Virtusa (VRTU) 10-Q 9 Feb 21 2021 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Dec. 31, 2020	Feb. 04, 2021
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	Dec. 31, 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		30,340,986
Entity Shell Company	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2020	Mar. 31, 2020
Current assets:
Cash and cash equivalents	$ 347,173	$ 290,837
Short-term investments	2,633	9,785
Accounts receivable, net of allowance of $1,085 and $1,541 at December 31, 2020 and March 31, 2020, respectively	140,012	148,950
Unbilled accounts receivable	79,681	137,839
Prepaid expenses	54,155	55,574
Restricted cash	5,786	659
Assets held for sale		8,334
Other current assets	33,338	29,214
Total current assets	662,778	681,192
Property and equipment, net	97,614	101,250
Operating lease right-of-use assets	40,750	48,684
Investments accounted for using equity method		1,336
Long-term investments	22	4
Deferred income taxes	29,715	30,225
Goodwill	295,591	296,493
Intangible assets, net	119,202	130,903
Other long-term assets	34,421	46,980
Total assets	1,280,093	1,337,067
Current liabilities:
Accounts payable	25,253	38,537
Accrued employee compensation and benefits	97,364	79,373
Deferred revenue	15,484	8,054
Accrued expenses and other	82,733	95,124
Current portion of long-term debt	20,083	16,043
Operating lease liabilities	11,552	11,543
Income taxes payable	11,530	3,233
Total current liabilities	263,999	251,907
Deferred income taxes	15,239	16,067
Operating lease liabilities, noncurrent	34,468	41,697
Long-term debt, less current portion	358,441	480,154
Long-term liabilities	42,007	42,475
Total liabilities	714,154	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 December 31, 2020 and March 31, 2020; redemption amount and liquidation preference of $108,000 at December 31, 2020 and March 31, 2020	107,450	107,326
Stockholders' equity:
Undesignated preferred stock, $0.01 par value; Authorized 5,000,000 shares at December 31, 2020 and March 31, 2020
Common stock, $0.01 par value; Authorized 120,000,000 shares at December 31, 2020 and March 31, 2020; issued 33,717,535 and 33,518,389 shares at December 31, 2020 and March 31, 2020, respectively; outstanding 30,331,971 and 30,132,825 shares at December 31, 2020 and March 31, 2020, respectively	337	335
Treasury stock, 3,385,564 common shares, at cost, at December 31, 2020 and March 31, 2020cember 31, 2020 and March 31, 2020	(58,332)	(58,332)
Additional paid-in capital	257,187	246,862
Retained earnings	325,679	293,831
Accumulated other comprehensive loss	(66,382)	(85,255)
Total Stockholders' equity	458,489	397,441
Total liabilities, Series A convertible preferred stock, and stockholders' equity	$ 1,280,093	$ 1,337,067

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2020	Mar. 31, 2020
Consolidated Balance Sheets
Accounts receivable, allowance (in dollars)	$ 1,085	$ 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	33,717,535	33,518,389
Common stock, shares outstanding	30,331,971	30,132,825
Treasury stock, common shares	3,385,564	3,385,564

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Consolidated Statements of Income
Revenue	$ 346,100	$ 335,107	$ 964,352	$ 982,632
Costs of revenue	232,142	236,427	697,772	709,746
Gross profit	113,958	98,680	266,580	272,886
Operating expenses:
Selling, general and administrative expenses	72,507	68,270	205,248	209,813
Income from operations	41,451	30,410	61,332	63,073
Other income (expense):
Interest income	230	520	698	1,744
Interest expense	(5,187)	(4,873)	(16,222)	(14,616)
Foreign currency transaction gains (losses), net	1,126	(3,065)	3,983	(5,300)
Other, net	(397)	209	1,145	1,137
Total other expense	(4,228)	(7,209)	(10,396)	(17,035)
Income before income tax expense	37,223	23,201	50,936	46,038
Income tax expense	11,776	10,363	15,826	19,932
Net income	25,447	12,838	35,110	26,106
Less: net income attributable to noncontrolling interests, net of tax		118		450
Net income available to Virtusa stockholders	25,447	12,720	35,110	25,656
Less: Series A Convertible Preferred Stock dividends and accretion	1,087	1,087	3,262	3,262
Net income available to Virtusa common stockholders	$ 24,360	$ 11,633	$ 31,848	$ 22,394
Basic earnings per share available to Virtusa common stockholders (in dollars per share)	$ 0.80	$ 0.39	$ 1.05	$ 0.75
Diluted earnings per share available to Virtusa common stockholders (in dollars per share)	$ 0.75	$ 0.38	$ 1.04	$ 0.73

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Consolidated Statements of Comprehensive Income (Loss)
Net income	$ 25,447	$ 12,838	$ 35,110	$ 26,106
Other comprehensive income (loss):
Foreign currency translation adjustment	5,933	4,630	13,618	(2,106)
Pension plan adjustment, net of tax effect	114	79	285	(606)
Unrealized gain (loss) on effective cash flow hedges, net of tax effect	762	(2,817)	4,970	(5,031)
Other comprehensive income (loss)	6,809		18,873
Other comprehensive income (loss)		1,892		(7,743)
Comprehensive income	32,256	14,730	53,983	18,363
Less: comprehensive income attributable to noncontrolling interest, net of tax		484		849
Comprehensive income available to Virtusa stockholders	$ 32,256	$ 14,246	$ 53,983	$ 17,514

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total Virtusa Stockholders' Equity	Common Stock	Treasury Stock	Additional Paid In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Non-controlling interest	Redeemable Noncontrolling Interest	Total
Balance at Mar. 31, 2019	$ 390,774	$ 330	$ (39,652)	$ 239,204	$ 250,279	$ (59,387)		$ 23,576	$ 390,774
Balance (in shares) at Mar. 31, 2019		33,012,775	(2,879,999)
Increase (Decrease) in Stockholders' Equity
Proceeds from the exercise of stock options	194			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)					(2,011)
Share-based compensation	6,674			6,674					6,674
Adjustments of redeemable noncontrolling interest to redemption value	18			18				170	18
Purchase of redeemable noncontrolling interest related to Polaris								5,549
Foreign currency translation on redeemable noncontrolling interest								116
Series A Convertible Preferred Stock dividends and accretion	(1,087)				(1,087)				(1,087)
Other comprehensive income (loss)	(1,194)
Other comprehensive income (loss)						(1,194)		144	(1,194)
Net income	5,834				5,834			186
Net income									5,834
Balance at Jun. 30, 2019	399,202	$ 331	$ (39,652)	244,078	255,026	(60,581)		18,651	399,202
Balance (in shares) at Jun. 30, 2019		33,122,954	(2,879,999)
Balance at Mar. 31, 2019	390,774	$ 330	$ (39,652)	239,204	250,279	(59,387)		23,576	390,774
Balance (in shares) at Mar. 31, 2019		33,012,775	(2,879,999)
Increase (Decrease) in Stockholders' Equity
Purchase of redeemable noncontrolling interest related to Polaris									8,675
Net income									25,656
Net income									(450)
Balance at Dec. 31, 2019		$ 332	$ (58,332)	256,152	272,673	(67,529)			403,296
Balance (in shares) at Dec. 31, 2019		33,246,073	(3,385,564)
Balance at Jun. 30, 2019	399,202	$ 331	$ (39,652)	244,078	255,026	(60,581)		18,651	399,202
Balance (in shares) at Jun. 30, 2019		33,122,954	(2,879,999)
Increase (Decrease) in Stockholders' Equity
Restricted stock awards vested		$ 1		(1)
Restricted stock awards vested (in shares)		101,178
Restricted stock awards withheld for tax	(1,647)			(1,647)					(1,647)
Share-based compensation	5,829			5,829					5,829
Repurchase of common stock	(18,680)		$ (18,680)						(18,680)
Repurchase of common stock (in shares)			(505,565)
Adjustments of redeemable noncontrolling interest to redemption value	25			25				101	25
Purchase of redeemable noncontrolling interest related to Polaris								3,126
Reclassification of noncontrolling interest from temporary equity to permanent equity							$ 15,093	(15,093)	15,093
Foreign currency translation on redeemable noncontrolling interest								$ (533)
Series A Convertible Preferred Stock dividends and accretion	(1,088)				(1,088)				(1,088)
Other comprehensive income (loss)	(8,474)					(8,474)	(111)
Other comprehensive income (loss)									(8,585)
Net income	7,102				7,102
Net income							146
Net income									7,248
Balance at Sep. 30, 2019	382,269	$ 332	$ (58,332)	248,284	261,040	(69,055)	15,128		397,397
Balance (in shares) at Sep. 30, 2019		33,224,132	(3,385,564)
Increase (Decrease) in Stockholders' Equity
Proceeds from the exercise of stock options	233			233					233
Proceeds from the exercise of stock options (in shares)		15,914
Restricted stock awards vested (in shares)		6,027
Restricted stock awards withheld for tax	(126)			(126)					(126)
Share-based compensation	5,750			5,750					5,750
Reclassification of noncontrolling interest from permanent equity to liability.							(13,564)		(13,564)
Adjustments for reclassification of noncontrolling interest	2,011			2,011			(2,048)		(37)
Series A Convertible Preferred Stock dividends and accretion	(1,087)				(1,087)				(1,087)
Other comprehensive income (loss)	1,526
Other comprehensive income (loss)						1,526	366		1,892
Net income	12,720				12,720				12,720
Net income							$ 118		(118)
Net income									12,838
Balance at Dec. 31, 2019		$ 332	$ (58,332)	256,152	272,673	(67,529)			403,296
Balance (in shares) at Dec. 31, 2019		33,246,073	(3,385,564)
Increase (Decrease) in Stockholders' Equity
Total Stockholders' equity	$ 403,296
Total Stockholders' equity									397,441
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
Series A Convertible Preferred Stock dividends and accretion					(1,087)				(1,087)
Other comprehensive income (loss)						4,281			4,281
Net income					894				894
Balance at Jun. 30, 2020		$ 336	$ (58,332)	248,631	293,638	(80,974)
Balance (in shares) at Jun. 30, 2020		33,632,544	(3,385,564)
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
Other comprehensive income (loss)									$ 18,873
Net income									$ 35,110
Balance at Dec. 31, 2020		$ 337	$ (58,332)	257,187	325,679	(66,382)
Balance (in shares) at Dec. 31, 2020		33,717,535	(3,385,564)						30,331,971
Increase (Decrease) in Stockholders' Equity
Total Stockholders' equity									$ 403,299
Balance at Jun. 30, 2020		$ 336	$ (58,332)	248,631	293,638	(80,974)
Balance (in shares) at Jun. 30, 2020		33,632,544	(3,385,564)
Increase (Decrease) in Stockholders' Equity
Proceeds from the exercise of stock options				472					472
Proceeds from the exercise of stock options (in shares)		24,868
Restricted stock awards vested		$ 1		(1)
Restricted stock awards vested (in shares)		37,661
Restricted stock awards withheld for tax				(167)					(167)
Share-based compensation				4,078					4,078
Series A Convertible Preferred Stock dividends and accretion					(1,088)				(1,088)
Other comprehensive income (loss)						7,783			7,783
Net income					8,769				8,769
Balance at Sep. 30, 2020		$ 337	$ (58,332)	253,013	301,319	(73,191)
Balance (in shares) at Sep. 30, 2020		33,695,073	(3,385,564)
Increase (Decrease) in Stockholders' Equity
Total Stockholders' equity									423,146
Proceeds from the exercise of stock options				257					257
Proceeds from the exercise of stock options (in shares)		15,037
Restricted stock awards vested (in shares)		7,425
Restricted stock awards withheld for tax				(110)					(110)
Share-based compensation				4,027					4,027
Series A Convertible Preferred Stock dividends and accretion					(1,087)				(1,087)
Other comprehensive income (loss)						6,809			6,809
Net income					25,447				$ 25,447
Balance at Dec. 31, 2020		$ 337	$ (58,332)	$ 257,187	$ 325,679	$ (66,382)
Balance (in shares) at Dec. 31, 2020		33,717,535	(3,385,564)						30,331,971
Increase (Decrease) in Stockholders' Equity
Total Stockholders' equity									$ 458,489

