Virtusa (VRTU) 10-Q 9 Aug 19 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 30, 2019	Aug. 06, 2019
Document and Entity Information
Entity Registrant Name	VIRTUSA CORP
Entity Central Index Key	0001207074
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Trading Symbol	VRTU
Amendment Flag	false
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	043512883
Current Fiscal Year End Date	--03-31
Entity Address, Address Line One	132 Turnpike Rd
Entity Address, City or Town	Southborough
Entity Address, Postal Zip Code	01772
Entity Address, State or Province	MA
City Area Code	508
Local Phone Number	389-7300
Entity File Number	001-33625
Security 12b Title 1	Common Stock
Entity Current Reporting Status	Yes
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		30,246,947
Entity Shell Company	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019
Current assets:
Cash and cash equivalents	$ 190,007	$ 189,676
Short-term investments	17,912	33,138
Accounts receivable, net of allowance of $2,141 and $2,253 at June 30, 2019 and March 31, 2019, respectively	149,652	162,396
Unbilled accounts receivable	116,722	113,431
Prepaid expenses	46,586	42,314
Restricted cash	336	351
Asset held for sale	9,042	8,978
Other current assets	33,715	29,967
Total current assets	563,972	580,251
Property and equipment, net	120,225	119,865
Operating lease right-of-use assets	54,222
Investments accounted for using equity method	1,523	1,446
Long-term investments	366	322
Deferred income taxes	29,125	28,770
Goodwill	280,501	279,543
Intangible assets, net	97,689	92,440
Other long-term assets	35,780	29,836
Total assets	1,183,403	1,132,473
Current liabilities:
Accounts payable	41,802	46,471
Accrued employee compensation and benefits	61,561	74,801
Deferred revenue	7,074	6,421
Accrued expenses and other	77,334	70,050
Current portion of long-term debt	13,657	11,407
Operating lease liabilities	11,011
Income taxes payable	5,917	4,844
Total current liabilities	218,356	213,994
Deferred income taxes	15,713	15,824
Operating lease liabilities, noncurrent	47,708
Long-term debt, less current portion	348,469	351,320
Long-term liabilities	28,102	29,824
Total liabilities	658,348	610,962
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 June 30, 2019 and March 31, 2019; redemption amount and liquidation preference of $108,000 at June 30, 2019 and March 31, 2019	107,202	107,161
Redeemable noncontrolling interest	18,651	23,576
Stockholders' equity:
Undesignated preferred stock, $0.01 par value; Authorized 5,000,000 shares at June 30, 2019 and March 31, 2019; zero shares issued and outstanding at June 30, 2019 and March 31, 2019, respectively
Common stock, $0.01 par value; Authorized 120,000,000 shares at June 30, 2019 and March 31, 2019; issued 33,122,954 and 33,012,775 shares at June 30, 2019 and March 31, 2019, respectively; outstanding 30,242,955 and 30,132,776 shares at June 30, 2019 and March 31, 2019, respectively	331	330
Treasury stock, 2,879,999 common shares, at cost, at June 30, 2019 and March 31, 2019	(39,652)	(39,652)
Additional paid-in capital	244,078	239,204
Retained earnings	255,026	250,279
Accumulated other comprehensive loss	(60,581)	(59,387)
Total Virtusa stockholders' equity	399,202	390,774
Total Stockholders' equity	399,202	390,774
Total liabilities, Series A convertible preferred stock, redeemable noncontrolling interest and stockholders' equity	$ 1,183,403	$ 1,132,473

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019
Consolidated Balance Sheets
Accounts receivable, allowance (in dollars)	$ 2,141	$ 2,253
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	33,122,954	33,012,775
Common stock, shares outstanding	30,242,955	30,132,776
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
	Jun. 30, 2019	Jun. 30, 2018
Consolidated Statements of Income (Loss)
Revenue	$ 319,024	$ 300,031
Costs of revenue	234,735	216,481
Gross profit	84,289	83,550
Operating expenses:
Selling, general and administrative expenses	70,861	69,626
Income from operations	13,428	13,924
Other income (expense):
Interest income	673	1,292
Interest expense	(4,908)	(4,254)
Foreign currency transaction gains (losses), net	1,202	(10,758)
Other, net	364	95
Total other expense	(2,669)	(13,625)
Income before income tax expense	10,759	299
Income tax expense	4,739	5,864
Net income (loss)	6,020	(5,565)
Less: net income attributable to noncontrolling interests, net of tax	186	731
Net income (loss) available to Virtusa stockholders	5,834	(6,296)
Less: Series A Convertible Preferred Stock dividends and accretion	1,087	1,087
Net income (loss) available to Virtusa common stockholders	$ 4,747	$ (7,383)
Basic earnings (loss) per share available to Virtusa common stockholders (in dollars per share)	$ 0.16	$ (0.25)
Diluted earnings (loss) per share available to Virtusa common stockholders (in dollars per share)	$ 0.15	$ (0.25)

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Consolidated Statements of Comprehensive Income (Loss)
Net income (loss)	$ 6,020	$ (5,565)
Other comprehensive income (loss):
Foreign currency translation adjustment	(381)	(10,653)
Pension plan adjustment	162	(209)
Unrealized gain on available-for-sale debt securities, net of tax effect	3	137
Unrealized loss on effective cash flow hedges, net of tax effect	(834)	(3,801)
Other Comprehensive Income (Loss)	(1,050)	(14,526)
Comprehensive income (loss)	4,970	(20,091)
Less: comprehensive income attributable to noncontrolling interest, net of tax	330	2,197
Comprehensive income (loss) available to Virtusa stockholders	$ 4,640	$ (22,288)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total Virtusa Stockholders' Equity	Common Stock	Treasury Stock	Additional Paid In Capital	Retained Earnings	Accumulated Other Comprehensive Income	Non-controlling interest	Redeemable Noncontrolling Interest	Total
Balance at Mar. 31, 2018	$ 418,623	$ 325	$ (39,652)	$ 260,612	$ 238,019	$ (40,681)	$ 17,460		$ 436,083
Balance (in shares) at Mar. 31, 2018		32,469,092	(2,879,999)
Increase (Decrease) in Stockholders' Equity
Proceeds from the exercise of stock options	294			294					294
Proceeds from the exercise of stock options (in shares)		33,173
Proceeds from the exercise of subsidiary stock options	196			196					196
Restricted stock awards vested		$ 1		(1)
Restricted stock awards vested (in shares)		95,432
Restricted stock awards withheld for tax	(2,450)			(2,450)					(2,450)
Share-based compensation	7,908			7,908					7,908
Subsidiary share-based compensation	30			30					30
Cumulative effect of adopting ASC Topic 606, net of tax	464				464				464
Series A Convertible Preferred Stock dividends and accretion	(1,087)				(1,087)				(1,087)
Other comprehensive income (loss)	(13,060)					(13,060)	(1,466)		(14,526)
Net income (loss)	(6,296)				(6,296)				(6,296)
Net income							731		731
Net income (loss)									(5,565)
Balance at Jun. 30, 2018	$ 404,622	$ 326	$ (39,652)	266,589	231,100	(53,741)	$ 16,725		421,347
Balance (in shares) at Jun. 30, 2018		32,597,697	(2,879,999)
Balance at Mar. 31, 2019		$ 330	$ (39,652)	239,204	250,279	(59,387)		$ 23,576	$ 390,774
Balance (in shares) at Mar. 31, 2019		33,012,775	(2,879,999)						30,132,776
Increase (Decrease) in Stockholders' Equity
Proceeds from the exercise of stock options				194					$ 194
Proceeds from the exercise of stock options (in shares)		13,416
Proceeds from the exercise of subsidiary stock options								8
Restricted stock awards vested		$ 1		(1)
Restricted stock awards vested (in shares)		96,763
Restricted stock awards withheld for tax				(2,011)					(2,011)
Share-based compensation				6,674					6,674
Purchase of redeemable noncontrolling interest related to Polaris								(5,549)	5,549
Foreign currency translation on redeemable noncontrolling interest								116
Series A Convertible Preferred Stock dividends and accretion					(1,087)				(1,087)
Other comprehensive income (loss)						(1,194)			(1,194)
Other comprehensive income (loss)								144
Net income (loss)					5,834			186	5,834
Net income									186
Balance at Jun. 30, 2019		$ 331	$ (39,652)	244,078	$ 255,026	$ (60,581)		18,651	$ 399,202
Balance (in shares) at Jun. 30, 2019		33,122,954	(2,879,999)						30,242,955
Increase (Decrease) in Stockholders' Equity
Adjustments of redeemable noncontrolling interest to redemption value				$ 18				$ 170	$ 18

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net income (loss)	$ 6,020	$ (5,565)
Adjustments to reconcile net income (loss) to net cash (used in) provided by (used in) operating activities:
Depreciation and amortization	7,765	7,273
Share-based compensation expense	6,676	7,938
Provision (recovery) for doubtful accounts	(64)	(206)
Loss (gain) on disposal of property and equipment	42	(8)
Foreign currency transaction (gains) losses, net	(1,202)	10,758
Amortization of discounts and premiums on investments	(4)	51
Amortization of debt issuance cost	273	273
Deferred income taxes, net	(72)	(3,594)
Net changes in operating assets and liabilities
Accounts receivable and unbilled receivable	7,203	(12,750)
Prepaid expenses and other current assets	(6,015)	(7,519)
Other long-term assets	(7,730)	(4,150)
Accounts payable	(4,479)	1,218
Accrued employee compensation and benefits	(15,632)	(14,855)
Accrued expenses and other current liabilities	10,454	6,562
Income taxes payable	2,620	6,412
Operating lease liabilities	125
Other long-term liabilities	(3,744)	1,432
Net cash provided by (used in) operating activities	2,236	(6,730)
Cash flows from investing activities:
Proceeds from sale of property and equipment	19	186
Purchase of short-term investments	(4,622)	(38,008)
Proceeds from sale or maturity of short-term investments	19,817	29,292
Payment for asset acquisition	(4,251)
Purchase of property and equipment	(4,775)	(13,461)
Net cash provided by (used in) investing activities	6,188	(21,991)
Cash flows from financing activities:
Payment of debt	(875)	(875)
Payments of withholding taxes related to net share settlements of restricted stock	(2,011)	(2,450)
Purchase of redeemable noncontrolling interest related to Polaris	(5,549)
Principal payments on capital lease obligation	(18)	(22)
Payment of dividend on Series A Convertible Preferred Stock	(1,046)	(1,046)
Net cash used in financing activities	(9,253)	(3,903)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	1,145	(7,279)
Net increase (decrease) in cash and cash equivalents and restricted cash	316	(39,903)
Cash, cash equivalents and restricted cash, beginning of period	190,113	195,236
Cash, cash equivalents and restricted cash, end of period	190,429	155,333
Parent
Cash flows from financing activities:
Proceeds from exercise of common stock options	194	294
Subsidiaries
Cash flows from financing activities:
Proceeds from exercise of common stock options	$ 52	$ 196

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019
Balance sheet classification
Cash and cash equivalents	$ 190,007	$ 189,676
Restricted cash in current assets	336	351
Restricted cash in other long-term assets	86	86
Total restricted cash	422	437
Total cash, cash equivalents and restricted cash	$ 190,429	$ 190,113

Nature of the Business

Nature of the Business	3 Months Ended
	Jun. 30, 2019
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 delivery 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, Qatar, Mexico,

