
eTouch
Acquisitions
Summary of the purchase price allocation	Amount Useful Life Consideration Transferred: Cash paid at closing $ Fair value of the future payments Tax related liability Fair value of consideration Less: Cash acquired Total purchase price, net of cash acquired $ Assets and Liabilities: Cash and cash equivalents Accounts receivable Unbilled receivables Prepaid expenses Other current assets Property and equipment Other long-term assets Goodwill Trademark 2 years Customer relationships 10 - 15 years Accounts payable ) Deferred revenue ) Accrued expenses and other current liabilities ) Accrued employee compensation and benefits ) Income taxes payable ) Deferred income taxes ) Other long-term liabilities ) Total purchase price $

Revenues (Tables)

Revenues (Tables)	6 Months Ended
	Sep. 30, 2018
Revenues
Schedule of capitalized costs to fulfill	Costs to Fulfill Balance at April 1, 2018 $ Costs capitalized Amortization expense ) Foreign currency translation adjustments ) Balance at September 30, 2018 $
Schedule of significant movements in contract assets and deferred revenue balances	Contract Assets Balance at April 1, 2018 $ Revenues recognized during the period but not yet billed Amounts billed ) Other ) Balance at September 30, 2018 $ Contract Balance at April 1, 2018 $ Amounts billed but not yet recognized as revenues Revenues recognized related to the opening balance of deferred revenue ) Other ) Balance at September 30, 2018 $
Schedule of disaggregation of revenue	Revenue by geography: Three Months Ended Six Months Ended North America $ $ Europe Rest of World Consolidated revenue $ $ Revenue by Customer’s Industry Groups Three Months Ended Six Months Ended Banking financial services insurance $ $ Communications and Technology Media & Information and Other Consolidated revenue $ $ Revenue by service offerings Three Months Ended Six Months Ended Application outsourcing $ $ Consulting Consolidated revenue $ $ Revenue by contract type Three Months Ended Six Months Ended Time-and-materials $ $ Fixed-price* Consolidated revenue $ $ *Fixed-price includes both retainer-billing basis and fixed-price progress towards completion
ASU 2014-09
Revenues
Summary of impact of changes in accounting policies after adoption of ASC 606	As of September 30, 2018 As reported Pro-forma Amounts Impacts of the New Balance Sheet : Assets Other current assets (1) $ $ $ Total current assets Deferred income taxes (3) ) Other long-term assets (1) Total Assets $ Liabilities Deferred revenue (2) ) Total current liabilities ) Stockholders’ equity: Retained earnings Total liabilities, Series A convertible preferred stock and stockholders’ equity $ Three Months Ended Six Months Ended As reported Pro-forma Impact from As reported Pro-forma Impact from Revenue (2) $ $ $ ) $ $ Costs of revenue (1) ) ) Gross profit Operating expenses: Selling, general and administrative expenses — — Income from operations Other expense ) ) — ) ) — Income before income tax expense (benefit) Income tax (benefit) expense (3) ) ) Net income (loss) $ $ $ $ ) ) $ Less: net income attributable to noncontrolling interests, net of tax — — Net income (loss) available to Virtusa stockholders $ $ $ $ ) ) $ Less: Series A Convertible Preferred Stock dividends and accretion — — Net income (loss) available to Virtusa common stockholders ) ) Basic earnings (loss) per share available to Virtusa common stockholders $ $ — $ $ ) ) $ Diluted earnings (loss) per share available to Virtusa common stockholders $ $ — $ $ ) ) $ Notes (1) Reflects the impact of a longer period of amortization for costs to fulfill a contract. (2) Reflects the impact of changes in timing of revenue recognition on our software licenses and certain fixed-price application maintenance contracts. (3) Reflects the income tax impact of the above items.

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets
Schedule of changes in goodwill	Amount Balance at April 1, 2018 $ Preliminary fair value adjustment ) Foreign currency translation adjustments ) Balance at September 30, 2018 $
Schedule of intangible asset carrying amounts acquired and amortization	The following are details of the Company’s intangible asset carrying amounts acquired and amortization at September 30, 2018. Weighted Average Gross Carrying Accumulated Net Carrying Amortizable intangible assets: Customer relationships $ $ $ Trademark Technology $ $ $

Concentration of Revenue and _2

Concentration of Revenue and Assets (Tables)	6 Months Ended
	Sep. 30, 2018
Concentration of Revenue and Assets
Schedule of revenue attributed to geographic areas based on location of the client	Three Months Ended Six Months Ended 2018 2017 2018 2017 Client revenue: United States of America $ $ $ $ United Kingdom Rest of World Consolidated revenue $ $ $ $
Schedule of long-lived assets, net of accumulated depreciation and amortization, attributed to geographic areas based on location of assets	September 30, March 31, Long-lived assets, net of accumulated depreciation and amortization: United States of America $ $ India Rest of World Consolidated long-lived assets, net $ $
Schedule of revenue from significant clients as a percentage of Company's consolidated revenue	Three Months Ended Six Months Ended 2018 2017 2018 2017 Customer 1 % % % %

Debt (Tables)

Debt (Tables)	6 Months Ended
	Sep. 30, 2018
Debt
Summary of short-term debt balances	September 30, 2018 March 31, 2018 Notes outstanding under the revolving credit facility $ — $ — Term loan- current maturities Less: deferred financing costs — current ) ) Total $ $
Summary of long-term debt balances	September 30, 2018 March 31, 2018 Term loan $ $ Borrowings under revolving credit facility Less: Current maturities ) ) Deferred financing costs, long-term ) ) Total $ $