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net income	$ 35,110	$ 26,106
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	25,930	23,672
Share-based compensation expense	11,697	18,285
Gain on redemption of equity method investment	(1,179)
Provision (recovery) for doubtful accounts	(22)	26
Loss (gain) on disposal of property and equipment	543	(403)
Impairment of investment		184
Foreign currency transaction (gains) losses, net	(3,983)	5,300
Amortization of discounts and premiums on investments		(6)
Impairment of operating lease right-of-use asset	1,413
Amortization of debt issuance cost	1,148	863
Deferred income taxes, net	39	(970)
Net changes in operating assets and liabilities
Accounts receivable and unbilled receivable	80,130	19,129
Prepaid expenses and other current assets	7,178	(1,258)
Other long-term assets	2,152	(11,239)
Accounts payable	(14,870)	(12,730)
Accrued employee compensation and benefits	8,861	4,611
Accrued expenses and other current liabilities	8,828	1,895
Operating lease liabilities	(715)	172
Income taxes payable	5,676	2,537
Other long-term liabilities	3,480	(1,720)
Net cash provided by operating activities	171,416	74,454
Cash flows from investing activities:
Proceeds from sale of property and equipment	11,902	825
Purchase of short-term investments	(42)	(34,969)
Proceeds from sale or maturity of short-term investments	7,217	47,716
Payment for asset acquisitions	(27)	(9,192)
Payment of contingent consideration of asset acquisition		(942)
Payment of deferred consideration related to business acquisitions	(10,313)	(17,500)
Purchase of property and equipment	(5,865)	(10,865)
Net cash provided by (used in) investing activities	2,872	(24,927)
Cash flows from financing activities:
Payment of debt issuance costs	(813)	(808)
Proceeds from revolving credit facility		36,000
Payment of debt	(13,008)	(9,141)
Repurchase of common stock		(18,680)
Payments of withholding taxes related to net share settlements of restricted stock	(2,191)	(3,783)
Purchase of redeemable noncontrolling interest related to Polaris		(8,675)
Payment of noncontrolling interest		(12,534)
Principal payments on capital lease obligation		(36)
Payment of dividend on Series A Convertible Preferred Stock	(3,138)	(3,138)
Payment of revolving credit facility	(105,000)
Payment of contingent consideration related to acquisitions	(5,767)
Net cash used in financing activities	(129,096)	(20,275)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	16,269	(131)
Net increase in cash and cash equivalents and restricted cash	61,461	29,121
Cash, cash equivalents and restricted cash, beginning of year	291,601	190,113
Cash, cash equivalents and restricted cash, end of period	353,062	219,234
Parent
Cash flows from financing activities:
Proceeds from exercise of stock options	$ 821	427
Subsidiaries
Cash flows from financing activities:
Proceeds from exercise of stock options		$ 93

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2020	Mar. 31, 2020
Balance sheet classification
Cash and cash equivalents	$ 347,173	$ 290,837
Restricted cash in current assets	5,786	659
Restricted cash in other long-term assets	103	105
Total restricted cash	5,889	764
Total cash, cash equivalents and restricted cash	$ 353,062	$ 291,601

Nature of the Business

Nature of the Business	9 Months Ended
	Dec. 31, 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	9 Months Ended
	Dec. 31, 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, share-based compensation, 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 December 31, 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 7 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 9, “Revenues 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 does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. ​

Earnings per Share

Earnings per Share	9 Months Ended
	Dec. 31, 2020
Earnings per Share
Earnings per Share	(3) Earnings per Share ​ Basic earnings 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 per share are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ December 31, ​ December 31, ​ ​ 2020 2019 2020 2019 ​ Numerators: ​ ​ ​ ​ ​ ​ Net income available to Virtusa stockholders ​ $ 25,447 ​ $ 12,720 ​ $ 35,110 ​ $ 25,656 ​ Less: Series A Convertible Preferred Stock dividends and accretion ​ (1,087) ​ (1,087) ​ (3,262) ​ (3,262) ​ Net income available to Virtusa common stockholders ​ $ 24,360 ​ $ 11,633 ​ $ 31,848 ​ $ 22,394 ​ Denominators: ​ ​ ​ ​ ​ Basic weighted average common shares outstanding ​ 30,319,615 ​ 29,849,368 ​ 30,252,264 ​ 30,041,740 ​ Basic earnings per share available to Virtusa common stockholders ​ $ 0.80 ​ $ 0.39 ​ $ 1.05 ​ $ 0.75 ​ ​ The components of diluted earnings per share are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ December 31, ​ December 31, ​ ​ 2020 2019 2020 2019 ​ Numerators: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income available to Virtusa common stockholders ​ $ 24,360 ​ $ 11,633 ​ $ 31,848 ​ $ 22,394 ​ Add : Series A Convertible Preferred Stock dividends and accretion ​ ​ 1,087 ​ ​ 1,087 ​ ​ — ​ ​ — ​ Net income available to Virtusa common stockholders and assumed conversion ​ $ 25,447 ​ $ 12,720 ​ $ 31,848 ​ $ 22,394 ​ Denominators: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic weighted average common shares outstanding ​ 30,319,615 ​ 29,849,368 ​ 30,252,264 ​ 30,041,740 ​ Dilutive effect of Series A Convertible Preferred Stock if converted ​ ​ 3,000,000 ​ ​ 3,000,000 ​ ​ — ​ ​ — ​ Dilutive effect of employee stock options and unvested restricted stock awards and restricted stock units ​ 577,981 ​ 608,863 ​ 412,878 ​ 658,529 ​ Weighted average shares—diluted ​ 33,897,596 ​ 33,458,231 ​ 30,665,142 ​ 30,700,269 ​ Diluted earnings per share available to Virtusa common stockholders ​ $ 0.75 ​ $ 0.38 ​ $ 1.04 ​ $ 0.73 ​ ​ During the three months ended December 31, 2020 and 2019, unvested restricted stock awards and unvested restricted stock units issuable for, and options to purchase 823 and 24,037 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 December 31, 2020 and 2019 all of the 3,000,000 shares of Series A Convertible Preferred Stock were included in the calculations of diluted earnings per share as their effect would have been anti-dilutive. ​ During the nine months ended December 31, 2020 and 2019, unvested restricted stock awards and unvested restricted stock units issuable for, and options to purchase 127,504 and 100,434 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 nine months ended December 31, 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.

Proposed Merger with Austin Hol

Proposed Merger with Austin HoldCo Inc., an entity wholly owned by funds affiliated with Baring Private Equity Asia	9 Months Ended
	Dec. 31, 2020
Proposed Merger with Austin HoldCo Inc., an entity wholly owned by funds affiliated with Baring Private Equity Asia.
Proposed Merger with Austin HoldCo Inc., an entity wholly owned by funds affiliated with Baring Private Equity Asia	(4) Proposed Merger with Austin HoldCo Inc., an entity wholly-owned by funds affiliated with Baring Private Equity Asia On September 9, 2020, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”), with Austin HoldCo Inc., an entity wholly-owned by funds affiliated with Baring Private Equity Asia (“Parent”), and Austin BidCo Inc., a wholly-owned subsidiary of Parent (“Sub”), with respect to the acquisition of the Company by Parent for $51.35 in cash for each share of Virtusa common stock. ​ Pursuant to the Merger Agreement, Sub will be merged with and into the Company (the “Merger”), with the Company surviving the Merger as a wholly-owned subsidiary of Parent. Consummation of the Merger is subject to various conditions, including, among others, customary conditions relating to the approval of the Merger Agreement by the requisite vote of the Company’s stockholders, the receipt of certain foreign regulatory approvals and the approval or other clearance of the Committee on Foreign Investments in the United States (“CFIUS”). The applicable waiting period under the Hart-Scott Rodino Antitrust Improvements Act of 1976, as amended (“HSR Act”), with respect to the transactions contemplated by the Merger Agreement expired on October 23, 2020 without any review. Consummation of the Merger is not subject to any financing condition, and is expected to occur in the first half of calendar year 2021. On December 21, 2020, the Company received written notice from the Committee on Foreign Investment in the United States (“CFIUS”) that it had concluded its review under Section 721 of the Defense Production Act of 1950, as amended, of the Merger. CFIUS determined that there are no unresolved national security concerns with respect to the Merger. Receipt of the CFIUS clearance satisfies a certain condition to the closing of the Merger. On November 20, 2020, via a special meeting of stockholders, the stockholders of the Company approved and adopted the Merger Agreement. On January 11, 2021, the Competition Commission of India (“CCI”) approved the Merger. The closing of the Merger remains subject to the satisfaction or waiver of the remaining conditions to the Merger set forth in the Merger Agreement. The Company expects to incur significant costs, expenses and fees for professional services and other transaction costs in connection with the Merger. During the nine months ended December 31, 2020, the Company incurred approximately $6,367 as transaction costs in connection with the Merger. If the Merger Agreement is terminated under specified circumstances, the Company may be required to pay a termination fee of $54,330 to Austin HoldCo Inc. ​

Business Combinations

Business Combinations	9 Months Ended
	Dec. 31, 2020
Business Combinations
Business Combinations	(5) 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. During the nine months ended December 31, 2020, the Company completed its purchase price allocation for all of the three acquired businesses. During the nine months ended December 31, 2020, the Company paid $10,313 in deferred consideration and $4,051 in contingent consideration related to these acquisitions. During the nine months ended December 31, 2020, the Company recorded $5,942 as a reduction of goodwill related to updating the fair value assessment of contingent consideration of $4,178 , customer relationships of $1,513 and other adjustments of $251 . The following table shows the aggregate 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 ​ ​ 20,786 ​ ​ ​ ​ Fair value of consideration ​ ​ 60,723 ​ ​ ​ ​ Less: Cash acquired ​ ​ (477) ​ ​ ​ ​ Total purchase price, net of cash acquired $ 60,246 ​ ​ ​ ​ Assets and Liabilities: ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ ​ 477 ​ ​ ​ ​ Goodwill ​ ​ 21,374 ​ ​ ​ ​ Customer relationships ​ ​ 39,319 ​ 5 - 7 years Other net ​ ​ (447) ​ ​ ​ ​ Total purchase price ​ $ 60,723 ​ ​ ​ ​ ​ 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 nine months ended December 31, 2020, the Company recorded $453 in the Company’s consolidated statements income as fair value changes to the contingent consideration r elated to events that occurred in the current period. As of December 31, 2020, the fair value of contingent consideration for these acquisitions is $16,405 .