Unaudited Interim Financial Inf

Unaudited Interim Financial Information	3 Months Ended
	Jun. 30, 2019
Summary of Significant Accounting Policies
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, 2019 included in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission, or SEC, on May 24, 2019. 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, income taxes, including reserves for uncertain tax positions, deferred taxes and liabilities, intangible assets, 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 June 30, 2019 and March 31, 2019, 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 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 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, ASU 2018-20 in December 2018 and ASU 2019-01 in March 2019, 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 (“ROU”) 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. The standard permits the use of either retrospective to each prior reporting period presented with the cumulative effect of adoption recognized at the beginning of the earliest period presented or retrospective to the beginning of the period of adoption through a cumulative-effect adjustment (the "Modified Retrospective Effective Date Method"). ​ The Company adopted this standard, (“ASC Topic 842”), effective April 1, 2019, using a Modified Retrospective Effective Date Method. The Company has elected the package of practical expedients which permits the Company to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. The Company did not elect the use of hindsight practical expedient to reevaluate the lease term of existing contracts. Prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting policies. The impact of adoption primarily relates to the recognition of right-of-use operating lease assets and operating lease liabilities on the Company’s unaudited consolidated balance sheets for all operating leases with a term greater than twelve months. The adoption of this standard on April 1, 2019 resulted in the recognition of ROU assets for operating leases of $54,762 and operating lease liabilities of $59,157. The Company’s accounting for finance leases (formerly capital leases) remains substantially unchanged. The adoption of this standard did not have an impact on the consolidated statement of income (loss) and comprehensive income (loss), consolidated statement of changes in stockholders’ equity or the consolidated statement of cash flows. ​ See Note 7 “Leases” for additional information regarding leases. ​ ​ 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 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. The FASB subsequently issued ASU 2019-04 in April 2019 and ASU 2019-05 in May 2019, which provide clarifications and improvements to this new standard. 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. ​

Earnings (Loss) per Share

Earnings (Loss) per Share	3 Months Ended
	Jun. 30, 2019
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 ​ ​ ​ June 30, ​ ​ 2019 2018 ​ Numerators: ​ ​ ​ ​ Net income (loss) available to Virtusa stockholders ​ $ 5,834 ​ $ (6,296) ​ Less: Series A Convertible Preferred Stock dividends and accretion ​ (1,087) ​ (1,087) ​ Net income (loss) available to Virtusa common stockholders ​ $ 4,747 ​ $ (7,383) ​ Denominators: ​ ​ ​ Basic weighted average common shares outstanding ​ 30,167,910 ​ 29,633,026 ​ Basic earnings (loss) per share available to Virtusa common stockholders ​ $ 0.16 ​ $ (0.25) ​ ​ The components of diluted earnings (loss) per share are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ June 30, ​ ​ 2019 2018 ​ Numerators: ​ ​ ​ ​ ​ ​ ​ Net income (loss) available to Virtusa common stockholders ​ $ 4,747 ​ $ (7,383) ​ Add : Series A Convertible Preferred Stock dividends and accretion ​ ​ — ​ ​ — ​ Net income (loss) available to Virtusa common stockholders and assumed conversion ​ $ 4,747 ​ $ (7,383) ​ Denominators: ​ ​ ​ ​ ​ ​ ​ Basic weighted average common shares outstanding ​ 30,167,910 ​ 29,633,026 ​ Dilutive effect of Series A Convertible Preferred Stock if converted ​ ​ — ​ ​ — ​ Dilutive effect of employee stock options and unvested restricted stock awards and restricted stock units ​ 766,501 ​ — ​ Weighted average shares—diluted ​ 30,934,411 ​ 29,633,026 ​ Diluted earnings (loss) per share available to Virtusa common stockholders ​ $ 0.15 ​ $ (0.25) ​ ​ During the three months ended June 30, 2019 and 2018, unvested restricted stock awards and unvested restricted stock units issuable for, and options to purchase zero shares and 1,798,429 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 June 30, 2019 and 2018, all of the 3,000,000 shares of Series A Convertible Preferred Stock 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	3 Months Ended
	Jun. 30, 2019
Investment Securities.
Investment Securities	(4) Investment Securities ​ At June 30, 2019 and March 31, 2019, all of the Company’s investment securities were classified as available-for-sale debt 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 for a discussion of the fair value of the Company’s other financial instruments). ​ The following is a summary of investment securities at June 30, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ Cost Gains Losses Fair Value Available-for-sale debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate bonds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 479 ​ $ 1 ​ $ — ​ $ 480 Non-current ​ — ​ — ​ — ​ — Preference shares: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current ​ ​ 189 ​ ​ — ​ ​ — ​ ​ 189 Agency and short-term notes: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 1,496 ​ ​ 2 ​ ​ — ​ ​ 1,498 Time Deposits: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 5,133 ​ ​ — ​ ​ — ​ ​ 5,133 Equity securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mutual funds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 10,688 ​ ​ 113 ​ ​ ​ ​ ​ 10,801 Equity Shares/ Options: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current ​ ​ 8 ​ ​ 169 ​ ​ — ​ ​ 177 Total available-for-sale debt securities and equity securities ​ $ 17,993 ​ $ 285 ​ $ — ​ $ 18,278 ​ The following is a summary of investment securities at March 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ Cost Gains Losses Fair Value Available-for-sale debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate bonds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 2,779 ​ $ 1 ​ $ (2) ​ $ 2,778 Non-current ​ — ​ ​ — ​ ​ — ​ ​ — Preference shares: ​ ​ 188 ​ ​ — ​ ​ — ​ ​ 188 Agency and short-term notes: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ 1,492 ​ ​ 1 ​ ​ — ​ ​ 1,493 Time deposits: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 15,861 ​ ​ — ​ ​ — ​ ​ 15,861 Equity Shares: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mutual funds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ 12,912 ​ ​ 94 ​ ​ — ​ ​ 13,006 Equity Shares/ Options: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current ​ 8 ​ ​ 126 ​ ​ — ​ ​ 134 Total available-for-sale debt and equity securities ​ $ 33,240 ​ $ 222 ​ $ (2) ​ $ 33,460 ​ The Company evaluates investments with unrealized losses to determine if the losses are other than 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 debt 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 ​ ​ ​ June 30, ​ ​ 2019 2018 ​ Proceeds from sales or maturities of available-for-sale ​ $ 19,817 ​ $ 29,292 ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross gains ​ $ 228 ​ $ 125 ​ Gross losses ​ — ​ (63) ​ Net realized gains on sales of available-for-sale investment ​ $ 228 ​ $ 62 ​ ​

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Jun. 30, 2019
Fair Value of Financial Instruments
Fair Value of Financial Instruments	(5) Fair Value of Financial Instruments ​ The Company carries certain assets and liabilities at fair value on a recurring basis on its consolidated balance sheets. The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis at June 30, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1 Level 2 Level 3 Total Assets: ​ ​ ​ ​ Investments: ​ ​ ​ ​ Available-for-sale debt securities—current ​ $ — ​ $ 7,111 ​ $ — ​ $ 7,111 Equity securities—current ​ ​ — ​ ​ 10,801 ​ ​ — ​ ​ 10,801 Available-for-sale debt securities—non-current ​ — ​ 189 ​ ​ — ​ 189 Equity securities—non-current ​ ​ — ​ ​ 177 ​ ​ — ​ ​ 177 Derivative financial instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency derivative contracts ​ — ​ 5,138 ​ ​ — ​ 5,138 Interest rate swap contracts ​ — ​ 657 ​ ​ — ​ 657 Total assets ​ $ — ​ $ 24,073 ​ $ — ​ $ 24,073 Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ — Foreign currency derivative contracts ​ ​ — ​ — ​ ​ — ​ — Interest rate swap contracts ​ ​ — ​ ​ 6,193 ​ ​ — ​ ​ 6,193 Total liabilities ​ $ — ​ $ 6,193 ​ $ — ​ $ 6,193 ​ The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis at March 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1 Level 2 Level 3 Total Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available-for-sale debt securities—current ​ $ — ​ $ 20,132 ​ ​ — ​ $ 20,132 Equity securities—current ​ ​ — ​ ​ 13,006 ​ ​ — ​ ​ 13,006 Available-for-sale debt securities—non-current ​ — ​ 188 ​ — ​ 188 Equity securities—non-current ​ ​ — ​ ​ 134 ​ ​ — ​ ​ 134 Derivative financial instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency derivative contracts ​ ​ — ​ ​ 3,411 ​ ​ — ​ ​ 3,411 Interest rate swap contracts ​ ​ — ​ ​ 1,349 ​ ​ — ​ ​ 1,349 Total assets ​ $ — ​ $ 38,220 ​ $ — ​ $ 38,220 Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency derivative contracts ​ $ — ​ ​ 321 ​ $ — ​ ​ 321 Interest rate swap contracts ​ ​ — ​ ​ 3,633 ​ ​ — ​ ​ 3,633 Contingent consideration ​ ​ — ​ ​ — ​ ​ — ​ ​ — Total liabilities ​ $ — ​ $ 3,954 ​ $ — ​ $ 3,954 ​

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Jun. 30, 2019
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 (loss) 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 $83,448 and $118,557 at June 30, 2019 and March 31, 2019, respectively. Unrealized net gains related to these contracts which are expected to be reclassified from accumulated other comprehensive income (loss) (“AOCI”) to earnings during the next 12 months are $5,138 at June 30, 2019. At June 30, 2019, the maximum outstanding term of any derivative instrument was 12 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), by using pay-fixed, receive-variable interest rate swaps to offset the future variable rate interest payments. The Company will recognize these transactions in accordance with ASC 815 "Derivatives and Hedging," and have designated the swaps as cash flow hedges. ​ The Company purchased interest rate swaps in July 2016 with an effective date of July 2017 and in November 2018. The July 2016 interest rate swaps are at a blended weighted average of 1.025% and the Company will receive 1-month LIBOR on the same notional amounts. The November 2018 interest rate swaps were entered into to mitigate the interest rate risk associated with the Credit Agreement executed in February 2018 and subsequent additional borrowings. The November 2018 interest rate swaps are at a fixed rate of 2.85% and are designed to maintain a 50% coverage of our LIBOR debt, therefore the notional amount changes over the life of the swap to retain the 50% coverage target. At June 30, 2019, the total notional amounts of the interest rate swaps were $181,900 with remaining maturity of approximately 4 years. The unrealized losses associated with the swap agreements was $5,536 and $2,284 at June 30, 2019 and March 31, 2019, respectively, which represents the estimated amount that the Company would pay to the counterparties in the event of an early termination. ​ The following table sets forth the fair value of derivative instruments included in the consolidated balance sheets at June 30, 2019 and March 31, 2019: ​ Derivatives designated as hedging instruments ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2019 March 31, 2019 Foreign currency exchange contracts: ​ ​ ​ ​ ​ ​ Other current assets ​ $ 5,138 ​ $ 3,264 Other long-term assets ​ $ — ​ $ 147 Accrued expenses and other ​ $ — ​ $ 318 Long-term liabilities ​ $ — ​ $ 3 ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2019 March 31, 2019 Interest rate swap contracts ​ ​ Other long-term assets ​ $ 657 ​ $ 1,349 Long-term liabilities ​ $ 6,193 ​ $ 3,633 ​ 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 months ended June 30, 2019 and 2018: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Gain or (Loss) Recognized in AOCI on Derivatives ​ Derivatives Designated as ​ Three Months Ended ​ Cash Flow Hedging Relationships ​ June 30, 2019 ​ June 30, 2018 ​ Foreign currency exchange contracts ​ $ 2,633 ​ $ (5,292) ​ Interest rate swaps ​ $ (3,045) ​ $ 273 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Location of Gain or (Loss) Reclassified Amount of Gain or (Loss) Reclassified from AOCI into Income from AOCI into Income (loss) (Effective ​ Three Months Ended ​ Portion) ​ June 30, 2019 June 30, 2018 ​ Revenue ​ $ (18) ​ $ (356) ​ Costs of revenue ​ $ 405 ​ $ 318 ​ Operating expenses ​ $ 200 ​ $ 170 ​ Interest Expenses ​ $ 208 ​ ​ 207 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Gain or (Loss) Recognized in Income ​ ​ ​ ​ ​ ​ (loss) on Derivatives ​ ​ ​ ​ Three Months Ended ​ Derivatives not Designated ​ Location of Gain Or (Loss) June 30, ​ as Hedging Instruments Recognized in Income (loss) on Derivatives 2019 2018 ​ Foreign currency exchange contracts Revenue ​ $ 355 ​ $ 819 ​ ​ Costs of revenue ​ $ (226) ​ $ (533) ​ ​ Selling, general and administrative expenses ​ $ (20) ​ $ — ​ ​

