WNS Q2 2024 Earnings Report: Strong Growth and Optimistic Guidance

 

WNS Q2 2024 Earnings Report: Strong Growth and Optimistic Guidance

WNS Holdings Limited (NYSE: WNS) Reports Robust Growth in Q2 2024 Earnings and Raises Full-Year Guidance

New York & Mumbai, India - WNS Holdings Limited, a globally recognized leader in Business Process Management (BPM) solutions, has released its fiscal 2024 second-quarter results, which ended on September 30, 2023. The report highlights significant achievements in the fiscal year, with a strong emphasis on financial growth and an optimistic outlook for the remainder of the year.

Key Highlights from the Fiscal 2024 Second Quarter:

* Impressive Revenue Growth: WNS reported a revenue of $333.9 million, marking an 8.7% increase compared to the same quarter the previous year. Additionally, it showed a 2.3% increase from the previous quarter, with revenue reaching $326.5 million.

* Profit Soars: The company achieved a profit of $57.8 million in the second quarter, a substantial jump from $33.2 million in the same period the previous year. The profit also increased by $30.1 million compared to the previous quarter.

* Earnings Per Share: Diluted earnings per share stood at $1.16, a significant improvement from $0.66 in the second quarter of the previous fiscal year and $0.60 in the prior quarter.

* Client Expansion: WNS welcomed seven new clients during the quarter and strengthened relationships with 27 existing clients.

* Days Sales Outstanding (DSO): DSO remained healthy at 35 days.

* Growing Workforce: As of September 30, 2023, WNS had a global headcount of 59,873.

WNS's revenue in the second quarter grew by 8.7% year-over-year, reaching $333.9 million, and a 2.3% increase from the previous quarter. Revenue, excluding repair payments, was $325.0 million in the second quarter, marking a remarkable 12.3% year-over-year growth and a 2.4% sequential increase.

Profit for the fiscal second quarter reached $57.8 million, a significant increase from $33.2 million in the same period the previous year and $30.1 million in the previous quarter. The year-over-year increase in profit was attributed to the reversal of a provision for contingent acquisition consideration, revenue growth, improved productivity, and other factors.

Adjusted Net Income (ANI) for the quarter was $54.1 million, compared to $47.2 million in the same quarter of the previous year and $50.6 million in the prior quarter.

WNS's balance sheet showed the company ended the second quarter with $248.1 million in cash and investments, along with $164.1 million in debt. The company generated $68.5 million in cash from operations, incurred $15.7 million in capital expenditures, and repaid $38.0 million in debt during the quarter.

The company's leadership expressed their satisfaction with the strong financial results, with Keshav Murugesh, WNS' Chief Executive Officer, stating, "Despite the challenging macro environment, WNS delivered healthy financial results in the fiscal second quarter."

Fiscal 2024 Guidance:

WNS has updated its guidance for the fiscal year ending March 31, 2024. The company's revised guidance includes:

* Revenue less repair payments is expected to range between $1,254 million and $1,300 million, reflecting a substantial increase from $1,162.0 million in fiscal 2023.

* ANI is expected to range between $201 million and $211 million, compared to $196.1 million in fiscal 2023.

* Adjusted diluted earnings per share for fiscal 2024 is projected to be in the range of $4.04 to $4.24, compared to $3.86 in fiscal 2023.

Sanjay Puria, WNS' Chief Financial Officer, provided insights into the revised guidance, mentioning, "The revised guidance reflects reduced volume commitments from certain clients, lower project revenues, and a delay in the ramp of our large insurance captive. We currently have 97% visibility to the midpoint of the revenue range."

The updated guidance reflects the company's determination to continue its growth trajectory despite challenges and uncertainties in the global business environment.

About WNS:

WNS Holdings Limited (NYSE: WNS) is a leading provider of Business Process Management (BPM) solutions. With a global workforce of 59,873 professionals across 67 delivery centers worldwide, WNS offers a wide range of BPM solutions, including industry-specific offerings, customer experience services, finance and accounting, human resources, procurement, and research and analytics.

For more information, please visit WNS's official website.

Safe Harbor Statement:

The release contains forward-looking statements, reflecting WNS's current expectations and assumptions. These statements provide insights into discussions of strategic initiatives, growth opportunities, and financial performance. WNS cautions investors that these forward-looking statements inherently involve risks and uncertainties that could affect actual results. Factors include worldwide economic conditions, currency fluctuations, and regulatory developments, among others.

References:

- "$" and "USD" refer to United States dollars.

- "GBP" refers to the British pound.

- "INR" refers to Indian Rupees.

- "GAAP" refers to International Financial Reporting Standards, as issued by the International Accounting Standards Board (IFRS).

Contact Information:

Investors:

David Mackey

EVP – Finance & Head of Investor Relations

WNS (Holdings) Limited

+1 (646) 908-2615

david.mackey@wns.com

Media:

Archana Raghuram

EVP & Global Head – Marketing & Communications

WNS (Holdings) Limited

+91 (22) 4095 2397

archana.raghuram@wns.com; pr@wns.com