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Sep. 30, 2018
Accumulated Other Comprehensive Loss
Schedule of changes in accumulated other comprehensive loss by component	Three Months Ended Six Months Ended Accumulated Other Comprehensive Income (Loss) 2018 2017 2018 2017 Investment securities Beginning balance $ $ $ $ Other comprehensive income (loss) (OCI) before reclassifications net of tax of $(2), $(32), $19 and $84 ) ) ) Reclassifications from OCI to other income, net of tax of $(1), $(40), $21 and $0 ) ) ) Less : Noncontrolling interests, net of tax $15, $19, $11 and $(22) ) Comprehensive income (loss) on investment securities, net of tax of $12, $(53), $51 and $62 ) ) ) Closing Balance $ ) $ $ ) $ Currency Translation Adjustments Beginning balance $ ) $ ) $ ) $ ) OCI before reclassifications ) ) Less: Noncontrolling interests ) Comprehensive income (loss) on currency translation adjustment ) ) Closing Balance $ ) $ ) $ ) $ ) Cash Flow Hedges Beginning balance $ ) $ $ $ OCI before reclassifications net of tax of $(1,677), $153, $(3,189), and $403 ) ) ) ) Reclassifications from OCI to - Revenue, net of tax of $282, $(1,010), $406 and $(1,907) ) ) - Costs of revenue, net of tax of $163, $(594), $89 and $(1,160) ) ) - Selling, general and administrative expenses, net of tax of $85, $(342), $45 and $(661) ) ) - Interest expenses, net of tax of $(61), $(14), $(114) and $(14) ) ) ) ) Less: Noncontrolling interests, net of tax $(6), $214, $42 and $367 ) Comprehensive loss on cash flow hedges, net of tax of $(1,214), $(1,593), $(2,721) and $(2,972) ) ) ) ) Closing Balance $ ) $ $ ) $ Benefit plans Beginning balance $ ) $ ) $ ) $ ) OCI before reclassifications net of tax of $29, $0, $348, $0 for all periods $ ) $ — $ ) $ — Reclassifications from OCI for prior service credit (cost) to: - Costs of revenue, net of tax of $0 for all periods — — - Selling, general and administrative expenses, net of tax of $0 for all periods — — — — - Other income (expense), net of tax of $0 for all periods Reclassifications from OCI for net actuarial gain (loss) amortization to: - Costs of revenue, net of tax of $0 for all periods — — - Selling, general and administrative expenses, net of tax of $0 for all periods — — - Other income (expense), net of tax of $0 for all periods Other adjustments Less: Noncontrolling interests, net of tax $0 for all periods — — Comprehensive income (loss) on benefit plans, net of tax of $0 for all periods ) Closing Balance $ ) $ ) $ ) $ ) Accumulated other comprehensive loss at September 30, 2018 $ ) $ ) $ ) $ )

Unaudited Interim Financial I_4

Unaudited Interim Financial Information - ASC Topic 606 (Details) - USD ($) $ in Thousands	Apr. 01, 2018	Sep. 30, 2018	Mar. 31, 2018
Assets
Other current assets	$ 21,167	$ 19,221	$ 21,229
Deferred income taxes	31,386	38,310	31,528
Other long-term assets	12,440	15,728	11,772
Stockholders' equity
Retained earnings	238,483	231,517	$ 238,019
ASU 2014-09
Recent accounting pronouncements
Net increase to opening retained earnings, after tax	464
Tax impact on opening retained earnings	142
ASU 2014-09 | Impact from New Revenue Standard, ASC Topic 606
Assets
Other current assets	(62)	359
Deferred income taxes	(142)	(176)
Other long-term assets	668	57
Stockholders' equity
Retained earnings	$ 464	$ 507

Unaudited Interim Financial I_5

Unaudited Interim Financial Information - Restricted Cash (Details) - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from investing activities:
Net cash used in investing activities	$ (26,690)	$ (8,608)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(11,694)	1,753
Net increase in cash, cash equivalents and restricted cash	(16,830)	18,146
Cash, cash equivalents and restricted cash, beginning of period	195,236	145,086
Cash, cash equivalents and restricted cash, end of period	$ 178,406	163,232
ASU 2016-18 | As Reported
Cash flows from investing activities:
Increase in restricted cash		(799)
Net cash used in investing activities		(9,407)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		1,755
Net increase in cash, cash equivalents and restricted cash		17,349
Cash, cash equivalents and restricted cash, beginning of period		144,908
Cash, cash equivalents and restricted cash, end of period		162,257
ASU 2016-18 | Effect
Cash flows from investing activities:
Increase in restricted cash		799
Net cash used in investing activities		799
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(2)
Net increase in cash, cash equivalents and restricted cash		797
Cash, cash equivalents and restricted cash, beginning of period		178
Cash, cash equivalents and restricted cash, end of period		$ 975

Earnings (Loss) per Share - Bas

Earnings (Loss) per Share - Basic earnings (loss) per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Numerator:
Net income (loss) available to Virtusa stockholders	$ 1,505	$ 4,768	$ (4,791)	$ 8,426
Less: Series A Convertible Preferred Stock dividends and accretion	1,088	1,087	2,175	1,788
Net income (loss) available to Virtusa common stockholders	$ 417	$ 3,681	$ (6,966)	$ 6,638
Denominator:
Basic weighted average common shares outstanding (in shares)	29,767,276	29,216,600	29,700,151	29,434,101
Basic earnings (loss) per share available to Virtusa common stockholders (in dollars per share)	$ 0.01	$ 0.13	$ (0.23)	$ 0.23

Earnings (Loss) per Share - Dil

Earnings (Loss) per Share - Diluted earnings (loss) per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Numerator:
Net income (loss) available to Virtusa common stockholders	$ 417	$ 3,681	$ (6,966)	$ 6,638
Net income (loss) available to Virtusa common stockholders	$ 417	$ 3,681	$ (6,966)	$ 6,638
Denominator:
Basic weighted average common shares outstanding (in shares)	29,767,276	29,216,600	29,700,151	29,434,101
Dilutive effect of employee stock options and unvested restricted stock awards and restricted stock units (in shares)	859,768	603,981		601,764
Weighted average shares-diluted (in shares)	30,627,044	29,820,581	29,700,151	30,035,865
Diluted earnings (loss) per share available to Virtusa common stockholders (in dollars per share)	$ 0.01	$ 0.12	$ (0.23)	$ 0.22