Leases

Leases	3 Months Ended
	Jun. 30, 2019
Leases
Leases	​ (7) Leases ​ The Company’s leased assets primarily consist of operating leases for office space, equipment and vehicles. At the inception of a contract, the Company determines whether a contract contains a lease, and if a lease is identified, whether it is an operating or finance lease. In determining whether a contract contains a lease, the Company considers whether (1) it has the right to obtain substantially all of the economic benefits from the use of the asset throughout the term of the contract, (2) it has the right to direct how and for what purpose the asset is used throughout the term of the contract and (3) it has the right to operate the asset throughout the term of the contract without the lessor having the right to change the terms of the contract. The Company leases vehicles in certain locations primarily as an employee benefit and these leases are classified as either operating or finance leases. The Company does not have finance leases that are material to the Company’s consolidated financial statements. Some of the Company’s lease agreements contain both lease and non-lease components. The Company separates lease components from non-lease components for all the Company’s lease assets. The consideration in the lease contract is allocated to the lease and non-lease components based on the estimated standalone prices. ​ A portion of the leases for office space contain certain charges for additional rent expenses that are variable. Due to this variability, the cash flows associated with these charges are not included in the minimum lease payments used in determining the ROU lease assets and associated lease liabilities. ​ The Company’s ROU lease assets represent the Company’s right to use an underlying asset for the lease term and may include any advance lease payments made and any initial direct costs and exclude lease incentives. The Company’s lease liabilities represent the Company’s obligation to make lease payments arising from the contractual terms of the lease. ROU lease assets and lease liabilities are recognized at the commencement of the lease and are calculated using the present value of lease payments over the lease term. The Company’s operating lease agreements do not provide enough information to arrive at an implicit interest rate. Therefore, the Company uses its estimated incremental borrowing rate based on information available at the commencement date of the lease to calculate the present value of the lease payments. The Company determines the incremental borrowing rate on a lease-by-lease basis by developing an estimated borrowing rate of the Company for a fully collateralized obligation with a term similar to the lease term, and adjusts the rate to reflect the incremental risk associated with the currency in which the lease is denominated. ​ ​ The following table provides information on the components of the Company’s operating leases included in its unaudited consolidated balance sheets: ​ ​ ​ ​ ​ ​ ​ ​ ​ Leases Location on Consolidated Balance Sheets ​ June 30, 2019 Assets ​ ​ ​ ​ ​ ​ Operating lease assets Operating lease right-of-use of assets ​ $ 54,222 ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ Current ​ ​ ​ ​ ​ ​ Operating lease liabilities ​ Operating lease liabilities ​ $ 11,011 ​ Noncurrent ​ ​ ​ ​ ​ ​ Operating lease liabilities ​ Operating lease liabilities, noncurrent ​ $ 47,708 ​ ​ ​ Total ​ $ 58,719 ​ ​ The Company’s leases have remaining lease terms ranging from 1 year to 9 years. Certain lease agreements, mainly for office space, include options to extend or terminate the lease before the expiration date. The Company includes such options when determining the lease term when it is reasonably certain that the Company will exercise that option. The following table provides the components of lease expense related to our operating leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Location on Consolidated Statements of Income (Loss) ​ June 30, 2019 Operating lease cost: ​ ​ ​ ​ ​ Operating lease cost ​ Selling, general and administrative expenses ​ $ 3,830 Variable lease cost ​ Selling, general and administrative expenses ​ $ 6 Short-term lease cost ​ Selling, general and administrative expenses ​ $ 89 Less: Sublease income ​ Selling, general and administrative expenses ​ $ (165) Total operating lease cost ​ ​ ​ $ 3,760 ​ ​ The following table provides supplemental cash flow information related to our operating leases: ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ June 30, 2019 ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ Operating cash flows used for operating leases ​ $ 3,734 ​ ​ ​ ​ ​ ​ Right-of-use assets obtained in exchange for lease obligations: ​ ​ ​ Operating leases ​ $ 2,362 ​ ​ ​ ​ The following table provides information on the weighted average remaining lease term and weighted average discount rate related to our operating leases: ​ ​ ​ ​ ​ ​ June 30, 2019 Weighted average remaining lease term, in years: ​ ​ ​ Operating leases ​ ​ 5.90 Weighted average discount rate: ​ ​ ​ Operating leases ​ ​ 7.54% ​ The following table provides the schedule of the Company’s future minimum payments on its operating leases at March 31, 2019, which were accounted for in accordance with its historic accounting policies under ASC Topic 840. ​ ​ ​ ​ ​ ​ ​ Operating leases ​ ​ ​ March 31, 2019 ​ 2020 ​ $ 14,685 ​ 2021 ​ ​ 13,895 ​ 2022 ​ ​ 12,663 ​ 2023 ​ ​ 9,879 ​ 2024 ​ ​ 5,686 ​ 2025 and thereafter ​ ​ 16,761 ​ Total lease payments ​ $ 73,569 ​ ​ There were no lease agreements that contained restrictive covenants or material residual value guarantees as of June 30, 2019. ​ The following table provides the schedule of maturities of the Company’s operating lease liabilities, under ASC Topic 842, as of June 30, 2019: ​ ​ ​ ​ ​ ​ ​ Operating leases ​ ​ ​ June 30, 2019 ​ 2020- remainder of year ​ $ 11,211 ​ 2021 ​ ​ 14,446 ​ 2022 ​ ​ 13,229 ​ 2023 ​ ​ 10,437 ​ 2024 ​ ​ 6,252 ​ 2025 and thereafter ​ ​ 16,818 ​ Total lease payments ​ $ 72,393 ​ Interest ​ ​ 13,674 ​ Total lease liabilities ​ $ 58,719 ​ ​ As of June 30, 2019, the Company had committed to payments of $574 related to an operating lease that had yet to commence and therefore is not included in consolidated balance sheets. This lease commenced in July 2019 and has a five year lease term

Revenues

Revenues	3 Months Ended
	Jun. 30, 2019
Revenues
Revenues	​ ​ (8) Revenues ​ 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Three Months Ended Revenue by geography: ​ June 30, 2019 ​ June 30, 2018 North America ​ $ 230,480 ​ $ 209,629 Europe ​ 63,080 ​ 66,736 Rest of World ​ 25,464 ​ 23,666 Consolidated revenue ​ $ 319,024 ​ $ 300,031 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Three Months Ended Revenue by Customer’s Industry Groups ​ June 30, 2019 ​ June 30, 2018 Banking financial services insurance ​ $ 189,973 ​ $ 188,738 Communications and Technology ​ 104,501 ​ 83,028 Media & Information and Other ​ 24,550 ​ 28,265 Consolidated revenue ​ $ 319,024 ​ $ 300,031 ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Three Months Ended Revenue by service offerings ​ June 30, 2019 ​ June 30, 2018 Application outsourcing ​ $ 181,963 ​ $ 160,709 Consulting ​ 137,061 ​ 139,322 Consolidated revenue ​ $ 319,024 ​ $ 300,031 ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Three Months Ended Revenue by contract type ​ June 30, 2019 ​ June 30, 2019 Time-and-materials ​ $ 189,899 ​ $ 179,226 Fixed-price* ​ 129,125 ​ 120,805 Consolidated revenue ​ $ 319,024 ​ $ 300,031 ​ *Fixed-price includes both retainer-billing basis and fixed-price progress towards completion ​ 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. Contract 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 three months ended June 30, 2019 and 2018 in contract assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2019 ​ June 30, 2018 Beginning balance ​ $ 18,538 ​ $ 15,998 Revenues recognized during the period but not yet billed ​ 20,859 ​ 34,184 Amounts billed ​ (20,594) ​ (29,853) Other ​ (65) ​ (284) Ending balance ​ $ 18,738 ​ $ 20,045 ​ 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 three months ended June 30, 2019 and 2018: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2019 ​ June 30, 2018 Beginning balance ​ $ 6,421 ​ $ 7,908 Amounts billed but not yet recognized as revenues ​ 4,123 ​ ​ 4,304 Revenues recognized related to the opening balance of deferred revenue ​ (3,495) ​ ​ (5,350) Other ​ 25 ​ ​ (67) Ending balance ​ $ 7,074 ​ $ 6,795 ​ Remaining performance obligation ​ ASC Topic 606- Revenue from Contracts with Customers 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 June 30, 2019. 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 June 30, 2019, the aggregate amount of transaction price allocated to remaining performance obligations, other than those meeting the exclusion criteria above, was $56,503 and will be recognized as revenue within 5 years. ​