Investment Securities

Investment Securities	9 Months Ended
	Dec. 31, 2020
Investment Securities.
Investment Securities	(6) Investment Securities ​ At December 31, 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 7 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 December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ Cost Gains Losses Fair Value Time Deposits: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 1,851 ​ $ — ​ $ — ​ $ 1,851 Equity securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mutual funds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 652 ​ ​ 130 ​ ​ — ​ ​ 782 Equity Shares/ Options: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current ​ ​ 1 ​ ​ 21 ​ ​ — ​ ​ 22 Total investment securities ​ $ 2,504 ​ $ 151 ​ $ — ​ $ 2,655 ​ 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 December 31, 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 ​ Nine Months Ended ​ ​ ​ December 31, ​ December 31, ​ ​ 2020 2019 2020 2019 ​ Proceeds from sales or maturities of available-for-sale ​ $ 649 ​ $ 9,476 ​ $ 7,217 ​ $ 47,716 ​ Gross gains ​ $ — ​ $ 123 ​ $ 176 ​ $ 563 ​ Gross losses ​ — ​ — ​ — ​ — ​ Net realized gains on sales of available-for-sale debt ​ $ — ​ $ 123 ​ $ 176 ​ $ 563 ​ ​

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Dec. 31, 2020
Fair Value of Financial Instruments
Fair Value of Financial Instruments	(7) 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 December 31, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1 Level 2 Level 3 Total Assets: ​ ​ ​ ​ Investments: ​ ​ ​ ​ Time deposits—current ​ $ — ​ $ 1,851 ​ ​ — ​ $ 1,851 Equity securities—current ​ ​ — ​ ​ 782 ​ ​ — ​ ​ 782 Equity securities—non-current ​ ​ — ​ ​ 22 ​ ​ — ​ ​ 22 Derivative financial instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency derivative contracts—current ​ ​ — ​ ​ 1,759 ​ ​ — ​ ​ 1,759 Foreign currency derivative contracts—non-current ​ — ​ — ​ ​ — ​ — Interest rate swap contracts ​ — ​ — ​ ​ — ​ — Total assets ​ $ — ​ $ 4,414 ​ $ — ​ $ 4,414 Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency derivative contracts—current ​ ​ — ​ 1,186 ​ ​ — ​ 1,186 Foreign currency derivative contracts—non-current ​ ​ — ​ — ​ ​ — ​ — Interest rate swap contracts—non-current ​ ​ — ​ ​ 8,884 ​ ​ — ​ ​ 8,884 Contingent consideration ​ ​ — ​ ​ — ​ ​ 16,405 ​ ​ 16,405 Total liabilities ​ $ — ​ $ 10,070 ​ $ 16,405 ​ $ 26,475 ​ 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: ​ ​ ​ ​ ​ ​ ​ December 31, 2020 Beginning balance ​ $ 25,012 ​ Purchase price adjustments ​ ​ (4,178) ​ Payments made during the period ​ ​ (4,051) ​ Contingent consideration recognized in earnings ​ (453) ​ Foreign currency translation adjustments ​ ​ 75 ​ Ending balance ​ $ 16,405 ​ ​

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Dec. 31, 2020
Derivative Financial Instruments
Derivative Financial Instruments	(8) 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 $87,693 and $128,728, respectively, at December 31, 2020 and March 31, 2020. Unrealized net gains related to these contracts which are expected to be reclassified from AOCI to earnings during the next 12 months are $573 at December 31, 2020. At December 31, 2020, the maximum outstanding term of any derivative instrument was 12 months . ​ The Company also uses interest rate swaps to mitigate the Company’s interest rate risk on the Company’s variable rate debt. The Company’s objective is to limit the variability of cash flows associated with changes in LIBOR interest rate payments due on the Credit Agreement (See Note 14 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 interest rate 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 interest rate swaps purchased in July 2016 matured in July 2020. The November 2018 interest rate swap was 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 swap is at a fixed rate of 2.85% and is designed to maintain a 50% coverage of our LIBOR debt, therefore the notional amount changes over the life of the interest rate swap to retain the 50% coverage target. During the three months ended September 30, 2020 and operating as designed, the 2018 interest rate swap increased to cover the notional amount of debt that the expired interest rate swaps had been covering. In addition, the Company conducted a simultaneous de-designation and a re-designation of the hedge for this interest rate swap to align with the May 2020 debt amendment and maintain a highly effective hedge relationship given the increase of the notional amount of the interest rate swap and in consideration of the increase in interest rate floor to 1% . At December 31, 2020, the total notional amounts of the interest rate swap was $170,200 with remaining maturity of approximately 2.2 years. As of the date of de-designation and re-designation, the unrealized losses associated with the interest rate swap of $10,864 will be amortized to interest expense over the remaining interest rate swap period. The unrealized losses associated with the interest rate swap agreement was $8,884 and $11,128 at December 31, 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 ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 March 31, 2020 Foreign currency exchange contracts: ​ ​ ​ ​ ​ ​ Other current assets ​ $ 1,759 ​ $ 103 Other long-term assets ​ $ — ​ $ 56 Accrued expenses and other ​ $ 1,186 ​ $ 3,689 Long-term liabilities ​ $ — ​ $ 364 ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 March 31, 2020 Interest rate swap contracts ​ ​ Other long-term assets ​ $ — ​ $ — Long-term liabilities ​ $ 8,884 ​ $ 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 ​ Derivatives Designated as Three Months Ended December 31, ​ Nine Months Ended December 31, ​ Cash Flow Hedging Relationships ​ 2020 ​ 2019 ​ 2020 ​ 2019 ​ Foreign currency exchange contracts ​ $ (338) ​ $ (3,158) ​ $ 2,707 ​ $ 148 ​ Interest rate swaps ​ $ (11) ​ $ 782 ​ $ (747) ​ $ (3,054) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Location of Gain or (Loss) Reclassified ​ Amount of Gain or (Loss) Reclassified from AOCI into Income ​ from AOCI into Income (loss) (Effective ​ Three Months Ended December 31, ​ Nine Months Ended December 31, ​ Portion) 2020 2019 ​ 2020 2019 ​ Revenue ​ $ — ​ $ — ​ $ — ​ $ (18) ​ Costs of revenue ​ $ (199) ​ $ 827 ​ $ (1,276) ​ $ 2,351 ​ Operating expenses ​ $ (72) ​ $ 337 ​ $ (484) ​ $ 1,020 ​ Interest Expenses ​ $ (1,191) ​ $ (100) ​ $ (2,991) ​ $ 209 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Gain or (Loss) Recognized in Income ​ ​ ​ ​ ​ (loss) on Derivatives ​ ​ ​ ​ ​ Three Months Ended Nine Months Ended ​ Derivatives not Designated ​ Location of Gain Or (Loss) ​ December 31, December 31, ​ as Hedging Instruments Recognized in Income (loss) on Derivatives ​ 2020 2019 2020 2019 ​ Foreign currency exchange contracts Revenue ​ $ (543) ​ $ (1,449) ​ $ (1,534) ​ $ (205) ​ ​ Costs of revenue ​ $ 334 ​ $ 1,105 ​ $ 1,055 ​ $ 380 ​ ​ Selling, general and administrative expenses ​ $ 33 ​ $ 114 ​ $ 93 ​ $ 29 ​ ​

Revenues and Accounts Receivabl

Revenues and Accounts Receivable	9 Months Ended
	Dec. 31, 2020
Revenues and Accounts Receivable
Revenue and Accounts Receivable	(9) 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 ​ Nine Months Ended ​ ​ December 31, ​ December 31, Revenue by geography: ​ 2020 ​ 2019 ​ 2020 ​ 2019 North America ​ $ 256,536 ​ $ 251,229 ​ $ 713,868 ​ $ 724,005 Europe ​ 59,182 ​ 55,154 ​ 163,740 ​ 175,258 Rest of World ​ 30,382 ​ 28,724 ​ 86,744 ​ 83,369 Consolidated revenue ​ $ 346,100 ​ $ 335,107 ​ $ 964,352 ​ $ 982,632 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ December 31, ​ December 31, Revenue by customer’s industry groups (1) ​ 2020 ​ 2019 ​ 2020 ​ 2019 Banking Financial Services and Insurance ​ $ 190,288 ​ $ 180,070 ​ $ 528,579 ​ $ 548,977 Communications and Technology ​ 77,155 ​ 82,848 ​ 227,481 ​ 226,944 Media & Information and Other ​ 26,232 ​ 23,107 ​ 75,165 ​ 63,830 Healthcare ​ ​ 52,425 ​ ​ 49,082 ​ ​ 133,127 ​ ​ 142,881 Consolidated revenue ​ $ 346,100 ​ $ 335,107 ​ $ 964,352 ​ $ 982,632 (1) Prior year amounts have been reclassified to conform to the current period presentation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ December 31, ​ December 31, Revenue by service offerings ​ 2020 ​ 2019 ​ 2020 ​ 2019 Application outsourcing ​ $ 195,941 ​ $ 183,777 ​ $ 536,105 ​ $ 547,303 Consulting ​ ​ 150,159 ​ ​ 151,330 ​ ​ 428,247 ​ ​ 435,329 Consolidated revenue ​ $ 346,100 ​ $ 335,107 ​ $ 964,352 ​ $ 982,632 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ December 31, ​ December 31, Revenue by contract type ​ 2020 ​ 2019 ​ 2020 ​ 2019 Time-and-materials ​ $ 173,097 ​ $ 190,423 ​ $ 528,207 ​ $ 579,657 Fixed-price* ​ 173,003 ​ 144,684 ​ 436,145 ​ 402,975 Consolidated revenue ​ $ 346,100 ​ $ 335,107 ​ $ 964,352 ​ $ 982,632 *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 nine months ended: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ December 31, 2019 Beginning balance ​ $ 14,241 ​ $ 18,538 Revenues recognized during the period but not yet billed ​ 66,293 ​ 67,594 Amounts billed ​ (66,888) ​ (68,314) Other ​ 52 ​ (20) Ending balance ​ $ 13,698 ​ $ 17,798 ​ 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 nine months ended: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ December 31, 2019 Beginning balance ​ $ 8,054 ​ $ 6,421 Amounts billed but not yet recognized as revenues ​ 14,204 ​ 5,342 Revenues recognized related to the opening balance of deferred revenue ​ (6,782) ​ (5,017) Other ​ 8 ​ (154) Ending balance ​ $ 15,484 ​ $ 6,592 ​ 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, 2020. 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 December 31, 2020, the aggregate amount of transaction price allocated to remaining performance obligations, other than those meeting the exclusion criteria above, was $13,627 and will be recognized as revenue within 4 years . ​ From time to time, the Company enters into arrangements to deliver IT services that include upfront payments to its clients. As of December 31, 2020, the total unamortized upfront payments related to these services were $15,735 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 3 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: ​ ​ ​ ​ ​ ​ ​ Nine Months Ended ​ December 31, 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/ (reversal) for expected credit losses ​ ​ (22) Write-offs charged against the allowance ​ ​ (476) Foreign currency translation adjustments ​ ​ 42 Balance at December 31, 2020 $ 1,085 ​