Earnings (Loss) per Share - Ant

Earnings (Loss) per Share - Anti-dilutive securities (Details) - shares	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Employee stock options and unvested restricted stock awards and restricted stock units
Anti-dilutive securities
Shares excluded from computation of earnings (loss) per share	20,617	62,576	1,710,551	180,367
Series A Convertible Preferred Stock
Anti-dilutive securities
Shares excluded from computation of earnings (loss) per share	3,000,000	3,000,000	3,000,000	2,456,044

Investment Securities (Details)

Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Mar. 31, 2018
Total available-for-sale and equity securities
Amortized Cost	$ 55,573		$ 55,573
Gross Unrealized Gains	229		229
Gross Unrealized Losses	(284)		(284)
Fair Value	55,518		55,518
Available-for-sale securities (prior guidance)
Amortized Cost					$ 50,050
Gross Unrealized Gains					209
Gross Unrealized Losses					(219)
Fair Value					50,040
Proceeds from sales of available-for-sale investment securities and the gross gains and losses
Proceeds from sales or maturities of available-for-sale investment securities and equity securities	31,279	$ 33,827	60,571	$ 62,829
Gross gains	261	656	386	675
Gross losses	(14)	(1)	(32)	(91)
Net realized gains on sales of available-for-sale investment securities and equity securities	247	$ 655	354	$ 584
Corporate Debt Securities [Member] | Current
Available-for-sale securities
Amortized Cost	13,158		13,158
Gross Unrealized Losses	(42)		(42)
Fair Value	13,116		13,116
Available-for-sale securities (prior guidance)
Amortized Cost					25,397
Gross Unrealized Losses					(126)
Fair Value					25,271
Corporate Debt Securities [Member] | Noncurrent
Available-for-sale securities (prior guidance)
Amortized Cost					2,293
Gross Unrealized Losses					(22)
Fair Value					2,271
Preference shares | Noncurrent
Available-for-sale securities
Amortized Cost	1,524		1,524
Gross Unrealized Losses	(242)		(242)
Fair Value	1,282		1,282
Available-for-sale securities (prior guidance)
Amortized Cost					1,726
Gross Unrealized Losses					(70)
Fair Value					1,656
Agency And Short Term Notes [Member] | Current
Available-for-sale securities (prior guidance)
Amortized Cost					800
Gross Unrealized Losses					(1)
Fair Value					799
Bank Time Deposits [Member] | Current
Available-for-sale securities
Amortized Cost	25,461		25,461
Fair Value	25,461		25,461
Available-for-sale securities (prior guidance)
Amortized Cost					18,279
Fair Value					18,279
Mutual funds | Current
Equity securities
Amortized Cost	15,423		15,423
Gross Unrealized Gains	108		108
Fair Value	15,531		15,531
Available-for-sale securities (prior guidance)
Amortized Cost					1,540
Gross Unrealized Gains					11
Fair Value					1,551
Equity Shares/ Options | Noncurrent
Equity securities
Amortized Cost	7		7
Gross Unrealized Gains	121		121
Fair Value	$ 128		$ 128
Available-for-sale securities (prior guidance)
Amortized Cost					15
Gross Unrealized Gains					198
Fair Value					$ 213

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Financial assets and liabilities measured at fair value on a recurring basis (Details) - Fair Value Measurements Recurring [Member] - USD ($) $ in Thousands	Sep. 30, 2018	Mar. 31, 2018
Investments:
Available-for-sales securities - current	$ 38,577
Equity securities - current	15,531
Available-for-sales securities - non-current	1,282
Equity securities - non-current	128
Available-for-sales securities-current (prior guidance)		$ 45,900
Available-for-sales securities-non-current (prior guidance)		4,140
Derivative financial instruments:
Foreign currency derivative contracts	26	2,122
Interest Rate Swap Contracts	2,509	2,486
Total assets	58,053	54,648
Liabilities:
Foreign currency derivative contracts	8,851	1,023
Contingent consideration		100
Total liabilities	8,851	1,123
Fair Value Inputs Level2 [Member]
Investments:
Available-for-sales securities - current	38,577
Equity securities - current	15,531
Available-for-sales securities - non-current	1,282
Equity securities - non-current	128
Available-for-sales securities-current (prior guidance)		45,900
Available-for-sales securities-non-current (prior guidance)		4,140
Derivative financial instruments:
Foreign currency derivative contracts	26	2,122
Interest Rate Swap Contracts	2,509	2,486
Total assets	58,053	54,648
Liabilities:
Foreign currency derivative contracts	8,851	1,023
Total liabilities	$ 8,851	1,023
Fair Value Inputs Level3 [Member]
Liabilities:
Contingent consideration		100
Total liabilities		$ 100

Derivative Financial Instrume_3

Derivative Financial Instruments - Foreign Currency Derivatives (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2018	Mar. 31, 2018
Derivative Financial Instruments
Notional value of outstanding contracts	$ 173,461	$ 140,347
Unrealized net losses expected to be reclassified from AOCI to earnings during the next 12 months	$ 8,331
Maximum [Member]
Derivative Financial Instruments
Outstanding term of derivative instruments	18 months

Derivative Financial Instrume_4

Derivative Financial Instruments - Interest rate swaps (Details)	Sep. 30, 2018
Interest rate swaps
Derivative Financial Instruments
Blended weighted average rate for monthly fixed interest payments (as a percent)	1.025%