Series A Convertible Preferred

Series A Convertible Preferred Stock	3 Months Ended
	Jun. 30, 2019
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 months ended June 30, 2019 and 2018, 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 three months ended June 30, 2019 and 2018, the Company has paid $1,046 as cash dividend on Series A Convertible Preferred Stock. As of June 30, 2019 and 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	3 Months Ended
	Jun. 30, 2019
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 June 30, 2019: ​ ​ ​ ​ ​ ​ ​ June 30, 2019 ​ Balance at April 1, 2019 $ 279,543 ​ Foreign currency translation adjustments ​ ​ 958 ​ Balance at June 30, 2019 $ 280,501 ​ ​ The acquisition costs and goodwill balance deductible for our business acquisitions for tax purposes are $145,661. The acquisition costs and goodwill balance not deductible for tax purposes are $147,744. ​ Intangible Assets: ​ The following are details of the Company’s intangible asset carrying amounts acquired and amortization at June 30, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2019 ​ ​ Weighted ​ Gross ​ ​ ​ ​ Net ​ ​ Average ​ Carrying ​ Accumulated ​ Carrying ​ Useful Life Amount Amortization Amount Amortizable intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships 12.6 ​ $ 133,572 ​ $ 36,798 ​ $ 96,774 Trademark 2.0 ​ ​ 900 ​ ​ 554 ​ ​ 346 Technology 5.0 ​ ​ 500 ​ ​ 403 ​ ​ 97 Other 5.0 ​ ​ 497 ​ ​ 25 ​ ​ 472 ​ 12.5 ​ $ 135,469 ​ $ 37,780 ​ $ 97,689 ​ During the three months ended June 30, 2019, the Company acquired certain assets of a small consulting company located in U.S. The purchase price was approximately $4,251 in cash paid at closing and an additional earn-out consideration of up to $4,453 payable within one year based on achievements of certain revenue targets. The probable and estimable value of the contingent consideration as of June 30, 2019 is $4,058. ​ The following are details of the Company’s intangible asset carrying amounts acquired and amortization at March 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2019 ​ ​ Weighted ​ Gross ​ ​ ​ ​ Net ​ ​ Average ​ Carrying ​ Accumulated ​ Carrying ​ Useful Life ​ Amount ​ Amortization ​ Amount Amortizable intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships 13.0 ​ $ 125,520 ​ $ 33,679 ​ $ 91,841 Trademark 2.0 ​ 900 ​ 431 ​ 469 Technology 5.0 ​ 500 ​ 370 ​ 130 ​ 12.9 ​ $ 126,920 ​ $ 34,480 ​ $ 92,440 ​ 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	3 Months Ended
	Jun. 30, 2019
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 rate was 44.0% for the three months ended June 30, 2019, as compared to an effective tax rate of 1961.2% for the three months ended June 30, 2018. The Company’s effective tax rate for the three months ended June 30, 2019 was impacted by executive stock compensation limitations and Base Erosion Alternative Tax “BEAT” 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 fiscal year ended March 31, 2019, the Company elected to treat several foreign entities as disregarded entities. The earnings of these subsidiaries will be subject to U.S. taxation as well as local taxation with a corresponding foreign tax credit, at the election of the Company. During the three months ended June 30, 2019, the Company has elected to deduct the foreign taxes in computing the income tax expense for the three months ended June 30, 2019. The Company’s income tax provision for the three months ended June 30, 2019, includes the impact of Global Intangible Low-taxed Income (“GILTI”), of the Tax Act. 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. ​ 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. The Company has $24,693 and $1,175 of net deferred tax assets in the United States and the United Kingdom, respectively, at June 30, 2019. The Company has not recorded valuation allowance as management has concluded it is more likely than not to be utilized before expiration. The Company expects sufficient taxable income in future periods related to the impact of the GILTI and the election to treat several foreign entities as disregarded entities. ​ 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, was operating under a 12-year income tax holiday arrangement until 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, 2019, the Company believes it has fulfilled its hiring and investment commitments and is eligible for tax holiday through March 2019. The 12-year income tax holiday arrangement expired as of March 31, 2019 and therefore during the three months ended June 30, 2019, the Company recorded tax expense on all the earnings in its Sri Lankan subsidiary at the statutory rate. ​ The Company has been under income tax examination in India, the U.K, Singapore and the United States. The Indian taxing authorities issued an assessment order with respect to their examination of the various tax returns for the fiscal years ended March 31, 2005 to March 31, 2014 of the Company’s Indian subsidiary, Virtusa (India) Private Ltd, now merged with and into Virtusa Consulting Services Private Limited (collectively referred to as “Virtusa India”). At issue were several matters, the most significant of which was the redetermination of the arm’s-length profit which should be recorded by Virtusa India on the intercompany transactions with its affiliates. During the fiscal year ended March 31, 2011, the Company entered into a competent authority settlement and settled the uncertain tax position for the fiscal years ended March 31, 2004 and 2005. However, the redetermination of arm’s-length profit on transactions with respect to the Company’s subsidiaries and Virtusa UK Limited has not been resolved and remains under appeal for the fiscal year ended March 31, 2005. The Company is currently appealing assessments for fiscal years ended March 31, 2005 through 2014. In the United Kingdom, the Company is currently under examination for transfer pricing and research benefits for the years ended March 31, 2014 to March 31, 2017. In Singapore, Inland Revenue Authority is confirming the appropriateness of the Company’s deductions for the year ended March 31, 2017. In the United States, the Internal Revenue Service 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 June 30, 2019 and March 31, 2019, the total liability for unrecognized tax benefits was $6,824 and $6,744, 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 three months ended June 30, 2019 and 2018, the unrecognized tax benefits increased by $80 and $515, respectively. The increase in unrecognized tax benefits in the three months ended June 30, 2019 was predominantly due to foreign currency movements and the increase 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 currently or has been historically 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 June 30, 2019, the Company had approximately $158,815 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	3 Months Ended
	Jun. 30, 2019
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 ​ ​ ​ June 30, ​ ​ 2019 2018 ​ Customer revenue: ​ ​ ​ ​ ​ ​ ​ United States of America ​ $ 218,092 ​ $ 201,140 ​ United Kingdom ​ 49,879 ​ 53,755 ​ Rest of World ​ 51,053 ​ 45,136 ​ Consolidated revenue ​ $ 319,024 ​ $ 300,031 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ March 31, ​ ​ 2019 2019 Long-lived assets, net of accumulated depreciation and amortization: ​ ​ ​ ​ ​ ​ ​ United States of America ​ ​ $ 222,123 ​ $ 216,279 India ​ ​ 252,312 ​ 251,722 Rest of World ​ ​ 23,980 ​ 23,847 Consolidated long-lived assets, net ​ ​ $ 498,415 ​ $ 491,848 ​ Revenue from significant clients as a percentage of the Company’s consolidated revenue was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ ​ June 30, ​ ​ ​ ​ 2019 2018 ​ ​ Customer A ​ 15.5 % 17.2 % ​ ​

Debt

Debt	3 Months Ended
	Jun. 30, 2019
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 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 $180,000 term loan and a $70,000 ​ At June 30, 2019, 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 June 30, 2019 and through the date of this filing. ​ Current portion of long-term debt ​ The following summarizes our short-term debt balances as of: ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2019 March 31, 2019 Notes outstanding under the revolving credit facility ​ $ — ​ $ — Term loan- current maturities ​ 14,750 ​ 12,500 Less: deferred financing costs, current ​ (1,093) ​ (1,093) Total ​ $ 13,657 ​ $ 11,407 ​ Long-term debt, less current portion ​ The following summarizes our long-term debt balance as of: ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2019 March 31, 2019 Term loan ​ $ 236,625 ​ $ 237,500 Borrowings under revolving credit facility ​ ​ 129,500 ​ ​ 129,500 Less: ​ ​ ​ ​ ​ ​ Current maturities ​ (14,750) ​ (12,500) Deferred financing costs, long-term ​ (2,906) ​ (3,180) Total ​ $ 348,469 ​ $ 351,320 ​ In July 2016 and November 2018, the Company entered into interest rate swap transactions to mitigate Company’s interest rate risk on Company’s variable rate debt (See Note 6). ​ 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 three months ended June 30, 2019, $7,512 of receivables were sold under the terms of the financing agreement. Fees paid pursuant to this agreement were immaterial during the three months ended June 30, 2019. No amounts were due as of June 30, 2019, 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	3 Months Ended
	Jun. 30, 2019
Redeemable noncontrolling interest
Redeemable noncontrolling interest	(14) Redeemable noncontrolling interest ​ On March 3, 2016, the Company’s Indian subsidiary, Virtusa Consulting Services Private Limited (“Virtusa India”), acquired approximately 51.7% of the fully diluted shares of Polaris Consulting & Services Limited (“Polaris”) for approximately $168,257 in cash (the “Polaris Transaction”) pursuant to a share purchase agreement dated as of November 5, 2015, by and among Virtusa India, Polaris and the promoter sellers named therein. Through a series of transactions and in compliance with the applicable Indian rules on takeovers and SEBI Delisting Regulations, Virtusa increased its ownership interest in Polaris from 51.7% to 93.0% by February 12, 2018, when Virtusa consummated its Polaris delisting offer with respect to the public shareholders of Polaris. The delisting offer resulted in an accepted exit price of INR 480 per share (“Exit Price”), for an aggregate consideration of approximately $145,000, exclusive of transaction and closing costs. On July 11, 2018, the stock exchanges on which Polaris common shares are listed notified Polaris that trading in equity shares of Polaris would be discontinued and delisted effective on August 1, 2018. 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. ​ In connection with the Polaris delisting offer, during the three months ended June 30, 2019, Virtusa India purchased 803,274 shares, or approximately 0.8% of Polaris common stock from shareholders for an aggregate purchase price of approximately $5,549. ​ As of June 30, 2019, the number of shares of Polaris common stock held by noncontrolling interest shareholders was 2,449,458 or approximately 2.37% 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 $17,050 and presented this in the mezzanine section of the consolidated balance sheet as redeemable noncontrolling interest. ​ As of June 30, 2019, the Company had approximately $638 of Polaris stock options at fair value that were classified as current liabilities related to a deemed cash settlement modification resulting from the delisting offer. ​

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Jun. 30, 2019
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 months ended June 30, 2019 and 2018: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ June 30, ​ ​ 2019 2018 ​ Investment securities ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ 12 $ 69 ​ Other comprehensive income (loss) (OCI) before reclassifications, net of tax of $0, $44 ​ ​ 1 ​ ​ 126 ​ Reclassifications from OCI to other income, net of tax of $0, $0 ​ ​ 2 ​ ​ 11 ​ Less: Noncontrolling interests, net of tax of $0, $(3) ​ ​ — ​ ​ (7) ​ Comprehensive income (loss) on investment securities, net of tax of $0, $41 ​ ​ 3 ​ ​ 130 ​ Closing balance ​ $ 15 $ 199 ​ Currency translation adjustments ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ (57,354) $ (41,207) ​ OCI before reclassifications ​ ​ (381) ​ ​ (10,653) ​ Less: Noncontrolling interests ​ ​ (137) ​ ​ 1,383 ​ Comprehensive income (loss) on currency translation adjustments ​ ​ (518) ​ ​ (9,270) ​ Closing balance ​ $ (57,872) $ (50,477) ​ Cash flow hedges ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ 39 $ 1,881 ​ OCI before reclassifications net of tax of $(210), $(1,516) ​ ​ (202) ​ ​ (3,503) ​ Reclassifications from OCI to ​ ​ ​ ​ ​ ​ ​ —Revenue, net of tax of $6, $124 ​ ​ 12 ​ ​ 232 ​ —Costs of revenue, net of tax of $(77), $(73) ​ ​ (328) ​ ​ (245) ​ —Selling, general and administrative expenses, net of tax of $(38), $(39) ​ ​ (162) ​ ​ (131) ​ —Interest expenses, net of tax of $(54), $(53) ​ ​ (154) ​ ​ (154) ​ Less: Noncontrolling interests, net of tax of $0, $48 ​ ​ (1) ​ ​ 89 ​ Comprehensive income (loss) on cash flow hedges, net of tax of $(373), $(1,509) ​ ​ (835) ​ ​ (3,712) ​ Closing balance ​ $ (796) $ (1,831) ​ Benefit plans ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ (2,084) $ (1,424) ​ OCI before reclassifications net of tax of $0, $319 ​ ​ 123 ​ ​ (319) ​ Reclassifications from OCI for prior service credit (cost) to: ​ ​ ​ ​ ​ ​ ​ Other income (expense), net of tax of $0, $0 ​ ​ 6 ​ ​ 14 ​ Reclassifications from net actuarial gain (loss) amortization to: ​ ​ ​ ​ ​ — ​ Other income (expense), net of tax of ​ ​ 36 ​ ​ 39 ​ Other adjustments ​ ​ (3) ​ ​ 57 ​ (Less): Noncontrolling interests, net of tax $0, $0 ​ ​ (6) ​ ​ 1 ​ Comprehensive income (loss) on benefit plans, net of tax of $0, $319 ​ ​ 156 ​ ​ (208) ​ Closing balance ​ ​ (1,928) $ (1,632) ​ Accumulated other comprehensive loss ​ $ (60,581) $ (53,741) ​ ​ ​

Subsequent Events

Subsequent Events	3 Months Ended
	Jun. 30, 2019
Subsequent Events
Subsequent Events	​ (16) Subsequent Events ​ On August 5, 2019, the Company's board of directors authorized a share repurchase program of up to $30,000 of the Company's common stock over 12 months from the approval date, subject to certain price and other trading restrictions as established by the Company. ​

Summary of Significant Accounti

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Jun. 30, 2019
Summary of Significant Accounting Policies
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, 2019 included in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission, or SEC, on May 24, 2019. 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, income taxes, including reserves for uncertain tax positions, deferred taxes and liabilities, intangible assets, 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 June 30, 2019 and March 31, 2019, 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 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 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, ASU 2018-20 in December 2018 and ASU 2019-01 in March 2019, 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 (“ROU”) 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. The standard permits the use of either retrospective to each prior reporting period presented with the cumulative effect of adoption recognized at the beginning of the earliest period presented or retrospective to the beginning of the period of adoption through a cumulative-effect adjustment (the "Modified Retrospective Effective Date Method"). ​ The Company adopted this standard, (“ASC Topic 842”), effective April 1, 2019, using a Modified Retrospective Effective Date Method. The Company has elected the package of practical expedients which permits the Company to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. The Company did not elect the use of hindsight practical expedient to reevaluate the lease term of existing contracts. Prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting policies. The impact of adoption primarily relates to the recognition of right-of-use operating lease assets and operating lease liabilities on the Company’s unaudited consolidated balance sheets for all operating leases with a term greater than twelve months. The adoption of this standard on April 1, 2019 resulted in the recognition of ROU assets for operating leases of $54,762 and operating lease liabilities of $59,157. The Company’s accounting for finance leases (formerly capital leases) remains substantially unchanged. The adoption of this standard did not have an impact on the consolidated statement of income (loss) and comprehensive income (loss), consolidated statement of changes in stockholders’ equity or the consolidated statement of cash flows. ​ See Note 7 “Leases” for additional information regarding leases. ​ ​ 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 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. The FASB subsequently issued ASU 2019-04 in April 2019 and ASU 2019-05 in May 2019, which provide clarifications and improvements to this new standard. 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. ​

