WNS Q1 net profit up 23.2 pc at USD 27.6 mn

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Business process management (BPM) major WNS Holdings Thursday reported 23.2 per cent rise in net profit to USD 27.6 million for the first quarter ended June 30.

As per the general accounting standards, the company had registered a net profit of USD 22.4 million in the same quarter last year, WNS said in a statement.

The company's revenues increased by 7.4 per cent to USD 214.6 million in the quarter under review, from USD 199.8 million in the year-ago period, it added.

WNS said the revenue improvement was broad-based across several key verticals, services, and geographies, and more than offset headwinds from currency movements net of hedging.

Sequentially, revenue strength was driven by healthy growth with both new and existing clients, which more than offset the first quarter impact of contractual productivity commitments, it added.

"WNS' performance in the fiscal's first quarter continues to highlight our differentiated positioning in the BPM industry...The company also posted solid results across other key financial metrics including operating margin, profitability, and cash flow," WNS Chief Executive Officer Keshav Murugesh said.

The company's ability to 'co-create' solutions to help clients compete in a rapidly changing business environment is resonating well in the marketplace.

"WNS remains committed to innovating, investing, and executing on our strategic plans to create long-term sustainable business value for all of our key stakeholders," he said.

WNS posted revenue less repair payments of USD 211.6 million, up 7.9 per cent from USD 196 million in the June quarter last year. It now expects its revenue less repair payments to be between USD 855 million and USD 895 million, up from USD 794 million in fiscal 2019.

"Our guidance for the year reflects growth in revenue less repair payments of 8 per cent to 13 per cent on both a reported and constant currency basis. We currently have 95 per cent visibility to the mid-point of the range," WNS CFO 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.

It also said that revenue less repair payments for 'fault' repairs reflects more accurately the value addition of the business process management services that it directly provides to clients.

The company ended the June 2019 quarter with USD 226.5 million in cash and investments and USD 61.5 million of debt.