WNS Announces Fiscal 2024 First Quarter Earnings Revises Full Year Guidance

Mumbai, Maharashtra, India & New York, United States – Business Wire India

WNS (Holdings) Limited (WNS) (NYSE: WNS), a leading provider of global Business Process Management (BPM) solutions, today announced results for the fiscal 2024 first quarter ended June 30, 2023.

Highlights – Fiscal 2024 First Quarter:

GAAP Financials

Revenue of $326.5 million, up 10.5% from $295.3 million in Q1 of last year and up 3.7% from $314.9 million last quarter
Profit of $30.1 million, compared to $33.1 million in Q1 of last year and $36.4 million last quarter
Diluted earnings per share of $0.60, compared to $0.65 in Q1 of last year and $0.72 last quarter

Non-GAAP Financial Measures

Revenue less repair payments of $317.5 million, up 15.5% from $274.8 million in Q1 of last year and up 4.1% from $305.0 million last quarter
Adjusted Net Income (ANI) of $50.6 million, compared to $45.9 million in Q1 of last year and $52.4 million last quarter
Adjusted diluted earnings per share of $1.01, compared to $0.90 in Q1 of last year and $1.04 last quarter

Other Metrics

Added 6 new clients in the quarter, expanded 36 existing relationships
Days sales outstanding (DSO) at 34 days
Global headcount of 59,871 as of June 30, 2023


Reconciliations of the non-GAAP financial measures discussed below to our GAAP operating results are included at the end of this release. See also “About Non-GAAP Financial Measures.”

Revenue in the first quarter was $326.5 million, representing a 10.5% increase versus Q1 of last year and a 3.7% increase from the previous quarter. Revenue less repair payments in the first quarter was $317.5 million, an increase of 15.5% year-over-year and 4.1% sequentially. Excluding exchange rate impacts, constant currency revenue less repair payments* in the fiscal first quarter was up 17.5% versus Q1 of last year and 3.6% sequentially. Year-over-year, fiscal Q1 revenue improved as a result of our new client additions, the expansion of existing relationships, and our fiscal 2023 acquisitions, which more than offset the ramp-down of a large HealthCare process and unfavorable currency movements. Sequentially, growth driven by broad-based revenue momentum and favorable currency movements was partially offset by contractual productivity commitments to certain clients.

Profit in the fiscal first quarter was $30.1 million, as compared to $33.1 million in Q1 of last year and $36.4 million in the previous quarter. Year-over-year, profit decreased as a result of wage increases, increased return-to-office costs, higher share-based compensation expense, and increased costs associated with our acquisitions including amortization of intangibles, interest expense, and other acquisition-related expenses. These headwinds more than offset revenue growth and favorable impacts from currency movements. Sequentially, Q1 profit decreased as a result of wage increases, return-to-office costs, higher share-based compensation expense, and one-time benefits in Q4 from tax and interest income. These headwinds were partially offset by revenue growth and favorable currency impacts.

Adjusted net income (ANI)* in Q1 was $50.6 million, as compared to $45.9 million in Q1 of last year and $52.4 million in the previous quarter. Explanations for the ANI* movements on a year-over-year and sequential basis are the same as described for GAAP profit above with the exception of amortization of intangible expenses, share-based compensation expense, acquisition-related expenses, and associated tax impacts which are excluded from ANI.

From a balance sheet perspective, WNS ended Q1 with $242.6 million in cash and investments and $206.2 million in debt. Included in this debt amount is $40.2 million borrowed for general corporate purposes against our line of credit during the quarter. In Q1, the company generated $19.5 million in cash from operations, incurred $17.8 million in capital expenditures, and repaid $10.6 million in long-term debt. WNS also repurchased 1,100,000 ADSs at an average price of $77.84, impacting Q1 cash by $85.6 million. First quarter days sales outstanding were 34 days, as compared to 29 days reported in Q1 of last year and 32 days in the previous quarter.

“In the fiscal first quarter, WNS continued to deliver healthy financial results and position our business for long-term success,” said Keshav Murugesh, WNS’ Chief Executive Officer. “Despite the challenging macro environment, WNS grew constant currency revenue less repair payments by more than 17% and maintained our industry-leading adjusted operating margins. Our updated guidance and visibility demonstrate the healthy and resilient nature of our business, and we believe WNS remains well-positioned to meet the evolving needs of our clients. This includes ongoing technology and automation advancements such as AI and Generative AI. The company remains focused on investing in domain, technology, and talent, driving strong operational and financial execution, and delivering long-term sustainable value for all of our stakeholders.”

Fiscal 2024 Guidance

WNS is updating guidance for the fiscal year ending March 31, 2024, as follows:

• Revenue less repair payments is expected to be between $1,296 million and $1,354 million, up from $1,162.0 million in fiscal 2023. Guidance assumes an average GBP to USD exchange rate of 1.27 for the remainder of fiscal 2024.