Derivative Financial Instrume_5

Derivative Financial Instruments - Fair Value (Details) - Designated As Hedging Instrument [Member] - USD ($) $ in Thousands	Sep. 30, 2018	Mar. 31, 2018
Foreign Exchange Contract [Member]
Foreign currency exchange and interest rate swap contracts
Other current assets	$ 24	$ 2,109
Other long-term assets	2	13
Accrued expenses and other	8,354	1,023
Long-term liabilities	497
Interest rate swaps
Foreign currency exchange and interest rate swap contracts
Other long-term assets	$ 2,509	$ 2,486

Derivative Financial Instrume_6

Derivative Financial Instruments - Effect of foreign currency exchange and interest rate swap contracts (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Designated As Hedging Instrument [Member] | Cash flow hedges | Sales [Member]
Derivative Financial Instruments
Amount of Gain or (Loss) Reclassified from AOCI into Income (loss)	$ (807)	$ 2,919	$ (1,163)	$ 5,511
Designated As Hedging Instrument [Member] | Cash flow hedges | Cost Of Sales [Member]
Derivative Financial Instruments
Amount of Gain or (Loss) Reclassified from AOCI into Income (loss)	(659)	1,987	(341)	4,052
Designated As Hedging Instrument [Member] | Cash flow hedges | Operating Expense [Member]
Derivative Financial Instruments
Amount of Gain or (Loss) Reclassified from AOCI into Income (loss)	(343)	1,150	(173)	2,310
Designated As Hedging Instrument [Member] | Cash flow hedges | Interest expenses
Derivative Financial Instruments
Amount of Gain or (Loss) Reclassified from AOCI into Income (loss)	236	34	443	34
Designated As Hedging Instrument [Member] | Cash flow hedges | Foreign Exchange Contract [Member]
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in AOCI on Derivatives	(6,309)	93	(11,601)	598
Designated As Hedging Instrument [Member] | Cash flow hedges | Interest rate swaps
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in AOCI on Derivatives	193	37	466	(237)
Nondesignated [Member] | Foreign Exchange Contract [Member] | Sales [Member]
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in Income (loss) on Derivatives	287	(155)	1,106	(336)
Nondesignated [Member] | Foreign Exchange Contract [Member] | Cost Of Sales [Member]
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in Income (loss) on Derivatives	(220)	89	(753)	231
Nondesignated [Member] | Foreign Exchange Contract [Member] | Selling General And Administrative Expenses [Member]
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in Income (loss) on Derivatives	$ (19)	$ 22	$ (19)	$ 53

Acquisitions - eTouch - Transac

Acquisitions - eTouch - Transaction details (Details) $ in Thousands	Sep. 12, 2019USD ($)	Mar. 12, 2019USD ($)	Mar. 12, 2018USD ($)tranche	Sep. 30, 2018USD ($)	Sep. 30, 2018USD ($)
Acquisitions
Increase (reduction) in goodwill related to fair value assessment					$ (7,223)
Customer relationships and trademark
Acquisitions
Increase (reduction) in goodwill related to fair value assessment				$ (7,100)
Other adjustments
Acquisitions
Increase (reduction) in goodwill related to fair value assessment				$ 308
eTouch
Acquisitions
Cash purchase price			$ 140,000
Maximum additional amount set aside for retention bonuses			$ 15,000
Number of tranches for payment of purchase price | tranche			3
Cash payments for acquisition			$ 80,000
Consideration paid at closing, from cash on hand			10,000
eTouch | Scenario Forecast [Member]
Acquisitions
Cash payments for acquisition	$ 17,500	$ 42,500
eTouch | Term loan and delayed-draw term loan | Credit Agreement | JPM
Acquisitions
Consideration paid at closing, from cash proceeds under credit agreement			70,000
eTouch US
Acquisitions
Cash payments for acquisition			66,000
eTouch India
Acquisitions
Cash payments for acquisition			$ 14,000

Acquisitions - eTouch - Purchas

Acquisitions - eTouch - Purchase price allocation (Details) - USD ($) $ in Thousands	Mar. 12, 2018	Sep. 30, 2018	Mar. 31, 2018
Assets and Liabilities:
Goodwill		$ 275,002	$ 297,251
Weighted Average Useful Life		12 years
Trademarks [Member]
Assets and Liabilities:
Weighted Average Useful Life		2 years 1 month 6 days
Customer Relationships [Member]
Assets and Liabilities:
Weighted Average Useful Life		12 years 2 months 12 days
eTouch
Consideration Transferred:
Cash paid at closing	$ 80,000
Fair value of the future payments	57,858
Tax related liability	9,313
Fair value of consideration	147,171
Less: Cash acquired	2,241
Total purchase price, net of cash acquired	144,930
Assets and Liabilities:
Cash and cash equivalents	2,241
Accounts receivable	15,143
Unbilled receivables	2,986
Prepaid expenses	815
Other current assets	869
Property and equipment	2,798
Other long-term assets	98
Goodwill	78,824
Accounts payable	(3,248)
Deferred revenue	(852)
Accrued expenses and other current liabilities	(607)
Accrued employee compensation and benefits	(4,160)
Income taxes payable	(250)
Deferred income taxes	(368)
Other long-term liabilities	(1,018)
Total purchase price	147,171
eTouch | Trademarks [Member]
Assets and Liabilities:
Intangible assets	$ 900
Weighted Average Useful Life	2 years
eTouch | Customer Relationships [Member]
Assets and Liabilities:
Intangible assets	$ 53,000
eTouch | Customer Relationships [Member] | Minimum [Member]
Assets and Liabilities:
Weighted Average Useful Life	10 years
eTouch | Customer Relationships [Member] | Maximum [Member]
Assets and Liabilities:
Weighted Average Useful Life	15 years

Revenues - Capitalized costs (D

Revenues - Capitalized costs (Details) $ in Thousands	6 Months Ended
	Sep. 30, 2018USD ($)
Capitalized costs to fulfill
Balance at the beginning of the period	$ 4,278
Costs capitalized	1,539
Amortization expense	(1,075)
Foreign currency translation adjustments	(183)
Balance at the end of the period	$ 4,559

Revenues - Impacts of changes i

Revenues - Impacts of changes in accounting policies after adoption of ASC 606 on the Company's consolidated financial statements (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Apr. 01, 2018	Mar. 31, 2018
Assets
Other current assets	$ 19,221		$ 19,221		$ 21,167	$ 21,229
Total current assets	544,575		544,575			549,335
Deferred income taxes	38,310		38,310		31,386	31,528
Other long-term assets	15,728		15,728		12,440	11,772
Total assets	1,090,899		1,090,899			1,113,180
Liabilities, Series A convertible preferred stock, redeemable noncontrolling interest and stockholders' equity
Deferred revenue	6,175		6,175			7,908
Total current liabilities	222,935		222,935			216,700
Stockholders' equity:
Retained earnings	231,517		231,517		238,483	238,019
Total liabilities, Series A convertible preferred stock, redeemable noncontrolling interest and stockholders' equity	1,090,899		1,090,899			$ 1,113,180
Consolidated Statements of Income
Revenue	305,520	$ 248,174	605,551	$ 475,519
Costs of revenue	216,346	178,404	432,827	344,683
Gross profit	89,174	69,770	172,724	130,836
Operating expenses:
Selling, general and administrative expenses	75,155	59,491	144,781	114,487
Income from operations	14,019	10,279	27,943	16,349
Other expense	(12,461)	(1,187)	(26,085)	(1,812)
Income before income tax (benefit) expense	1,558	9,092	1,858	14,537
Income tax (benefit) expense	(402)	1,500	5,463	2,298
Net income (loss)	1,960	7,592	(3,605)	12,239
Less: net income attributable to noncontrolling interests, net of tax	455	2,824	1,186	3,813
Net income (loss) available to Virtusa stockholders	1,505	4,768	(4,791)	8,426
Less: Series A Convertible Preferred Stock dividends and accretion	1,088	1,087	2,175	1,788
Net income (loss) available to Virtusa common stockholders	$ 417	$ 3,681	$ (6,966)	$ 6,638
Basic earnings (loss) per share available to Virtusa common stockholders (in dollars per share)	$ 0.01	$ 0.13	$ (0.23)	$ 0.23
Diluted earnings (loss) per share available to Virtusa common stockholders (in dollars per share)	$ 0.01	$ 0.12	$ (0.23)	$ 0.22
Pro-forma Amounts | ASU 2014-09
Assets
Other current assets	$ 18,862		$ 18,862
Deferred income taxes	38,486		38,486
Other long-term assets	15,671		15,671
Liabilities, Series A convertible preferred stock, redeemable noncontrolling interest and stockholders' equity
Deferred revenue	6,442		6,442
Stockholders' equity:
Retained earnings	231,010		231,010
Consolidated Statements of Income
Revenue	305,541		605,284
Costs of revenue	216,589		433,243
Gross profit	88,952		172,041
Operating expenses:
Selling, general and administrative expenses	75,155		144,781
Income from operations	13,797		27,260
Other expense	(12,461)		(26,085)
Income before income tax (benefit) expense	1,336		1,175
Income tax (benefit) expense	(463)		5,287
Net income (loss)	1,799		(4,112)
Less: net income attributable to noncontrolling interests, net of tax	455		1,186
Net income (loss) available to Virtusa stockholders	1,344		(5,298)
Less: Series A Convertible Preferred Stock dividends and accretion	1,088		2,175
Net income (loss) available to Virtusa common stockholders	256		$ (7,473)
Basic earnings (loss) per share available to Virtusa common stockholders (in dollars per share)			$ (0.25)
Diluted earnings (loss) per share available to Virtusa common stockholders (in dollars per share)			$ (0.25)
Impact from New Revenue Standard, ASC Topic 606 | ASU 2014-09
Assets
Other current assets	359		$ 359		(62)
Total current assets	359		359
Deferred income taxes	(176)		(176)		(142)
Other long-term assets	57		57		668
Total assets	240		240
Liabilities, Series A convertible preferred stock, redeemable noncontrolling interest and stockholders' equity
Deferred revenue	(267)		(267)
Total current liabilities	(267)		(267)
Stockholders' equity:
Retained earnings	507		507		$ 464
Total liabilities, Series A convertible preferred stock, redeemable noncontrolling interest and stockholders' equity	240		240
Consolidated Statements of Income
Revenue	(21)		267
Costs of revenue	(243)		(416)
Gross profit	222		683
Operating expenses:
Income from operations	222		683
Income before income tax (benefit) expense	222		683
Income tax (benefit) expense	61		176
Net income (loss)	161		507
Net income (loss) available to Virtusa stockholders	161		507
Net income (loss) available to Virtusa common stockholders	$ 161		$ 507
Basic earnings (loss) per share available to Virtusa common stockholders (in dollars per share)	$ 0.01		$ 0.02
Diluted earnings (loss) per share available to Virtusa common stockholders (in dollars per share)	$ 0.01		$ 0.02

Revenues - Receivables and Cont

Revenues - Receivables and Contract Balances (Details)	Sep. 30, 2018
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01
Remaining performance obligation, expected period of recognition	4 years

Revenues - Receivable and Contr

Revenues - Receivable and Contract Balances (Details) $ in Thousands	6 Months Ended
	Sep. 30, 2018USD ($)
Significant movements in contract assets
Balance at the beginning of the period	$ 15,998
Revenues recognized during the period but not yet billed	63,983
Amounts billed	(64,231)
Other	(278)
Balance at the end of the period	15,472
Significant movements in deferred revenue balances
Balance at the beginning of the period	7,908
Amounts billed but not yet recognized as revenues	4,918
Revenues recognized related to the opening balance of deferred revenue	(6,354)
Other	(297)
Balance at the end of the period	6,175
Aggregate amount of transaction price allocated to remaining performance obligations	$ 46,164