Earnings (Loss) per Share (Tabl

Earnings (Loss) per Share (Tables)	3 Months Ended
	Jun. 30, 2019
Earnings (Loss) per Share
Schedule of components of basic earnings (loss) per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ June 30, ​ ​ 2019 2018 ​ Numerators: ​ ​ ​ ​ Net income (loss) available to Virtusa stockholders ​ $ 5,834 ​ $ (6,296) ​ Less: Series A Convertible Preferred Stock dividends and accretion ​ (1,087) ​ (1,087) ​ Net income (loss) available to Virtusa common stockholders ​ $ 4,747 ​ $ (7,383) ​ Denominators: ​ ​ ​ Basic weighted average common shares outstanding ​ 30,167,910 ​ 29,633,026 ​ Basic earnings (loss) per share available to Virtusa common stockholders ​ $ 0.16 ​ $ (0.25) ​
Schedule of components of diluted earnings (loss) per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ June 30, ​ ​ 2019 2018 ​ Numerators: ​ ​ ​ ​ ​ ​ ​ Net income (loss) available to Virtusa common stockholders ​ $ 4,747 ​ $ (7,383) ​ Add : Series A Convertible Preferred Stock dividends and accretion ​ ​ — ​ ​ — ​ Net income (loss) available to Virtusa common stockholders and assumed conversion ​ $ 4,747 ​ $ (7,383) ​ Denominators: ​ ​ ​ ​ ​ ​ ​ Basic weighted average common shares outstanding ​ 30,167,910 ​ 29,633,026 ​ Dilutive effect of Series A Convertible Preferred Stock if converted ​ ​ — ​ ​ — ​ Dilutive effect of employee stock options and unvested restricted stock awards and restricted stock units ​ 766,501 ​ — ​ Weighted average shares—diluted ​ 30,934,411 ​ 29,633,026 ​ Diluted earnings (loss) per share available to Virtusa common stockholders ​ $ 0.15 ​ $ (0.25) ​

Investment Securities (Tables)

Investment Securities (Tables)	3 Months Ended
	Jun. 30, 2019
Investment Securities.
Summary of investment securities	The following is a summary of investment securities at June 30, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ Cost Gains Losses Fair Value Available-for-sale debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate bonds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 479 ​ $ 1 ​ $ — ​ $ 480 Non-current ​ — ​ — ​ — ​ — Preference shares: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current ​ ​ 189 ​ ​ — ​ ​ — ​ ​ 189 Agency and short-term notes: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 1,496 ​ ​ 2 ​ ​ — ​ ​ 1,498 Time Deposits: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 5,133 ​ ​ — ​ ​ — ​ ​ 5,133 Equity securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mutual funds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 10,688 ​ ​ 113 ​ ​ ​ ​ ​ 10,801 Equity Shares/ Options: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current ​ ​ 8 ​ ​ 169 ​ ​ — ​ ​ 177 Total available-for-sale debt securities and equity securities ​ $ 17,993 ​ $ 285 ​ $ — ​ $ 18,278 ​ The following is a summary of investment securities at March 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ Cost Gains Losses Fair Value Available-for-sale debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate bonds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 2,779 ​ $ 1 ​ $ (2) ​ $ 2,778 Non-current ​ — ​ ​ — ​ ​ — ​ ​ — Preference shares: ​ ​ 188 ​ ​ — ​ ​ — ​ ​ 188 Agency and short-term notes: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ 1,492 ​ ​ 1 ​ ​ — ​ ​ 1,493 Time deposits: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 15,861 ​ ​ — ​ ​ — ​ ​ 15,861 Equity Shares: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mutual funds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ 12,912 ​ ​ 94 ​ ​ — ​ ​ 13,006 Equity Shares/ Options: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current ​ 8 ​ ​ 126 ​ ​ — ​ ​ 134 Total available-for-sale debt and equity securities ​ $ 33,240 ​ $ 222 ​ $ (2) ​ $ 33,460
Schedule of proceeds from sales of available-for-sale debt and equity securities and equity securities and gross gains and losses included in earnings as a result	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ June 30, ​ ​ 2019 2018 ​ Proceeds from sales or maturities of available-for-sale ​ $ 19,817 ​ $ 29,292 ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross gains ​ $ 228 ​ $ 125 ​ Gross losses ​ — ​ (63) ​ Net realized gains on sales of available-for-sale investment ​ $ 228 ​ $ 62 ​ ​

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Jun. 30, 2019
Fair Value of Financial Instruments
Schedule of financial assets and liabilities measured at fair value on a recurring basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1 Level 2 Level 3 Total Assets: ​ ​ ​ ​ Investments: ​ ​ ​ ​ Available-for-sale debt securities—current ​ $ — ​ $ 7,111 ​ $ — ​ $ 7,111 Equity securities—current ​ ​ — ​ ​ 10,801 ​ ​ — ​ ​ 10,801 Available-for-sale debt securities—non-current ​ — ​ 189 ​ ​ — ​ 189 Equity securities—non-current ​ ​ — ​ ​ 177 ​ ​ — ​ ​ 177 Derivative financial instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency derivative contracts ​ — ​ 5,138 ​ ​ — ​ 5,138 Interest rate swap contracts ​ — ​ 657 ​ ​ — ​ 657 Total assets ​ $ — ​ $ 24,073 ​ $ — ​ $ 24,073 Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ — Foreign currency derivative contracts ​ ​ — ​ — ​ ​ — ​ — Interest rate swap contracts ​ ​ — ​ ​ 6,193 ​ ​ — ​ ​ 6,193 Total liabilities ​ $ — ​ $ 6,193 ​ $ — ​ $ 6,193 ​ The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis at March 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1 Level 2 Level 3 Total Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available-for-sale debt securities—current ​ $ — ​ $ 20,132 ​ ​ — ​ $ 20,132 Equity securities—current ​ ​ — ​ ​ 13,006 ​ ​ — ​ ​ 13,006 Available-for-sale debt securities—non-current ​ — ​ 188 ​ — ​ 188 Equity securities—non-current ​ ​ — ​ ​ 134 ​ ​ — ​ ​ 134 Derivative financial instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency derivative contracts ​ ​ — ​ ​ 3,411 ​ ​ — ​ ​ 3,411 Interest rate swap contracts ​ ​ — ​ ​ 1,349 ​ ​ — ​ ​ 1,349 Total assets ​ $ — ​ $ 38,220 ​ $ — ​ $ 38,220 Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency derivative contracts ​ $ — ​ ​ 321 ​ $ — ​ ​ 321 Interest rate swap contracts ​ ​ — ​ ​ 3,633 ​ ​ — ​ ​ 3,633 Contingent consideration ​ ​ — ​ ​ — ​ ​ — ​ ​ — Total liabilities ​ $ — ​ $ 3,954 ​ $ — ​ $ 3,954 ​

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	3 Months Ended
	Jun. 30, 2019
Derivative Financial Instruments
Schedule of fair value of derivative instruments included in the consolidated balance sheets	Derivatives designated as hedging instruments ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2019 March 31, 2019 Foreign currency exchange contracts: ​ ​ ​ ​ ​ ​ Other current assets ​ $ 5,138 ​ $ 3,264 Other long-term assets ​ $ — ​ $ 147 Accrued expenses and other ​ $ — ​ $ 318 Long-term liabilities ​ $ — ​ $ 3 ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2019 March 31, 2019 Interest rate swap contracts ​ ​ Other long-term assets ​ $ 657 ​ $ 1,349 Long-term liabilities ​ $ 6,193 ​ $ 3,633
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 Derivatives ​ Derivatives Designated as ​ Three Months Ended ​ Cash Flow Hedging Relationships ​ June 30, 2019 ​ June 30, 2018 ​ Foreign currency exchange contracts ​ $ 2,633 ​ $ (5,292) ​ Interest rate swaps ​ $ (3,045) ​ $ 273 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Location of Gain or (Loss) Reclassified Amount of Gain or (Loss) Reclassified from AOCI into Income from AOCI into Income (loss) (Effective ​ Three Months Ended ​ Portion) ​ June 30, 2019 June 30, 2018 ​ Revenue ​ $ (18) ​ $ (356) ​ Costs of revenue ​ $ 405 ​ $ 318 ​ Operating expenses ​ $ 200 ​ $ 170 ​ Interest Expenses ​ $ 208 ​ ​ 207 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Gain or (Loss) Recognized in Income ​ ​ ​ ​ ​ ​ (loss) on Derivatives ​ ​ ​ ​ Three Months Ended ​ Derivatives not Designated ​ Location of Gain Or (Loss) June 30, ​ as Hedging Instruments Recognized in Income (loss) on Derivatives 2019 2018 ​ Foreign currency exchange contracts Revenue ​ $ 355 ​ $ 819 ​ ​ Costs of revenue ​ $ (226) ​ $ (533) ​ ​ Selling, general and administrative expenses ​ $ (20) ​ $ — ​ ​

Leases (Tables)

Leases (Tables)	3 Months Ended
	Jun. 30, 2019
Leases
Summary of operating leases	​ ​ ​ ​ ​ ​ ​ ​ Leases Location on Consolidated Balance Sheets ​ June 30, 2019 Assets ​ ​ ​ ​ ​ ​ Operating lease assets Operating lease right-of-use of assets ​ $ 54,222 ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ Current ​ ​ ​ ​ ​ ​ Operating lease liabilities ​ Operating lease liabilities ​ $ 11,011 ​ Noncurrent ​ ​ ​ ​ ​ ​ Operating lease liabilities ​ Operating lease liabilities, noncurrent ​ $ 47,708 ​ ​ ​ Total ​ $ 58,719 ​
Summary of components of lease expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Location on Consolidated Statements of Income (Loss) ​ June 30, 2019 Operating lease cost: ​ ​ ​ ​ ​ Operating lease cost ​ Selling, general and administrative expenses ​ $ 3,830 Variable lease cost ​ Selling, general and administrative expenses ​ $ 6 Short-term lease cost ​ Selling, general and administrative expenses ​ $ 89 Less: Sublease income ​ Selling, general and administrative expenses ​ $ (165) Total operating lease cost ​ ​ ​ $ 3,760
Summary of supplemental cash flow information	​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ June 30, 2019 ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ Operating cash flows used for operating leases ​ $ 3,734 ​ ​ ​ ​ ​ ​ Right-of-use assets obtained in exchange for lease obligations: ​ ​ ​ Operating leases ​ $ 2,362 ​
Summary of weighted average remaining lease term and weighted average discount rate	​ ​ ​ ​ ​ ​ June 30, 2019 Weighted average remaining lease term, in years: ​ ​ ​ Operating leases ​ ​ 5.90 Weighted average discount rate: ​ ​ ​ Operating leases ​ ​ 7.54%
Schedule of the Company's future minimum payments on its operating leases at March 31, 2019, which were accounted for in accordance with its historic accounting policies under ASC Topic 840	The following table provides the schedule of the Company’s future minimum payments on its operating leases at March 31, 2019, which were accounted for in accordance with its historic accounting policies under ASC Topic 840. ​ ​ ​ ​ ​ ​ ​ Operating leases ​ ​ ​ March 31, 2019 ​ 2020 ​ $ 14,685 ​ 2021 ​ ​ 13,895 ​ 2022 ​ ​ 12,663 ​ 2023 ​ ​ 9,879 ​ 2024 ​ ​ 5,686 ​ 2025 and thereafter ​ ​ 16,761 ​ Total lease payments ​ $ 73,569 ​
Schedule of maturities of the Company's operating lease liabilities, under ASC Topic 842, as of June 30, 2019:	The following table provides the schedule of maturities of the Company’s operating lease liabilities, under ASC Topic 842, as of June 30, 2019: ​ ​ ​ ​ ​ ​ ​ Operating leases ​ ​ ​ June 30, 2019 ​ 2020- remainder of year ​ $ 11,211 ​ 2021 ​ ​ 14,446 ​ 2022 ​ ​ 13,229 ​ 2023 ​ ​ 10,437 ​ 2024 ​ ​ 6,252 ​ 2025 and thereafter ​ ​ 16,818 ​ Total lease payments ​ $ 72,393 ​ Interest ​ ​ 13,674 ​ Total lease liabilities ​ $ 58,719 ​

Revenues (Tables)

Revenues (Tables)	3 Months Ended
	Jun. 30, 2019
Revenues
Schedule of disaggregation of revenue	​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Three Months Ended Revenue by geography: ​ June 30, 2019 ​ June 30, 2018 North America ​ $ 230,480 ​ $ 209,629 Europe ​ 63,080 ​ 66,736 Rest of World ​ 25,464 ​ 23,666 Consolidated revenue ​ $ 319,024 ​ $ 300,031 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Three Months Ended Revenue by Customer’s Industry Groups ​ June 30, 2019 ​ June 30, 2018 Banking financial services insurance ​ $ 189,973 ​ $ 188,738 Communications and Technology ​ 104,501 ​ 83,028 Media & Information and Other ​ 24,550 ​ 28,265 Consolidated revenue ​ $ 319,024 ​ $ 300,031 ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Three Months Ended Revenue by service offerings ​ June 30, 2019 ​ June 30, 2018 Application outsourcing ​ $ 181,963 ​ $ 160,709 Consulting ​ 137,061 ​ 139,322 Consolidated revenue ​ $ 319,024 ​ $ 300,031 ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Three Months Ended Revenue by contract type ​ June 30, 2019 ​ June 30, 2019 Time-and-materials ​ $ 189,899 ​ $ 179,226 Fixed-price* ​ 129,125 ​ 120,805 Consolidated revenue ​ $ 319,024 ​ $ 300,031 ​ *Fixed-price includes both retainer-billing basis and fixed-price progress towards completion
Schedule of significant movements in contract assets and deferred revenue balances	The table below shows significant movements during the three months ended June 30, 2019 and 2018 in contract assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2019 ​ June 30, 2018 Beginning balance ​ $ 18,538 ​ $ 15,998 Revenues recognized during the period but not yet billed ​ 20,859 ​ 34,184 Amounts billed ​ (20,594) ​ (29,853) Other ​ (65) ​ (284) Ending balance ​ $ 18,738 ​ $ 20,045 ​ 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 three months ended June 30, 2019 and 2018: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2019 ​ June 30, 2018 Beginning balance ​ $ 6,421 ​ $ 7,908 Amounts billed but not yet recognized as revenues ​ 4,123 ​ ​ 4,304 Revenues recognized related to the opening balance of deferred revenue ​ (3,495) ​ ​ (5,350) Other ​ 25 ​ ​ (67) Ending balance ​ $ 7,074 ​ $ 6,795

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets
Schedule of changes in goodwill	​ ​ ​ ​ ​ ​ ​ June 30, 2019 ​ Balance at April 1, 2019 $ 279,543 ​ Foreign currency translation adjustments ​ ​ 958 ​ Balance at June 30, 2019 $ 280,501 ​
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 June 30, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2019 ​ ​ Weighted ​ Gross ​ ​ ​ ​ Net ​ ​ Average ​ Carrying ​ Accumulated ​ Carrying ​ Useful Life Amount Amortization Amount Amortizable intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships 12.6 ​ $ 133,572 ​ $ 36,798 ​ $ 96,774 Trademark 2.0 ​ ​ 900 ​ ​ 554 ​ ​ 346 Technology 5.0 ​ ​ 500 ​ ​ 403 ​ ​ 97 Other 5.0 ​ ​ 497 ​ ​ 25 ​ ​ 472 ​ 12.5 ​ $ 135,469 ​ $ 37,780 ​ $ 97,689 ​ During the three months ended June 30, 2019, the Company acquired certain assets of a small consulting company located in U.S. The purchase price was approximately $4,251 in cash paid at closing and an additional earn-out consideration of up to $4,453 payable within one year based on achievements of certain revenue targets. The probable and estimable value of the contingent consideration as of June 30, 2019 is $4,058. ​ The following are details of the Company’s intangible asset carrying amounts acquired and amortization at March 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2019 ​ ​ Weighted ​ Gross ​ ​ ​ ​ Net ​ ​ Average ​ Carrying ​ Accumulated ​ Carrying ​ Useful Life ​ Amount ​ Amortization ​ Amount Amortizable intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships 13.0 ​ $ 125,520 ​ $ 33,679 ​ $ 91,841 Trademark 2.0 ​ 900 ​ 431 ​ 469 Technology 5.0 ​ 500 ​ 370 ​ 130 ​ 12.9 ​ $ 126,920 ​ $ 34,480 ​ $ 92,440

Concentration of Revenue and _2

Concentration of Revenue and Assets (Tables)	3 Months Ended
	Jun. 30, 2019
Concentration of Revenue and Assets
Schedule of revenue attributed to geographic areas based on location of the client	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ June 30, ​ ​ 2019 2018 ​ Customer revenue: ​ ​ ​ ​ ​ ​ ​ United States of America ​ $ 218,092 ​ $ 201,140 ​ United Kingdom ​ 49,879 ​ 53,755 ​ Rest of World ​ 51,053 ​ 45,136 ​ Consolidated revenue ​ $ 319,024 ​ $ 300,031 ​
Schedule of long-lived assets, net of accumulated depreciation and amortization, attributed to geographic areas based on location of assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ March 31, ​ ​ 2019 2019 Long-lived assets, net of accumulated depreciation and amortization: ​ ​ ​ ​ ​ ​ ​ United States of America ​ ​ $ 222,123 ​ $ 216,279 India ​ ​ 252,312 ​ 251,722 Rest of World ​ ​ 23,980 ​ 23,847 Consolidated long-lived assets, net ​ ​ $ 498,415 ​ $ 491,848
Schedule of revenue from significant clients as a percentage of Company's consolidated revenue	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ ​ June 30, ​ ​ ​ ​ 2019 2018 ​ ​ Customer A ​ 15.5 % 17.2 % ​ ​

Debt (Tables)

Debt (Tables)	3 Months Ended
	Jun. 30, 2019
Debt
Summary of short-term debt balances	​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2019 March 31, 2019 Notes outstanding under the revolving credit facility ​ $ — ​ $ — Term loan- current maturities ​ 14,750 ​ 12,500 Less: deferred financing costs, current ​ (1,093) ​ (1,093) Total ​ $ 13,657 ​ $ 11,407
Summary of long-term debt balances	​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2019 March 31, 2019 Term loan ​ $ 236,625 ​ $ 237,500 Borrowings under revolving credit facility ​ ​ 129,500 ​ ​ 129,500 Less: ​ ​ ​ ​ ​ ​ Current maturities ​ (14,750) ​ (12,500) Deferred financing costs, long-term ​ (2,906) ​ (3,180) Total ​ $ 348,469 ​ $ 351,320

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Jun. 30, 2019
Accumulated Other Comprehensive Loss.
Schedule of changes in accumulated other comprehensive loss by component	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ June 30, ​ ​ 2019 2018 ​ Investment securities ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ 12 $ 69 ​ Other comprehensive income (loss) (OCI) before reclassifications, net of tax of $0, $44 ​ ​ 1 ​ ​ 126 ​ Reclassifications from OCI to other income, net of tax of $0, $0 ​ ​ 2 ​ ​ 11 ​ Less: Noncontrolling interests, net of tax of $0, $(3) ​ ​ — ​ ​ (7) ​ Comprehensive income (loss) on investment securities, net of tax of $0, $41 ​ ​ 3 ​ ​ 130 ​ Closing balance ​ $ 15 $ 199 ​ Currency translation adjustments ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ (57,354) $ (41,207) ​ OCI before reclassifications ​ ​ (381) ​ ​ (10,653) ​ Less: Noncontrolling interests ​ ​ (137) ​ ​ 1,383 ​ Comprehensive income (loss) on currency translation adjustments ​ ​ (518) ​ ​ (9,270) ​ Closing balance ​ $ (57,872) $ (50,477) ​ Cash flow hedges ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ 39 $ 1,881 ​ OCI before reclassifications net of tax of $(210), $(1,516) ​ ​ (202) ​ ​ (3,503) ​ Reclassifications from OCI to ​ ​ ​ ​ ​ ​ ​ —Revenue, net of tax of $6, $124 ​ ​ 12 ​ ​ 232 ​ —Costs of revenue, net of tax of $(77), $(73) ​ ​ (328) ​ ​ (245) ​ —Selling, general and administrative expenses, net of tax of $(38), $(39) ​ ​ (162) ​ ​ (131) ​ —Interest expenses, net of tax of $(54), $(53) ​ ​ (154) ​ ​ (154) ​ Less: Noncontrolling interests, net of tax of $0, $48 ​ ​ (1) ​ ​ 89 ​ Comprehensive income (loss) on cash flow hedges, net of tax of $(373), $(1,509) ​ ​ (835) ​ ​ (3,712) ​ Closing balance ​ $ (796) $ (1,831) ​ Benefit plans ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ (2,084) $ (1,424) ​ OCI before reclassifications net of tax of $0, $319 ​ ​ 123 ​ ​ (319) ​ Reclassifications from OCI for prior service credit (cost) to: ​ ​ ​ ​ ​ ​ ​ Other income (expense), net of tax of $0, $0 ​ ​ 6 ​ ​ 14 ​ Reclassifications from net actuarial gain (loss) amortization to: ​ ​ ​ ​ ​ — ​ Other income (expense), net of tax of ​ ​ 36 ​ ​ 39 ​ Other adjustments ​ ​ (3) ​ ​ 57 ​ (Less): Noncontrolling interests, net of tax $0, $0 ​ ​ (6) ​ ​ 1 ​ Comprehensive income (loss) on benefit plans, net of tax of $0, $319 ​ ​ 156 ​ ​ (208) ​ Closing balance ​ ​ (1,928) $ (1,632) ​ Accumulated other comprehensive loss ​ $ (60,581) $ (53,741) ​

Unaudited Interim Financial I_2

Unaudited Interim Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2019	Apr. 01, 2019
Unaudited Interim Financial Information
Lease, Practical Expedients, Package [true false]	true
Lease, Practical Expedient, Use of Hindsight [true false]	false
Right-of-use-assets	$ 54,222
Lease liabilities	$ 58,719
Effect | ASU 2016-02
Unaudited Interim Financial Information
Right-of-use-assets		$ 54,762
Lease liabilities		$ 59,157

Earnings (Loss) per Share - Bas

Earnings (Loss) per Share - Basic earnings (loss) per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Numerator:
Net income (loss) available to Virtusa stockholders	$ 5,834	$ (6,296)
Less: Series A Convertible Preferred Stock dividends and accretion	(1,087)	(1,087)
Net income (loss) available to Virtusa common stockholders	$ 4,747	$ (7,383)
Denominator:
Basic weighted average common shares outstanding (in shares)	30,167,910	29,633,026
Basic earnings (loss) per share available to Virtusa common stockholders (in dollars per share)	$ 0.16	$ (0.25)

Earnings (Loss) per Share - Dil

Earnings (Loss) per Share - Diluted earnings (loss) per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Numerator:
Net income (loss) available to Virtusa common stockholders	$ 4,747	$ (7,383)
Net income (loss) available to Virtusa common stockholders and assumed conversion	$ 4,747	$ (7,383)
Denominator:
Basic weighted average common shares outstanding (in shares)	30,167,910	29,633,026
Dilutive effect of employee stock options and unvested restricted stock awards and restricted stock units (in shares)	766,501
Weighted average shares-diluted (in shares)	30,934,411	29,633,026
Diluted earnings (loss) per share available to Virtusa common stockholders (in dollars per share)	$ 0.15	$ (0.25)