Series A Convertible Preferred

Series A Convertible Preferred Stock	9 Months Ended
	Dec. 31, 2020
Series A Convertible Preferred Stock.
Series A Convertible Preferred Stock	(10) Series A Convertible Preferred Stock ​ On May 3, 2017, the Company entered into an investment agreement with The Orogen Group (‘‘Orogen’’) pursuant to which Orogen purchased 108,000 shares of the Company’s newly issued Series A Convertible Preferred Stock, initially convertible into 3,000,000 shares of common stock, for an aggregate purchase price of $108,000 with an initial conversion price of $36.00 (the ‘‘Orogen Preferred Stock Financing’’). Under the terms of the investment, the Series A Convertible Preferred Stock has a 3.875% dividend per annum, payable quarterly in additional shares of common stock and/or cash at the Company’s option. If any shares of Series A Convertible Preferred Stock have not been converted into common stock prior to May 3, 2024, the Company will be required to repurchase such shares at a repurchase price equal to the liquidation preference of the repurchased shares plus the amount of accumulated and unpaid dividends thereon. If the Company fails to effect such repurchase, the dividend rate on the Series A Convertible Preferred Stock will increase by 1% per annum and an additional 1% per annum on each anniversary of May 3, 2024 during the period in which such failure to effect the repurchase is continuing, except that the dividend rate will not increase to more than 6.875% per annum. ​ In connection with the issuance of the Series A Convertible Preferred Stock, the Company incurred direct and incremental expenses of $1,154, including financial advisory fees, closing costs, legal expenses and other offering-related expenses. These issuance costs are recorded as a reduction to the proceeds received from issuance of Series A Convertible Preferred Stock. These direct and incremental expenses reduced the Series A Convertible Preferred Stock, and will be accreted through retained earnings as a deemed dividend from the date of issuance through the first possible known redemption date, May 3, 2024. During the three and nine months ended December 31, 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 nine months ended December 31, 2020 and 2019, the Company has paid $3,138 as cash dividend on Series A Convertible Preferred Stock. As of December 31, 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	9 Months Ended
	Dec. 31, 2020
Goodwill and Intangible Assets
Goodwill and Intangible Assets	(11) Goodwill and Intangible Assets ​ Goodwill: ​ The Company has one operating segment. The following are details of the changes in goodwill balances at: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ March 31, 2020 Beginning balance $ 296,493 ​ $ 279,543 Goodwill arising from acquisitions ​ ​ — ​ ​ 27,316 Purchase price adjustments ​ ​ (5,942) ​ ​ — Foreign currency translation adjustments ​ ​ 5,040 ​ ​ (10,366) Ending balance $ 295,591 ​ $ 296,493 ​ The acquisition costs and goodwill balance deductible for our business acquisitions for tax purposes are $286,516. The acquisition costs and goodwill balance not deductible for tax purposes are $21,979, 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ Weighted ​ Gross ​ ​ ​ ​ Net ​ ​ Average Useful Life ​ Carrying ​ Accumulated ​ Carrying ​ at Acquisition Amount Amortization Amount Amortizable intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships 10.6 ​ $ 179,966 ​ $ 61,598 ​ $ 118,368 Trademark 2.0 ​ ​ 900 ​ ​ 900 ​ ​ — Technology 5.0 ​ ​ 500 ​ ​ 500 ​ ​ — Other 5.0 ​ ​ 1,214 ​ ​ 380 ​ ​ 834 ​ 10.5 ​ $ 182,580 ​ $ 63,378 ​ $ 119,202 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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. During the nine months ended December 31, 2020, the Company paid $3,572 towards earn-out consideration based on achievement of revenue targets. The remaining probable and estimable value of the contingent consideration as of December 31, 2020 is $204 .

Income Taxes

Income Taxes	9 Months Ended
	Dec. 31, 2020
Income Taxes
Income Taxes	​ (12) 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 rates were 31.6% and 31.1% for the three and nine months ended December 31, 2020, respectively, as compared to an effective tax rates of 44.7% and 43.3% for the three and nine months ended December 31, 2019, respectively. The decrease in the effective tax rate for the three and nine months ended December 31, 2020, was primarily due to a reduction in Base Erosion and Anti-Abuse Tax (“BEAT) impact, the election of foreign tax credits, reduction of global intangible low-taxed income, lower statutory rates in India and the merger of our Indian operations, partially offset by tax expense on increased income from operations. 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 $29,888, $2,152 and $76 of net deferred tax assets in the United States, the United Kingdom and Sweden, respectively, at December 31, 2020. The Company has a valuation allowance in the U.S. related to utilization of certain foreign tax credits, which 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 under Indian Laws 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 and nine months ended December 31, 2020, reflects the merger of Polaris India into Virtusa India. The Company’s income tax provision for the three and nine months ended December 31, 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. 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 nine months ended December 31, 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 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, 2019. 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 December 31, 2020 and March 31, 2020, the total liability for unrecognized tax benefits was $6,674 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. The unrecognized tax benefits increased by $47 and $161 during the nine months ended December 31, 2020 and nine months ended December 31, 2019, respectively. The increase in unrecognized tax benefits in the nine months ended December 31, 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 December 31, 2020, the Company had approximately $126,648 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	9 Months Ended
	Dec. 31, 2020
Concentration of Revenue and Assets
Concentration of Revenue and Assets	(13) 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 ​ Nine Months Ended ​ ​ ​ December 31, ​ December 31, ​ ​ 2020 2019 2020 2019 ​ Customer revenue: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States of America ​ $ 244,004 ​ $ 237,754 ​ $ 676,790 ​ $ 685,023 ​ United Kingdom ​ 29,304 ​ 42,902 ​ 91,916 ​ 137,795 ​ Rest of World ​ 72,792 ​ 54,451 ​ 195,646 ​ 159,814 ​ Consolidated revenue ​ $ 346,100 ​ $ 335,107 ​ $ 964,352 ​ $ 982,632 ​ ​ ​ Revenue from significant clients as a percentage of the Company’s consolidated revenue was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ Nine Months Ended ​ ​ ​ ​ December 31, ​ ​ December 31, ​ ​ ​ 2020 2019 ​ 2020 2019 ​ ​ Customer A ​ 19.6 % 16.4 % ​ 18.5 % 15.9 % ​ ​ 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 March 31, 2020 Long-lived assets, net of accumulated depreciation and amortization: ​ ​ ​ ​ ​ ​ United States of America ​ $ 272,187 ​ $ 291,959 India ​ 252,070 ​ 255,623 Rest of World ​ 28,900 ​ 29,748 Consolidated long-lived assets, net ​ $ 553,157 ​ $ 577,330 ​

Debt

Debt	9 Months Ended
	Dec. 31, 2020
Debt
Debt	(14) 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. 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. The Company did not elect to draw down on the New Delayed Draw Term Loans. ​ 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. During the nine months ended December 31, 2020, the Company paid $13,008 and $105,000 towards the term loan and revolving credit facility, respectively. At December 31, 2020, the total outstanding amount under the Credit Agreement was $381,961 and the weighted average interest rate on the term loan and revolving line of credit was 3.50% . ​ 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 March 31, 2020 Term loan- current maturities ​ 21,680 ​ 17,344 Less: deferred financing costs, current ​ (1,597) ​ (1,301) Total ​ $ 20,083 ​ $ 16,043 ​ Long-term debt, less current portion ​ The following summarizes our long-term debt balance as of: ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 March 31, 2020 Term loan ​ $ 212,461 ​ $ 225,469 Borrowings under revolving credit facility ​ ​ 169,500 ​ ​ 274,500 Less: ​ ​ ​ ​ ​ ​ Current maturities ​ (21,680) ​ (17,344) Deferred financing costs, long-term ​ (1,840) ​ (2,471) Total ​ $ 358,441 ​ $ 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 nine months ended December 31, 2020, $42,630 of receivables were sold under the terms of the financing agreement. Fees paid pursuant to this agreement were immaterial during the nine months ended December 31, 2020. No amounts were due as of December 31, 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	9 Months Ended
	Dec. 31, 2020
Stock-Based Compensation Plans
Stock-Based Compensation Plans	(15) Stock-Based Compensation Plans ​ In May 2015, the Company adopted the 2015 Stock Option and Incentive Plan (“2015 Plan”) which was also approved by 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 December 31, 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 December 31, 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 nine months ended December 31, 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	9 Months Ended
	Dec. 31, 2020
Accumulated Other Comprehensive Loss.
Accumulated Other Comprehensive Loss	(16) Accumulated Other Comprehensive Loss ​ Changes in accumulated other comprehensive income (loss) by component were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ December 31, ​ December 31, ​ ​ 2020 2019 2020 2019 ​ Investment securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning balance $ 12 $ 12 ​ $ 12 $ 12 ​ Other comprehensive income (loss) (OCI) before reclassifications, net of tax of $0 for all periods ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ Reclassifications from OCI to other income, net of tax of $0 for all periods ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ 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 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ Closing balance $ 12 $ 12 ​ $ 12 $ 12 ​ Currency translation adjustments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning balance $ (63,522) $ (64,116) ​ $ (71,207) $ (57,354) ​ OCI before reclassifications ​ ​ 5,933 ​ ​ 4,630 ​ ​ 13,618 ​ ​ (2,106) ​ Less: Noncontrolling interests ​ ​ — ​ ​ (363) ​ ​ — ​ ​ (389) ​ Comprehensive income (loss) on currency translation adjustments ​ ​ 5,933 ​ ​ 4,267 ​ ​ 13,618 ​ ​ (2,495) ​ Closing balance $ (57,589) $ (59,849) ​ $ (57,589) $ (59,849) ​ Cash flow hedges ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning balance $ (7,610) $ (2,175) ​ $ (11,818) $ 39 ​ OCI before reclassifications net of tax of $8, $(386), $614 and $(666) ​ ​ (358) ​ ​ (1,993) ​ ​ 1,346 ​ ​ (2,240) ​ Reclassifications from OCI to ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ —Revenue, net of tax of $0, $0, $0 and $7 ​ ​ — ​ ​ — ​ ​ — ​ ​ 11 ​ —Costs of revenue, net of tax of $28, $(188), $260 and $(504) ​ ​ 171 ​ ​ (639) ​ ​ 1,016 ​ ​ (1,847) ​ —Selling, general and administrative expenses, net of tax of $10, $(77), $100 and $(220) ​ ​ 62 ​ ​ (260) ​ ​ 384 ​ ​ (800) ​ —Interest expenses, net of tax of $304, $26, $767 and $(54) ​ ​ 887 ​ ​ 75 ​ ​ 2,224 ​ ​ (155) ​ Less: Noncontrolling interests, net of tax of $0 for all periods ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ Comprehensive income (loss) on cash flow hedges, net of tax of $350, $(625), $1,741 and $(1,437) ​ ​ 762 ​ ​ (2,817) ​ ​ 4,970 ​ ​ (5,031) ​ Closing balance $ (6,848) $ (4,992) ​ $ (6,848) $ (4,992) ​ Benefit plans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning balance $ (2,071) $ (2,776) ​ $ (2,242) $ (2,084) ​ OCI before reclassifications net of tax of $0 for all periods ​ ​ — ​ ​ — ​ ​ 11 ​ ​ (911) ​ Reclassifications from OCI for prior service credit (cost) to: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense), net of tax of $0 for all periods ​ ​ 10 ​ ​ 6 ​ ​ 30 ​ ​ 19 ​ Reclassifications from net actuarial gain (loss) amortization to: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense), net of tax of ​ ​ 95 ​ ​ 70 ​ ​ 286 ​ ​ 210 ​ Other adjustments, net of tax of $0 for all periods ​ ​ 9 ​ ​ 3 ​ ​ (42) ​ ​ 76 ​ (Less): Noncontrolling interests, net of tax $0 for all periods ​ ​ — ​ ​ (3) ​ ​ — ​ ​ (10) ​ Comprehensive income (loss) on benefit plans, net of tax of $0 for all periods ​ ​ 114 ​ ​ 76 ​ ​ 285 ​ ​ (616) ​ Closing balance ​ (1,957) $ (2,700) ​ ​ (1,957) $ (2,700) ​ Accumulated other comprehensive loss $ (66,382) $ (67,529) ​ $ (66,382) $ (67,529) ​ ​

Commitments and Contingencies a

Commitments and Contingencies and Guarantees	9 Months Ended
	Dec. 31, 2020
Commitments and Contingencies and Guarantees
Commitments and Contingencies and Guarantees	(17) 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 December 31, 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 December 31, 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 alleged breach of certain representations and warranties regarding the Company’s performance and sought indemnification for damages from those alleged breaches. During the three months ended December 31, 2020, the parties agreed to a commercial settlement whereby each party provided a full release of all claims provided that Virtusa make certain cash payments (which were subject to reimbursement under the terms of Virtusa’s insurance policies) and provide certain service credits with respect to the execution of future work. ​ 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. ​ In connection with the proposed acquisition of the Company by certain investments funds affiliated with Baring Private Equity Asia, pursuant to the Merger Agreement, several lawsuits were filed by stockholders of the Company against the Company. The Company believes that the claims asserted against them are without merit and intend to vigorously defend against these lawsuits. ​ If the Merger is not completed within the expected time frame or at all, we may be subject to a number of material risks. The price of our common stock may decline to the extent that current market prices reflect a market assumption that the Merger will be completed. We could be required to reimburse certain expenses of Parent or pay Parent a termination fee of $54,330 if the Merger Agreement is terminated under specific circumstances described in the Merger Agreement. ​

Summary of Significant Accounti

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Dec. 31, 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, share-based compensation, 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 December 31, 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 7 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 9, “Revenues 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 does not expect the adoption of this guidance to have a material impact on the consolidated financial statements.

