Virtusa (VRTU) 10-Q 31 Jul 20 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 30, 2020	Jul. 27, 2020
Document and Entity Information
Entity Registrant Name	VIRTUSA CORP
Document Quarterly Report	true
Document Transition Report	false
Entity Central Index Key	0001207074
Document Type	10-Q
Document Period End Date	Jun. 30, 2020
Trading Symbol	VRTU
Amendment Flag	false
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	04-3512883
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
Title of 12(b) Security	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		30,246,972
Entity Shell Company	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020
Current assets:
Cash and cash equivalents	$ 285,277	$ 290,837
Short-term investments	4,035	9,785
Accounts receivable, net of allowance of $1,401 and $1,541 at June 30, 2020 and March 31, 2020, respectively	141,358	148,950
Unbilled accounts receivable	91,880	137,839
Prepaid expenses	62,405	55,574
Restricted cash	324	659
Asset held for sale	8,281	8,334
Other current assets	30,954	29,214
Total current assets	624,514	681,192
Property and equipment, net	99,323	101,250
Operating lease right-of-use assets	44,602	48,684
Investments accounted for using equity method	1,321	1,336
Long-term investments	7	4
Deferred income taxes	30,739	30,225
Goodwill	291,743	296,493
Intangible assets, net	126,767	130,903
Other long-term assets	44,589	46,980
Total assets	1,263,605	1,337,067
Current liabilities:
Accounts payable	43,097	38,537
Accrued employee compensation and benefits	55,775	79,373
Deferred revenue	10,823	8,054
Accrued expenses and other	92,763	95,124
Current portion of long-term debt	17,192	16,043
Operating lease liabilities	11,605	11,543
Income taxes payable	4,024	3,233
Total current liabilities	235,279	251,907
Deferred income taxes	15,806	16,067
Operating lease liabilities, noncurrent	38,773	41,697
Long-term debt, less current portion	419,205	480,154
Long-term liabilities	43,876	42,475
Total liabilities	752,939	832,300
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, 2020 and March 31, 2020; redemption amount and liquidation preference of $108,000 at June 30, 2020 and March 31, 2020	107,367	107,326
Stockholders' equity:
Undesignated preferred stock, $0.01 par value; Authorized 5,000,000 shares at June 30, 2020 and March 31, 2020
Common stock, $0.01 par value; Authorized 120,000,000 shares at June 30, 2020 and March 31, 2020; issued 33,632,544 and 33,518,389 shares at June 30, 2020 and March 31, 2020, respectively; outstanding 30,246,980 and 30,132,825 shares at June 30, 2020 and March 31, 2020, respectively	336	335
Treasury stock, 3,385,564 common shares, at cost, at June 30, 2020 and March 31, 2020	(58,332)	(58,332)
Additional paid-in capital	248,631	246,862
Retained earnings	293,638	293,831
Accumulated other comprehensive loss	(80,974)	(85,255)
Total Virtusa stockholders' equity	403,299	397,441
Total Stockholders' equity	403,299	397,441
Total liabilities, Series A convertible preferred stock, and stockholders' equity	$ 1,263,605	$ 1,337,067

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020
Consolidated Balance Sheets
Accounts receivable, net of allowance of $1,401 and $1,541 at June 30, 2020 and March 31, 2020, respectively	$ 1,401	$ 1,541
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
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	33,632,544	33,518,389
Common stock, shares outstanding	30,246,980	30,132,825
Treasury stock, common shares	3,385,564	3,385,564

Consolidated Statements of Inco

Consolidated Statements of Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Consolidated Statements of Income
Revenue	$ 301,064	$ 319,024
Costs of revenue	232,460	234,735
Gross profit	68,604	84,289
Operating expenses:
Selling, general and administrative expenses	61,449	70,861
Income from operations	7,155	13,428
Other income (expense):
Interest income	276	673
Interest expense	(5,299)	(4,908)
Foreign currency transaction gains (losses), net	(1,241)	1,202
Other, net	307	364
Total other expense	(5,957)	(2,669)
Income before income tax expense	1,198	10,759
Income tax expense	304	4,739
Net income	894	6,020
Less: net income attributable to noncontrolling interests, net of tax		186
Net income available to Virtusa stockholders	894	5,834
Less: Series A Convertible Preferred Stock dividends and accretion	1,087	1,087
Net income (loss) available to Virtusa common stockholders	$ (193)	$ 4,747
Basic earnings (loss) per share available to Virtusa common stockholders (in dollars per share)	$ (0.01)	$ 0.16
Diluted earnings (loss) per share available to Virtusa common stockholders (in dollars per share)	$ (0.01)	$ 0.15

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Consolidated Statements of Comprehensive Income (Loss)
Net income	$ 894	$ 6,020
Other comprehensive income (loss):
Foreign currency translation adjustment	(2,065)	381
Pension plan adjustment	79	162
Unrealized gain on available-for-sale debt securities, net of tax effect		3
Unrealized gain (loss) on effective cash flow hedges, net of tax effect	2,137	(834)
Other comprehensive income (loss)	4,281
Other comprehensive loss		(1,050)
Comprehensive income	5,175	4,970
Less: comprehensive income attributable to noncontrolling interest, net of tax		330
Comprehensive income available to Virtusa stockholders	$ 5,175	$ 4,640

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Treasury Stock	Additional Paid In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Redeemable Noncontrolling Interest	Total
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	30,012,775	(2,879,999)
Increase (Decrease) in Stockholders' Equity
Proceeds from the exercise of stock options			194			8	194
Proceeds from the exercise of stock options (in shares)	13,416
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
Adjustments of redeemable noncontrolling interest to redemption value			18			170	18
Purchase of redeemable noncontrolling interest related to Polaris						(5,549)
Purchase of redeemable noncontrolling interest related to Polaris							5,549
Foreign currency translation on noncontrolling interest						116
Series A Convertible Preferred Stock dividends and accretion				(1,087)			(1,087)
Other comprehensive income (loss)					(1,194)	144	(1,194)
Net income				5,834			5,834
Net income						186	(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	30,122,954	(2,879,999)
Balance at Mar. 31, 2020	$ 335	$ (58,332)	246,862	293,831	(85,255)		$ 397,441
Balance (in shares) at Mar. 31, 2020	33,518,389	(3,385,564)					30,132,825
Increase (Decrease) in Stockholders' Equity
Proceeds from the exercise of stock options			92				$ 92
Proceeds from the exercise of stock options (in shares)	5,741
Restricted stock awards vested	$ 1		(1)
Restricted stock awards vested (in shares)	108,414
Restricted stock awards withheld for tax			(1,914)				(1,914)
Share-based compensation			3,592				3,592
Other comprehensive income (loss)					4,281		4,281
Series A Convertible Preferred Stock dividends and accretion				(1,087)			(1,087)
Net income				894			894
Balance at Jun. 30, 2020	$ 336	$ (58,332)	$ 248,631	$ 293,638	$ (80,974)		$ 403,299
Balance (in shares) at Jun. 30, 2020	33,632,544	(3,385,564)					30,246,980

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net income	$ 894	$ 6,020
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	8,363	7,765
Share-based compensation expense	3,592	6,676
Provision (recovery) for doubtful accounts	71	(64)
(Gain) loss on disposal of property and equipment	(2)	42
Foreign currency transaction losses (gains), net	1,241	(1,202)
Amortization of discounts and premiums on investments		(4)
Impairment of operating lease right-of-use asset	1,413
Amortization of debt issuance cost	350	273
Deferred income taxes, net	253	(72)
Net changes in operating assets and liabilities
Accounts receivable and unbilled receivable	54,689	7,203
Prepaid expenses and other current assets	(2,899)	(6,015)
Other long-term assets	(1,048)	(7,730)
Accounts payable	3,252	(4,479)
Accrued employee compensation and benefits	(23,686)	(12,032)
Accrued expenses and other current liabilities	9,566	6,854
Operating lease liabilities	(190)	125
Income taxes payable	(3,138)	2,620
Other long-term liabilities	3,311	(3,744)
Net cash provided by operating activities	56,032	2,236
Cash flows from investing activities:
Proceeds from sale of property and equipment		19
Purchase of short-term investments	(42)	(4,622)
Proceeds from sale or maturity of short-term investments	5,781	19,817
Payment for asset acquisitions	(27)	(4,251)
Purchase of property and equipment	(1,338)	(4,775)
Payment of deferred consideration related to business acquisitions	(6,313)
Net cash (used in) provided by investing activities	(1,939)	6,188
Cash flows from financing activities:
Payment of debt	(4,336)	(875)
Payments of withholding taxes related to net share settlements of restricted stock	(1,914)	(2,011)
Purchase of redeemable noncontrolling interest related to Polaris		(5,549)
Principal payments on capital lease obligation		(18)
Payment of dividend on Series A Convertible Preferred Stock	(1,046)	(1,046)
Payment of revolving credit facility	(55,000)
Payment of debt issuance cost	(813)
Payment of contingent consideration related to acquisitions	(1,186)
Net cash used in financing activities	(64,203)	(9,253)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	4,206	1,145
Net (decrease) increase in cash and cash equivalents and restricted cash	(5,904)	316
Cash, cash equivalents and restricted cash, beginning of year	291,601	190,113
Cash, cash equivalents and restricted cash, end of period	285,697	190,429
Parent
Cash flows from financing activities:
Proceeds from exercise of common stock options	$ 92	194
Subsidiaries
Cash flows from financing activities:
Proceeds from exercise of common stock options		$ 52

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020
Balance sheet classification
Cash and cash equivalents	$ 285,277	$ 290,837
Restricted cash in current assets	324	659
Restricted cash in other long-term assets	96	105
Total restricted cash	420	764
Total cash, cash equivalents and restricted cash	$ 285,697	$ 291,601

Nature of the Business

Nature of the Business	3 Months Ended
	Jun. 30, 2020
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 business strategy, digital engineering and information technology (“IT”) services and solutions that help clients change, disrupt, and unlock new value through innovation engineering. We support Global 2000 clients across key industries including banking, financial services, insurance, healthcare, communications, technology, and media and entertainment. We help improve 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 consulting, to technology and user experience (“UX”) design, development of IT applications, systems integration, digital engineering, testing and business assurance, and maintenance and support services, including cloud, infrastructure and managed services. We help our clients solve critical business problems by leveraging a combination of our distinctive consulting approach, end-to-end digital engineering capabilities, unique platforming methodology, and deep domain and technology expertise. Virtusa helps clients grow their business with innovative services that create operational efficiency using digital labor, future-proof operational and IT platforms, and rationalization and modernization of IT applications infrastructure. We help organizations realize the benefits of digital transformation and cloud transformation by bringing together digital infrastructure, analytics and intelligence and customer experience by engineering the digital enterprise of tomorrow on the cloud. We deliver cost effective solutions through a global delivery model, applying advanced methods such as Agile, an industry standard technique designed to accelerate application development. We use our Digital Transformation Studio (“DTS”) engineering tools to drive software development lifecycle automation to improve quality, enabling speed and increasing productivity. Our proprietary DTS was built by Virtusa’s engineering teams that have decades of industry knowledge and experience. These teams are certified and leverage Virtusa’s industry leading tools and assets, providing increased speed and transparency. Headquartered in Massachusetts, we have offices throughout the Americas, Europe, Middle East and Asia, with significant global delivery centers in the United States, India, Sri Lanka, Hungary, Singapore and Malaysia. ​

Unaudited Interim Financial Inf

Unaudited Interim Financial Information	3 Months Ended
	Jun. 30, 2020
Unaudited Interim Financial Information
Unaudited Interim Financial Information	(2) Unaudited Interim Financial Information ​ Basis of Presentation ​ The accompanying unaudited consolidated financial statements have been prepared by the Company in accordance with U.S. generally accepted accounting principles and Article 10 of Regulation S-X under the Securities and Exchange Act of 1934, as amended, and should be read in conjunction with the Company’s audited consolidated financial statements (and notes thereto) for the fiscal year ended March 31, 2020 included in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission, or SEC, on May 28, 2020. 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 and valuation of financial instruments including derivative contracts and investments. Management bases its estimates on historical experience and on various other factors and assumptions that are believed to be reasonable under the circumstances. The actual amounts may vary from the estimates used in the preparation of the accompanying consolidated financial statements. ​ Fair Value of Financial Instruments ​ At June 30, 2020 and March 31, 2020, 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 6 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 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 guidance which provide clarifications and improvements to this new standard. The amendments in this update changed how companies measure and recognize credit impairment for many financial assets. The new credit loss model requires companies to immediately recognize an estimate of credit losses expected to occur over the remaining life of the financial assets (including accounts receivables) that are in the scope of the update. The standard update also made amendments to the current impairment model for available-for-sale debt securities. This 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 public entities from fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. ​ The Company adopted this standard (“ASC Topic 326”) effective April 1, 2020 using a modified retrospective approach. Prior period amounts are not adjusted and continue to be reported in accordance with our historical accounting policies. The adoption of this guidance did not have a material impact on the consolidated financial statements, therefore, the Company did not record any cumulative adjustments to the opening retained earnings in the consolidated financial statements. ​ See Note 8, “Revenue and Accounts Receivable” for additional information regarding credit losses. ​ 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 December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), which enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction, ownership changes in investments, and interim-period accounting for enacted changes in tax law. The standard will be effective for fiscal years beginning after December 15, 2020, 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. ​

