WNS Q2 Net up 65 pc at USD 15.3 million

BPO services provider WNS Holdings today reported a 65 per cent growth in net profit at USD 15.3 million for the second quarter ended September 30, 2014 on the back of broad-based growth revenue growth and favourable currency movement.
As per the general accounting standards, the company had registered a net profit of USD 9.3 million in the same quarter last year, WNS said in a statement.
Revenues increased 8.9 per cent to USD 134.1 million in the quarter to September from USD 123.1 million in Q2 FY 2013-14, it added.
"As we move forward, the company will remain focused on improving our sales force productivity, including the addition of new client logos and the expansion of existing relationships," WNS CEO Keshav Murugesh said.

While market positioning and differentiation remain solid, WNS must continue to invest in domain expertise, technology-enablement and new service offerings to meet the evolving needs of our BPM clients, he added.
The Q2 revenue was adversely impacted by the transition of a large online travel agency (OTA) client and pricing and productivity headwinds from a five-plus year contract extension with Aviva, WNS said in a statement.

"These headwinds were more than offset by broad-based revenue growth and currency favorability resulting from appreciation in the British Pound against the US dollar," it added.
WNS now expects its revenue less repair payments to be between USD 500 million and USD 516 million, up from USD 471.5 million in fiscal 2014.

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.
"Our revised guidance for the year reflects top line growth of 6-9 per cent. WNS continues to expect profitability to expand faster than revenue, with our ANI guidance reflecting 15-20 per cent year-over-year improvement," WNS Chief Financial Officer Sanjay Puria said.
During Q2, the New York Stock Exchange-listed company added five new clients and expanded three existing relationships. As on September 30, WNS' global headcount stood at 27,734.