Advertisement

  • News
  • Columns
  • Interviews
  • BW Communities
  • Events
  • BW TV
  • Subscribe to Print
BW Businessworld

WNS Reports 129% Surge In Annual Profit At $86.4 Million

The company’s adjusted net income (ANI) stood at $118.4 million, as compared with $92.2 million in fiscal 2017, on a non-GAAP basis

Photo Credit :

1485944864_Wre44P_BPO-reuters-870.jpg

WNS (Holdings), Business Process Management (BPM) services provider, has reported 129 per cent surge in its annual profits at $86.4 million for fiscal 2018 on a GAAP basis compared with $37.8 million reported for fiscal 2017. It reported $758.0 million revenue, up 25.8 per cent from $602.5 million in fiscal 2017.

The company’s adjusted net income (ANI) stood at $118.4 million, as compared with $92.2 million in fiscal 2017, on a non-GAAP basis. In fiscal 2017, the revenue less repair payments of $741.0 million was up 28.1 per cent from $578.4 million. Adjusted diluted earnings per ADS came in at $2.24 compared with $1.74 in fiscal 2017.

Revenue less repair payments in the fourth quarter was $198.2 million, an increase of 28.6% year-over-year and 7.1% sequentially. Excluding exchange rate impacts, constant currency revenue less repair payments* in the fiscal fourth quarter grew 21.9% versus Q4 of last year and 4.6% sequentially.

Year-over-year, fiscal Q4 revenue improvement was driven by healthy organic growth across key verticals, services, and geographies, our acquisitions of HealthHelp and Denali which closed in March 2017 and January 2017 respectively, and favorability from currency net of hedging. Sequentially, revenue growth was the result of project ramps with both new and existing clients and currency movements net of hedging.

Operating margin in the fourth quarter was 14.5%, as compared to an operating margin loss of (2.0%) in Q4 of last year and 13.6% in the previous quarter.  On a year-over-year basis, margin improvement was the result of a non-recurring $21.7 million charge for goodwill impairment relating to the AutoClaims business in Q4 of fiscal 2017, increased productivity, operating leverage on higher volumes, acquisition-related expenses incurred in Q4 of last year, and lower share-based compensation as a percentage of revenue.  These benefits more than offset the impact of our annual wage increases and currency movements net of hedging.  Sequentially, margins increased as a result of improved productivity, operating leverage on higher volumes, and lower share-based compensation.  These benefits more than offset currency movements net of hedging and lower seat utilization.

Fourth quarter adjusted operating margin* was 20.4%, versus 18.1% in Q4 of last year and 19.9% last quarter.  On a year-over-year basis, adjusted operating margin* improved due to increased productivity, operating leverage on higher volumes, and acquisition-related expenses incurred in Q4 of last year.  These benefits were partially offset by the impact of our annual wage increases and currency movements net of hedging.  Sequentially, adjusted operating margin* increased as a result of improved productivity and operating leverage on higher volumes.  These benefits more than offset currency movements net of hedging and lower seat utilization.

Profit in the fiscal fourth quarter was $24.5 million, as compared to ($5.0) million in Q4 of last year and $26.3 million in the previous quarter.  Adjusted net income (ANI) in Q4 was $33.0 million, up $9.0 million as compared to Q4 of last year and down $1.2 million from the previous quarter.  In addition to the explanations discussed above, fiscal fourth quarter profit and adjusted net income* reduced on a sequential basis by $5.2 million as a result of the net impact of one-time provisional tax adjustments associated with the 2017 US Tax Reform bill recorded in the fiscal third quarter.

From a balance sheet perspective, WNS ended Q4 with $221.3 million in cash and investments and $89.1 million of debt. In the fourth quarter, the company generated $39.8 million in cash from operations, and had $5.9 million in capital expenditures.  Days sales outstanding were 30 days, as compared to 29 days reported in Q4 of last year and 30 days in the previous quarter.  

"In the fiscal fourth quarter, WNS continued to demonstrate the strong value we are able to deliver to our clients, growing revenue less repair payments* 29% year-over-year.  For the full year, WNS generated $741.0 million in revenue less repair payments*, which represented 28% growth on a reported basis and 26% constant currency.  Excluding the impact of acquisitions, fiscal 2018 top line improved 14% on a constant currency basis.  


Tags assigned to this article:
WNS Global Services company results
sentifi.com

Top themes and market attention on: