WNS June quarter results for FY24: Net profit declines to $30.1 million

Business process management company WNS on Thursday reported a 9 per cent decline in net profit at $30.1 million in the June quarter

Business process management company WNS on Thursday reported a 9 per cent decline in net profit at USD 30.1 million in the June quarter.

The NYSE-listed company, which has a major chunk of its operations in the country, had reported a profit after tax of USD 33.1 million in the year-ago period.

For the reporting quarter, its revenue grew to USD 326.5 million from USD 295.3 million in the year-ago period, and USD 314.9 million in the preceding March quarter.

There was an increase in the operating expenses, which includes selling and marketing expenses, administrative expenses and amortisation, along with a narrowing of forex gains during the quarter, the company said.

The finance expenses also more than doubled to USD 7.1 million during the reporting quarter. 

"Despite the challenging macro environment, WNS grew constant currency revenue less repair payments by more than 17 per cent," its chief executive officer Keshav Murugesh said.

The company guided that it expects the revenue less repair payments to come between USD 1,296 million and USD 1,354 million in FY24, as against the earlier USD 1,162 million in FY23. The guidance assumes an average GBP to USD exchange rate of 1.27 for the remainder of FY24.

"Our guidance for the full year reflects growth in revenue less repair payments of 12 per cent to 17 per cent on a reported basis, or 11 per cent to 16 per cent constant currency," its chief financial officer Sanjay Puria said.

He added that the company will be investing USD 60 million on capital expenditure in FY24, he said.

It closed the quarter with USD 242.6 million in cash and a debt of USD 206.2 million.

The overall head count stood at 59,871 as of June 30, 2023.