Earnings (loss) per Share

Earnings (loss) per Share	3 Months Ended
	Jun. 30, 2020
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, 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, ​ ​ 2020 2019 ​ Numerators: ​ ​ ​ ​ Net income available to Virtusa stockholders ​ $ 894 ​ $ 5,834 ​ Less: Series A Convertible Preferred Stock dividends and accretion ​ (1,087) ​ (1,087) ​ Net income (loss) available to Virtusa common stockholders ​ $ (193) ​ $ 4,747 ​ Denominators: ​ ​ ​ Basic weighted average common shares outstanding ​ 30,168,174 ​ 30,167,910 ​ Basic earnings (loss) per share available to Virtusa common stockholders ​ $ (0.01) ​ $ 0.16 ​ ​ The components of diluted earnings (loss) per share are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ June 30, ​ ​ 2020 2019 ​ Numerators: ​ ​ ​ ​ ​ ​ ​ Net income (loss) available to Virtusa common stockholders ​ $ (193) ​ $ 4,747 ​ Add : Series A Convertible Preferred Stock dividends and accretion ​ ​ — ​ ​ — ​ Net income (loss) available to Virtusa common stockholders and assumed conversion ​ $ (193) ​ $ 4,747 ​ Denominators: ​ ​ ​ ​ ​ ​ ​ Basic weighted average common shares outstanding ​ 30,168,174 ​ 30,167,910 ​ 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 ​ 30,168,174 ​ 30,934,411 ​ Diluted earnings (loss) per share available to Virtusa common stockholders ​ $ (0.01) ​ $ 0.15 ​ ​ During the three months ended June 30, 2020 and 2019, unvested restricted stock awards and unvested restricted stock units issuable for, and options to purchase 1,354,558 and zero shares of common stock, respectively, were excluded from the calculations of diluted earnings per share as their effect would have been anti-dilutive. For the three months ended June 30, 2020 and 2019, all of the 3,000,000 shares of Series A Convertible Preferred Stock were excluded in the calculations of diluted earnings per share as their effect would have been anti-dilutive.

Business Combinations

Business Combinations	3 Months Ended
	Jun. 30, 2020
Business Combinations
Business Combinations	(4) Business Combinations ​ During the fiscal year ended March 31, 2020, the Company acquired three individually immaterial businesses with an aggregate purchase price of $29,624 being paid at closing and a deferred consideration of $10,313 payable within a one-year period. The purchase price is also subject to adjustment after the closing of up to an additional $28,853 in contingent consideration, in the aggregate, upon the achievement of certain revenue and operating margin targets. The performance period for these targets are ranging from 12 months to 24 months from the respective acquisition date. These acquisitions enhanced the breadth and depth of digital offerings and expanded the Company’s relationship with certain existing customers. Under the purchase method of accounting, assets acquired are recorded at their estimated fair values. The Company is in the process of obtaining additional information primarily regarding valuation assumptions, including contingent consideration and may continue to adjust the preliminary estimated fair values after obtaining more information regarding asset valuations and revision of preliminary estimates. During the three months ended June 30, 2020, the Company paid $6,313 in deferred consideration related to these acquisitions. During the three months ended June 30, 2020, the Company recorded $4,526 as a reduction of goodwill related to updating the fair value assessment of contingent consideration of $3,915 , customer relationships of $313 and other adjustments of $298 . The following table shows the aggregate preliminary purchase price allocation for these acquisitions: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount Useful Life Consideration Transferred: ​ ​ ​ ​ ​ ​ ​ Cash paid at closing $ 29,624 ​ ​ ​ ​ Deferred consideration payable ​ ​ 10,313 ​ ​ ​ ​ Fair value of contingent consideration ​ ​ 21,049 ​ ​ ​ ​ Fair value of consideration ​ ​ 60,986 ​ ​ ​ ​ Less: Cash acquired ​ ​ (477) ​ ​ ​ ​ Total purchase price, net of cash acquired $ 60,509 ​ ​ ​ ​ Assets and Liabilities: ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ ​ 477 ​ ​ ​ ​ Goodwill ​ ​ 22,790 ​ ​ ​ ​ Customer relationships ​ ​ 38,119 ​ 5 - 7 years Other net ​ ​ (400) ​ ​ ​ ​ Total purchase price ​ $ 60,986 ​ ​ ​ ​ ​ The primary items that generated goodwill for these acquisitions are the value of the acquired assembled workforce and other benefits expected to result from combining the acquired operations with those of the Company, neither of which qualify as a separate intangible asset. During the three months ended June 30, 2020, the Company recorded $1,578 in the Company’s consolidated statements income (loss) as fair value changes to the contingent consideration r elated to events that occurred in the current period. As of June 30, 2020, the fair value of contingent consideration for these acquisitions is $19,495 .

Investment Securities

Investment Securities	3 Months Ended
	Jun. 30, 2020
Investment Securities.
Investment Securities	(5) Investment Securities ​ At June 30, 2020 and March 31, 2020, all of the Company’s investment securities were classified as time deposits, 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 6 to our consolidated financial statements for a discussion of the fair value of the Company’s other financial instruments). ​ The following is a summary of investment securities at June 30, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ Cost Gains Losses Fair Value Time deposits: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 3,307 ​ $ — ​ $ — ​ $ 3,307 Equity securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mutual funds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 633 ​ ​ 95 ​ ​ — ​ ​ 728 Equity shares/ options: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current ​ ​ 1 ​ ​ 6 ​ ​ — ​ ​ 7 Total investment securities ​ $ 3,941 ​ $ 101 ​ $ — ​ $ 4,042 ​ The following is a summary of investment securities at March 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ Cost Gains Losses Fair Value Time deposits: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 3,927 ​ $ — ​ $ — ​ $ 3,927 Equity securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mutual funds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ 5,623 ​ ​ 235 ​ ​ — ​ ​ 5,858 Equity shares/ options: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current ​ 1 ​ ​ 3 ​ ​ — ​ ​ 4 Total investment securities ​ $ 9,551 ​ $ 238 ​ $ — ​ $ 9,789 ​ The Company evaluates available-for-sale debt securities with unrealized losses to determine whether a credit loss exists. The estimate of credit loss is determined by considering available information relevant to the collectability of the security and information about past events, current conditions, and reasonable and supportable forecasts. The allowance for credit loss is recorded as a charge to other income (expense), not to exceed the amount of the unrealized loss. Any excess unrealized loss greater than the credit loss is recognized in accumulated other comprehensive income ("AOCI"). We assess expected credit losses at the end of each reporting period and adjust the allowance through other income (expense). The Company does not hold any available-for-sale debt securities as of June 30, 2020 and March 31, 2020. ​ 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, ​ ​ 2020 2019 ​ Proceeds from sales or maturities of available-for-sale ​ $ 5,781 ​ $ 19,817 ​ Gross gains ​ $ 176 ​ $ 228 ​ Gross losses ​ — ​ — ​ Net realized gains on sales of available-for-sale debt ​ $ 176 ​ $ 228 ​ ​

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Jun. 30, 2020
Fair Value of Financial Instruments
Fair Value of Financial Instruments	(6) 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, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1 Level 2 Level 3 Total Assets: ​ ​ ​ ​ Investments: ​ ​ ​ ​ Time deposits—current ​ $ — ​ $ 3,307 ​ ​ — ​ $ 3,307 Equity securities—current ​ ​ — ​ ​ 728 ​ ​ — ​ ​ 728 Equity securities—non-current ​ ​ — ​ ​ 7 ​ ​ — ​ ​ 7 Derivative financial instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency derivative contracts—current ​ ​ — ​ ​ 560 ​ ​ — ​ ​ 560 Foreign currency derivative contracts—non-current ​ — ​ 379 ​ ​ — ​ 379 Interest rate swap contracts ​ — ​ — ​ ​ — ​ — Total assets ​ $ — ​ $ 4,981 ​ $ — ​ $ 4,981 Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency derivative contracts—current ​ ​ — ​ 2,017 ​ ​ — ​ 2,017 Foreign currency derivative contracts—non-current ​ ​ — ​ — ​ ​ — ​ — Interest rate swap contracts—non-current ​ ​ — ​ ​ 11,153 ​ ​ — ​ ​ 11,153 Contingent consideration ​ ​ — ​ ​ — ​ ​ 19,495 ​ ​ 19,495 Total liabilities ​ $ — ​ $ 13,170 ​ $ 19,495 ​ $ 32,665 ​ The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis at March 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1 Level 2 Level 3 Total Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Time deposits—current ​ $ — ​ $ 3,927 ​ ​ — ​ $ 3,927 Equity securities—current ​ ​ — ​ ​ 5,858 ​ ​ — ​ ​ 5,858 Equity securities—non-current ​ ​ — ​ ​ 4 ​ ​ — ​ ​ 4 Derivative financial instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency derivative contracts—current ​ ​ — ​ ​ 103 ​ ​ — ​ ​ 103 Foreign currency derivative contracts—non-current ​ ​ — ​ ​ 56 ​ ​ — ​ ​ 56 Interest rate swap contracts ​ ​ — ​ ​ — ​ ​ — ​ ​ — Total assets ​ $ — ​ $ 9,948 ​ $ — ​ $ 9,948 Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency derivative contracts—current ​ $ — ​ ​ 3,689 ​ $ — ​ ​ 3,689 Foreign currency derivative contracts—non-current ​ ​ — ​ ​ 364 ​ $ — ​ ​ 364 Interest rate swap contracts—non-current ​ ​ — ​ ​ 11,128 ​ ​ — ​ ​ 11,128 Contingent consideration ​ ​ — ​ ​ — ​ ​ 25,012 ​ ​ 25,012 Total liabilities ​ $ — ​ $ 15,181 ​ $ 25,012 ​ $ 40,193 ​ ​ ​ ​ ​ ​ ​ ​ The Company estimates the fair value of our contingent consideration associated with our business combinations utilizing one or more significant inputs that are unobservable. The Company calculates the fair value of the contingent consideration based on the probability-weighted expected performance of the acquired business against the target performance metric, discounted to present value when appropriate. ​ The following table shows a reconciliation of the beginning and ending balances of Level 3 contingent consideration liabilities associated with our business combinations: ​ ​ ​ ​ ​ ​ ​ June 30, 2020 Beginning balance ​ $ 25,012 ​ Purchase price adjustment ​ ​ (3,915) ​ Contingent consideration recognized in earnings ​ (1,578) ​ Foreign currency translation adjustments ​ ​ (24) ​ Ending balance ​ $ 19,495 ​ ​ ​ ​ ​ ​ ​ ​