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue
Consolidated revenue	$ 305,520	$ 248,174	$ 605,551	$ 475,519
Time-and-materials
Disaggregation of Revenue
Consolidated revenue	184,170		363,396
Fixed-price
Disaggregation of Revenue
Consolidated revenue	121,350		242,155
Application outsourcing
Disaggregation of Revenue
Consolidated revenue	161,890		322,599
Consulting
Disaggregation of Revenue
Consolidated revenue	143,630		282,952
Banking financial services insurance
Disaggregation of Revenue
Consolidated revenue	192,071		380,809
Communications and Technology
Disaggregation of Revenue
Consolidated revenue	85,341		168,368
Media & Information and Other
Disaggregation of Revenue
Consolidated revenue	28,108		56,374
North America [Member]
Disaggregation of Revenue
Consolidated revenue	218,303		427,932
Europe [Member]
Disaggregation of Revenue
Consolidated revenue	60,393		127,129
Rest Of World [Member]
Disaggregation of Revenue
Consolidated revenue	$ 26,824		$ 50,490

Series A Convertible Preferre_2

Series A Convertible Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	May 03, 2017	Sep. 30, 2018	Sep. 30, 2017
Series A Convertible Preferred Stock
Cash dividends paid		$ 2,092	$ 1,035
Series A Convertible Preferred Stock
Series A Convertible Preferred Stock
Direct and incremental expenses incurred	$ 1,154
Declared and accrued dividends		686
Cash dividends paid		$ 2,092	$ 1,035
Series A Convertible Preferred Stock | After May 3, 2024
Series A Convertible Preferred Stock
Increase in preference dividend rate, per annum upon failure to repurchase (as a percent)		1.00%
Additional increase in preference dividend rate, per annum on each anniversary of the date that the Company is required to effect such repurchase (as a percent)		1.00%
Series A Convertible Preferred Stock | After May 3, 2024 | Maximum [Member]
Series A Convertible Preferred Stock
Dividend rate (as a percent)		6.875%
Series A Convertible Preferred Stock | Orogen
Series A Convertible Preferred Stock
Sale of convertible preferred stock (in shares)	108,000
Shares issuable upon conversion (in shares)	3,000,000
Aggregate purchase price	$ 108,000
Conversion price (in dollars per share)	$ 36
Dividend rate (as a percent)	3.875%

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands	6 Months Ended
	Sep. 30, 2018USD ($)segment
Goodwill and Intangible Assets
Number of operating segments | segment	1
Changes in goodwill
Balance at the beginning of the period	$ 297,251
Preliminary fair value adjustment	(7,223)
Foreign currency translation adjustments	(15,026)
Balance at the end of the period	275,002
Acquisition costs and goodwill deductible for tax purposes	145,936
Acquisition costs and goodwill not deductible for tax purposes	$ 141,970

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Intangible assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2018	Mar. 31, 2018
Intangible Assets
Weighted Average Useful Life	12 years
Gross Carrying Amount	$ 136,304
Accumulated Amortization	42,092
Net Carrying Amount	$ 94,212	$ 96,001
Customer Relationships [Member]
Intangible Assets
Weighted Average Useful Life	12 years 2 months 12 days
Gross Carrying Amount	$ 132,207
Accumulated Amortization	38,866
Net Carrying Amount	$ 93,341
Trademarks [Member]
Intangible Assets
Weighted Average Useful Life	2 years 1 month 6 days
Gross Carrying Amount	$ 3,597
Accumulated Amortization	2,915
Net Carrying Amount	$ 682
Technology
Intangible Assets
Weighted Average Useful Life	5 years
Gross Carrying Amount	$ 500
Accumulated Amortization	311
Net Carrying Amount	$ 189

Income Taxes - Tax Act (Details

Income Taxes - Tax Act (Details) - USD ($) $ in Thousands	Jan. 01, 2018	Jul. 31, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Mar. 31, 2018
Income Taxes
Effective tax (benefit) rate (as a percent)			(25.80%)	16.50%	294.00%	15.80%
Deferred tax charge for disregarded entity election					$ 6,288
Statutory tax rate (as a percent)	21.00%
Effect of Tax Cuts and Jobs Act
Provisional charge for deemed repatriation of unremitted earnings							$ 17,834
Provisional charge for remeasurement of deferred tax assets							$ 4,890
Additional provisional charge			$ 0		$ 0
Period for payment of deemed repatriation charge					8 years
Payment for deemed repatriation		$ 1,427
Deemed repatriation included in income taxes payable			1,427		$ 1,427
Deemed repatriation included in long-term liabilities			14,980		14,980
United States
Effect of Tax Cuts and Jobs Act
Deferred tax asset			$ 31,343		$ 31,343

Income Taxes - Income tax holid

Income Taxes - Income tax holiday (Details)	6 Months Ended
	Sep. 30, 2018a
Indian Operations In Special Economic Zone [Member] | Hyderabad, India
Income Taxes
Parcel of land (in acres)	6.3
Consecutive period of income tax exemption	10 years
Income tax benefits total eligibility period	15 years
Virtusa Private Limited [Member] | L [K]
Income Taxes
Income tax exemption period	12 years

Income Taxes - Unrecognized tax

Income Taxes - Unrecognized tax benefits and other (Details) - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Mar. 31, 2018
Income Taxes
Total liability for unrecognized tax benefits	$ 6,702		$ 7,544
Decrease in unrecognized tax benefits	842	$ 24
Cash, cash equivalents, short-term investments and long-term investments available for distribution if not indefinitely reinvested	$ 180,348

