WNS Holdings net profit rises 10.6% to $34.3 million in third quarter

Despite the ongoing pandemic-related volatility and pressure associated with tight global labour markets, WNS continues to perform well and deliver solid financial results, a company official said

Business process management major WNS Holdings on Thursday reported a 10.6 per cent rise in net profit to USD 34.3 million for the third quarter ended December 2021.

As per the general accounting standards, the company had registered a net profit of USD 31 million in the corresponding quarter last year, WNS said in a statement.

The company's revenues increased by 19.1 per cent to USD 284.1 million in the quarter under review, from USD 238.4 million in the year-ago period, it added.

Year-over-year, profit increased as a result of revenue growth, favourable currency movements net of hedging, higher net interest income, and a lower effective tax rate, and these benefits more than offset the impact of wage increases and increased facility-related and travel costs, it said.

Sequentially, the December quarter profit increased (from USD 32.1 million in September quarter) as a result of revenue growth, reduced share-based compensation expense, improved productivity and higher net interest income, WNS added.

Revenue in the December 2021 quarter improved y-o-y as a result of new client additions, expansion of existing relationships, increased travel volumes, and currency movements net of hedging, the statement said.

Despite the ongoing pandemic-related volatility and pressure associated with tight global labour markets, WNS continues to perform well and deliver solid financial results in a healthy BPM (Business Process Management) demand environment...Our business model remains resilient, flexible, and focused on helping our clients leverage digital transformation to improve their competitive positioning, WNS Chief Executive Officer Keshav Murugesh said.

The company added 11 new clients in the quarter and expanded 26 existing relationships. Its global headcount stood at 49,610 as of December 31, 2021.

WNS reported revenue less repair payments of USD 261.2 million, an increase of 16.3 per cent y-o-y and 2.6 per cent sequentially.

It now expects its revenue less repair payments to be between USD 1,008 million and USD 1,022 million, up from USD 868.7 million in FY21.

"Our guidance for the full year reflects growth in revenue less repair payments of 16 per cent to 18 per cent, or 14 per cent to 16 per cent on a constant currency basis," WNS Chief Financial Officer Sanjay Puria said.

In 2011-12, WNS re-negotiated contracts with certain 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.