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Jun. 30, 2020
Derivative Financial Instruments
Derivative Financial Instruments	(7) 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, consolidated statements of income and consolidated statement of cash flows from all foreign currencies, including most significantly the U.K. pound sterling and Indian rupee. The Company enters into hedging programs with highly rated financial institutions in accordance with its foreign exchange policy (as approved by the Company’s audit committee and board of directors) which permits hedging of material, known foreign currency exposures. There is no margin required, no cash collateral posted or received by us related to our foreign exchange forward contracts. ​ The U.S. dollar notional value of all outstanding foreign currency derivative contracts was $112,922 and $128,728 at June 30, 2020 and March 31, 2020, respectively. Unrealized net losses related to these contracts which are expected to be reclassified from AOCI to earnings during the next 12 months are $1,456 at June 30, 2020. At June 30, 2020, the maximum outstanding term of any derivative instrument was 15 months . ​ The Company also uses interest rate swaps to mitigate the Company’s interest rate risk on the Company’s variable rate debt. The Company’s objective is to limit the variability of cash flows associated with changes in LIBOR interest rate payments due on the Credit Agreement (See Note 13 to the consolidated financial statements), by using pay-fixed, receive-variable interest rate swaps to offset the future variable rate interest payments. The 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, 2020, the total notional amounts of the interest rate swaps were $174,900 with remaining maturity of approximately 3 years . The unrealized losses associated with the swap agreements was $11,153 and $11,128 at June 30, 2020 and March 31, 2020, 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 as of: ​ Derivatives designated as hedging instruments ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 March 31, 2020 Foreign currency exchange contracts: ​ ​ ​ ​ ​ ​ Other current assets ​ $ 560 ​ $ 103 Other long-term assets ​ $ 379 ​ $ 56 Accrued expenses and other ​ $ 2,017 ​ $ 3,689 Long-term liabilities ​ $ — ​ $ 364 ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 March 31, 2020 Interest rate swap contracts ​ ​ Other long-term assets ​ $ — ​ $ — Long-term liabilities ​ $ 11,153 ​ $ 11,128 ​ 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Gain or (Loss) ​ ​ ​ Recognized in AOCI on Derivatives ​ ​ ​ Three Months Ended ​ Derivatives Designated as ​ June 30, ​ Cash Flow Hedging Relationships ​ 2020 ​ 2019 ​ Foreign currency exchange contracts ​ $ 1,964 ​ $ 2,633 ​ Interest rate swaps ​ $ (735) ​ $ (3,045) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Gain or (Loss) ​ ​ ​ Reclassified from AOCI into Income ​ Location of Gain or (Loss) Reclassified ​ Three Months Ended ​ from AOCI into Income (loss) (Effective ​ June 30, ​ Portion) ​ 2020 2019 ​ Revenue ​ $ — ​ $ (18) ​ Costs of revenue ​ $ (613) ​ $ 405 ​ Operating expenses ​ $ (240) ​ $ 200 ​ Interest Expenses ​ $ (710) ​ $ 208 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 2020 2019 ​ Foreign currency exchange contracts Revenue ​ $ (129) ​ $ 355 ​ ​ Costs of revenue ​ $ 145 ​ $ (226) ​ ​ Selling, general and administrative expenses ​ $ 14 ​ $ (20) ​ ​

Revenues and Accounts Receivabl

Revenues and Accounts Receivable	3 Months Ended
	Jun. 30, 2020
Revenues and Accounts Receivable
Revenue and Accounts Receivable	(8) Revenues and Accounts Receivable ​ 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 ​ ​ June 30, Revenue by geography: ​ 2020 ​ 2019 North America ​ $ 224,322 ​ $ 230,480 Europe ​ 50,424 ​ 63,080 Rest of World ​ 26,318 ​ 25,464 Consolidated revenue ​ $ 301,064 ​ $ 319,024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ June 30, Revenue by customer’s industry groups ​ 2020 ​ 2019 Banking Financial Services and Insurance ​ $ 165,573 ​ $ 183,202 Communications and Technology ​ 72,364 ​ 70,066 Media & Information and Other ​ 22,330 ​ 19,153 Healthcare ​ ​ 40,797 ​ ​ 46,603 Consolidated revenue ​ $ 301,064 ​ $ 319,024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ June 30, Revenue by service offerings ​ 2020 ​ 2019 Application outsourcing ​ $ 162,420 ​ $ 181,963 Consulting ​ ​ 138,644 ​ ​ 137,061 Consolidated revenue ​ $ 301,064 ​ $ 319,024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ June 30, Revenue by contract type ​ 2020 ​ 2019 Time-and-materials ​ $ 176,718 ​ $ 189,899 Fixed-price* ​ 124,346 ​ 129,125 Consolidated revenue ​ $ 301,064 ​ $ 319,024 ​ *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 the movements in contract assets during the three months ended: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 ​ June 30, 2019 Beginning balance ​ $ 14,241 ​ $ 18,538 Revenues recognized during the period but not yet billed ​ 18,369 ​ 20,859 Amounts billed ​ (19,068) ​ (20,594) Other ​ (6) ​ (65) Ending balance ​ $ 13,536 ​ $ 18,738 ​ Contract liabilities comprise of 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 movements in the deferred revenue during the three months ended: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 ​ June 30, 2019 Beginning balance ​ $ 8,054 ​ $ 6,421 Amounts billed but not yet recognized as revenues ​ 5,930 ​ 4,123 Revenues recognized related to the opening balance of deferred revenue ​ (3,512) ​ (3,495) Other ​ 351 ​ 25 Ending balance ​ $ 10,823 ​ $ 7,074 ​ 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 December 31, 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, 2020, the aggregate amount of transaction price allocated to remaining performance obligations, other than those meeting the exclusion criteria above, was $30,235 and will be recognized as revenue within 5 years . ​ From time to time, the Company enters into arrangements to deliver IT services that include upfront payments to its clients. As of June 30, 2020, the total unamortized upfront payments related to these services were $29,281 and are recorded in prepaid expenses and other long-term assets in the consolidated balance sheet. These upfront payments are expected to be amortized as a reduction to revenue over a benefit period of 4 years . ​ Allowance for Credit Losses on Accounts Receivable ​ The allowance for credit losses on accounts receivable is determined using the loss-rate approach and is measured on a collective (pool) basis when similar risk characteristics exist. Where financial instruments do not share risk characteristics, they are evaluated on an individual basis. The Company calculates expected credit losses for accounts receivable based on historical credit loss rates for each aging category as adjusted for the current market conditions and forecasts about future economic conditions. The allowance is based on relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The following table presents the activity in the allowance for credit losses on accounts receivable: ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ June 30, 2020 Balance at March 31, 2020 $ 1,541 Transition period adjustment on accounts receivable pursuant to ASC 326 ​ ​ — Adjusted balance at April 1, 2020 ​ ​ 1,541 Current-period provision for expected credit losses ​ ​ 71 Write-offs charged against the allowance ​ ​ (218) Foreign currency translation adjustments ​ ​ 7 Balance at June 30, 2020 $ 1,401 ​

Series A Convertible Preferred

Series A Convertible Preferred Stock	3 Months Ended
	Jun. 30, 2020
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, 2020 and 2019, 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, 2020 and 2019, the Company has paid $1,046 as cash dividend on Series A Convertible Preferred Stock. As of June 30, 2020 and 2019, 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, 2020
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 balances at: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 ​ March 31, 2020 Beginning balance $ 296,493 ​ $ 279,543 Goodwill arising from acquisitions ​ ​ — ​ ​ 27,316 Purchase price adjustment ​ ​ (4,526) ​ ​ — Foreign currency translation adjustments ​ ​ (224) ​ ​ (10,366) Ending balance $ 291,743 ​ $ 296,493 ​ The acquisition costs and goodwill balance deductible for our business acquisitions for tax purposes are $284,020. The acquisition costs and goodwill balance not deductible for tax purposes are $20,627, primarily related to the Company’s TradeTech acquisition (closed on January 2, 2014), and the eTouch India acquisition. ​ Intangible Assets: ​ The following are details of the Company’s intangible asset carrying amounts acquired and amortization at: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 ​ ​ Weighted ​ Gross ​ ​ ​ ​ Net ​ ​ Average Useful Life ​ Carrying ​ Accumulated ​ Carrying ​ at Acquisition Amount Amortization Amount Amortizable intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships 10.6 ​ $ 176,645 ​ $ 50,839 ​ $ 125,806 Trademark 2.0 ​ ​ 900 ​ ​ 900 ​ ​ — Technology 5.0 ​ ​ 500 ​ ​ 500 ​ ​ — Other 5.0 ​ ​ 1,214 ​ ​ 253 ​ ​ 961 ​ 10.5 ​ $ 179,259 ​ $ 52,492 ​ $ 126,767 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2020 ​ ​ Weighted ​ Gross ​ ​ ​ ​ Net ​ ​ Average Useful Life ​ Carrying ​ Accumulated ​ Carrying ​ at Acquisition Amount Amortization Amount Amortizable intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships 10.6 ​ $ 176,373 ​ $ 46,494 ​ $ 129,879 Trademark 2.0 ​ ​ 900 ​ ​ 900 ​ ​ — Technology 5.0 ​ ​ 500 ​ ​ 500 ​ ​ — Other 5.0 ​ ​ 1,214 ​ ​ 190 ​ ​ 1,024 ​ 10.5 ​ $ 178,987 ​ $ 48,084 ​ $ 130,903 ​ The intangible assets are being amortized based upon the pattern in which the economic benefits of the intangible assets are being utilized. ​ During the fiscal year ended March 31, 2020, the Company acquired certain assets of three consulting companies located in the United States, which were accounted as asset acquisitions and were not material to the Company. The purchase price was approximately $9,651 in cash and an additional earn-out consideration of up to $9,853 payable within one year based on achievement of certain revenue targets. As of June 30, 2020, the Company paid $4,922 towards earn-out consideration based on achievement of revenue targets. The remaining probable and estimable value of the contingent consideration as of June 30, 2020 is $2,579 .

Income Taxes

Income Taxes	3 Months Ended
	Jun. 30, 2020
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 25.4% for the three months ended June 30, 2020, as compared to an effective tax rate of 44.0% for the three months ended June 30, 2019. The Company’s effective tax rate for the three months ended June 30, 2020 was impacted by executive stock compensation limitations, the election of foreign tax credits in the U.S., the election to treat certain foreign entities as dis-regarded for U.S tax purposes, the application of lower tax rates in India and surrendering any tax holidays in India. 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. ​ 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 $27,448 and $1,914 of net deferred tax assets in the United States and the United Kingdom, respectively, at June 30, 2020. The Company has a valuation allowance in the U.S. related to utilization of certain foreign tax credits are not expected to be realized. ​ During the fiscal year ended March 31, 2020, the Company merged Polaris Consulting and Software Limited (“Polaris”) with into Virtusa Consulting Services Private Limited (“Virtusa India”). The merger of Polaris into Virtusa India is considered an entity liquidation for US income tax purposes. The earnings of this entity will be subject to US taxation as well as local taxation with a corresponding foreign tax credit or deduction, at the election of the Company. The election also makes available to the Company the benefits of future foreign tax credits. The merger makes available to the Company tax deductions for interest on debt used to purchase the group as well as amortization of intangible assets. Under local Indian law, the merger was retroactive to April 1, 2018 resulting in amended tax return filing in India for the year ended March 31, 2019. The Company’s effective tax rate for the three months ended June 30, 2020, reflects the merger of Polaris India into Virtusa India. The Company’s income tax provision for the three months ended June 30, 2020 includes the expected impact of the Global Intangible Low-taxed Income (“GILTI”) and executive compensation limitations of the Tax Cuts and Jobs Act (the “Tax Act”) impacting the operating results for the three months ended June 30, 2020. 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 Singapore and Sri Lanka in which the Company has tax holiday benefits and eligible tax exemptions respectively. 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 US taxation as well as local taxation with a corresponding foreign tax credit or deduction, at the election of the Company. GILTI provisions and executive compensation limitations enacted in the Tax Act, enacted on December 22, 2017 by the U.S. government continue to impact the results. 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 and certain exemptions or tax holidays applicable to the Company. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act provided for net operating losses arising in tax years beginning after December 31, 2017, and before January 1, 2021, may be carried back to each of the five tax years preceding the tax year of such loss. Net operating losses have an unlimited carry forward period, although there are annual limitations on their use suspended for certain years as result of CARES Act. The Company has filed an immediate carry back claim in the United States for losses generated in fiscal years ended March 31, 2018 and March 31, 2019. The income tax expense for the three months ended June 30, 2020, On September 20, 2019, the Indian government issued Ordinance 2019 making certain amendments in the Income-tax Act 1961, which substantially reduces tax rates. The effective rate of tax on India-based companies was reduced from 34.9% to 25.17%, effective for fiscal years beginning April 1, 2019. The Company adopted the new ordinance for the fiscal year beginning April 1, 2019. The new rates require the surrendering of any tax holidays and other attributes of which the Company historically was taking advantage of and favorably impacting our tax rate. In addition, the Company’s Sri Lankan subsidiary, Virtusa (Private) Limited, was operating under a 12 -year income tax holiday arrangement that expired on March 31, 2019 and required Virtusa (Private) Limited to retain certain job creation and investment criteria through the expiration of the holiday period. The Company believes it had fulfilled its hiring and investment commitments and is eligible for tax holiday through March 2019. Beginning April 1, 2019, the Company is taking advantage of certain tax exemptions offered to IT service providers in Sri Lanka. 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, 2006 to March 31, 2017 of the Company’s Indian subsidiary, Virtusa (India) Private Ltd, and Polaris Consulting & Services Limited (Polaris India) 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. These matters are currently at different level of appeals beginning with the fiscal year ended March 31, 2006. 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, 2018. In Singapore, the 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 concluded an examination of fiscal years ended March 31, 2015 and March 31, 2017. These ongoing audits are not expected to have a material impact on the consolidated statements of income and consolidated statements of cash flows. ​ Unrecognized tax benefits represent uncertain tax positions for which the Company has established reserves. At June 30, 2020 and March 31, 2020, the total liability for unrecognized tax benefits was $6,443 and $6,627, 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, 2020 and 2019, the unrecognized tax benefits decreased by $184 and increased by $80, respectively. The decrease in unrecognized tax benefits in the three months ended June 30, 2020 was predominantly due to increase in the liability related to the UK audit, certain sale proceeds in India and incremental interest accrued on existing uncertain tax positions offset by the release of certain benefits no longer considered required. ​ 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. 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, 2020, the Company had approximately $191,252 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, 2020
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. Geographic information of total revenue is summarized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ June 30, ​ ​ 2020 2019 ​ Customer revenue: ​ ​ ​ ​ ​ ​ ​ United States of America ​ $ 212,480 ​ $ 218,092 ​ United Kingdom ​ 39,574 ​ 49,879 ​ Rest of World ​ 49,010 ​ 51,053 ​ Consolidated revenue ​ $ 301,064 ​ $ 319,024 ​ ​ ​ Revenue from significant clients as a percentage of the Company’s consolidated revenue was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ ​ June 30, ​ ​ ​ ​ 2020 2019 ​ ​ Customer A ​ 17.0 % 15.5 % ​ ​ 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. The following table summarizes the geographic information of long-lived assets as of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 March 31, 2020 Long-lived assets, net of accumulated depreciation and amortization: ​ ​ ​ ​ ​ ​ United States of America ​ $ 264,366 ​ $ 272,422 India ​ 235,326 ​ 238,367 Rest of World ​ 18,141 ​ 17,857 Consolidated long-lived assets, net ​ $ 517,833 ​ $ 528,646 ​