Earnings (Loss) per Share - Ant

Earnings (Loss) per Share - Anti-dilutive securities (Details) - shares	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Employee stock options and unvested restricted stock awards and restricted stock units
Anti-dilutive securities
Shares excluded from computation of earnings (loss) per share	0	1,798,429
Series A Convertible Preferred Stock
Anti-dilutive securities
Shares excluded from computation of earnings (loss) per share	3,000,000	3,000,000

Investment Securities (Details)

Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2019
Total available-for-sale debt securities and equity securities
Amortized Cost	$ 17,993		$ 33,240
Gross Unrealized Gains	285		222
Gross Unrealized Losses			(2)
Fair Value	18,278		33,460
Proceeds from sales or maturities of available-for-sale investment and equity securities
Proceeds from sales or maturities of available-for-sale investment securities and equity securities	19,817	$ 29,292
Gross gains	228	125
Gross losses		(63)
Net realized gains on sales of available-for-sale investment securities and equity securities	228	$ 62
Corporate Debt Securities | Current
Available-for-sale debt securities
Amortized Cost	479		2,779
Gross Unrealized Gains	1		1
Gross Unrealized Losses			(2)
Fair Value	480		2,778
Preference shares | Noncurrent
Available-for-sale debt securities
Amortized Cost	189		188
Fair Value	189		188
Agency And Short Term Notes | Current
Available-for-sale debt securities
Amortized Cost	1,496		1,492
Gross Unrealized Gains	2		1
Fair Value	1,498		1,493
Time Deposits | Current
Available-for-sale debt securities
Amortized Cost	5,133		15,861
Fair Value	5,133		15,861
Mutual funds | Current
Equity securities
Amortized Cost	10,688		12,912
Gross Unrealized Gains	113		94
Fair Value	10,801		13,006
Equity Shares/ Options | Noncurrent
Equity securities
Amortized Cost	8		8
Gross Unrealized Gains	169		126
Fair Value	$ 177		$ 134

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 - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019
Investments:
Available-for-sales debt securities - current	$ 7,111	$ 20,132
Equity securities - current	10,801	13,006
Available-for-sales debt securities - non-current	189	188
Equity securities - non-current	177	134
Derivative financial instruments:
Foreign currency derivative contracts	5,138	3,411
Interest rate swap contracts	657	1,349
Total assets	24,073	38,220
Liabilities:
Foreign currency derivative contracts		321
Interest rate swap contracts		3,633
Total liabilities	6,193	3,954
Fair Value Inputs Level2
Investments:
Available-for-sales debt securities - current	7,111	20,132
Equity securities - current	10,801	13,006
Available-for-sales debt securities - non-current	189	188
Equity securities - non-current	177	134
Derivative financial instruments:
Foreign currency derivative contracts	5,138	3,411
Interest rate swap contracts	657	1,349
Total assets	24,073	38,220
Liabilities:
Foreign currency derivative contracts		321
Interest rate swap contracts		3,633
Total liabilities	$ 6,193	$ 3,954

Derivative Financial Instrume_3

Derivative Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2019	Mar. 31, 2019
Foreign Exchange Contract
Derivative Financial Instruments
Notional value of outstanding contracts	$ 83,448	$ 118,557
Unrealized net gains related to derivative instruments expected to be reclassified from AOCI into earnings during the next 12 months	$ 5,138
Foreign Exchange Contract | Maximum
Derivative Financial Instruments
Outstanding term of derivative instruments	12 months
Interest rate swaps
Derivative Financial Instruments
Notional value of outstanding contracts	$ 181,900
Outstanding term of derivative instruments	4 years

Derivative Financial Instrume_4

Derivative Financial Instruments - Derivatives designated as hedging instruments (Details) - Designated As Hedging Instrument - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019
Foreign Exchange Contract
Foreign currency exchange and interest rate swap contracts
Other current assets	$ 5,138	$ 3,264
Other long-term assets		147
Accrued expenses and other		318
Long-term liabilities		3
Interest rate swaps
Foreign currency exchange and interest rate swap contracts
Other long-term assets	657	1,349
Long-term liabilities	$ 6,193	$ 3,633

Derivative Financial Instrume_5

Derivative Financial Instruments - Interest rate swaps (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2019	Mar. 31, 2019
2016 interest rate swaps
Interest rate cash flow hedges
Unrealized loss on derivative	$ 5,536	$ 2,284
2016 interest rate swaps | 1-month LIBOR
Interest rate cash flow hedges
Blended weighted average rate	1.025%
2018 interest rate swaps
Interest rate cash flow hedges
Fixed interest rate	2.85%
Percentage of coverage target retain	50.00%
2018 interest rate swaps | London Interbank Offered Rate L I B O R
Interest rate cash flow hedges
Percentage of coverage on debt	50.00%

Derivative Financial Instrume_6

Derivative Financial Instruments - Effect of foreign currency exchange and interest rate swap contracts (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Designated As Hedging Instrument | Cash flow hedges. | Revenue
Derivative Financial Instruments
Amount of Gain or (Loss) Reclassified from AOCI into Income (loss)	$ (18)	$ (356)
Designated As Hedging Instrument | Cash flow hedges. | Costs of revenue
Derivative Financial Instruments
Amount of Gain or (Loss) Reclassified from AOCI into Income (loss)	405	318
Designated As Hedging Instrument | Cash flow hedges. | Operating Expense
Derivative Financial Instruments
Amount of Gain or (Loss) Reclassified from AOCI into Income (loss)	200	170
Designated As Hedging Instrument | Cash flow hedges. | Interest expenses
Derivative Financial Instruments
Amount of Gain or (Loss) Reclassified from AOCI into Income (loss)	208	207
Designated As Hedging Instrument | Cash flow hedges. | Foreign Exchange Contract
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in AOCI on Derivatives	2,633	(5,292)
Designated As Hedging Instrument | Cash flow hedges. | Interest rate swaps
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in AOCI on Derivatives	(3,045)	273
Nondesignated | Foreign Exchange Contract | Revenue
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in Income (loss) on Derivatives	355	819
Nondesignated | Foreign Exchange Contract | Costs of revenue
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in Income (loss) on Derivatives	(226)	$ (533)
Nondesignated | Foreign Exchange Contract | Selling General And Administrative Expenses
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in Income (loss) on Derivatives	$ (20)

Leases - Supplemental balance s

Leases - Supplemental balance sheet information (Details) $ in Thousands	Jun. 30, 2019USD ($)
Leases
Operating lease right-of-use assets	$ 54,222
Operating lease asset location on balance sheet	us-gaap:OperatingLeaseRightOfUseAsset
Operating lease liabilities, current	$ 11,011
Operating lease liabilities current location on balance sheet	us-gaap:OperatingLeaseLiabilityCurrent
Operating lease liabilities, noncurrent	$ 47,708
Operating lease liabilities non current location on balance sheet	us-gaap:OperatingLeaseLiabilityNoncurrent
Total lease liabilities	$ 58,719
Minimum
Leases
Remaining lease terms, operating lease	1 year
Maximum
Leases
Remaining lease terms, operating lease	9 years

Leases - Components of lease ex

Leases - Components of lease expense (Details) - Selling General And Administrative Expenses $ in Thousands	3 Months Ended
	Jun. 30, 2019USD ($)
Operating lease cost:
Operating lease cost	$ 3,830
Variable lease cost	6
Short-term lease cost	89
Less: Sublease income	(165)
Total operating lease cost	$ 3,760

Leases - Supplemental cash flow

Leases - Supplemental cash flow information (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2019USD ($)
Leases
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases	$ 3,734
Right-of-use assets obtained in exchange for lease obligations - Operating leases	$ 2,362

Leases - Lease terms and discou

Leases - Lease terms and discount rates (Details)	Jun. 30, 2019
Leases
Weighted average remaining lease term (Years) - Operating	5 years 10 months 24 days
Weighted average discount rate - Operating	7.54%

Leases - Future minimum lease p

Leases - Future minimum lease payments (Details) $ in Thousands	Mar. 31, 2019USD ($)
Accounted for in accordance with its historic accounting policies under ASC Topic 840
2020	$ 14,685
2021	13,895
2022	12,663
2023	9,879
2024	5,686
2025 and thereafter	16,761
Total minimum lease payments	$ 73,569

Leases - Lease maturities (Deta

Leases - Lease maturities (Details) $ in Thousands	Jun. 30, 2019USD ($)
Leases
Amount of operating lease that has yet to commence	$ 574
Term of lease	5 years
Operating Leases maturities:
2020- remainder of year	$ 11,211
2021	14,446
2022	13,229
2023	10,437
2024	6,252
2025 and thereafter	16,818
Total lease payments	72,393
Interest	13,674
Total lease liabilities	$ 58,719

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Disaggregation of Revenue
Revenue	$ 319,024	$ 300,031
Time-and-materials
Disaggregation of Revenue
Revenue	189,899	179,226
Fixed-price
Disaggregation of Revenue
Revenue	129,125	120,805
Application outsourcing
Disaggregation of Revenue
Revenue	181,963	160,709
Consulting
Disaggregation of Revenue
Revenue	137,061	139,322
Banking financial services insurance
Disaggregation of Revenue
Revenue	189,973	188,738
Communications and Technology
Disaggregation of Revenue
Revenue	104,501	83,028
Media & Information and Other
Disaggregation of Revenue
Revenue	24,550	28,265
North America
Disaggregation of Revenue
Revenue	230,480	209,629
Europe
Disaggregation of Revenue
Revenue	63,080	66,736
Rest Of World
Disaggregation of Revenue
Revenue	$ 25,464	$ 23,666

Revenues - Receivable and Contr

Revenues - Receivable and Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Significant movements in contract assets
Beginning balance	$ 18,538	$ 15,998
Revenues recognized during the period but not yet billed	20,859	34,184
Amounts billed	(20,594)	(29,853)
Other	(65)	(284)
Ending balance	18,738	20,045
Significant movements in deferred revenue balances
Beginning balance	6,421	7,908
Amounts billed but not yet recognized as revenues	4,123	4,304
Revenues recognized related to the opening balance of deferred revenue	(3,495)	(5,350)
Other	25	(67)
Ending balance	7,074	$ 6,795
Aggregate amount of transaction price allocated to remaining performance obligations	$ 56,503

Revenues - Remaining performanc

Revenues - Remaining performance obligation (Details)	Jun. 30, 2019
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-06-30
Remaining performance obligation
Remaining performance obligation, expected period of recognition	5 years

Series A Convertible Preferre_2

Series A Convertible Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	May 03, 2017	Jun. 30, 2019	Jun. 30, 2018
Series A Convertible Preferred Stock
Cash dividends paid		$ 1,046	$ 1,046
Series A Convertible Preferred Stock
Series A Convertible Preferred Stock
Direct and incremental expenses incurred	$ 1,154
Declared and accrued dividends		686	686
Cash dividends paid		$ 1,046	$ 1,046
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
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	3 Months Ended
	Jun. 30, 2019USD ($)segment
Goodwill and Intangible Assets
Number of operating segments | segment	1
Changes in goodwill
Beginning balance	$ 279,543
Foreign currency translation adjustments	958
Ending balance	280,501
Acquisition costs and goodwill deductible for tax purposes	145,661
Acquisition costs and goodwill not deductible for tax purposes	147,744
Acquired certain assets of a small consulting company purchase price
Cash paid at closing	4,251
Additional earn-out consideration	4,453
Probable and estimatable value of the contingent consideration	$ 4,058

