wns: WNS Holdings Q4 FY23 results: Profit down 6%, revenue up 5.4% YoY

Business Process Management (BPM) company WNS Holdings’ net profit in the fiscal fourth quarter stood at $36.4 million, down 6%, compared to $38.9 million in Q4 of last year and $34.7 million in the previous quarter.

Revenue for the fourth quarter ended in March, had gone up to $314.9 million, an increase of 5.4% from $298.8 million in Q4 of last year.

Year-over-year, profit decreased as a result of wage increase, increased return-to-office costs, currency movements impacting monetary assets and liabilities, higher share-based compensation expense, and increased costs associated with acquisitions, said the company.
For the full year, the NYSE-listed company report a profit of $137.3 million for FY23, marginally higher when compared to $132.1 million during the same period last year.

The New York Stock Exchange-listed company said its net revenue was $1,224.3.0 million for FY23, up 10.3% over last fiscal year. Profit stood at $137.3 million, compared to $132.1 million in fiscal 2022.

The company said it added over 7,000 employees during the year, pushing its global headcount to 59,755 as of March 31, 2023. WNS also said that it signed 38 new clients while expanding its 105 existing relationships.

“Despite the weak macro environment, WNS has delivered solid financial performance,” Keshav R Murugesh, Group CEO of the company said in a statement. “For the FY23, the company grew net revenue by 19% on constant currency basis and expanded our adjusted diluted earnings per share by 13%. WNS successfully completed acquisition of Vuram, The Smart Cube and OptiBuy in FY23, and integration of these assets is going well,” Murugesh said.As part of its guidance for FY24, WNS said that revenue less repair payments is expected to be between $1,290 million and $1,348 million, up from $1,162.0 million in fiscal 2023.

Further, it said Adjusted net income (ANI) is expected to range between $209 million and $221 million versus $196.1 million in fiscal 2023.

Based on a diluted share count of 50.7 million shares, the company said it expects fiscal 2024 adjusted diluted earnings per share to be in the range of $4.12 to $4.36 versus $3.86 in fiscal 2023.

“The company has provided our initial forecast for fiscal 2024 based on current visibility levels and exchange rates,” Sanjay Puria, WNS’ Chief Financial Officer said.

“Our guidance for the full year reflects growth in revenue less repair payments of 11% to 16% on both a reported and constant currency basis, with 88% visibility to the midpoint of the range. This includes an estimated 3% inorganic growth related to our acquisitions of Vuram, OptiBuy and The Smart Cube.”

In the last year, WNS Triange (Data, Analytics and AI Practice) launched ESG Analytics suite that includes consulting, research, data governance, AI-driven sustainability, scenario forecasting, and compliance reporting, with ongoing investments to enable end-to-end offerings and as-a-service models.

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