Debt

Debt	3 Months Ended
	Jun. 30, 2020
Debt
Debt	(13) Debt ​ On February 6, 2018, the Company entered into a credit agreement (as amended 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 provided for a $200,000 revolving credit facility, a $180,000 term loan facility, and a $70,000 delayed-draw term loan. The Company drew down $180,000 under the term loan of the Credit Agreement and $55,000 under the revolving credit facility under the Credit Agreement to repay in full the amount outstanding under the prior credit agreement and fund the Polaris delisting transaction (See Note 6 to our consolidated financial information for additional information). On March 12, 2018, we drew down the $70,000 delayed draw to fund the eTouch Systems Corp. acquisition. ​ On October 15, 2019, the Company entered into Amendment No. 2 to Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A. (the “Administrative Agent”) and the lenders party thereto (the “Second Credit Agreement Amendment”), which Credit Agreement to, among other things, increase the revolving commitments available to the Company under the Credit Agreement from $200,000 to $275,000, reduce the interest rate margins applicable to term loans and revolving loans outstanding under the Credit Agreement from time to time and reduce the commitment fee payable by the Company to the lenders in respect of unused revolving commitments under the Credit Agreement. The Company executed the Second Credit Agreement Amendment to provide additional lending capacity which the Company used to fund the completion of the Polaris delisting transaction, as well as to provide excess lending capacity in the event of future opportunistic, strategic, investment opportunities. The Second Credit Agreement Amendment contains customary terms for amendments of this type, including representations, warranties and covenants. Interest under the credit facility accrues at a rate per annum of LIBOR plus 2.75% , subject to step-downs based on the Company’s ratio of debt to EBITDA. During the fiscal year ended March 31, 2020, the Company drew down $145,000 from the credit facility, inclusive of $84,000 drawn in the three months ended March 31, 2020 as a proactive measure in light of the uncertainty resulting from the COVID-19 pandemic. Earlier draws in the fiscal year March 31, 2020 were used to fund the eTouch 18-month anniversary payment of $17,500 and to fund opportunistic, strategic, investment opportunities. ​ On May 27, 2020, the Company entered into Amendment No. 3 to Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A. (the “ Administrative Agent” ) and the lenders party thereto (the “ Third Credit Agreement Amendment” ), which amends the Credit Agreement to, among other things, (i) provide for $62,492 in incremental 364 -day delayed draw term loans (the “New Delayed Draw Term Loans” ), which can be drawn down up to three times on or before September 27, 2020 and (ii) extend out the debt to EBITDA ratio covenant step down by two quarters such that the leverage covenant remains at 3.25 :1.00 through December 31, 2020. The Administrative Agent increased the LIBOR floor to 1.00% from 0% as part of the Third Credit Agreement Amendment. The Company executed the Third Credit Agreement Amendment to provide additional liquidity in light of the COVID-19 pandemic which the Company could use to fund general working capital and refinance existing indebtedness under the credit facility. On May 27, 2020, the Company prepaid $55,000 on its existing revolving facility as a condition to closing the Third Credit Agreement Amendment. The Third Credit Agreement Amendment contains customary terms for amendments of this type, such as representations, warranties and covenants, including pro forma compliance with the Credit Agreement debt to EBITDA covenant as a condition to borrowing. Interest under the New Delayed Draw Term Loans accrues at a rate per annum of LIBOR plus 3.50% . The New Delayed Draw Term Loans mature on May 26, 2021 and do not amortize. ​ For the fiscal year ending March 31, 2021, the Company is required to make principal payments of $4,336 per quarter . The term of the Credit Agreement is five years ending February 6, 2023. At June 30, 2020, the total outstanding amount under the Credit Agreement was $440,633 . At June 30, 2020, the weighted average interest rate on the term loan and revolving line of credit was 3.75% . ​ The credit facility is secured by substantially all of the Company’s assets, including all intellectual property and all securities in domestic subsidiaries (other than certain domestic subsidiaries where the material assets of such subsidiaries are equity in foreign subsidiaries), subject to customary exceptions and exclusions from the collateral. All obligations under the Credit Agreement are unconditionally guaranteed by substantially all of the Company’s material direct and indirect domestic subsidiaries, with certain exceptions. These guarantees are secured by substantially all of the present and future property and assets of the guarantors, with certain exclusions. ​ Current portion of long-term debt ​ The following summarizes our short-term debt balances as of: ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 March 31, 2020 Term loan-current maturities ​ 18,789 ​ 17,344 Less: deferred financing costs, current ​ (1,597) ​ (1,301) Total ​ $ 17,192 ​ $ 16,043 ​ Long-term debt, less current portion ​ The following summarizes our long-term debt balance as of: ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 March 31, 2020 Term loan ​ $ 221,133 ​ $ 225,469 Borrowings under revolving credit facility ​ ​ 219,500 ​ ​ 274,500 Less: ​ ​ ​ ​ ​ ​ Current maturities ​ (18,789) ​ (17,344) Deferred financing costs, long-term ​ (2,639) ​ (2,471) Total ​ $ 419,205 ​ $ 480,154 ​ 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, 2020, $13,210 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, 2020. No amounts were due as of June 30, 2020, 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.

Stock Based Compensation Plans

Stock Based Compensation Plans	3 Months Ended
	Jun. 30, 2020
Stock-Based Compensation Plans
Stock-Based Compensation Plans	(14) Stock-Based Compensation Plans ​ In May 2015, the Company adopted the 2015 Stock Option and Incentive Plan (“2015 Plan”) which was also approved the Company’s stockholders on September 1, 2015. The 2015 Plan permits the granting of incentive stock options, non-qualified stock options, restricted stock awards, restricted stock units, unrestricted stock awards, performance share awards, performance-based awards to covered employees, cash-based awards and dividend equivalent rights. Stock options, restricted stock and restricted stock units generally vest over four years . Performance share awards and performance-based awards generally vest over three years . Under the 2015 Plan, the Company grants both service condition awards and performance condition awards. Performance awards are contingent upon meeting various departmental or company-wide performance goals in addition to service conditions. Stock compensation is recognized over the vesting period based on the probability of achievement of the performance condition. ​ In May 2020, the Company issued 250,075 performance shares to its executive officers with a three-year performance measurement period. As of June 30, 2020, the Company had not yet established the significant terms of the performance shares relevant to vesting ( three-year cumulative target) for the three-year performance measurement period. Therefore, as of June 30, 2020, a grant date for financial accounting purposes had not occurred and the Company did not record any stock compensation related to these performance shares during the three months ended June 30, 2020. Upon the grant date, the Company will recognize the stock compensation expense over the remaining future requisite service period from the grant date.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Jun. 30, 2020
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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ June 30, ​ ​ 2020 2019 ​ Investment securities ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ 12 $ 12 ​ Other comprehensive income (loss) (OCI) before reclassifications, net of tax of $0, $0 ​ ​ — ​ ​ 1 ​ Reclassifications from OCI to other income, net of tax of $0 for all periods ​ ​ — ​ ​ 2 ​ Less: Noncontrolling interests, net of tax of $0 for all periods ​ ​ — ​ ​ — ​ Comprehensive income (loss) on investment securities, net of tax of $0 for all periods ​ ​ — ​ ​ 3 ​ Closing balance ​ $ 12 $ 15 ​ Currency translation adjustments ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ (71,207) $ (57,354) ​ OCI before reclassifications ​ ​ 2,065 ​ ​ (381) ​ Less: Noncontrolling interests ​ ​ — ​ ​ (137) ​ Comprehensive income (loss) on currency translation adjustments ​ ​ 2,065 ​ ​ (518) ​ Closing balance ​ $ (69,142) $ (57,872) ​ Cash flow hedges ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ (11,818) $ 39 ​ OCI before reclassifications net of tax of $263, $(210) ​ ​ 966 ​ ​ (202) ​ Reclassifications from OCI to ​ ​ ​ ​ ​ ​ ​ —Revenue, net of tax of $0, $6 ​ ​ — ​ ​ 12 ​ —Costs of revenue, net of tax of $147, $(77) ​ ​ 466 ​ ​ (328) ​ —Selling, general and administrative expenses, net of tax of $58, $(38) ​ ​ 182 ​ ​ (162) ​ —Interest expenses, net of tax of $187, $(54) ​ ​ 523 ​ ​ (154) ​ Less: Noncontrolling interests, net of tax of $0 for all periods ​ ​ — ​ ​ (1) ​ Comprehensive income (loss) on cash flow hedges, net of tax of $655, $(373) ​ ​ 2,137 ​ ​ (835) ​ Closing balance ​ $ (9,681) $ (796) ​ Benefit plans ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ (2,242) $ (2,084) ​ OCI before reclassifications net of tax of $0, $0 ​ ​ 11 ​ ​ 123 ​ Reclassifications from OCI for prior service credit (cost) to: ​ ​ ​ ​ ​ ​ ​ Other income (expense), net of tax of $0, $0 ​ ​ 10 ​ ​ 6 ​ Reclassifications from net actuarial gain (loss) amortization to: ​ ​ ​ ​ ​ ​ ​ Other income (expense), net of tax of $0, $0 ​ ​ 96 ​ ​ 36 ​ Other adjustments, net of tax of $0, $0 ​ ​ (38) ​ ​ (3) ​ (Less): Noncontrolling interests, net of tax $0, $0 ​ ​ — ​ ​ (6) ​ Comprehensive income (loss) on benefit plans, net of tax of $0, $0 ​ ​ 79 ​ ​ 156 ​ Closing balance ​ ​ (2,163) $ (1,928) ​ Accumulated other comprehensive loss ​ $ (80,974) $ (60,581) ​ ​

