WNS reports 31% rise in profit at $24.8 million in 2nd quarter of FY19

Mumbai-based business process outsourcing (BPO) company WNS reported 31 per cent rise in its profit at $24.8 million in the second quarter of current financial year. Net profit grew 10 per cent in the sequential term.

The NYSE-listed company reported 6.8 per cent year-on-year growth in revenue to $199.1 million in the September quarter, while in the sequential term (compared with traling quarter), the revenue declined by 0.3 per cent.

Revenue upside was driven by healthy growth across key verticals, services, and geographies, which more than offset headwinds arising from currency movements and hedging losses, said the company.

During the quarter ended September 30, 2018, operating margin stood at 14.5 per cent, an improvement of 190 bps over the previous quarter. “Margin improvement was the result of increased productivity, lower share-based compensation expense, operating leverage on higher volumes, and currency movements. These benefits more than offset the impact of our annual wage hikes apart from lower seat utilization," the company said.

In the September quarter, WNS added seven new clients and expanded its engagement with 13 existing clients. “WNS remains committed to helping its clients outperform in their respective industries through co-creation,” said Keshav Murugesh, Chief Executive Officer at WNS.  

For FY19, WNS said, the company was expecting the revenues to grow in the range of 8 to 12 per cent on a constant currency basis. "We currently have 98 per cent visibility to the midpoint of the range,” said Sanjay Puria, Chief Financial Officer at WNS.

At the end of the quarter, the BPM firm had a cash reserve of $158.1 million, while its debt level stood at $75.3 million.