WNS Q4 Net profit at $13.4 mn

PTI Posted online: Wednesday, Apr 30, 2014 at 0000 hrs
New Delhi : BPO services provider WNS Holdings today reported a net profit of USD 13.4 million for the fourth quarter ended March 31, 2014.

As per the general accounting standards, the company had registered a net profit of USD 8.2 million in the same quarter last year, WNS said in a statement.

Revenues increased 9.3 per cent to USD 130.3 million in the quarter to March from USD 119.2 million in Q4 FY 2012-13, it added.

Revenue improvement was broad-based with the growth rate paced by strength in the shipping and logistics, utilities, insurance (including autoclaims) and banking and financial services verticals, WNS said.

"In the fourth quarter, WNS continued to make progress in adding new clients, strengthening our existing relationships and building the new business pipeline. We successfully signed our fifth large deal of the year, and the pipeline for large opportunities remains robust," WNS CEO Keshav Murugesh said.

Overall, WNS was able to post healthy revenue growth, expand margins and profits, improve cash flow and solidify the balance sheet, he added.

"We are confident that the company remains on the right track to differentiate our position in the market, and generate substantial business value for all our key stakeholders in the coming years," he said.

For 2013-14, the company's profit stood at USD 41.6 million, up from USD 21.4 million in the previous fiscal.

Revenue increased 9.2 per cent to USD 502.6 million in reported fiscal, from USD 460.3 million in 2012-13 (primarily due to change in contract terms for repair payments).

In 2011-12, WNS re-negotiated contracts with certain clients and repair centres in the auto claims business, whereby the primary responsibility for providing the services is borne by the repair centres instead of WNS.

Looking ahead, WNS expects revenue less repair payments to be between USD 490 million and USD 520 million FY2014-15.

"As we enter fiscal 2015, the demand environment for BPM services remains stable and healthy. WNS will, however, face revenue headwinds which are incremental to our normal business volume and productivity pressures," Murugesh said.

These include the rapid transition of a large online travel agency (OTA) client and expected pricing and productivity headwinds from a proposed five plus year contract extension with a major client, he added.

"Despite these short-term challenges, WNS is encouraged by our underlying business momentum and competitive positioning," he said.

During Q4, the New York Stock Exchange-listed company added five new clients and expanded six existing relationships.

As on March 31, WNS' global headcount stood at 27,020.