BPO services provider WNS Holdings today reported a net income of $4.4 million for the fourth quarter ended March 31, 2012.
As per the General accounting standards, the company had a net income of $8.8 million in the same period previous fiscal, WNS said in a statement.
The company's revenues increased to $113.3 million in the quarter to March, 2012 from $159.5 million in the year-ago period, down 28.9%, primarily due to change in accounting for repair payments.
In 2011-12, WNS re-negotiated contracts with certain of its clients and repair centres in the auto claims business, whereby the primary responsibility for providing the services is borne by the repair centres instead of WNS and the credit risk that the client may not pay for services is no longer borne by WNS.
As a result of these changes, WNS no longer accounts for the amount received from these clients for payments to repair centres and the payments made to repair centres for cases referred by these clients as revenue and cost of revenue, respectively.
"During the quarter, the company repaid $30 million on our term loan, refinanced our debt and successfully completed a stock offering which raised approximately $45 million of cash to fund growth initiatives," WNS Group Chief Executive Officer Keshav Murugesh said.
For FY2011-12, the company's profit stood at $12.5 million, compared to $17.9 million in 2010-11. Revenues, on the other hand, declined 23.1% to $474.1 million from $616.3 million in 2010-2011 (on account of repair payments).
As on March 31, 2012, global headcount stood at 23,874.
Looking ahead, the company expects revenue less repair payments to be between $410 million and $430 million for the FY2012-13, while while adjusted net income is expected in the range of $49 million to $53 million.
"As we turn our attention to fiscal 2013, we are cautiously optimistic about the macroeconomic environment for BPO services," Murugesh said.
WNS' key focus areas for 2013 include sales force productivity and capital deployment to increase geographic reach, enhance and automate our service offerings, and drive non-linear revenue growth.
"These initiatives are aimed at improving the overall client experience while enabling WNS to accelerate profitable revenue growth," he said.