WNS Q1 Net up four-fold at $2.8 mn

PTI New Delhi | Updated on July 18, 2012 Published on July 18, 2012

BPO major WNS today reported a four-fold increase in net profit to $2.8 million in the first quarter ended June 30, 2012.

The company’s net profit was $0.7 million in the April-June, 2011 quarter.

On sequential basis, the net profit was lower by 36.3 per cent as the net profit in the January-March 2012 quarter stood at $4.4 million.

“We remain cautiously optimistic about the market environment for BPO services, which currently remains stable and healthy. WNS will continue to invest in expanding our geographic footprint, technology-enabling our solutions and driving non-linear revenue growth,” WNS Group CEO Mr Keshav Murugesh said.

The NYSE-listed BPO’s revenue during the reporting quarter stood at $107.8 million, down 14.2 per cent from $125.7 million revenue registered in the corresponding quarter last year, primarily due to change in accounting for repair payments.

The revenues dipped sequentially from $113.3 million in Q4 FY’12, down 4.9 per cent.

“Sequential revenue growth was broad-based with particular strength in insurance, healthcare and utilities verticals. Year-on-year, revenue improvement was also broad-based and driven by growth in utilities, travel and insurance verticals,” WNS said.

The company has increased its revenue (less repair payments) guidance for the fiscal year ending March 31, 2013 to be between $420 million and $440 million.

WNS ended the fiscal first quarter with $52.2 million in cash and an additional $12.8 million in marketable securities.

The Fusion South Africa acquisition reduced the quarter-ending cash by about $8 million and the gross debt at the end of the first quarter was $87.2 million.

Meanwhile WNS’ Chief Financial Officer Mr Alok Misra has resigned to return with his family to Bangalore. He will continue to be an employee through August 16, 2012, and afterwards take up a consulting role to ensure smooth transition.

WNS has initiated a search for a new CFO and its Corporate Senior Vice President (Finance) Mr Kumar Subramaniam will assume the role of interim CFO from August 17, 2012.

The company’s total headcount stood at 25,939 as of June 30, 2012.

Published on July 18, 2012
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