Commitments and Contingencies a

Commitments and Contingencies and Guarantees	3 Months Ended
	Jun. 30, 2020
Commitments and Contingencies and Guarantees
Commitments and Contingencies and Guarantees	(16) Commitments, Contingencies and Guarantees. ​ The Company indemnifies its officers and directors for certain events or occurrences under its charter or by-laws and under indemnification agreements while the officer or director is, or was, serving at its request in a defined capacity. The term of the indemnification period is with respect to the period that such person was an officer or director of the Company. The maximum potential amount of future payments the Company could be required to make under these indemnification obligations is unlimited. The costs incurred to defend lawsuits or settle claims related to these indemnification obligations have not been material. As a result, the Company believes that its estimated exposure on these obligations is minimal. Accordingly, the Company had no liabilities recorded for these obligations as of June 30, 2020. ​ The Company is insured against any actual or alleged act, error, omission, neglect, misstatement or misleading statement or breach of duty by any current or former officer, director or employee while rendering information technology services. The Company believes that its financial exposure from such actual or alleged actions, should they arise, is minimal and no liability was recorded at June 30, 2020. ​ From time to time the Company is involved in legal proceedings, claims and litigation related to employee claims, contractual disputes and taxes in the ordinary course of business. The Company accrues a liability when a loss is considered probable and the amount can be reasonably estimated. When a material loss contingency is reasonably possible but not probable, the Company does not record a liability, but instead discloses the nature and the amount of the claim, and an estimate of the loss or range of loss, if such an estimate can be made. Legal fees are expensed as incurred. Although the Company cannot predict the outcome of such matters, the Company has no reason to believe the disposition of any current matter, other than the specific matters described below, could reasonably be expected to have a material adverse impact on the Company’s balance sheets, income of operations and cash flows or the ability to carry on any of its business activities. This assessment is based on our current understanding of relevant facts and circumstances. As such, our view of these matters is subject to inherent uncertainties and may change in the future. ​ One of the Company’s larger clients made a demand for damages related to a project in which the Company was performing services. The client alleges breaches of certain representations and warranties regarding the Company’s performance and is seeking indemnification for damages from those alleged breaches. No litigation has been filed. The Company believes that it has defenses against the claims described in the demand, and intends to zealously defend against those claims. However, the Company cannot provide any assurance that the Company will prevail in the dispute or even partially prevail. Further, if the Company is unsuccessful in any settlement discussions, the Company also cannot provide any assurance that the client will not use set off rights in the contract, even if the Company disputes the claims or amount of damages alleged. In the event the Company does not fully prevail in this dispute, the Company may have to pay damages in amounts for which it may not have reserved or which may or may not be covered by the Company’s insurance policies; further, even if the damages are covered, depending on the outcome, the Company’s insurance may not cover or be adequate to pay the entire claim. In addition, the Company cannot guarantee that the Company will not lose future business with such client as a result of such dispute. ​ On February 28, 2019, the Supreme Court of India issued a ruling interpreting certain statutory defined contribution obligations of employees and employers, which altered historical understandings of such obligations, extending them to cover additional portions of employee income. As a result, contributions by our employees and the Company will increase in future periods. There is uncertainty as to whether the Indian government will apply the Supreme Court's ruling on a retroactive basis and if so, how this liability should be calculated as it is impacted by multiple variables, including the period of assessment, the application with respect to certain current and former employees and whether interest and penalties may be assessed. As such, the ultimate amount of our obligation is difficult to quantify. If the Indian government were to apply the Supreme Court ruling retroactively, without assessing interest and penalties, the impact would be a charge of approximately $7,500 to the Company’s income from operations and cash flows. ​ ​

Summary of Significant Accounti

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Jun. 30, 2020
Unaudited Interim Financial Information
Basis of Presentation	Basis of Presentation ​ The accompanying unaudited consolidated financial statements have been prepared by the Company in accordance with U.S. generally accepted accounting principles and Article 10 of Regulation S-X under the Securities and Exchange Act of 1934, as amended, and should be read in conjunction with the Company’s audited consolidated financial statements (and notes thereto) for the fiscal year ended March 31, 2020 included in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission, or SEC, on May 28, 2020. 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 and valuation of financial instruments including derivative contracts and investments. Management bases its estimates on historical experience and on various other factors and assumptions that are believed to be reasonable under the circumstances. The actual amounts may vary from the estimates used in the preparation of the accompanying consolidated financial statements.
Fair Value of Financial Instruments	Fair Value of Financial Instruments ​ At June 30, 2020 and March 31, 2020, 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 6 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 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 guidance which provide clarifications and improvements to this new standard. The amendments in this update changed how companies measure and recognize credit impairment for many financial assets. The new credit loss model requires companies to immediately recognize an estimate of credit losses expected to occur over the remaining life of the financial assets (including accounts receivables) that are in the scope of the update. The standard update also made amendments to the current impairment model for available-for-sale debt securities. This 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 public entities from fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. ​ The Company adopted this standard (“ASC Topic 326”) effective April 1, 2020 using a modified retrospective approach. Prior period amounts are not adjusted and continue to be reported in accordance with our historical accounting policies. The adoption of this guidance did not have a material impact on the consolidated financial statements, therefore, the Company did not record any cumulative adjustments to the opening retained earnings in the consolidated financial statements. ​ See Note 8, “Revenue and Accounts Receivable” for additional information regarding credit losses. ​ 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 December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), which enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction, ownership changes in investments, and interim-period accounting for enacted changes in tax law. The standard will be effective for fiscal years beginning after December 15, 2020, 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.

Earnings (loss) per Share (Tabl

Earnings (loss) per Share (Tables)	3 Months Ended
	Jun. 30, 2020
Earnings (loss) per Share
Schedule of components of basic earnings (loss) per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ June 30, ​ ​ 2020 2019 ​ Numerators: ​ ​ ​ ​ Net income available to Virtusa stockholders ​ $ 894 ​ $ 5,834 ​ Less: Series A Convertible Preferred Stock dividends and accretion ​ (1,087) ​ (1,087) ​ Net income (loss) available to Virtusa common stockholders ​ $ (193) ​ $ 4,747 ​ Denominators: ​ ​ ​ Basic weighted average common shares outstanding ​ 30,168,174 ​ 30,167,910 ​ Basic earnings (loss) per share available to Virtusa common stockholders ​ $ (0.01) ​ $ 0.16 ​
Schedule of components of diluted earnings (loss) per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ June 30, ​ ​ 2020 2019 ​ Numerators: ​ ​ ​ ​ ​ ​ ​ Net income (loss) available to Virtusa common stockholders ​ $ (193) ​ $ 4,747 ​ Add : Series A Convertible Preferred Stock dividends and accretion ​ ​ — ​ ​ — ​ Net income (loss) available to Virtusa common stockholders and assumed conversion ​ $ (193) ​ $ 4,747 ​ Denominators: ​ ​ ​ ​ ​ ​ ​ Basic weighted average common shares outstanding ​ 30,168,174 ​ 30,167,910 ​ 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 ​ 30,168,174 ​ 30,934,411 ​ Diluted earnings (loss) per share available to Virtusa common stockholders ​ $ (0.01) ​ $ 0.15 ​

Business Combinations (Tables)

Business Combinations (Tables)	3 Months Ended
	Jun. 30, 2020
Business Combinations
Summary of aggregate preliminary purchase price allocation	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount Useful Life Consideration Transferred: ​ ​ ​ ​ ​ ​ ​ Cash paid at closing $ 29,624 ​ ​ ​ ​ Deferred consideration payable ​ ​ 10,313 ​ ​ ​ ​ Fair value of contingent consideration ​ ​ 21,049 ​ ​ ​ ​ Fair value of consideration ​ ​ 60,986 ​ ​ ​ ​ Less: Cash acquired ​ ​ (477) ​ ​ ​ ​ Total purchase price, net of cash acquired $ 60,509 ​ ​ ​ ​ Assets and Liabilities: ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ ​ 477 ​ ​ ​ ​ Goodwill ​ ​ 22,790 ​ ​ ​ ​ Customer relationships ​ ​ 38,119 ​ 5 - 7 years Other net ​ ​ (400) ​ ​ ​ ​ Total purchase price ​ $ 60,986 ​ ​ ​ ​

Investment Securities (Tables)

Investment Securities (Tables)	3 Months Ended
	Jun. 30, 2020
Investment Securities.
Summary of investment securities	The following is a summary of investment securities at June 30, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ Cost Gains Losses Fair Value Time deposits: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 3,307 ​ $ — ​ $ — ​ $ 3,307 Equity securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mutual funds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 633 ​ ​ 95 ​ ​ — ​ ​ 728 Equity shares/ options: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current ​ ​ 1 ​ ​ 6 ​ ​ — ​ ​ 7 Total investment securities ​ $ 3,941 ​ $ 101 ​ $ — ​ $ 4,042 ​ The following is a summary of investment securities at March 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ Cost Gains Losses Fair Value Time deposits: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 3,927 ​ $ — ​ $ — ​ $ 3,927 Equity securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mutual funds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ 5,623 ​ ​ 235 ​ ​ — ​ ​ 5,858 Equity shares/ options: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current ​ 1 ​ ​ 3 ​ ​ — ​ ​ 4 Total investment securities ​ $ 9,551 ​ $ 238 ​ $ — ​ $ 9,789
Schedule of proceeds from sales of available-for-sale debt and equity securities and the gross gains and losses included in earnings as a result	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ June 30, ​ ​ 2020 2019 ​ Proceeds from sales or maturities of available-for-sale ​ $ 5,781 ​ $ 19,817 ​ Gross gains ​ $ 176 ​ $ 228 ​ Gross losses ​ — ​ — ​ Net realized gains on sales of available-for-sale debt ​ $ 176 ​ $ 228 ​

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Jun. 30, 2020
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: ​ ​ ​ ​ Time deposits—current ​ $ — ​ $ 3,307 ​ ​ — ​ $ 3,307 Equity securities—current ​ ​ — ​ ​ 728 ​ ​ — ​ ​ 728 Equity securities—non-current ​ ​ — ​ ​ 7 ​ ​ — ​ ​ 7 Derivative financial instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency derivative contracts—current ​ ​ — ​ ​ 560 ​ ​ — ​ ​ 560 Foreign currency derivative contracts—non-current ​ — ​ 379 ​ ​ — ​ 379 Interest rate swap contracts ​ — ​ — ​ ​ — ​ — Total assets ​ $ — ​ $ 4,981 ​ $ — ​ $ 4,981 Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency derivative contracts—current ​ ​ — ​ 2,017 ​ ​ — ​ 2,017 Foreign currency derivative contracts—non-current ​ ​ — ​ — ​ ​ — ​ — Interest rate swap contracts—non-current ​ ​ — ​ ​ 11,153 ​ ​ — ​ ​ 11,153 Contingent consideration ​ ​ — ​ ​ — ​ ​ 19,495 ​ ​ 19,495 Total liabilities ​ $ — ​ $ 13,170 ​ $ 19,495 ​ $ 32,665 ​ The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis at March 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1 Level 2 Level 3 Total Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Time deposits—current ​ $ — ​ $ 3,927 ​ ​ — ​ $ 3,927 Equity securities—current ​ ​ — ​ ​ 5,858 ​ ​ — ​ ​ 5,858 Equity securities—non-current ​ ​ — ​ ​ 4 ​ ​ — ​ ​ 4 Derivative financial instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency derivative contracts—current ​ ​ — ​ ​ 103 ​ ​ — ​ ​ 103 Foreign currency derivative contracts—non-current ​ ​ — ​ ​ 56 ​ ​ — ​ ​ 56 Interest rate swap contracts ​ ​ — ​ ​ — ​ ​ — ​ ​ — Total assets ​ $ — ​ $ 9,948 ​ $ — ​ $ 9,948 Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency derivative contracts—current ​ $ — ​ ​ 3,689 ​ $ — ​ ​ 3,689 Foreign currency derivative contracts—non-current ​ ​ — ​ ​ 364 ​ $ — ​ ​ 364 Interest rate swap contracts—non-current ​ ​ — ​ ​ 11,128 ​ ​ — ​ ​ 11,128 Contingent consideration ​ ​ — ​ ​ — ​ ​ 25,012 ​ ​ 25,012 Total liabilities ​ $ — ​ $ 15,181 ​ $ 25,012 ​ $ 40,193
Reconciliation of the beginning and ending balances of Level 3 contingent consideration liabilities associated with our business combinations	The following table shows a reconciliation of the beginning and ending balances of Level 3 contingent consideration liabilities associated with our business combinations: ​ ​ ​ ​ ​ ​ ​ June 30, 2020 Beginning balance ​ $ 25,012 ​ Purchase price adjustment ​ ​ (3,915) ​ Contingent consideration recognized in earnings ​ (1,578) ​ Foreign currency translation adjustments ​ ​ (24) ​ Ending balance ​ $ 19,495 ​

