WNS Q1 net profit jumps 34% to $22.40 mn
NEW DELHI: WNS (Holdings), a leading provider of global business process management services, on Thursday reported 34.10 per cent year-on-year rise in net profit at $22.4 million for the quarter ended June 2018. The company posted a net profit of $16.70 million in the corresponding quarter last year.
Revenue of the company increased 10.90 per cent YoY to $199.80 million during the quarter under review against $180.10 million in the same quarter last year.
Operating margin in the first quarter was 12.6 per cent, as compared to 11 per cent in Q1 of last year and 14.5 per cent in the previous quarter.
On a year-over-year basis, margin improvement was the result of increased productivity, operating leverage on higher volumes, and currency movements net of hedging.
“These benefits more than offset the impact of our annual wage increases and lower seat utilisation. Sequentially, margins reduced due to the impact of our annual wage increases, advance hiring and infrastructure buildout for project ramps, and higher share-based compensation expense. These headwinds more than offset favorable currency movements net of hedging,” WNS said in a release.
From a balance sheet perspective, the company ended Q1 with $193.3 million in cash and investments and $89.2 million of debt. In the first quarter, the company generated $14.7 million in cash from operations, had $9.2 million in capital expenditures, and repurchased 450,300 ADSs at an average price of $51.82 per ADS, impacting Q1 cash by $23.0 million dollars.
“In the fiscal first quarter, WNS continued to generate solid financial performance, growing revenue less repair payments 12 per cent year-over-year. Excluding the impact of currency movements and hedging, year-over-year first quarter top line improved by more than 10 per cent on a constant currency basis – all of which was organic,” said Keshav Murugesh, WNSs Chief Executive Officer.
“We are increasingly deploying technology and automation in our solutions, and working to attract, retain and retrain our resources for the changing BPM landscape. WNS remains focused on leveraging deep domain expertise, technology and automation, advanced analytics, and a customer-centric approach to enable our clients success.”