Earnings: WNS Q3 profit up 35%, to buy back 1.1 mn shares

New York: BPO firm WNS today reported a 35 percent jump in consolidated net profit at $16.5 million for the third quarter ended 31 December 2014, helped by large client additions. [caption id=“attachment_2049823” align=“alignleft” width=“380”]  WNS CEO. Reuters Image[/caption] The NYSE-listed firm had posted a net profit of $12.2 million in the year-ago period, it said in a statement. Consolidated revenue rose 7 percent at $136 million in October-December this fiscal from $127.1 million in the same quarter of 2013-14. The figures are on GAAP basis. WNS also said that it would repurchase up to 1.1 million shares, which would cost the firm up to USD 33 million. Commenting on the performance, WNS CEO Keshav Murugesh said: “During the third quarter, the company grew top line, expanded margins and profit and delivered healthy free cash flow. We also added five new logos to our client roster, and signed two new large deals.” The demand environment for BPM (Business Process Management) services remains stable and healthy, as WNS continues to deliver solid financial and operating results, he added. In a separate statement, WNS said: “Board of Directors has authorised a programme to repurchase up to 1.1 million American Depositary Shares (ADSs), each representing one ordinary share, at a price range of $10-30 per ADS.” The share repurchase programme is subject to shareholder approval. WNS intends to convene an extraordinary general meeting of its shareholders in the fourth quarter of financial year 2015, it added. “If shareholders approve the repurchase programme, ADSs may be purchased in the open market from time to time over the next 12 months from 1 April 2015,” WNS said. WNS also updated its guidance for the 2014-15 fiscal. “Our revised guidance for the year reflects top line growth of 6.5-7.1 percent, with over 99 percent visibility to the midpoint of the range. This guidance represents 5-6 percent revenue growth on a constant currency basis,” WNS CFO Sanjay Puria said. WNS ended the third quarter with $154 million in cash and investments and $41.1 million of gross debt. The firm added five new clients in the third quarter and expanded four existing relationships. Its total headcount stood at 27,755 as of 31 December 2014. Moving forward, investments in areas of domain expertise, automation and new service offerings will be essential to meeting the evolving client needs, Murugesh said. “We believe these investments will allow us to enhance our differentiated market position, and enable WNS to grow revenue and maintain profit margins at or above industry levels,” he added. PTI