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	3 Months Ended
	Jun. 30, 2020
Derivative Financial Instruments
Schedule of fair value of derivative instruments included in the consolidated balance sheets	Derivatives designated as hedging instruments ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 March 31, 2020 Foreign currency exchange contracts: ​ ​ ​ ​ ​ ​ Other current assets ​ $ 560 ​ $ 103 Other long-term assets ​ $ 379 ​ $ 56 Accrued expenses and other ​ $ 2,017 ​ $ 3,689 Long-term liabilities ​ $ — ​ $ 364 ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 March 31, 2020 Interest rate swap contracts ​ ​ Other long-term assets ​ $ — ​ $ — Long-term liabilities ​ $ 11,153 ​ $ 11,128
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 ​ ​ ​ Three Months Ended ​ Derivatives Designated as ​ June 30, ​ Cash Flow Hedging Relationships ​ 2020 ​ 2019 ​ Foreign currency exchange contracts ​ $ 1,964 ​ $ 2,633 ​ Interest rate swaps ​ $ (735) ​ $ (3,045) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Gain or (Loss) ​ ​ ​ Reclassified from AOCI into Income ​ Location of Gain or (Loss) Reclassified ​ Three Months Ended ​ from AOCI into Income (loss) (Effective ​ June 30, ​ Portion) ​ 2020 2019 ​ Revenue ​ $ — ​ $ (18) ​ Costs of revenue ​ $ (613) ​ $ 405 ​ Operating expenses ​ $ (240) ​ $ 200 ​ Interest Expenses ​ $ (710) ​ $ 208 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 2020 2019 ​ Foreign currency exchange contracts Revenue ​ $ (129) ​ $ 355 ​ ​ Costs of revenue ​ $ 145 ​ $ (226) ​ ​ Selling, general and administrative expenses ​ $ 14 ​ $ (20) ​

Revenues and Accounts Receiva_2

Revenues and Accounts Receivable (Tables)	3 Months Ended
	Jun. 30, 2020
Revenues and Accounts Receivable
Schedule of disaggregation of revenue	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ June 30, Revenue by geography: ​ 2020 ​ 2019 North America ​ $ 224,322 ​ $ 230,480 Europe ​ 50,424 ​ 63,080 Rest of World ​ 26,318 ​ 25,464 Consolidated revenue ​ $ 301,064 ​ $ 319,024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ June 30, Revenue by customer’s industry groups ​ 2020 ​ 2019 Banking Financial Services and Insurance ​ $ 165,573 ​ $ 183,202 Communications and Technology ​ 72,364 ​ 70,066 Media & Information and Other ​ 22,330 ​ 19,153 Healthcare ​ ​ 40,797 ​ ​ 46,603 Consolidated revenue ​ $ 301,064 ​ $ 319,024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ June 30, Revenue by service offerings ​ 2020 ​ 2019 Application outsourcing ​ $ 162,420 ​ $ 181,963 Consulting ​ ​ 138,644 ​ ​ 137,061 Consolidated revenue ​ $ 301,064 ​ $ 319,024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ June 30, Revenue by contract type ​ 2020 ​ 2019 Time-and-materials ​ $ 176,718 ​ $ 189,899 Fixed-price* ​ 124,346 ​ 129,125 Consolidated revenue ​ $ 301,064 ​ $ 319,024 ​ *Fixed-price includes both retainer-billing basis and fixed-price progress towards completion
Schedule of movements in contract assets and deferred revenue balances	The table below shows the movements in contract assets during the three months ended: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 ​ June 30, 2019 Beginning balance ​ $ 14,241 ​ $ 18,538 Revenues recognized during the period but not yet billed ​ 18,369 ​ 20,859 Amounts billed ​ (19,068) ​ (20,594) Other ​ (6) ​ (65) Ending balance ​ $ 13,536 ​ $ 18,738 ​ Contract liabilities comprise of 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 movements in the deferred revenue during the three months ended: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 ​ June 30, 2019 Beginning balance ​ $ 8,054 ​ $ 6,421 Amounts billed but not yet recognized as revenues ​ 5,930 ​ 4,123 Revenues recognized related to the opening balance of deferred revenue ​ (3,512) ​ (3,495) Other ​ 351 ​ 25 Ending balance ​ $ 10,823 ​ $ 7,074
Schedule of allowance for credit losses on accounts receivable	​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ June 30, 2020 Balance at March 31, 2020 $ 1,541 Transition period adjustment on accounts receivable pursuant to ASC 326 ​ ​ — Adjusted balance at April 1, 2020 ​ ​ 1,541 Current-period provision for expected credit losses ​ ​ 71 Write-offs charged against the allowance ​ ​ (218) Foreign currency translation adjustments ​ ​ 7 Balance at June 30, 2020 $ 1,401

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets
Schedule of changes in goodwill balances	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 ​ March 31, 2020 Beginning balance $ 296,493 ​ $ 279,543 Goodwill arising from acquisitions ​ ​ — ​ ​ 27,316 Purchase price adjustment ​ ​ (4,526) ​ ​ — Foreign currency translation adjustments ​ ​ (224) ​ ​ (10,366) Ending balance $ 291,743 ​ $ 296,493
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, 2020 ​ ​ Weighted ​ Gross ​ ​ ​ ​ Net ​ ​ Average Useful Life ​ Carrying ​ Accumulated ​ Carrying ​ at Acquisition Amount Amortization Amount Amortizable intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships 10.6 ​ $ 176,645 ​ $ 50,839 ​ $ 125,806 Trademark 2.0 ​ ​ 900 ​ ​ 900 ​ ​ — Technology 5.0 ​ ​ 500 ​ ​ 500 ​ ​ — Other 5.0 ​ ​ 1,214 ​ ​ 253 ​ ​ 961 ​ 10.5 ​ $ 179,259 ​ $ 52,492 ​ $ 126,767 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2020 ​ ​ Weighted ​ Gross ​ ​ ​ ​ Net ​ ​ Average Useful Life ​ Carrying ​ Accumulated ​ Carrying ​ at Acquisition Amount Amortization Amount Amortizable intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships 10.6 ​ $ 176,373 ​ $ 46,494 ​ $ 129,879 Trademark 2.0 ​ ​ 900 ​ ​ 900 ​ ​ — Technology 5.0 ​ ​ 500 ​ ​ 500 ​ ​ — Other 5.0 ​ ​ 1,214 ​ ​ 190 ​ ​ 1,024 ​ 10.5 ​ $ 178,987 ​ $ 48,084 ​ $ 130,903

Concentration of Revenue and _2

Concentration of Revenue and Assets (Tables)	3 Months Ended
	Jun. 30, 2020
Concentration of Revenue and Assets
Schedule of revenue attributed to geographic areas based on location of the client	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ June 30, ​ ​ 2020 2019 ​ Customer revenue: ​ ​ ​ ​ ​ ​ ​ United States of America ​ $ 212,480 ​ $ 218,092 ​ United Kingdom ​ 39,574 ​ 49,879 ​ Rest of World ​ 49,010 ​ 51,053 ​ Consolidated revenue ​ $ 301,064 ​ $ 319,024 ​
Schedule of revenue from significant clients as a percentage of Company's consolidated revenue	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ ​ June 30, ​ ​ ​ ​ 2020 2019 ​ ​ Customer A ​ 17.0 % 15.5 % ​
Schedule of long-lived assets, net of accumulated depreciation and amortization, attributed to geographic areas based on location of assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 March 31, 2020 Long-lived assets, net of accumulated depreciation and amortization: ​ ​ ​ ​ ​ ​ United States of America ​ $ 264,366 ​ $ 272,422 India ​ 235,326 ​ 238,367 Rest of World ​ 18,141 ​ 17,857 Consolidated long-lived assets, net ​ $ 517,833 ​ $ 528,646

Debt (Tables)

Debt (Tables)	3 Months Ended
	Jun. 30, 2020
Debt
Summary of short-term debt balances	​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 March 31, 2020 Term loan-current maturities ​ 18,789 ​ 17,344 Less: deferred financing costs, current ​ (1,597) ​ (1,301) Total ​ $ 17,192 ​ $ 16,043
Summary of long-term debt balances	​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 March 31, 2020 Term loan ​ $ 221,133 ​ $ 225,469 Borrowings under revolving credit facility ​ ​ 219,500 ​ ​ 274,500 Less: ​ ​ ​ ​ ​ ​ Current maturities ​ (18,789) ​ (17,344) Deferred financing costs, long-term ​ (2,639) ​ (2,471) Total ​ $ 419,205 ​ $ 480,154

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Jun. 30, 2020
Accumulated Other Comprehensive Loss.
Schedule of changes in accumulated other comprehensive loss by component	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ June 30, ​ ​ 2020 2019 ​ Investment securities ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ 12 $ 12 ​ Other comprehensive income (loss) (OCI) before reclassifications, net of tax of $0, $0 ​ ​ — ​ ​ 1 ​ Reclassifications from OCI to other income, net of tax of $0 for all periods ​ ​ — ​ ​ 2 ​ Less: Noncontrolling interests, net of tax of $0 for all periods ​ ​ — ​ ​ — ​ Comprehensive income (loss) on investment securities, net of tax of $0 for all periods ​ ​ — ​ ​ 3 ​ Closing balance ​ $ 12 $ 15 ​ Currency translation adjustments ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ (71,207) $ (57,354) ​ OCI before reclassifications ​ ​ 2,065 ​ ​ (381) ​ Less: Noncontrolling interests ​ ​ — ​ ​ (137) ​ Comprehensive income (loss) on currency translation adjustments ​ ​ 2,065 ​ ​ (518) ​ Closing balance ​ $ (69,142) $ (57,872) ​ Cash flow hedges ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ (11,818) $ 39 ​ OCI before reclassifications net of tax of $263, $(210) ​ ​ 966 ​ ​ (202) ​ Reclassifications from OCI to ​ ​ ​ ​ ​ ​ ​ —Revenue, net of tax of $0, $6 ​ ​ — ​ ​ 12 ​ —Costs of revenue, net of tax of $147, $(77) ​ ​ 466 ​ ​ (328) ​ —Selling, general and administrative expenses, net of tax of $58, $(38) ​ ​ 182 ​ ​ (162) ​ —Interest expenses, net of tax of $187, $(54) ​ ​ 523 ​ ​ (154) ​ Less: Noncontrolling interests, net of tax of $0 for all periods ​ ​ — ​ ​ (1) ​ Comprehensive income (loss) on cash flow hedges, net of tax of $655, $(373) ​ ​ 2,137 ​ ​ (835) ​ Closing balance ​ $ (9,681) $ (796) ​ Benefit plans ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ (2,242) $ (2,084) ​ OCI before reclassifications net of tax of $0, $0 ​ ​ 11 ​ ​ 123 ​ Reclassifications from OCI for prior service credit (cost) to: ​ ​ ​ ​ ​ ​ ​ Other income (expense), net of tax of $0, $0 ​ ​ 10 ​ ​ 6 ​ Reclassifications from net actuarial gain (loss) amortization to: ​ ​ ​ ​ ​ ​ ​ Other income (expense), net of tax of $0, $0 ​ ​ 96 ​ ​ 36 ​ Other adjustments, net of tax of $0, $0 ​ ​ (38) ​ ​ (3) ​ (Less): Noncontrolling interests, net of tax $0, $0 ​ ​ — ​ ​ (6) ​ Comprehensive income (loss) on benefit plans, net of tax of $0, $0 ​ ​ 79 ​ ​ 156 ​ Closing balance ​ ​ (2,163) $ (1,928) ​ Accumulated other comprehensive loss ​ $ (80,974) $ (60,581) ​

Earnings per Share - Basic earn

Earnings per Share - Basic earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Numerator:
Net income available to Virtusa stockholders	$ 894	$ 5,834
Less: Series A Convertible Preferred Stock dividends and accretion	(1,087)	(1,087)
Net income (loss) available to Virtusa common stockholders	$ (193)	$ 4,747
Denominator:
Basic weighted average common shares outstanding (in shares)	30,168,174	30,167,910
Basic earnings (loss) per share available to Virtusa common stockholders (in dollars per share)	$ (0.01)	$ 0.16

Earnings per Share - Diluted ea

Earnings per Share - Diluted earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Numerator:
Net income (loss) available to Virtusa common stockholders	$ (193)	$ 4,747
Net income (loss) available to Virtusa common stockholders and assumed conversion	$ (193)	$ 4,747
Denominator:
Basic weighted average common shares outstanding (in shares)	30,168,174	30,167,910
Dilutive effect of employee stock options and unvested restricted stock awards and restricted stock units		766,501
Weighted average shares-diluted (in shares)	30,168,174	30,934,411
Diluted earnings (loss) per share available to Virtusa common stockholders (in dollars per share)	$ (0.01)	$ 0.15