Concentration of Revenue and _3

Concentration of Revenue and Assets - Geographic concentration (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Mar. 31, 2018
Concentration of Revenue and Assets
Revenue	$ 305,520	$ 248,174	$ 605,551	$ 475,519
Long-lived assets, net	489,479		489,479		$ 514,817
U [S]
Concentration of Revenue and Assets
Revenue	208,543	150,765	409,683	290,465
Long-lived assets, net	211,512		211,512		213,024
United Kingdom
Concentration of Revenue and Assets
Revenue	48,810	47,881	102,566	90,013
I [N]
Concentration of Revenue and Assets
Long-lived assets, net	252,799		252,799		276,512
Rest Of World [Member]
Concentration of Revenue and Assets
Revenue	48,167	$ 49,528	93,302	$ 95,041
Long-lived assets, net	$ 25,168		$ 25,168		$ 25,281

Concentration of Revenue and _4

Concentration of Revenue and Assets - Revenue percentage (Details)	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Customer Concentration Risk | Sales Revenue Net [Member] | Customer One [Member]
Concentration of Revenue and Assets
Revenue from significant clients as a percentage of consolidated revenue	18.00%	19.60%	17.60%	18.80%

Debt - Credit Agreement (Detail

Debt - Credit Agreement (Details) - USD ($) $ in Thousands	Aug. 14, 2018	Feb. 06, 2018	Sep. 30, 2018	Feb. 05, 2018
Debt
Amount drawn down on credit facility			$ 32,000
Credit Agreement | JPM
Debt
Term of credit facility		5 years
Credit Agreement | JPM | Revolving credit facility
Debt
Maximum borrowing capacity under the credit agreement			$ 200,000
Amount drawn down on credit facility	$ 32,000
Interest rate (as a percent)			4.65%
Credit Agreement | JPM | Term loan and delayed-draw term loan
Debt
Maximum borrowing capacity under the credit agreement			$ 250,000
Required principal payments per quarter			$ 3,125
Frequency of required principal payments			quarterly
Interest rate (as a percent)			4.75%
Prior Credit Agreement | JPM
Debt
Maximum borrowing capacity under the credit agreement				$ 300,000

Debt - Current portion of long-

Debt - Current portion of long-term debt (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Mar. 31, 2018
Current portion of long-term debt
Total	$ 11,407	$ 11,407
JPM
Current portion of long-term debt
Term loan - current maturities	12,500	12,500
Less: deferred financing costs, current	(1,093)	(1,093)
Total	$ 11,407	$ 11,407

Debt - Long-term debt, less cur

Debt - Long-term debt, less current portion (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Mar. 31, 2018
Less:
Total	$ 314,524	$ 288,227
JPM
Less:
Current maturities	(12,500)	(12,500)
Deferred financing costs, long-term	(3,726)	(4,273)
Total	314,524	288,227
Term loan and delayed-draw term loan | JPM
Long-term debt, less current portion
Term loan and borrowings under revolving credit facility	243,750	250,000
Revolving credit facility | JPM
Long-term debt, less current portion
Term loan and borrowings under revolving credit facility	$ 87,000	$ 55,000

Debt - Swap agreements (Details

Debt - Swap agreements (Details)	1 Months Ended
	Jul. 31, 2016
Interest rate swaps
Debt
Derivative, forward starting period	12 months

Debt - Sale of accounts receiva

Debt - Sale of accounts receivable (Details) - U.K. Subsidiary $ in Thousands	6 Months Ended
	Sep. 30, 2018USD ($)
Debt
Receivables sold under the terms of the financing agreement	$ 15,230
Amounts due related to a financing agreement to sell certain accounts receivable balances	$ 0

Redeemable noncontrolling int_2

Redeemable noncontrolling interest (Details) $ in Thousands	Aug. 01, 2018₨ / shares	Sep. 30, 2018USD ($)shares	Sep. 30, 2018USD ($)shares
Redeemable noncontrolling interest
Aggregate purchase price of shares of delisted entity			$ 28,396
Virtusa India Private Limited [Member] | Polaris
Redeemable noncontrolling interest
Shares held by noncontrolling interest shareholders of delisted entity (as a percent)		3.50%	3.50%
Virtusa India Private Limited [Member] | Polaris
Redeemable noncontrolling interest
Period for public shareholders to tender shares after delisting	1 year
Exit price in delisting of subsidiary (in INR per share) | ₨ / shares	₨ 480
Number of shares purchased from stockholders of delisted subsidiary | shares		4,141,816
Shares purchased from stockholders of delisted subsidiary (as a percent)		4.00%
Aggregate purchase price of shares of delisted entity		$ 28,396
Number of shares held by noncontrolling interest shareholders of delisted entity | shares		3,626,167	3,626,167
Fair value of the redeemable noncontrolling interest		$ 24,614	$ 24,614
Stock options reclassified to current liabilities for deemed cash settlement resulting from the delisting offer		$ 1,245	$ 1,245

