WNS Q3 net jumps 53 per cent to $6.1m
Jan 16 2013 , New Delhi
As per the US accounting standards, the company had a net profit of $4 million in the same quarter last year, WNS said in a statement.
WNS' revenues grew 2.5 per cent to $120.2 million in the reported quarter from $117.2 million in the same period last year, it added.
"Revenue was positively impacted by the start of several new projects and broad-based growth across verticals, services and geographies," WNS CEO Keshav Murugesh said.
While some of these new project revenues came with higher costs in the short term, WNS said it is confident that as the processes and relationships mature, margins will expand.
"At a macro level, overall demand for BPO services remains stable and healthy as we enter calendar 2013," Murugesh said.
Excluding repair payments, the company's revenue increased 16.8 per cent to $113.5 million in the reported period from $97.2 million in Q3 of last year, it added.
WNS has also revised its forecast for revenue (excluding repair payments) to be between $437 million and $439 million for the fiscal ending March 31, 2013.
"Guidance for the year reflects top line growth of approximately 11 per cent... We will continue to focus on growing revenue and improving operating margin in the fourth quarter and beyond," WNS CFO Deepak Sogani said.
In the July-September quarter, WNS had forecast revenues (excluding repair payments) to be between $426 million and $438 million for FY2012-13.
In 2011-12, WNS re-negotiated contracts with certain of its 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.
As a result of these changes, WNS no longer accounts for the amount received from these clients for payments to repair centres and the payments made to repair centres for cases referred by these clients as revenue and cost of revenue, respectively.
WNS ended the third quarter with $86.3 million in cash and marketable securities and $84.6 million of gross debt.
The company generated $25.8 million in cash from operations, and capital expenditures for the quarter came in at $5.8 million, the statement said.
WNS added nine new clients in the quarter and its global headcount stood at 25,931 as of December 31, 2012.