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Dec. 31, 2020
Earnings per Share
Schedule of components of basic earnings per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ December 31, ​ December 31, ​ ​ 2020 2019 2020 2019 ​ Numerators: ​ ​ ​ ​ ​ ​ Net income available to Virtusa stockholders ​ $ 25,447 ​ $ 12,720 ​ $ 35,110 ​ $ 25,656 ​ Less: Series A Convertible Preferred Stock dividends and accretion ​ (1,087) ​ (1,087) ​ (3,262) ​ (3,262) ​ Net income available to Virtusa common stockholders ​ $ 24,360 ​ $ 11,633 ​ $ 31,848 ​ $ 22,394 ​ Denominators: ​ ​ ​ ​ ​ Basic weighted average common shares outstanding ​ 30,319,615 ​ 29,849,368 ​ 30,252,264 ​ 30,041,740 ​ Basic earnings per share available to Virtusa common stockholders ​ $ 0.80 ​ $ 0.39 ​ $ 1.05 ​ $ 0.75 ​
Schedule of components of diluted earnings per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ December 31, ​ December 31, ​ ​ 2020 2019 2020 2019 ​ Numerators: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income available to Virtusa common stockholders ​ $ 24,360 ​ $ 11,633 ​ $ 31,848 ​ $ 22,394 ​ Add : Series A Convertible Preferred Stock dividends and accretion ​ ​ 1,087 ​ ​ 1,087 ​ ​ — ​ ​ — ​ Net income available to Virtusa common stockholders and assumed conversion ​ $ 25,447 ​ $ 12,720 ​ $ 31,848 ​ $ 22,394 ​ Denominators: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic weighted average common shares outstanding ​ 30,319,615 ​ 29,849,368 ​ 30,252,264 ​ 30,041,740 ​ Dilutive effect of Series A Convertible Preferred Stock if converted ​ ​ 3,000,000 ​ ​ 3,000,000 ​ ​ — ​ ​ — ​ Dilutive effect of employee stock options and unvested restricted stock awards and restricted stock units ​ 577,981 ​ 608,863 ​ 412,878 ​ 658,529 ​ Weighted average shares—diluted ​ 33,897,596 ​ 33,458,231 ​ 30,665,142 ​ 30,700,269 ​ Diluted earnings per share available to Virtusa common stockholders ​ $ 0.75 ​ $ 0.38 ​ $ 1.04 ​ $ 0.73 ​

Business Combinations (Tables)

Business Combinations (Tables)	9 Months Ended
	Dec. 31, 2020
Business Combinations
Summary of aggregate purchase price allocation	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount Useful Life Consideration Transferred: ​ ​ ​ ​ ​ ​ ​ Cash paid at closing $ 29,624 ​ ​ ​ ​ Deferred consideration payable ​ ​ 10,313 ​ ​ ​ ​ Fair value of contingent consideration ​ ​ 20,786 ​ ​ ​ ​ Fair value of consideration ​ ​ 60,723 ​ ​ ​ ​ Less: Cash acquired ​ ​ (477) ​ ​ ​ ​ Total purchase price, net of cash acquired $ 60,246 ​ ​ ​ ​ Assets and Liabilities: ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ ​ 477 ​ ​ ​ ​ Goodwill ​ ​ 21,374 ​ ​ ​ ​ Customer relationships ​ ​ 39,319 ​ 5 - 7 years Other net ​ ​ (447) ​ ​ ​ ​ Total purchase price ​ $ 60,723 ​ ​ ​ ​

Investment Securities (Tables)

Investment Securities (Tables)	9 Months Ended
	Dec. 31, 2020
Investment Securities.
Summary of investment securities	The following is a summary of investment securities at December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ Cost Gains Losses Fair Value Time Deposits: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 1,851 ​ $ — ​ $ — ​ $ 1,851 Equity securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mutual funds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 652 ​ ​ 130 ​ ​ — ​ ​ 782 Equity Shares/ Options: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current ​ ​ 1 ​ ​ 21 ​ ​ — ​ ​ 22 Total investment securities ​ $ 2,504 ​ $ 151 ​ $ — ​ $ 2,655 ​ 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 ​ Nine Months Ended ​ ​ ​ December 31, ​ December 31, ​ ​ 2020 2019 2020 2019 ​ Proceeds from sales or maturities of available-for-sale ​ $ 649 ​ $ 9,476 ​ $ 7,217 ​ $ 47,716 ​ Gross gains ​ $ — ​ $ 123 ​ $ 176 ​ $ 563 ​ Gross losses ​ — ​ — ​ — ​ — ​ Net realized gains on sales of available-for-sale debt ​ $ — ​ $ 123 ​ $ 176 ​ $ 563 ​

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Dec. 31, 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 ​ $ — ​ $ 1,851 ​ ​ — ​ $ 1,851 Equity securities—current ​ ​ — ​ ​ 782 ​ ​ — ​ ​ 782 Equity securities—non-current ​ ​ — ​ ​ 22 ​ ​ — ​ ​ 22 Derivative financial instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency derivative contracts—current ​ ​ — ​ ​ 1,759 ​ ​ — ​ ​ 1,759 Foreign currency derivative contracts—non-current ​ — ​ — ​ ​ — ​ — Interest rate swap contracts ​ — ​ — ​ ​ — ​ — Total assets ​ $ — ​ $ 4,414 ​ $ — ​ $ 4,414 Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency derivative contracts—current ​ ​ — ​ 1,186 ​ ​ — ​ 1,186 Foreign currency derivative contracts—non-current ​ ​ — ​ — ​ ​ — ​ — Interest rate swap contracts—non-current ​ ​ — ​ ​ 8,884 ​ ​ — ​ ​ 8,884 Contingent consideration ​ ​ — ​ ​ — ​ ​ 16,405 ​ ​ 16,405 Total liabilities ​ $ — ​ $ 10,070 ​ $ 16,405 ​ $ 26,475 ​ 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: ​ ​ ​ ​ ​ ​ ​ December 31, 2020 Beginning balance ​ $ 25,012 ​ Purchase price adjustments ​ ​ (4,178) ​ Payments made during the period ​ ​ (4,051) ​ Contingent consideration recognized in earnings ​ (453) ​ Foreign currency translation adjustments ​ ​ 75 ​ Ending balance ​ $ 16,405 ​

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	9 Months Ended
	Dec. 31, 2020
Derivative Financial Instruments
Schedule of fair value of derivative instruments included in the consolidated balance sheets	Derivatives designated as hedging instruments ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 March 31, 2020 Foreign currency exchange contracts: ​ ​ ​ ​ ​ ​ Other current assets ​ $ 1,759 ​ $ 103 Other long-term assets ​ $ — ​ $ 56 Accrued expenses and other ​ $ 1,186 ​ $ 3,689 Long-term liabilities ​ $ — ​ $ 364 ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 March 31, 2020 Interest rate swap contracts ​ ​ Other long-term assets ​ $ — ​ $ — Long-term liabilities ​ $ 8,884 ​ $ 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 ​ Derivatives Designated as Three Months Ended December 31, ​ Nine Months Ended December 31, ​ Cash Flow Hedging Relationships ​ 2020 ​ 2019 ​ 2020 ​ 2019 ​ Foreign currency exchange contracts ​ $ (338) ​ $ (3,158) ​ $ 2,707 ​ $ 148 ​ Interest rate swaps ​ $ (11) ​ $ 782 ​ $ (747) ​ $ (3,054) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Location of Gain or (Loss) Reclassified ​ Amount of Gain or (Loss) Reclassified from AOCI into Income ​ from AOCI into Income (loss) (Effective ​ Three Months Ended December 31, ​ Nine Months Ended December 31, ​ Portion) 2020 2019 ​ 2020 2019 ​ Revenue ​ $ — ​ $ — ​ $ — ​ $ (18) ​ Costs of revenue ​ $ (199) ​ $ 827 ​ $ (1,276) ​ $ 2,351 ​ Operating expenses ​ $ (72) ​ $ 337 ​ $ (484) ​ $ 1,020 ​ Interest Expenses ​ $ (1,191) ​ $ (100) ​ $ (2,991) ​ $ 209 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Gain or (Loss) Recognized in Income ​ ​ ​ ​ ​ (loss) on Derivatives ​ ​ ​ ​ ​ Three Months Ended Nine Months Ended ​ Derivatives not Designated ​ Location of Gain Or (Loss) ​ December 31, December 31, ​ as Hedging Instruments Recognized in Income (loss) on Derivatives ​ 2020 2019 2020 2019 ​ Foreign currency exchange contracts Revenue ​ $ (543) ​ $ (1,449) ​ $ (1,534) ​ $ (205) ​ ​ Costs of revenue ​ $ 334 ​ $ 1,105 ​ $ 1,055 ​ $ 380 ​ ​ Selling, general and administrative expenses ​ $ 33 ​ $ 114 ​ $ 93 ​ $ 29 ​

Revenues and Accounts Receiva_2

Revenues and Accounts Receivable (Tables)	9 Months Ended
	Dec. 31, 2020
Revenues and Accounts Receivable
Schedule of disaggregation of revenue	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ December 31, ​ December 31, Revenue by geography: ​ 2020 ​ 2019 ​ 2020 ​ 2019 North America ​ $ 256,536 ​ $ 251,229 ​ $ 713,868 ​ $ 724,005 Europe ​ 59,182 ​ 55,154 ​ 163,740 ​ 175,258 Rest of World ​ 30,382 ​ 28,724 ​ 86,744 ​ 83,369 Consolidated revenue ​ $ 346,100 ​ $ 335,107 ​ $ 964,352 ​ $ 982,632 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ December 31, ​ December 31, Revenue by customer’s industry groups (1) ​ 2020 ​ 2019 ​ 2020 ​ 2019 Banking Financial Services and Insurance ​ $ 190,288 ​ $ 180,070 ​ $ 528,579 ​ $ 548,977 Communications and Technology ​ 77,155 ​ 82,848 ​ 227,481 ​ 226,944 Media & Information and Other ​ 26,232 ​ 23,107 ​ 75,165 ​ 63,830 Healthcare ​ ​ 52,425 ​ ​ 49,082 ​ ​ 133,127 ​ ​ 142,881 Consolidated revenue ​ $ 346,100 ​ $ 335,107 ​ $ 964,352 ​ $ 982,632 (1) Prior year amounts have been reclassified to conform to the current period presentation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ December 31, ​ December 31, Revenue by service offerings ​ 2020 ​ 2019 ​ 2020 ​ 2019 Application outsourcing ​ $ 195,941 ​ $ 183,777 ​ $ 536,105 ​ $ 547,303 Consulting ​ ​ 150,159 ​ ​ 151,330 ​ ​ 428,247 ​ ​ 435,329 Consolidated revenue ​ $ 346,100 ​ $ 335,107 ​ $ 964,352 ​ $ 982,632 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ December 31, ​ December 31, Revenue by contract type ​ 2020 ​ 2019 ​ 2020 ​ 2019 Time-and-materials ​ $ 173,097 ​ $ 190,423 ​ $ 528,207 ​ $ 579,657 Fixed-price* ​ 173,003 ​ 144,684 ​ 436,145 ​ 402,975 Consolidated revenue ​ $ 346,100 ​ $ 335,107 ​ $ 964,352 ​ $ 982,632 *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 nine months ended: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ December 31, 2019 Beginning balance ​ $ 14,241 ​ $ 18,538 Revenues recognized during the period but not yet billed ​ 66,293 ​ 67,594 Amounts billed ​ (66,888) ​ (68,314) Other ​ 52 ​ (20) Ending balance ​ $ 13,698 ​ $ 17,798 ​ 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 nine months ended: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ December 31, 2019 Beginning balance ​ $ 8,054 ​ $ 6,421 Amounts billed but not yet recognized as revenues ​ 14,204 ​ 5,342 Revenues recognized related to the opening balance of deferred revenue ​ (6,782) ​ (5,017) Other ​ 8 ​ (154) Ending balance ​ $ 15,484 ​ $ 6,592
Schedule of activity in the allowance for credit losses on accounts receivable	​ ​ ​ ​ ​ ​ ​ Nine Months Ended ​ December 31, 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/ (reversal) for expected credit losses ​ ​ (22) Write-offs charged against the allowance ​ ​ (476) Foreign currency translation adjustments ​ ​ 42 Balance at December 31, 2020 $ 1,085

