WNS Q3 net surges 55% to $4 mn

BPO major WNS today reported a 55.55% dip in net profit for the quarter ended December, 2011, to $4 million and narrowed its full-year revenue guidance range to $391-393 million.

The company's net profit stood at $9 million in the corresponding quarter last year, WNS said in a statement.

WNS said its revenues stood at $117.2 million in the reporting quarter, down 23.2% vis-a-vis the corresponding quarter last year, primarily due to a change in the accounting methodology for repair payments. On a sequential basis, the company's revenues were flat.

Excluding repair payments, the company's revenue reduced sequentially during the third quarter as a result of the depreciation of the British pound versus the US dollar and the impact of seasonal volume reductions in the company's travel vertical, WNS said.

"While unfavourable exchange rates created revenue headwinds, depreciation in the Indian rupee versus the US dollar favourably impacted operating costs and allowed WNS to expand margins during the quarter," it added.

For the fiscal ending March 31, 2012, the NYSE-listed company has revised its forecast for revenue, excluding repair payments, to between $391 million and $393 million.

"We have narrowed our fiscal 2012 guidance range based on current revenue visibility levels and exchange rates. The company remains focused on our key investment initiatives and on improving our overall financial strength and competitive positioning," WNS Group Chief Financial Officer Alok Misra said.

In Q2, WNS had said it expected revenue, excluding repair payments, to be between $388 million and $404 million.

WNS added three new clients during the reporting quarter and its global workforce strength stood at 22,697.

WNS ended the third quarter with $23.3 million in cash and an additional $11.4 million in bank deposits and marketable securities. It also made a scheduled repayment of $30 million on its term loan on January 9, 2012.