WNS profit nearly doubles to $87 million in FY18; Q4 net falls sequentially

Business process outsourcing company WNS Holdings Ltd on Thursday said its profit more than doubled during the fiscal year 2018, helped by growth across key verticals, services, and geographies.

The New York Stock Exchange listed company also expects revenue less repair payments growth of 8-14 percent in fiscal 2019, up from USD 741.0 million in the last financial year.

“WNS enters fiscal 2019 with solid business momentum. The BPM industry remains stable and healthy, driven by disruption in our clients’ business environments. We will continue to invest in our differentiated capabilities including domain expertise, technology and automation, analytics, and transformational solutions. Our focus on helping clients improve their competitive positioning and delivering long-term sustainable value for all of our key stakeholders remains unchanged,” said Keshav Murugesh, WNS’s chief executive officer.

Profit during the year rose to USD 86.4 million, compared to USD 37.8 million in the last year. Revenue during the period rose 25 percent to USD 758 million. In addition to growth across verticals, the company attributed its revenue increase to its acquisitions of specialty benefits management company HealthHelp and provider of strategic procurement BPM solutions Denali which closed in March 2017 and January 2017 respectively.

Profit in the fourth quarter fell sequentially to USD 24.5 million, compared with USD 26.3 million in the previous quarter, on account of the net impact of one-time provisional tax adjustments associated with the 2017 US Tax Reform bill recorded in the fiscal third quarter.

Operating margin in the fourth quarter increased to 14.5 percent compared to 13.6 percent in the previous quarter, led by improved productivity, operating leverage on higher volumes, and lower share-based compensation.