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Dec. 31, 2020
Goodwill and Intangible Assets
Schedule of changes in goodwill balances	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ March 31, 2020 Beginning balance $ 296,493 ​ $ 279,543 Goodwill arising from acquisitions ​ ​ — ​ ​ 27,316 Purchase price adjustments ​ ​ (5,942) ​ ​ — Foreign currency translation adjustments ​ ​ 5,040 ​ ​ (10,366) Ending balance $ 295,591 ​ $ 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ Weighted ​ Gross ​ ​ ​ ​ Net ​ ​ Average Useful Life ​ Carrying ​ Accumulated ​ Carrying ​ at Acquisition Amount Amortization Amount Amortizable intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships 10.6 ​ $ 179,966 ​ $ 61,598 ​ $ 118,368 Trademark 2.0 ​ ​ 900 ​ ​ 900 ​ ​ — Technology 5.0 ​ ​ 500 ​ ​ 500 ​ ​ — Other 5.0 ​ ​ 1,214 ​ ​ 380 ​ ​ 834 ​ 10.5 ​ $ 182,580 ​ $ 63,378 ​ $ 119,202 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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)	9 Months Ended
	Dec. 31, 2020
Concentration of Revenue and Assets
Schedule of geographic information of total revenue	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ December 31, ​ December 31, ​ ​ 2020 2019 2020 2019 ​ Customer revenue: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States of America ​ $ 244,004 ​ $ 237,754 ​ $ 676,790 ​ $ 685,023 ​ United Kingdom ​ 29,304 ​ 42,902 ​ 91,916 ​ 137,795 ​ Rest of World ​ 72,792 ​ 54,451 ​ 195,646 ​ 159,814 ​ Consolidated revenue ​ $ 346,100 ​ $ 335,107 ​ $ 964,352 ​ $ 982,632 ​
Schedule of revenue from significant clients as a percentage of Company's consolidated revenue	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ Nine Months Ended ​ ​ ​ ​ December 31, ​ ​ December 31, ​ ​ ​ 2020 2019 ​ 2020 2019 ​ ​ Customer A ​ 19.6 % 16.4 % ​ 18.5 % 15.9 % ​
Schedule of long-lived assets, net of accumulated depreciation and amortization, attributed to geographic areas based on location of assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 March 31, 2020 Long-lived assets, net of accumulated depreciation and amortization: ​ ​ ​ ​ ​ ​ United States of America ​ $ 272,187 ​ $ 291,959 India ​ 252,070 ​ 255,623 Rest of World ​ 28,900 ​ 29,748 Consolidated long-lived assets, net ​ $ 553,157 ​ $ 577,330

Debt (Tables)

Debt (Tables)	9 Months Ended
	Dec. 31, 2020
Debt
Summary of short-term debt balances	​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 March 31, 2020 Term loan- current maturities ​ 21,680 ​ 17,344 Less: deferred financing costs, current ​ (1,597) ​ (1,301) Total ​ $ 20,083 ​ $ 16,043
Summary of long-term debt balances	​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 March 31, 2020 Term loan ​ $ 212,461 ​ $ 225,469 Borrowings under revolving credit facility ​ ​ 169,500 ​ ​ 274,500 Less: ​ ​ ​ ​ ​ ​ Current maturities ​ (21,680) ​ (17,344) Deferred financing costs, long-term ​ (1,840) ​ (2,471) Total ​ $ 358,441 ​ $ 480,154

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Dec. 31, 2020
Accumulated Other Comprehensive Loss.
Schedule of changes in accumulated other comprehensive loss by component	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ December 31, ​ December 31, ​ ​ 2020 2019 2020 2019 ​ Investment securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning balance $ 12 $ 12 ​ $ 12 $ 12 ​ Other comprehensive income (loss) (OCI) before reclassifications, net of tax of $0 for all periods ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ Reclassifications from OCI to other income, net of tax of $0 for all periods ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ 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 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ Closing balance $ 12 $ 12 ​ $ 12 $ 12 ​ Currency translation adjustments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning balance $ (63,522) $ (64,116) ​ $ (71,207) $ (57,354) ​ OCI before reclassifications ​ ​ 5,933 ​ ​ 4,630 ​ ​ 13,618 ​ ​ (2,106) ​ Less: Noncontrolling interests ​ ​ — ​ ​ (363) ​ ​ — ​ ​ (389) ​ Comprehensive income (loss) on currency translation adjustments ​ ​ 5,933 ​ ​ 4,267 ​ ​ 13,618 ​ ​ (2,495) ​ Closing balance $ (57,589) $ (59,849) ​ $ (57,589) $ (59,849) ​ Cash flow hedges ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning balance $ (7,610) $ (2,175) ​ $ (11,818) $ 39 ​ OCI before reclassifications net of tax of $8, $(386), $614 and $(666) ​ ​ (358) ​ ​ (1,993) ​ ​ 1,346 ​ ​ (2,240) ​ Reclassifications from OCI to ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ —Revenue, net of tax of $0, $0, $0 and $7 ​ ​ — ​ ​ — ​ ​ — ​ ​ 11 ​ —Costs of revenue, net of tax of $28, $(188), $260 and $(504) ​ ​ 171 ​ ​ (639) ​ ​ 1,016 ​ ​ (1,847) ​ —Selling, general and administrative expenses, net of tax of $10, $(77), $100 and $(220) ​ ​ 62 ​ ​ (260) ​ ​ 384 ​ ​ (800) ​ —Interest expenses, net of tax of $304, $26, $767 and $(54) ​ ​ 887 ​ ​ 75 ​ ​ 2,224 ​ ​ (155) ​ Less: Noncontrolling interests, net of tax of $0 for all periods ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ Comprehensive income (loss) on cash flow hedges, net of tax of $350, $(625), $1,741 and $(1,437) ​ ​ 762 ​ ​ (2,817) ​ ​ 4,970 ​ ​ (5,031) ​ Closing balance $ (6,848) $ (4,992) ​ $ (6,848) $ (4,992) ​ Benefit plans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning balance $ (2,071) $ (2,776) ​ $ (2,242) $ (2,084) ​ OCI before reclassifications net of tax of $0 for all periods ​ ​ — ​ ​ — ​ ​ 11 ​ ​ (911) ​ Reclassifications from OCI for prior service credit (cost) to: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense), net of tax of $0 for all periods ​ ​ 10 ​ ​ 6 ​ ​ 30 ​ ​ 19 ​ Reclassifications from net actuarial gain (loss) amortization to: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense), net of tax of ​ ​ 95 ​ ​ 70 ​ ​ 286 ​ ​ 210 ​ Other adjustments, net of tax of $0 for all periods ​ ​ 9 ​ ​ 3 ​ ​ (42) ​ ​ 76 ​ (Less): Noncontrolling interests, net of tax $0 for all periods ​ ​ — ​ ​ (3) ​ ​ — ​ ​ (10) ​ Comprehensive income (loss) on benefit plans, net of tax of $0 for all periods ​ ​ 114 ​ ​ 76 ​ ​ 285 ​ ​ (616) ​ Closing balance ​ (1,957) $ (2,700) ​ ​ (1,957) $ (2,700) ​ Accumulated other comprehensive loss $ (66,382) $ (67,529) ​ $ (66,382) $ (67,529) ​

Earnings per Share - Basic earn

Earnings per Share - Basic earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				9 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Numerator:
Net income available to Virtusa stockholders	$ 25,447	$ 8,769	$ 894	$ 12,720	$ 35,110	$ 25,656
Less: Series A Convertible Preferred Stock dividends and accretion	(1,087)			(1,087)	(3,262)	(3,262)
Net income available to Virtusa common stockholders	$ 24,360			$ 11,633	$ 31,848	$ 22,394
Denominator:
Basic weighted average common shares outstanding (in shares)	30,319,615			29,849,368	30,252,264	30,041,740
Basic earnings per share available to Virtusa common stockholders (in dollars per share)	$ 0.80			$ 0.39	$ 1.05	$ 0.75

Earnings per Share - Diluted ea

Earnings per Share - Diluted earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Numerator:
Net income available to Virtusa common stockholders	$ 24,360	$ 11,633	$ 31,848	$ 22,394
Add: Series A Convertible Preferred Stock dividends and accretion	1,087	1,087
Net income available to Virtusa common stockholders and assumed conversion	$ 25,447	$ 12,720	$ 31,848	$ 22,394
Denominator:
Basic weighted average common shares outstanding (in shares)	30,319,615	29,849,368	30,252,264	30,041,740
Dilutive effect of Series A Convertible Preferred Stock if converted	3,000,000	3,000,000
Dilutive effect of employee stock options and unvested restricted stock awards and restricted stock units	577,981	608,863	412,878	658,529
Weighted average shares-diluted (in shares)	33,897,596	33,458,231	30,665,142	30,700,269
Diluted earnings per share available to Virtusa common stockholders (in dollars per share)	$ 0.75	$ 0.38	$ 1.04	$ 0.73

Earnings per Share - Anti-dilut

Earnings per Share - Anti-dilutive securities (Details) - shares	3 Months Ended		9 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 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	823	24,037	127,504	100,434
Series A Convertible Preferred Stock
Anti-dilutive securities
Shares excluded from computation of earnings (loss) per share	3,000,000	3,000,000	3,000,000	3,000,000

Proposed Merger with Austin H_2

Proposed Merger with Austin HoldCo Inc., an entity wholly owned by funds affiliated with Baring Private Equity Asia (Details) - Austin HoldCo Inc. - Merger Agreement - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Dec. 31, 2020	Sep. 09, 2020
Cash paid per share		$ 51.35
Amount of transaction costs	$ 6,367
Termination fees	$ 54,330