• ANI* is expected to range between $211 million and $223 million versus $196.1 million in fiscal 2023. Guidance assumes an average USD to INR exchange rate of 82.0 for the remainder of fiscal 2024.

• Based on a diluted share count of 50.1 million shares, the company expects fiscal 2024 adjusted diluted earnings per share* to be in the range of $4.21 to $4.45 versus $3.86 in fiscal 2023.

“The company has updated our forecast for fiscal 2024 based on current visibility levels and exchange rates,” said Sanjay Puria, WNS’ Chief Financial Officer. “Our guidance for the full year reflects growth in revenue less repair payments* of 12% to 17% on a reported basis, or 11% to 16% constant currency. This includes an estimated 3% inorganic growth related to our fiscal 2023 acquisitions. We currently have 92% visibility to the midpoint of the revenue range. For the year, we expect capital expenditures of up to $60 million.”

See “About Non-GAAP Financial Measures” and the reconciliations of the historical non-GAAP financial measures to our GAAP operating results at the end of this release.

Conference Call

WNS will host a conference call on July 20, 2023, at 8:00 am (Eastern) to discuss the company's quarterly results. To access the call in “listen-only” mode, please join live via the company’s investor relations website at ir.wns.com. For call participants, please register using this online form to receive your dial-in number and unique PIN/passcode which can be used to access the call. A replay of the webcast will be archived on the company website at ir.wns.com.

About WNS

WNS (Holdings) Limited (NYSE: WNS) is a leading Business Process Management (BPM) company. WNS combines deep industry knowledge with technology, analytics, and process expertise to co-create innovative, digitally led transformational solutions with over 400 clients across various industries. WNS delivers an entire spectrum of BPM solutions including industry-specific offerings, customer experience services, finance and accounting, human resources, procurement, and research and analytics to re-imagine the digital future of businesses. As of June 30, 2023, WNS had 59,871 professionals across 66 delivery centers worldwide including facilities in Canada, China, Costa Rica, India, Malaysia, the Philippines, Poland, Romania, South Africa, Sri Lanka, Turkey, the United Kingdom, and the United States. For more information, visit www.wns.com.

Safe Harbor Statement

This release contains forward-looking statements, as defined in the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current expectations and assumptions about our Company and our industry. Generally, these forward-looking statements may be identified by the use of terminology such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “will,” “seek,” “should” and similar expressions. These statements include, among other things, expressed or implied forward-looking statements relating to discussions of our strategic initiatives and the expected resulting benefits, our growth opportunities, industry environment, our expectations concerning our future financial performance and growth potential, including our fiscal 2024 guidance, future profitability, our expectations regarding the benefits from our acquisitions of Vuram, OptiBuy, and The Smart Cube (including their impacts on our results of operations), estimated capital expenditures, and expected foreign currency exchange rates. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include but are not limited to worldwide economic and business conditions, our dependence on a limited number of clients in a limited number of industries; the impact of the ongoing COVID-19 pandemic on our and our clients’ business, financial condition, results of operations and cash flows; currency fluctuations; political or economic instability in the jurisdictions where we have operations; regulatory, legislative and judicial developments; increasing competition in the BPM industry; technological innovation; our liability arising from fraud or unauthorized disclosure of sensitive or confidential client and customer data; telecommunications or technology disruptions; our ability to attract and retain clients; negative public reaction in the US or the UK to offshore outsourcing; our ability to collect our receivables from, or bill our unbilled services to our clients; our ability to expand our business or effectively manage growth; our ability to hire and retain enough sufficiently trained employees to support our operations; the effects of our different pricing strategies or those of our competitors; our ability to successfully consummate, integrate and achieve accretive benefits from our strategic acquisitions (including Vuram, OptiBuy, and The Smart Cube), and to successfully grow our revenue and expand our service offerings and market share; future regulatory actions and conditions in our operating areas; and our ability to manage the impact of climate change on our business. These and other factors are more fully discussed in our most recent annual report on Form 20-F and subsequent reports on Form 6-K filed with or furnished to the US Securities and Exchange Commission (SEC) which are available at www.sec.gov. We caution you not to place undue reliance on any forward-looking statements. Except as required by law, we do not undertake to update any forward-looking statements to reflect future events or circumstances.

References to “$” and “USD” refer to the United States dollars, the legal currency of the United States; references to “GBP” refer to the British pound, the legal currency of Britain; and references to “INR” refer to Indian Rupees, the legal currency of India. References to GAAP refers to International Financial Reporting Standards, as issued by the International Accounting Standards Board (IFRS).

To View the complete release, Click on the Link Below:

WNS Announces Fiscal 2024 First Quarter Earnings, Revises Full Year Guidance

(Disclaimer: The above press release comes to you under an arrangement with Business Wire India and PTI takes no editorial responsibility for the same.). PTI PWR
PWR

(This story has not been edited by THE WEEK and is auto-generated from PTI)