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Changes in the components of accumulated other comprehensive income (loss)
Balance			$ 436,083
Reclassifications from OCI to:
Other income	$ (819)	$ (778)	(1,443)	$ (884)
Revenue	(305,520)	(248,174)	(605,551)	(475,519)
Costs of revenue	216,346	178,404	432,827	344,683
Selling, general and administrative expenses	75,155	59,491	144,781	114,487
Interest expense	4,514	1,413	8,768	3,071
Other income (expense), net of tax	12,461	1,187	26,085	1,812
Other comprehensive income (loss), net of tax	(10,747)	(3,380)	(25,273)	(3,486)
Balance	359,431		359,431
Investment securities, including noncontrolling interests
Changes in the components of accumulated other comprehensive income (loss)
OCI before reclassifications net of tax	(271)	(23)	(141)	186
Other Comprehensive Income (Loss), Tax
OCI before reclassifications, Tax	(2)	(32)	19	84
Investment securities, including noncontrolling interests | Other income (expense)
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	(1)	(40)	21	0
Investment securities, including noncontrolling interests | Reclassification Out Of Accumulated Other Comprehensive Income [Member]
Reclassifications from OCI to:
Other income	(181)	(72)	(174)	18
Investment securities, noncontrolling interests
Reclassifications from OCI to:
Other comprehensive income (loss), net of tax	(28)	(35)	(21)	41
Other Comprehensive Income (Loss), Tax
Comprehensive income (loss), Tax	(15)	(19)	(11)	22
Accumulated Net Unrealized Investment Gain Loss [Member]
Changes in the components of accumulated other comprehensive income (loss)
Balance	199	280	69	57
Reclassifications from OCI to:
Other comprehensive income (loss), net of tax	(424)	(60)	(294)	163
Balance	(225)	220	(225)	220
Other Comprehensive Income (Loss), Tax
Comprehensive income (loss), Tax	12	(53)	51	62
Currency Translation Adjustments, including noncontrolling interests
Changes in the components of accumulated other comprehensive income (loss)
OCI before reclassifications net of tax	(7,071)	821	(17,724)	4,426
Currency Translation Adjustments, noncontrolling interests
Reclassifications from OCI to:
Other comprehensive income (loss), net of tax	(230)	(340)	(1,613)	146
Accumulated Translation Adjustment [Member]
Changes in the components of accumulated other comprehensive income (loss)
Balance	(50,477)	(47,296)	(41,207)	(50,415)
Reclassifications from OCI to:
Other comprehensive income (loss), net of tax	(6,841)	1,161	(16,111)	4,280
Balance	(57,318)	(46,135)	(57,318)	(46,135)
Cash Flow Hedges, including noncontrolling interests
Changes in the components of accumulated other comprehensive income (loss)
OCI before reclassifications net of tax	(4,440)	(22)	(7,946)	(42)
Other Comprehensive Income (Loss), Tax
OCI before reclassifications, Tax	(1,677)	153	(3,189)	403
Cash Flow Hedges, including noncontrolling interests | Sales [Member]
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	282	(1,010)	406	(1,907)
Cash Flow Hedges, including noncontrolling interests | Cost Of Sales [Member]
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	163	(594)	89	(1,160)
Cash Flow Hedges, including noncontrolling interests | Selling General And Administrative Expenses [Member]
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	85	(342)	45	(661)
Cash Flow Hedges, including noncontrolling interests | Interest expenses
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	(61)	(14)	(114)	(14)
Cash Flow Hedges, including noncontrolling interests | Reclassification Out Of Accumulated Other Comprehensive Income [Member]
Reclassifications from OCI to:
Revenue	525	(1,909)	757	(3,604)
Costs of revenue	496	(1,393)	252	(2,892)
Selling, general and administrative expenses	258	(808)	128	(1,649)
Interest expense	(176)	(21)	(329)	(21)
Cash Flow Hedges, noncontrolling interests
Reclassifications from OCI to:
Other comprehensive income (loss), net of tax	11	(404)	(78)	(693)
Other Comprehensive Income (Loss), Tax
Comprehensive income (loss), Tax	6	(214)	(42)	(367)
Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges [Member]
Changes in the components of accumulated other comprehensive income (loss)
Balance	(1,831)	8,023	1,881	11,789
Reclassifications from OCI to:
Other comprehensive income (loss), net of tax	(3,348)	(3,749)	(7,060)	(7,515)
Balance	(5,179)	4,274	(5,179)	4,274
Other Comprehensive Income (Loss), Tax
Comprehensive income (loss), Tax	(1,214)	(1,593)	(2,721)	(2,972)
Benefit plans, including noncontrolling interests
Changes in the components of accumulated other comprehensive income (loss)
OCI before reclassifications net of tax	(32)		(352)
Reclassifications from OCI to:
Other adjustments	93	6	151	11
Other Comprehensive Income (Loss), Tax
OCI before reclassifications, Tax	29	0	348	0
Benefit plans, prior service credit (cost), including noncontrolling interests | Cost Of Sales [Member]
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	0	0	0	0
Benefit plans, prior service credit (cost), including noncontrolling interests | Selling General And Administrative Expenses [Member]
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	0	0	0	0
Benefit plans, prior service credit (cost), including noncontrolling interests | Other income (expense)
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	0	0	0	0
Benefit plans, prior service credit (cost), including noncontrolling interests | Reclassification Out Of Accumulated Other Comprehensive Income [Member]
Reclassifications from OCI to:
Costs of revenue		2		4
Other income (expense), net of tax	14		28
Benefit plans, net actuarial gain (loss), including noncontrolling interest | Cost Of Sales [Member]
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	0	0	0	0
Benefit plans, net actuarial gain (loss), including noncontrolling interest | Selling General And Administrative Expenses [Member]
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	0	0	0	0
Benefit plans, net actuarial gain (loss), including noncontrolling interest | Other income (expense)
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	0	0	0	0
Benefit plans, net actuarial gain (loss), including noncontrolling interest | Reclassification Out Of Accumulated Other Comprehensive Income [Member]
Reclassifications from OCI to:
Costs of revenue		27		53
Selling, general and administrative expenses		12		24
Other income (expense), net of tax	38		77
Benefit plans, noncontrolling interests
Reclassifications from OCI to:
Other comprehensive income (loss), net of tax	(8)		(9)
Other Comprehensive Income (Loss), Tax
Comprehensive income (loss), Tax	0	0	0	0
Accumulated Defined Benefit Plans Adjustment [Member]
Changes in the components of accumulated other comprehensive income (loss)
Balance	(1,632)	(1,135)	(1,424)	(1,180)
Reclassifications from OCI to:
Other comprehensive income (loss), net of tax	121	47	(87)	92
Balance	(1,511)	(1,088)	(1,511)	(1,088)
Other Comprehensive Income (Loss), Tax
Comprehensive income (loss), Tax	0	0	0	0
Accumulated Other Comprehensive Income [Member]
Reclassifications from OCI to:
Balance	$ (64,233)	$ (42,729)	$ (64,233)	$ (42,729)