Business Combinations - Transac

Business Combinations - Transaction details (Details) $ in Thousands	9 Months Ended		12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Mar. 31, 2020USD ($)item
Acquisitions
Payment of deferred consideration related to business acquisition	$ 10,313	$ 17,500
Goodwill fair value adjustment	(5,942)
Change in fair value of contingent consideration	453
Fair value of contingent consideration	16,405
Fiscal 2020 acquisitions
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	10,313
Payment of contingent consideration related to business acquisitions	4,051
Goodwill fair value adjustment	5,942
Fair value assessment of contingent consideration	4,178
Fair value of contingent consideration			$ 20,786
Fiscal 2020 acquisitions | Minimum
Acquisitions
Target performance period			12 months
Fiscal 2020 acquisitions | Maximum
Acquisitions
Target performance period			24 months
Fair value of contingent consideration			$ 28,853
Fiscal 2020 acquisitions | Customer Relationships
Acquisitions
Goodwill fair value adjustment	1,513
Fiscal 2020 acquisitions | Other Adjustments
Acquisitions
Goodwill fair value adjustment	$ 251

Business Combinations - Purchas

Business Combinations - Purchase price allocation (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Dec. 31, 2020	Mar. 31, 2020	Mar. 31, 2019
Consideration Transferred
Fair value of contingent consideration	$ 16,405
Assets and Liabilities:
Goodwill	$ 295,591	$ 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
Customer Relationships | Maximum
Assets and Liabilities:
Weighted Average Useful Life at Aquisition		7 years
Fiscal 2020 acquisitions
Consideration Transferred
Cash paid at closing		$ 29,624
Deferred consideration payable		10,313
Fair value of contingent consideration		20,786
Fair value of consideration		60,723
Less: Cash acquired		(477)
Total purchase price, net of cash acquired		60,246
Assets and Liabilities:
Cash and cash equivalents		477
Goodwill		21,374
Other net		(447)
Total purchase price		60,723
Fiscal 2020 acquisitions | Maximum
Consideration Transferred
Fair value of contingent consideration		28,853
Fiscal 2020 acquisitions | Customer Relationships
Assets and Liabilities:
Intangible assets		$ 39,319
Fiscal 2020 acquisitions | Customer Relationships | Minimum
Assets and Liabilities:
Weighted Average Useful Life at Aquisition		5 years

Investment Securities (Details)

Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Mar. 31, 2020
Total investment securities
Amortized Cost	$ 2,504		$ 2,504		$ 9,551
Gross Unrealized Gains	151		151		238
Fair Value	2,655		2,655		9,789
Proceeds from sales or maturities of available-for-sale investment and equity securities
Proceeds from sales or maturities of available-for-sale debt securities and equity securities	649	$ 9,476	7,217	$ 47,716
Gross gains		123	176	563
Net realized gains on sales of available-for-sale debt securities and equity securities		$ 123	176	$ 563
Time deposits. | Current
Time Deposits
Time deposits:	1,851		1,851		3,927
Time deposits-current	1,851		1,851		3,927
Mutual funds | Current
Equity securities:
Amortized Cost	652		652		5,623
Gross Unrealized Gains	130		130		235
Fair Value	782		782		5,858
Equity shares/ options | Noncurrent
Equity securities:
Amortized Cost	1		1		1
Gross Unrealized Gains	21		21		3
Fair Value	$ 22		$ 22		$ 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	Dec. 31, 2020	Mar. 31, 2020
Liabilities:
Contingent consideration	$ 16,405
Fair Value Measurements Recurring
Investments:
Time deposits-current	1,851	$ 3,927
Equity securities - current	782	5,858
Equity securities - non-current	22	4
Derivative financial instruments:
Foreign currency derivative contracts-current	1,759	103
Foreign currency derivative contracts-non-current		56
Total assets	4,414	9,948
Liabilities:
Foreign currency derivative contracts-current	1,186	3,689
Foreign currency derivative contracts-non-current		364
Interest rate swap contracts - non-current	8,884	11,128
Contingent consideration	16,405	25,012
Total liabilities	26,475	40,193
Fair Value Measurements Recurring | Fair Value Inputs Level2
Investments:
Time deposits-current	1,851	3,927
Equity securities - current	782	5,858
Equity securities - non-current	22	4
Derivative financial instruments:
Foreign currency derivative contracts-current	1,759	103
Foreign currency derivative contracts-non-current		56
Total assets	4,414	9,948
Liabilities:
Foreign currency derivative contracts-current	1,186	3,689
Foreign currency derivative contracts-non-current		364
Interest rate swap contracts - non-current	8,884	11,128
Total liabilities	10,070	15,181
Fair Value Measurements Recurring | Fair Value Inputs Level 3
Liabilities:
Contingent consideration	16,405	25,012
Total liabilities	$ 16,405	$ 25,012

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Level 3 financial liabilities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Changes in fair value of the Company's Level 3 financial liabilities
Contingent consideration recognized in earnings			$ (453)
Foreign currency translation adjustment	$ 5,933	$ 4,630	13,618	$ (2,106)
Fair Value Inputs Level 3
Changes in fair value of the Company's Level 3 financial liabilities
Beginning balance			25,012
Purchase price adjustments	(4,178)		(4,178)
Payments made during the period			(4,051)
Contingent consideration recognized in earnings			(453)
Foreign currency translation adjustment			75
Ending balance	$ 16,405		$ 16,405

Derivative Financial Instrume_3

Derivative Financial Instruments - (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Dec. 31, 2020	Mar. 31, 2020
Interest rate swaps
Derivative Financial Instruments
Notional value of outstanding contracts	$ 170,200
Increase in interest rate floor	1.00%
Outstanding term of derivative instruments	2 years 2 months 12 days
Unrealized loss on derivative	$ 10,864
Unrealized loss on derivative	$ 8,884	$ 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%
Designated As Hedging Instrument | Foreign Exchange Contract
Derivative Financial Instruments
Notional value of outstanding contracts	$ 87,693	$ 128,728
Unrealized net gains expected to be reclassified from AOCI to earnings during the next 12 months	$ 573
Designated As Hedging Instrument | Foreign Exchange Contract | Maximum
Derivative Financial Instruments
Outstanding term of derivative instruments	12 months

Derivatives designated as hedgi

Derivatives designated as hedging instruments - Derivatives designated as hedging instruments (Details) - Designated As Hedging Instrument - USD ($) $ in Thousands	Dec. 31, 2020	Mar. 31, 2020
Foreign Exchange Contract
Foreign currency exchange and interest rate swap contracts
Other current assets	$ 1,759	$ 103
Other long-term assets		56
Accrued expenses and other	1,186	3,689
Long-term liabilities		364
Interest rate swaps
Foreign currency exchange and interest rate swap contracts
Long-term liabilities	$ 8,884	$ 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		9 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 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)	$ (199)	$ 827	$ (1,276)	2,351
Designated As Hedging Instrument | Cash flow hedges. | Operating Expense
Derivative Financial Instruments
Amount of Gain or (Loss) Reclassified from AOCI into Income (loss)	(72)	337	(484)	1,020
Designated As Hedging Instrument | Cash flow hedges. | Interest expenses
Derivative Financial Instruments
Amount of Gain or (Loss) Reclassified from AOCI into Income (loss)	(1,191)	(100)	(2,991)	209
Designated As Hedging Instrument | Cash flow hedges. | Foreign Exchange Contract
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in AOCI on Derivatives	(338)	(3,158)	2,707	148
Designated As Hedging Instrument | Cash flow hedges. | Interest rate swaps
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in AOCI on Derivatives	(11)	782	(747)	(3,054)
Nondesignated | Foreign Exchange Contract | Revenue
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in Income (loss) on Derivatives	(543)	(1,449)	(1,534)	(205)
Nondesignated | Foreign Exchange Contract | Costs of revenue
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in Income (loss) on Derivatives	334	1,105	1,055	380
Nondesignated | Foreign Exchange Contract | Selling General And Administrative Expenses
Derivative Financial Instruments
Amount of Gain or (Loss) Recognized in Income (loss) on Derivatives	$ 33	$ 114	$ 93	$ 29

Revenues and Accounts Receiva_3

Revenues and Accounts Receivable - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue
Revenue	$ 346,100	$ 335,107	$ 964,352	$ 982,632
Time-and-materials
Disaggregation of Revenue
Revenue	173,097	190,423	528,207	579,657
Fixed-price
Disaggregation of Revenue
Revenue	173,003	144,684	436,145	402,975
Application outsourcing
Disaggregation of Revenue
Revenue	195,941	183,777	536,105	547,303
Consulting
Disaggregation of Revenue
Revenue	150,159	151,330	428,247	435,329
Banking Financial Services and Insurance
Disaggregation of Revenue
Revenue	190,288	180,070	528,579	548,977
Communications and Technology
Disaggregation of Revenue
Revenue	77,155	82,848	227,481	226,944
Media & Information and Other
Disaggregation of Revenue
Revenue	26,232	23,107	75,165	63,830
Healthcare
Disaggregation of Revenue
Revenue	52,425	49,082	133,127	142,881
North America
Disaggregation of Revenue
Revenue	256,536	251,229	713,868	724,005
Europe
Disaggregation of Revenue
Revenue	59,182	55,154	163,740	175,258
Rest Of World
Disaggregation of Revenue
Revenue	$ 30,382	$ 28,724	$ 86,744	$ 83,369

Revenues and Accounts Receiva_4

Revenues and Accounts Receivable - Receivable and Contract Balances (Details) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Significant movements in contract assets
Beginning balance	$ 14,241	$ 18,538
Revenues recognized during the period but not yet billed	66,293	67,594
Amounts billed	(66,888)	(68,314)
Other	52	(20)
Ending balance	13,698	17,798
Significant movements in deferred revenue balances
Beginning balance	8,054	6,421
Amounts billed but not yet recognized as revenues	14,204	5,342
Revenues recognized related to the opening balance of deferred revenue	(6,782)	(5,017)
Other	8	(154)
Ending balance	$ 15,484	$ 6,592

Revenues and Accounts Receiva_5

Revenues and Accounts Receivable - Remaining performance obligation (Details) $ in Thousands	9 Months Ended
	Dec. 31, 2020USD ($)
Remaining performance obligation
Aggregate amount of transaction price allocated to remaining performance obligations	$ 13,627
Upfront payments
Unamortized upfront payments for services	$ 15,735
Amortization period for upfront payments for services	3 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-12-31
Remaining performance obligation
Remaining performance obligation, expected period of recognition	4 years

Revenues and Accounts Receiva_6

Revenues and Accounts Receivable - Allowance for credit losses on accounts receivables (Details) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Apr. 30, 2020	Dec. 31, 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/(reversal) for expected credit losses		(22)
Write-offs charged against the allowance		(476)
Foreign currency translation adjustments		42
Balance at December 31, 2020		$ 1,085

Series A Convertible Preferre_2

Series A Convertible Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	May 03, 2017	Dec. 31, 2020	Dec. 31, 2019
Series A Convertible Preferred Stock
Cash dividends paid		$ 3,138	$ 3,138
Series A Convertible Preferred Stock
Series A Convertible Preferred Stock
Direct and incremental expenses incurred	$ 1,154
Cash dividends paid		3,138	3,138
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	9 Months Ended		12 Months Ended
	Dec. 31, 2020USD ($)segment	Dec. 31, 2019USD ($)	Mar. 31, 2020USD ($)
Goodwill:
Number of operating segments | segment	1
Changes in goodwill
Beginning balance	$ 296,493	$ 279,543	$ 279,543
Goodwill arising from acquisitions			27,316
Purchase price adjustments	(5,942)
Foreign currency translation adjustments	5,040		(10,366)
Ending balance	295,591		296,493
Acquisition costs and goodwill deductible for tax purposes	286,516
Acquisition costs and goodwill not deductible for tax purposes	21,979
Acquired certain assets of a small consulting company purchase price
Amount paid towards earn-out consideration		$ 942
Fiscal 2020 acquisitions
Changes in goodwill
Beginning balance	21,374
Purchase price adjustments	5,942
Ending balance			21,374
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	3,572
Probable and estimable value of the contingent consideration	$ 204