Earnings per Share - Anti-dilut

Earnings per Share - Anti-dilutive securities (Details) - shares	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Unvested restricted stock awards, unvested restricted stock units and options to purchase
Anti-dilutive securities
Shares excluded from computation of earnings (loss) per share	1,354,558	0
Series A Convertible Preferred Stock
Anti-dilutive securities
Shares excluded from computation of earnings (loss) per share	3,000,000	3,000,000

Business Combinations - Transac

Business Combinations - Transaction details (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2020USD ($)	Mar. 31, 2020USD ($)item
Acquisitions
Payment of deferred consideration related to business acquisition	$ 6,313
Goodwill fair value adjustment	(4,526)
Change in fair value of contingent consideration	1,578
Fair value of contingent consideration	19,495
Fiscal 2020 aquisitions
Acquisitions
Number of business acquired | item		3
Aggregate purchase price		$ 29,624
Deferred consideration payable		$ 10,313
Deferred consideration payment term		1 year
Payment of deferred consideration related to business acquisition	6,313
Goodwill fair value adjustment	4,526
Fair value assessement of contingent consideration	3,915
Fair value of contingent consideration		$ 21,049
Fiscal 2020 aquisitions | Minimum
Acquisitions
Target performance period		12 months
Fiscal 2020 aquisitions | Maximum
Acquisitions
Target performance period		24 months
Fair value of contingent consideration		$ 28,853
Fiscal 2020 aquisitions | Customer Relationships
Acquisitions
Goodwill fair value adjustment	313
Fiscal 2020 aquisitions | Other Adjustments
Acquisitions
Goodwill fair value adjustment	$ 298

Business Combinations - Purchas

Business Combinations - Purchase price allocation (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Mar. 31, 2019
Consideration Transferred
Fair value of contingent consideration	$ 19,495
Assets and Liabilities:
Goodwill	$ 291,743	$ 296,493	$ 279,543
Weighted Average Useful Life at Aquisition	10 years 6 months	10 years 6 months
Customer Relationships
Assets and Liabilities:
Weighted Average Useful Life at Aquisition	10 years 7 months 6 days	10 years 7 months 6 days
Fiscal 2020 aquisitions
Consideration Transferred
Cash paid at closing		$ 29,624
Deferred consideration payable		10,313
Fair value of contingent consideration		21,049
Fair value of consideration		60,986
Less: Cash acquired		(477)
Total purchase price, net of cash acquired		60,509
Assets and Liabilities:
Cash and cash equivalents		477
Goodwill		22,790
Other net		(400)
Total purchase price		60,986
Fiscal 2020 aquisitions | Maximum
Consideration Transferred
Fair value of contingent consideration		28,853
Fiscal 2020 aquisitions | Customer Relationships
Assets and Liabilities:
Intangible assets		$ 38,119
Fiscal 2020 aquisitions | Customer Relationships | Minimum
Assets and Liabilities:
Weighted Average Useful Life at Aquisition		5 years
Fiscal 2020 aquisitions | Customer Relationships | Maximum
Assets and Liabilities:
Weighted Average Useful Life at Aquisition		7 years

Investment Securities (Details)

Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2020
Total available-for-sale debt securities and equity securities
Amortized Cost	$ 3,941		$ 9,551
Gross Unrealized Gains	101		238
Fair Value	4,042		9,789
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	5,781	$ 19,817
Gross gains	176	228
Net realized gains on sales of available-for-sale investment securities and equity securities	176	$ 228
Time deposits. | Current
Debt securities
Time deposits	3,307		3,927
Time deposits-current	3,307		3,927
Mutual funds | Current
Equity securities
Amortized Cost	633		5,623
Gross Unrealized Gains	95		235
Fair Value	728		5,858
Equity shares/ options | Noncurrent
Equity securities
Amortized Cost	1		1
Gross Unrealized Gains	6		3
Fair Value	$ 7		$ 4

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Financial assets and liabilities measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020
Liabilities:
Contingent consideration	$ 19,495
Fair Value Measurements Recurring
Investments:
Time deposits-current	3,307	$ 3,927
Equity securities - current	728	5,858
Equity securities - non-current	7	4
Derivative financial instruments:
Foreign currency derivative contracts-current	560	103
Foreign currency derivative contracts-non-current	379	56
Total assets	4,981	9,948
Liabilities:
Foreign currency derivative contracts-current	2,017	3,689
Foreign currency derivative contracts-non-current		364
Interest rate swap contracts - non-current	11,153	11,128
Contingent consideration	19,495	25,012
Total liabilities	32,665	40,193
Fair Value Measurements Recurring | Fair Value Inputs Level2
Investments:
Time deposits-current	3,307	3,927
Equity securities - current	728	5,858
Equity securities - non-current	7	4
Derivative financial instruments:
Foreign currency derivative contracts-current	560	103
Foreign currency derivative contracts-non-current	379	56
Total assets	4,981	9,948
Liabilities:
Foreign currency derivative contracts-current	2,017	3,689
Foreign currency derivative contracts-non-current		364
Interest rate swap contracts - non-current	11,153	11,128
Total liabilities	13,170	15,181
Fair Value Measurements Recurring | Fair Value Inputs Level 3
Liabilities:
Contingent consideration	19,495	25,012
Total liabilities	$ 19,495	$ 25,012

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Level 3 financial liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Changes in fair value of the Company's Level 3 financial liabilities
Contingent consideration recognized in earnings	$ 1,578
Foreign currency translation adjustment	(2,065)	$ 381
Fair Value Inputs Level 3
Changes in fair value of the Company's Level 3 financial liabilities
Balance at the beginning of the period	25,012
Purchase price adjustment	(3,915)
Contingent consideration recognized in earnings	(1,578)
Foreign currency translation adjustment	(24)
Balance at the end of the period	$ 19,495

Derivative Financial Instrume_3

Derivative Financial Instruments - (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2020	Mar. 31, 2020
Interest rate swaps
Derivative Financial Instruments
Notional value of outstanding contracts	$ 174,900
Outstanding term of derivative instruments	3 years
Unrealized loss on derivative	$ 11,153	$ 11,128
Interest rate swap 2018
Derivative Financial Instruments
Fixed interest rate	2.85%
Percentage of coverage target retain	50.00%
Interest rate swap 2018 | London Interbank Offered Rate L I B O R
Derivative Financial Instruments
Percentage of coverage on debt	50.00%
2016 interest rate swaps | 1-month LIBOR
Derivative Financial Instruments
Blended weighted average rate	1.025%
Designated As Hedging Instrument | Foreign Exchange Contract
Derivative Financial Instruments
Notional value of outstanding contracts	$ 112,922	$ 128,728
Unrealized net losses expected to be reclassified from AOCI to earnings during the next 12 months	$ (1,456)
Designated As Hedging Instrument | Foreign Exchange Contract | Maximum
Derivative Financial Instruments
Outstanding term of derivative instruments	15 months

Derivatives designated as hedgi

Derivatives designated as hedging instruments - Derivatives designated as hedging instruments (Details) - Designated As Hedging Instrument - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020
Foreign Exchange Contract
Foreign currency exchange and interest rate swap contracts
Other current assets	$ 560	$ 103
Other long-term assets	379	56
Accrued expenses and other	2,017	3,689
Long-term liabilities		364
Interest rate swaps
Foreign currency exchange and interest rate swap contracts
Long-term liabilities	$ 11,153	$ 11,128

Derivatives designated as hed_2

Derivatives designated as hedging instruments - Effect of foreign currency exchange and interest rate swap contracts (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Designated As Hedging Instrument | Cash flow hedges. | Revenue
Derivative Financial Instruments
Amount of Gain or (Loss) Reclassified from AOCI into Income (loss)		$ (18)
Designated As Hedging Instrument | Cash flow hedges. | Costs of revenue
Derivative Financial Instruments
Amount of Gain or (Loss) Reclassified from AOCI into Income (loss)	$ (613)	405
Designated As Hedging Instrument | Cash flow hedges. | Operating Expense
Derivative Financial Instruments
Amount of Gain or (Loss) Reclassified from AOCI into Income (loss)	(240)	200
Designated As Hedging Instrument | Cash flow hedges. | Interest expenses
Derivative Financial Instruments
Amount of Gain or (Loss) Reclassified from AOCI into Income (loss)	(710)	208
Designated As Hedging Instrument | Cash flow hedges. | Foreign Exchange Contract
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in AOCI on Derivatives	1,964	2,633
Designated As Hedging Instrument | Cash flow hedges. | Interest rate swaps
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in AOCI on Derivatives	(735)	(3,045)
Nondesignated | Foreign Exchange Contract | Revenue
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in Income (loss) on Derivatives	(129)	355
Nondesignated | Foreign Exchange Contract | Costs of revenue
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in Income (loss) on Derivatives	145	(226)
Nondesignated | Foreign Exchange Contract | Selling General And Administrative Expenses
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in Income (loss) on Derivatives	$ 14	$ (20)

Revenues and Accounts Receiva_3

Revenues and Accounts Receivable - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Disaggregation of Revenue
Revenue	$ 301,064	$ 319,024
Time-and-materials
Disaggregation of Revenue
Revenue	176,718	189,899
Fixed-price
Disaggregation of Revenue
Revenue	124,346	129,125
Application outsourcing
Disaggregation of Revenue
Revenue	162,420	181,963
Consulting
Disaggregation of Revenue
Revenue	138,644	137,061
Banking Financial Services and Insurance
Disaggregation of Revenue
Revenue	165,573	183,202
Communications and Technology
Disaggregation of Revenue
Revenue	72,364	70,066
Media & Information and Other
Disaggregation of Revenue
Revenue	22,330	19,153
Healthcare
Disaggregation of Revenue
Revenue	40,797	46,603
North America
Disaggregation of Revenue
Revenue	224,322	230,480
Europe
Disaggregation of Revenue
Revenue	50,424	63,080
Rest Of World
Disaggregation of Revenue
Revenue	$ 26,318	$ 25,464

Revenues and Accounts Receiva_4

Revenues and Accounts Receivable - Receivable and Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Significant movements in contract assets
Beginning balance	$ 14,241	$ 18,538
Revenues recognized during the period but not yet billed	18,369	20,859
Amounts billed	(19,068)	(20,594)
Other	(6)	(65)
Ending balance	13,536	18,738
Significant movements in deferred revenue balances
Beginning balance	8,054	6,421
Amounts billed but not yet recognized as revenues	5,930	4,123
Revenues recognized related to the opening balance of deferred revenue	(3,512)	(3,495)
Other	351	25
Ending balance	$ 10,823	$ 7,074

Revenues and Accounts Receiva_5

Revenues and Accounts Receivable - Remaining performance obligation (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2020USD ($)
Remaining performance obligation
Aggregate amount of transaction price allocated to remaining performance obligations	$ 30,235
Upfront payments
Unamortized upfront payments for services	$ 29,281
Amortization period for upfront payments for services	4 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01
Remaining performance obligation
Remaining performance obligation, expected period of recognition	5 years

Revenues and Accounts Receiva_6

Revenues and Accounts Receivable - Allowance for credit losses on accounts receivables (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Apr. 30, 2020	Jun. 30, 2020
Revenues and Accounts Receivable
Balance at March 31, 2020	$ 1,541	$ 1,541
Adjusted balance at April 1, 2020	$ 1,541
Current period provision for expected credit losses		71
Write-offs charged against the allowance		(218)
Foreign currency translation adjustments		7
Balance at June 30, 2020		$ 1,401

Series A Convertible Preferre_2

Series A Convertible Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	May 03, 2017	Jun. 30, 2020	Jun. 30, 2019
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
Cash dividends paid		1,046	1,046
Declared and accrued dividends		$ 686	$ 686
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 - (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2020USD ($)segment	Mar. 31, 2020USD ($)
Goodwill:
Number of operating segments | segment	1
Changes in goodwill
Beginning balance	$ 296,493	$ 279,543
Goodwill arising from acquisitions		27,316
Purchase price adjustment	(4,526)
Foreign currency translation adjustments	(224)	(10,366)
Ending balance	291,743	296,493
Acquisition costs and goodwill deductible for tax purposes	284,020
Acquisition costs and goodwill not deductible for tax purposes	20,627
Fiscal 2020 aquisitions
Changes in goodwill
Beginning balance	22,790
Purchase price adjustment	4,526
Ending balance		22,790
Acquired certain assets of a small consulting company purchase price
Cash paid at closing		9,651
Additional earn-out consideration		$ 9,853
Amount paid towards earn-out consideration	4,922
Probable and estimable value of the contingent consideration	$ 2,579

