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Buoyed by the a favourable currency and new business wins, business process outsourcing services firm WNS Holdings has reported a 137.4% jump in net profit at $6.7 million for the three months ending 30 June, 2013 against the same quarter last year. The company's revenues were at $122.1 million, an increase of 13.3% against the same quarter last year.
However, on a sequential quarter basis, the company's net profit declined around 18%, owing to higher investments in infrastructure and annual wage increases. The revenues went up 2.5% on quarter-on-quarter basis.
Keshav Murugesh, WNS’s CEO said that excluding the impact of the depreciating British Pound, the company's revenue growth has been 12.6% on a constant currency basis. "We believe that as the year progresses and revenues increase, the company will be able to leverage the investments made over the past few years to drive expanding margins and profits.” He also said that the company remains comfortable with the demand environment. "Demand for BPO services is robust...," he added.
The company has also increased its revenue outlook for the entire year. "Guidance for the year reflects top line growth of 6 to 10%, with 95% visibility to the midpoint of the range. This guidance represents 8 to 12% revenue growth on a constant currency basis," said Deepak Sogani, CFO of WNS.
Adjusted operating margin for the quarter was 13.9%, as compared to 13.2% in first quarter of last year, and 15.8% reported in the fourth quarter.
"On a year-over-year basis, operating margin improved as a result of depreciation in the Indian Rupee against the US Dollar, and operating leverage associated with higher revenue. Partially offsetting this favorability were investments in global infrastructure which reduced seat utilisation, and the impact of our annual wage increases," the company said in a statement. It added that the sequential reduction in adjusted operating margin is largely seasonal in nature, driven by the timing of its annual wage increases.
The company added six new clients during the quarter.