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Intangible assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Dec. 31, 2020	Mar. 31, 2020
Intangible Assets
Weighted Average Useful Life at Aquisition	10 years 6 months	10 years 6 months
Gross Carrying Amount	$ 182,580	$ 178,987
Accumulated Amortization	63,378	48,084
Net Carrying Amount	$ 119,202	$ 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	$ 179,966	$ 176,373
Accumulated Amortization	61,598	46,494
Net Carrying Amount	$ 118,368	$ 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	380	190
Net Carrying Amount	$ 834	$ 1,024

Income Taxes - Tax Act (Details

Income Taxes - Tax Act (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Income Taxes
Effective tax rate (as a percent)	31.60%	44.70%	31.10%	43.30%
United States of America
Income Taxes
Deferred tax charge for disregarded entity election			$ 29,888
United Kingdom
Income Taxes
Deferred tax charge for disregarded entity election			2,152
Sweden
Income Taxes
Deferred tax charge for disregarded entity election			$ 76

Income Taxes - Income tax holid

Income Taxes - Income tax holiday (Details)	Apr. 01, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Mar. 31, 2019
Income Taxes
Effective tax rate (as a percent)		31.60%	44.70%	31.10%	43.30%
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	9 Months Ended
	Dec. 31, 2020	Mar. 31, 2020
Income Taxes
Total liability for unrecognized tax benefits	$ 6,674	$ 6,627
Increase (decrease) in unrecognized tax benefits	47
Cash, cash equivalents, short-term investments and long-term investments available for distribution if not indefinitely reinvested	$ 126,648

Concentration of Revenue and _3

Concentration of Revenue and Assets - Geographic concentration (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Mar. 31, 2020
Concentration of Revenue and Assets
Revenue	$ 346,100	$ 335,107	$ 964,352	$ 982,632
Long-lived assets, net	553,157		553,157		$ 577,330
United States of America
Concentration of Revenue and Assets
Revenue	244,004	237,754	676,790	685,023
Long-lived assets, net	272,187		272,187		291,959
United Kingdom
Concentration of Revenue and Assets
Revenue	29,304	42,902	91,916	137,795
India
Concentration of Revenue and Assets
Long-lived assets, net	252,070		252,070		255,623
Rest Of World
Concentration of Revenue and Assets
Revenue	72,792	$ 54,451	195,646	$ 159,814
Long-lived assets, net	$ 28,900		$ 28,900		$ 29,748

Concentration of Revenue and _4

Concentration of Revenue and Assets - Revenue percentage (Details)	3 Months Ended		9 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Customer Concentration Risk | Sales Revenue Net | Customer A
Concentration of Revenue and Assets
Revenue from significant clients as a percentage of consolidated revenue	19.60%	16.40%	18.50%	15.90%

Debt - Credit Agreement (Detail

Debt - Credit Agreement (Details) $ in Thousands	May 27, 2020USD ($)item	Oct. 15, 2019USD ($)	Mar. 12, 2018USD ($)	Feb. 06, 2018USD ($)	Mar. 31, 2020USD ($)	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Mar. 31, 2020USD ($)	May 26, 2020	Oct. 14, 2019USD ($)	Feb. 05, 2018USD ($)
Debt
Amount drawn down on credit facility							$ 36,000
Payment of revolving credit facility						$ 105,000
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
Payment of revolving credit facility						105,000
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
Payment of term loan						$ 13,008
Term of credit facility						5 years
Required principal payments per quarter						$ 4,336
Frequency of required principal payments						Quarterly
Weighted average interest rate						3.50%
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 Amendment | Delayed-draw term loan
Debt
Amount under term loan	$ 62,492
Term of credit facility	364 days
Amount prepaid	$ 55,000
Third Credit Agreement Amendment | Delayed-draw term loan | London Interbank Offered Rate L I B O R
Debt
Interest rate (as a percent)	3.50%
Third Credit Agreement Amendment | Minimum | Delayed-draw term loan
Debt
LIBOR floor interest rate	1.00%								0.00%
Third Credit Agreement Amendment | Maximum | Delayed-draw term loan
Debt
Number of draw downs before September 24,2020 | item	3
Third Credit Agreement Amendment | JPM
Debt
Total amount outstanding under the credit agreement						$ 381,961

Debt - Current portion of long-

Debt - Current portion of long-term debt (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Mar. 31, 2020
Current portion of long-term debt
Total	$ 20,083	$ 16,043
JPM
Current portion of long-term debt
Term loan - current maturities	21,680	17,344
Less: deferred financing costs, current	(1,597)	(1,301)
Total	$ 20,083	$ 16,043

Debt - Long-term debt, less cur

Debt - Long-term debt, less current portion (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Mar. 31, 2020
Less:
Total	$ 358,441	$ 480,154
JPM
Less:
Current maturities	(21,680)	(17,344)
Deferred financing costs, long-term	(1,840)	(2,471)
Total	358,441	480,154
Delayed-draw term loan | JPM
Long-term debt, less current portion
Term loan and borrowings under revolving credit facility	212,461	225,469
Revolving credit facility | JPM
Long-term debt, less current portion
Term loan and borrowings under revolving credit facility	$ 169,500	$ 274,500

Debt - Sale of accounts receiva

Debt - Sale of accounts receivable (Details) - U.K. Subsidiary $ in Thousands	9 Months Ended
	Dec. 31, 2020USD ($)
Debt
Receivables sold under the terms of the financing agreement	$ 42,630
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	9 Months Ended
	May 31, 2020	Dec. 31, 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		9 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Changes in the components of accumulated other comprehensive income (loss)
Balance		$ 397,397	$ 397,441	$ 390,774
Reclassifications from OCI to:
Other income	$ 397	(209)	(1,145)	(1,137)
Revenue	(346,100)	(335,107)	(964,352)	(982,632)
Costs of revenue	232,142	236,427	697,772	709,746
Selling, general and administrative expenses	72,507	68,270	205,248	209,813
Interest expense	5,187	4,873	16,222	14,616
Less: comprehensive income attributable to noncontrolling interest, net of tax		484		849
Other income (expense), net of tax	4,228	7,209	10,396	17,035
Balance		403,296		403,296
Investment securities, including noncontrolling interests
Other Comprehensive Income (Loss), Tax
OCI before reclassifications, Tax	0	0	0	0
Investment securities, including noncontrolling interests | Other income (expense)
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	0	0	0	0
Investment securities, noncontrolling interests
Other Comprehensive Income (Loss), Tax
Noncontrolling interests, Tax	0	0	0	0
Accumulated Net Unrealized Investment Gain Loss
Changes in the components of accumulated other comprehensive income (loss)
Balance	12	12	12	12
Reclassifications from OCI to:
Balance	12	12	12	12
Other Comprehensive Income (Loss), Tax
Comprehensive income (loss), Tax	0	0	0	0
Currency Translation Adjustments, including noncontrolling interests
Changes in the components of accumulated other comprehensive income (loss)
OCI before reclassifications net of tax	5,933	4,630	13,618	(2,106)
Foreign currency translation noncontrolling interests
Reclassifications from OCI to:
Less : Noncontrolling interests, net of tax		(363)		(389)
Accumulated Translation Adjustment
Changes in the components of accumulated other comprehensive income (loss)
Balance	(63,522)	(64,116)	(71,207)	(57,354)
Reclassifications from OCI to:
Comprehensive income (loss)	5,933	4,267	13,618	(2,495)
Balance	(57,589)	(59,849)	(57,589)	(59,849)
Cash Flow Hedges, including noncontrolling interests.
Changes in the components of accumulated other comprehensive income (loss)
OCI before reclassifications net of tax	(358)	(1,993)	1,346	(2,240)
Other Comprehensive Income (Loss), Tax
OCI before reclassifications, Tax	8	(386)	614	(666)
Cash Flow Hedges, including noncontrolling interests. | Reclassification Out Of Accumulated Other Comprehensive Income
Reclassifications from OCI to:
Revenue				11
Costs of revenue	171	(639)	1,016	(1,847)
Selling, general and administrative expenses	62	(260)	384	(800)
Interest expense	887	75	2,224	(155)
Cash Flow Hedges, noncontrolling interests.
Other Comprehensive Income (Loss), Tax
Noncontrolling interests, Tax	0	0	0	0
Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges.
Changes in the components of accumulated other comprehensive income (loss)
Balance	(7,610)	(2,175)	(11,818)	39
Reclassifications from OCI to:
Comprehensive income (loss)	762	(2,817)	4,970	(5,031)
Balance	(6,848)	(4,992)	(6,848)	(4,992)
Other Comprehensive Income (Loss), Tax
Comprehensive income (loss), Tax	350	(625)	1,741	(1,437)
Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges. | Revenue
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	0	0	0	7
Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges. | Costs of revenue
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	28	(188)	260	(504)
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	10	(77)	100	(220)
Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges. | Interest expenses
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	304	26	767	(54)
Benefit plans, including noncontrolling interests
Changes in the components of accumulated other comprehensive income (loss)
OCI before reclassifications net of tax			11	(911)
Reclassifications from OCI to:
Other adjustments	9	3	(42)	76
Other Comprehensive Income (Loss), Tax
OCI before reclassifications, Tax	0	0	0	0
Benefit plans, prior service credit (cost), including noncontrolling interests | Other income (expense)
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	0	0	0	0
Benefit plans, prior service credit (cost), including noncontrolling interests | Reclassification Out Of Accumulated Other Comprehensive Income
Reclassifications from OCI to:
Other income (expense), net of tax	10	6	30	19
Benefit plans, net actuarial gain (loss), including noncontrolling interest | Other income (expense)
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	0	0	0	0
Benefit plans, net actuarial gain (loss), including noncontrolling interest | Other adjustments
Other Comprehensive Income (Loss), Tax
Reclassifications from OCI, Tax	0	0	0	0
Benefit plans, net actuarial gain (loss), including noncontrolling interest | Reclassification Out Of Accumulated Other Comprehensive Income
Reclassifications from OCI to:
Other income (expense), net of tax	95	70	286	210
Benefit plans, noncontrolling interests
Reclassifications from OCI to:
Less : Noncontrolling interests, net of tax		(3)		(10)
Other Comprehensive Income (Loss), Tax
Noncontrolling interests, Tax	0	0	0	0
Accumulated Defined Benefit Plans Adjustment
Changes in the components of accumulated other comprehensive income (loss)
Balance	(2,071)	(2,776)	(2,242)	(2,084)
Reclassifications from OCI to:
Comprehensive income (loss)	114	76	285	(616)
Balance	(1,957)	(2,700)	(1,957)	(2,700)
Other Comprehensive Income (Loss), Tax
Comprehensive income (loss), Tax	0	0	0	0
Accumulated Other Comprehensive Income (Loss)
Changes in the components of accumulated other comprehensive income (loss)
Balance	(73,191)	(69,055)	(85,255)	(59,387)
Reclassifications from OCI to:
Balance	$ (66,382)	$ (67,529)	$ (66,382)	$ (67,529)

Commitments, Contingencies and

Commitments, Contingencies and Guarantees - Loss contingencies (Details) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2020	Feb. 28, 2019
Loss contingencies
Impact on income from operations and cash flows		$ 7,500
Indemnification Guarantee
Loss contingencies
Liability recorded	$ 0
Acts Under Information Technology Services
Loss contingencies
Liability recorded	0
Merger Agreement | Austin HoldCo Inc.
Loss contingencies
Termination fees	$ 54,330