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Intangible assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2020	Mar. 31, 2020
Intangible Assets
Weighted Average Useful Life at Aquisition	10 years 6 months	10 years 6 months
Gross Carrying Amount	$ 179,259	$ 178,987
Accumulated Amortization	52,492	48,084
Net Carrying Amount	$ 126,767	$ 130,903
Customer Relationships
Intangible Assets
Weighted Average Useful Life at Aquisition	10 years 7 months 6 days	10 years 7 months 6 days
Gross Carrying Amount	$ 176,645	$ 176,373
Accumulated Amortization	50,839	46,494
Net Carrying Amount	$ 125,806	$ 129,879
Trademarks
Intangible Assets
Weighted Average Useful Life at Aquisition	2 years	2 years
Gross Carrying Amount	$ 900	$ 900
Accumulated Amortization	$ 900	$ 900
Technology
Intangible Assets
Weighted Average Useful Life at Aquisition	5 years	5 years
Gross Carrying Amount	$ 500	$ 500
Accumulated Amortization	$ 500	$ 500
Other
Intangible Assets
Weighted Average Useful Life at Aquisition	5 years	5 years
Gross Carrying Amount	$ 1,214	$ 1,214
Accumulated Amortization	253	190
Net Carrying Amount	$ 961	$ 1,024

Income Taxes - Tax Act (Details

Income Taxes - Tax Act (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Income Taxes
Effective tax rate (as a percent)	25.40%	44.00%
United States of America
Income Taxes
Deferred tax charge for disregarded entity election	$ 27,448
United Kingdom
Income Taxes
Deferred tax charge for disregarded entity election	$ 1,914

Income Taxes - Income tax holid

Income Taxes - Income tax holiday (Details)	Apr. 01, 2019	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2019
Income Taxes
Effective tax rate (as a percent)		25.40%	44.00%
India
Income Taxes
Effective tax rate (as a percent)	25.17%			34.90%
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	12 Months Ended
	Jun. 30, 2020	Mar. 31, 2020
Income Taxes
Total liability for unrecognized tax benefits	$ 6,443	$ 6,627
Increase (decrease) in unrecognized tax benefits	(184)	$ 80
Cash, cash equivalents, short-term investments and long-term investments available for distribution if not indefinitely reinvested	$ 191,252

Concentration of Revenue and _3

Concentration of Revenue and Assets - Geographic concentration (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2020
Concentration of Revenue and Assets
Revenue	$ 301,064	$ 319,024
Long-lived assets, net	517,833		$ 528,646
United States of America
Concentration of Revenue and Assets
Revenue	212,480	218,092
Long-lived assets, net	264,366		272,422
United Kingdom
Concentration of Revenue and Assets
Revenue	39,574	49,879
India
Concentration of Revenue and Assets
Long-lived assets, net	235,326		238,367
Rest Of World
Concentration of Revenue and Assets
Revenue	49,010	$ 51,053
Long-lived assets, net	$ 18,141		$ 17,857

Concentration of Revenue and _4

Concentration of Revenue and Assets - Revenue percentage (Details)	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Customer Concentration Risk | Sales Revenue Net | Customer A
Concentration of Revenue and Assets
Revenue from significant clients as a percentage of consolidated revenue	17.00%	15.50%

Debt - Credit Agreement (Detail

Debt - Credit Agreement (Details) $ in Thousands	May 27, 2020USD ($)item	Oct. 15, 2019USD ($)	Mar. 12, 2018USD ($)	Feb. 06, 2018USD ($)	Jun. 30, 2020USD ($)	Mar. 31, 2020USD ($)	Mar. 31, 2020USD ($)	May 26, 2020	Oct. 14, 2019USD ($)	Feb. 05, 2018USD ($)
eTouch
Debt
Anniversary payment term							18 months
Anniversary payment of eTouch							$ 17,500
Debt Instrument, From May 27, 2020 And Not More Than Period Ending Prior To December 31, 2020
Debt
Maximum leverage ratio for next nine months	3.25
Credit Agreement | JPM | London Interbank Offered Rate L I B O R
Debt
Interest rate (as a percent)		2.75%
Credit Agreement | JPM | Revolving credit facility
Debt
Maximum borrowing capacity under the credit agreement				$ 200,000
Amount drawn down on credit facility				55,000			$ 145,000
Credit Agreement | JPM | Delayed-draw term loan
Debt
Maximum borrowing capacity under the credit agreement				70,000
Amount drawn down on credit facility			$ 70,000
Credit Agreement | JPM | Term loan facility
Debt
Maximum borrowing capacity under the credit agreement				180,000
Amount drawn down on credit facility				$ 180,000
Required principal payments per quarter					$ 4,336
Frequency of required principal payments					Quarterly
Term of credit facility					5 years
Weighted average interest rate					3.75%
Credit Agreement | JPM | COVID-19
Debt
Amount drawn down on credit facility						$ 84,000
Prior Credit Agreement | JPM
Debt
Maximum borrowing capacity under the credit agreement										$ 300,000
Credit Agreement Amendment | JPM | Revolving credit facility
Debt
Maximum borrowing capacity under the credit agreement		$ 275,000							$ 200,000
Third Credit Agreement Amendement | Delayed-draw term loan
Debt
Amount under term loan	$ 62,492
Term of credit facility	364 days
Amount prepaid	$ 55,000
Third Credit Agreement Amendement | Delayed-draw term loan | London Interbank Offered Rate L I B O R
Debt
Interest rate (as a percent)	3.50%
Third Credit Agreement Amendement | Minimum | Delayed-draw term loan
Debt
LIBOR floor interest rate	1.00%							0.00%
Third Credit Agreement Amendement | Maximum | Delayed-draw term loan
Debt
Number of draw downs before September 24,2020 | item	3
Third Credit Agreement Amendement | JPM
Debt
Total amount outstanding under the credit agreement					$ 440,633

Debt - Current portion of long-

Debt - Current portion of long-term debt (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020
Current portion of long-term debt
Total	$ 17,192	$ 16,043
JPM
Current portion of long-term debt
Term loan - current maturities	18,789	17,344
Less: deferred financing costs, current	(1,597)	(1,301)
Total	$ 17,192	$ 16,043

Debt - Long-term debt, less cur

Debt - Long-term debt, less current portion (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020
Less:
Total	$ 419,205	$ 480,154
JPM
Less:
Current maturities	(18,789)	(17,344)
Deferred financing costs, long-term	(2,639)	(2,471)
Total	419,205	480,154
Delayed-draw term loan | JPM
Long-term debt, less current portion
Term loan and borrowings under revolving credit facility	221,133	225,469
Revolving credit facility | JPM
Long-term debt, less current portion
Term loan and borrowings under revolving credit facility	$ 219,500	$ 274,500

Debt - Sale of accounts receiva

Debt - Sale of accounts receivable (Details) - U.K. Subsidiary $ in Thousands	3 Months Ended
	Jun. 30, 2020USD ($)
Debt
Receivables sold under the terms of the financing agreement	$ 13,210
Amounts due related to a financing agreement to sell certain accounts receivable balances	$ 0

Stock-Based Compensation Plans

Stock-Based Compensation Plans (Details) - shares	1 Months Ended	3 Months Ended
	May 31, 2020	Jun. 30, 2020
Performance-based awards
Stock Options, Restricted Stock Awards and Stock Appreciation Rights
Vesting period	3 years
Number of Options to Purchase Common Shares
Granted (in shares)	250,075
2015 Plan | Stock options, restricted stock and restricted stock units
Stock Options, Restricted Stock Awards and Stock Appreciation Rights
Vesting period		4 years
2015 Plan | Performance-based awards
Stock Options, Restricted Stock Awards and Stock Appreciation Rights
Vesting period		3 years

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Changes in the components of accumulated other comprehensive income (loss)
Balance	$ 397,441	$ 390,774
Reclassifications from OCI to:
Other income	(307)	(364)
Revenue	(301,064)	(319,024)
Costs of revenue	232,460	234,735
Selling, general and administrative expenses	61,449	70,861
Interest expense	5,299	4,908
Less: comprehensive income attributable to noncontrolling interest, net of tax		330
Other income (expense), net of tax	5,957	2,669
Balance	403,299	399,202
Investment securities, including noncontrolling interests
Changes in the components of accumulated other comprehensive income (loss)
OCI before reclassifications net of tax		1
Other Comprehensive Income (Loss), Tax
OCI before reclassifications, Tax	0	0
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
Investment securities, noncontrolling interests
Other Comprehensive Income (Loss), Tax
Noncontrolling interests, Tax	0	0
Accumulated Net Unrealized Investment Gain Loss
Changes in the components of accumulated other comprehensive income (loss)
Balance	12	12
Reclassifications from OCI to:
Comprehensive income (loss)		3
Balance	12	15
Other Comprehensive Income (Loss), Tax
Comprehensive income (loss), Tax	0	0
Currency Translation Adjustments, including noncontrolling interests
Reclassifications from OCI to:
Less : Noncontrolling interests, net of tax		(137)
Foreign currency translation noncontrolling interests
Changes in the components of accumulated other comprehensive income (loss)
OCI before reclassifications net of tax	2,065	(381)
Accumulated Translation Adjustment
Changes in the components of accumulated other comprehensive income (loss)
Balance	(71,207)	(57,354)
Reclassifications from OCI to:
Comprehensive income (loss)	2,065	(518)
Balance	(69,142)	(57,872)
Cash Flow Hedges, including noncontrolling interests.
Changes in the components of accumulated other comprehensive income (loss)
OCI before reclassifications net of tax	966	(202)
Other Comprehensive Income (Loss), Tax
OCI before reclassifications, Tax	263	(210)
Cash Flow Hedges, including noncontrolling interests. | Reclassification Out Of Accumulated Other Comprehensive Income
Reclassifications from OCI to:
Revenue		12
Costs of revenue	466	(328)
Selling, general and administrative expenses	182	(162)
Interest expense	523	(154)
Cash Flow Hedges, noncontrolling interests.
Reclassifications from OCI to:
Less : Noncontrolling interests, net of tax		(1)
Other Comprehensive Income (Loss), Tax
Noncontrolling interests, Tax	0	0
Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges.
Changes in the components of accumulated other comprehensive income (loss)
Balance	(11,818)	39
Reclassifications from OCI to:
Comprehensive income (loss)	2,137	(835)
Balance	(9,681)	(796)
Other Comprehensive Income (Loss), Tax
Comprehensive income (loss), Tax	655	(373)
Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges. | Revenue
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	0	6
Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges. | Costs of revenue
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	147	(77)
Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges. | Selling General And Administrative Expenses
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	58	(38)
Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges. | Interest expenses
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	187	(54)
Benefit plans, including noncontrolling interests
Changes in the components of accumulated other comprehensive income (loss)
OCI before reclassifications net of tax	11	123
Reclassifications from OCI to:
Other adjustments	(38)	(3)
Other Comprehensive Income (Loss), Tax
OCI before reclassifications, Tax	0	0
Benefit plans, prior service credit (cost), including noncontrolling interests | Other income (expense)
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	0	0
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	10	6
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 | Other adjustments
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	96	36
Benefit plans, noncontrolling interests
Reclassifications from OCI to:
Less : Noncontrolling interests, net of tax		(6)
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	(2,242)	(2,084)
Reclassifications from OCI to:
Comprehensive income (loss)	79	156
Balance	(2,163)	(1,928)
Other Comprehensive Income (Loss), Tax
Comprehensive income (loss), Tax	0	0
Accumulated Other Comprehensive Income (Loss)
Changes in the components of accumulated other comprehensive income (loss)
Balance	(85,255)	(59,387)
Reclassifications from OCI to:
Balance	$ (80,974)	$ (60,581)

Commitments, Contingencies and

Commitments, Contingencies and Guarantees - Loss contingencies (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2020USD ($)	Feb. 28, 2019USD ($)
Loss contingencies
Impact on income from operations and cash flows		$ 7,500
Number of litigation filled	0
Indemnification Guarantee
Loss contingencies
Liability recorded	$ 0
Acts Under Information Technology Services
Loss contingencies
Liability recorded	$ 0