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Intangible assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2019	Mar. 31, 2019
Intangible Assets
Weighted Average Useful Life	12 years 6 months	12 years 10 months 24 days
Gross Carrying Amount	$ 135,469	$ 126,920
Accumulated Amortization	37,780	34,480
Net Carrying Amount	$ 97,689	$ 92,440
Customer Relationships
Intangible Assets
Weighted Average Useful Life	12 years 7 months 6 days	13 years
Gross Carrying Amount	$ 133,572	$ 125,520
Accumulated Amortization	36,798	33,679
Net Carrying Amount	$ 96,774	$ 91,841
Trademarks
Intangible Assets
Weighted Average Useful Life	2 years	2 years
Gross Carrying Amount	$ 900	$ 900
Accumulated Amortization	554	431
Net Carrying Amount	$ 346	$ 469
Technology
Intangible Assets
Weighted Average Useful Life	5 years	5 years
Gross Carrying Amount	$ 500	$ 500
Accumulated Amortization	403	370
Net Carrying Amount	$ 97	$ 130
Other
Intangible Assets
Weighted Average Useful Life	5 years
Gross Carrying Amount	$ 497
Accumulated Amortization	25
Net Carrying Amount	$ 472

Income Taxes - Tax Act (Details

Income Taxes - Tax Act (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Income Taxes
Effective tax (benefit) rate (as a percent)	44.00%	1961.20%
United States of America
Income Taxes
Deferred tax asset	$ 24,693
United Kingdom
Income Taxes
Deferred tax asset	$ 1,175

Income Taxes - Income tax holid

Income Taxes - Income tax holiday (Details)	3 Months Ended
	Jun. 30, 2019a
Hyderabad, India | Indian Operations In Special Economic Zone
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
L [K] | Virtusa Private Limited
Income Taxes
Income tax exemption period	12 years

Income Taxes - Unrecognized tax

Income Taxes - Unrecognized tax benefits and other (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2019
Income Taxes
Total liability for unrecognized tax benefits	$ 6,824		$ 6,744
Increase in unrecognized tax benefits	(80)	$ (515)
Cash, cash equivalents, short-term investments and long-term investments available for distribution if not indefinitely reinvested	$ 158,815

Concentration of Revenue and _3

Concentration of Revenue and Assets - Geographic concentration (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2019
Concentration of Revenue and Assets
Revenue	$ 319,024	$ 300,031
Long-lived assets, net	498,415		$ 491,848
United States of America
Concentration of Revenue and Assets
Revenue	218,092	201,140
Long-lived assets, net	222,123		216,279
United Kingdom
Concentration of Revenue and Assets
Revenue	49,879	53,755
India
Concentration of Revenue and Assets
Long-lived assets, net	252,312		251,722
Rest Of World
Concentration of Revenue and Assets
Revenue	51,053	$ 45,136
Long-lived assets, net	$ 23,980		$ 23,847

Concentration of Revenue and _4

Concentration of Revenue and Assets - Revenue percentage (Details)	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Customer Concentration Risk | Sales Revenue Net | Customer One
Concentration of Revenue and Assets
Revenue from significant clients as a percentage of consolidated revenue	15.50%	17.20%

Debt - Credit Agreement (Detail

Debt - Credit Agreement (Details) - JPM - USD ($) $ in Thousands	Mar. 12, 2018	Feb. 06, 2018	Jun. 30, 2019	Feb. 05, 2018
Credit Agreement
Debt
Term of credit facility		5 years
Credit Agreement | London Interbank Offered Rate L I B O R
Debt
Interest rate (as a percent)	3.00%
Credit Agreement | Revolving credit facility
Debt
Maximum borrowing capacity under the credit agreement		$ 200,000
Amount drawn down on credit facility		55,000
Credit Agreement | Delayed-draw term loan
Debt
Maximum borrowing capacity under the credit agreement		70,000
Amount drawn down on term loan	$ 70,000
Required principal payments per quarter			$ 3,125
Frequency of required principal payments			quarterly
Interest rate (as a percent)			4.91%
Credit Agreement | Term loan facility
Debt
Maximum borrowing capacity under the credit agreement		180,000
Amount drawn down on term loan		$ 180,000
Prior Credit Agreement
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	Jun. 30, 2019	Mar. 31, 2019
Current portion of long-term debt
Total	$ 13,657	$ 11,407
JPM
Current portion of long-term debt
Term loan - current maturities	14,750	12,500
Less: deferred financing costs, current	(1,093)	(1,093)
Total	$ 13,657	$ 11,407

Debt - Long-term debt, less cur

Debt - Long-term debt, less current portion (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019
Less:
Total	$ 348,469	$ 351,320
JPM
Less:
Current maturities	(14,750)	(12,500)
Deferred financing costs, long-term	(2,906)	(3,180)
Total	348,469	351,320
Delayed-draw term loan | JPM
Long-term debt, less current portion
Term loan and borrowings under revolving credit facility	236,625	237,500
Revolving credit facility | JPM
Long-term debt, less current portion
Term loan and borrowings under revolving credit facility	$ 129,500	$ 129,500

Debt - Sale of accounts receiva

Debt - Sale of accounts receivable (Details) - U.K. Subsidiary $ in Thousands	3 Months Ended
	Jun. 30, 2019USD ($)
Debt
Receivables sold under the terms of the financing agreement	$ 7,512
Amounts due related to a financing agreement to sell certain accounts receivable balances	$ 0

Redeemable noncontrolling int_2

Redeemable noncontrolling interest - (Details) - Virtusa India Private Limited - Polaris $ in Thousands	Aug. 01, 2018	Feb. 12, 2018₨ / shares	Feb. 12, 2018USD ($)	Mar. 03, 2016USD ($)
Acquisitions
Shares acquired (as a percent)				51.70%
Cash paid at closing				$ 168,257
Ownership interest of diluted shares (as a percent)		93.00%	93.00%
Exit price (in INR per share) | ₨ / shares		₨ 480
Expected amount of payment to settle the delisting offer			$ 145,000
Maximum period for public shareholders to tender shares after delisting	1 year

Redeemable noncontrolling int_3

Redeemable noncontrolling interest - Polaris and Virtusa India (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2019USD ($)shares
Redeemable noncontrolling interest
Aggregate purchase price of shares of delisted entity	$ 5,549
Virtusa India Private Limited | Polaris
Redeemable noncontrolling interest
Shares held by noncontrolling interest shareholders of delisted entity (as a percent)	2.37%
Virtusa India Private Limited | Polaris
Redeemable noncontrolling interest
Number of shares purchased from stockholders of delisted subsidiary | shares	803,274
Shares purchased from stockholders of delisted subsidiary (as a percent)	0.80%
Aggregate purchase price of shares of delisted entity	$ 5,549
Number of shares held by noncontrolling interest shareholders of delisted entity | shares	2,449,458
Fair value of the redeemable noncontrolling interest	$ 17,050
Stock options reclassified to current liabilities for deemed cash settlement resulting from the delisting offer	$ 638

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Changes in the components of accumulated other comprehensive income (loss)
Balance	$ 390,774	$ 436,083
Reclassifications from OCI to:
Other income	(364)	(95)
Revenue	(319,024)	(300,031)
Costs of revenue	234,735	216,481
Selling, general and administrative expenses	70,861	69,626
Interest expense	4,908	4,254
Less: comprehensive income attributable to noncontrolling interest, net of tax	330	2,197
Other comprehensive income (loss)		(14,526)
Other income (expense), net of tax	2,669	13,625
Comprehensive income (loss)	(1,194)
Balance	399,202	421,347
Investment securities, including noncontrolling interests
Changes in the components of accumulated other comprehensive income (loss)
OCI before reclassifications net of tax	1	126
Other Comprehensive Income (Loss), Tax
OCI before reclassifications, Tax	0	44
Investment securities, including noncontrolling interests | Other income (expense)
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	0	0
Investment securities, including noncontrolling interests | Reclassification Out Of Accumulated Other Comprehensive Income
Reclassifications from OCI to:
Other income	2	11
Investment securities, noncontrolling interests
Reclassifications from OCI to:
Less : Noncontrolling interests, net of tax		(7)
Other Comprehensive Income (Loss), Tax
Noncontrolling interests, Tax	0	(3)
Accumulated Net Unrealized Investment Gain Loss
Changes in the components of accumulated other comprehensive income (loss)
Balance	12	69
Reclassifications from OCI to:
Comprehensive income (loss)	3	130
Balance	15	199
Other Comprehensive Income (Loss), Tax
Comprehensive income (loss), Tax	0	41
Currency Translation Adjustments, including noncontrolling interests
Changes in the components of accumulated other comprehensive income (loss)
OCI before reclassifications net of tax	(381)	(10,653)
Foreign currency translation noncontrolling interests
Reclassifications from OCI to:
Less : Noncontrolling interests, net of tax	(137)	1,383
Accumulated Translation Adjustment [Member]
Changes in the components of accumulated other comprehensive income (loss)
Balance	(57,354)	(41,207)
Reclassifications from OCI to:
Comprehensive income (loss)	(518)	(9,270)
Balance	(57,872)	(50,477)
Cash Flow Hedges, including noncontrolling interests
Changes in the components of accumulated other comprehensive income (loss)
OCI before reclassifications net of tax	(202)	(3,503)
Other Comprehensive Income (Loss), Tax
OCI before reclassifications, Tax	(210)	(1,516)
Cash Flow Hedges, including noncontrolling interests | Revenue
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	6	124
Cash Flow Hedges, including noncontrolling interests | Costs of revenue
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	(77)	(73)
Cash Flow Hedges, including noncontrolling interests | Selling General And Administrative Expenses
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	(38)	(39)
Cash Flow Hedges, including noncontrolling interests | Interest expenses
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	(54)	(53)
Cash Flow Hedges, including noncontrolling interests | Reclassification Out Of Accumulated Other Comprehensive Income
Reclassifications from OCI to:
Revenue	12	232
Costs of revenue	(328)	(245)
Selling, general and administrative expenses	(162)	(131)
Interest expense	(154)	(154)
Cash Flow Hedges, noncontrolling interests
Reclassifications from OCI to:
Less : Noncontrolling interests, net of tax	(1)	89
Other Comprehensive Income (Loss), Tax
Noncontrolling interests, Tax	0	48
Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges
Changes in the components of accumulated other comprehensive income (loss)
Balance	39	1,881
Reclassifications from OCI to:
Comprehensive income (loss)	(835)	(3,712)
Balance	(796)	(1,831)
Other Comprehensive Income (Loss), Tax
Comprehensive income (loss), Tax	(373)	(1,509)
Benefit plans, including noncontrolling interests
Changes in the components of accumulated other comprehensive income (loss)
OCI before reclassifications net of tax	123	(319)
Reclassifications from OCI to:
Other adjustments	(3)	57
Other Comprehensive Income (Loss), Tax
OCI before reclassifications, Tax	0	319
Benefit plans, prior service credit (cost), including noncontrolling interests | Other income (expense)
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	0	0
Benefit plans, prior service credit (cost), including noncontrolling interests | Reclassification Out Of Accumulated Other Comprehensive Income
Reclassifications from OCI to:
Other income (expense), net of tax	6	14
Benefit plans, net actuarial gain (loss), including noncontrolling interest | Other income (expense)
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	0	0
Benefit plans, net actuarial gain (loss), including noncontrolling interest | Reclassification Out Of Accumulated Other Comprehensive Income
Reclassifications from OCI to:
Other income (expense), net of tax	36	39
Benefit plans, noncontrolling interests
Reclassifications from OCI to:
Less : Noncontrolling interests, net of tax	(6)	1
Other Comprehensive Income (Loss), Tax
Noncontrolling interests, Tax	0	0
Accumulated Defined Benefit Plans Adjustment
Changes in the components of accumulated other comprehensive income (loss)
Balance	(2,084)	(1,424)
Reclassifications from OCI to:
Comprehensive income (loss)	156	(208)
Balance	(1,928)	(1,632)
Other Comprehensive Income (Loss), Tax
Comprehensive income (loss), Tax	0	319
Accumulated Other Comprehensive Income
Changes in the components of accumulated other comprehensive income (loss)
Balance	(59,387)	(40,681)
Reclassifications from OCI to:
Other comprehensive income (loss)		(13,060)
Comprehensive income (loss)	(1,194)
Balance	$ (60,581)	$ (53,741)

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event - Share repurchase program, August 5, 2019 $ in Thousands	Aug. 05, 2019USD ($)
Subsequent Events
Amount authorized	$ 30,000
Number of months from the approval date	12 months