WNS Q3 results: profit flat, revenue up 8% YoY

Business process management firm WNS reported flat profit growth of 1.1% over the year to $34.7 million for the third quarter ended in December. Revenue grew 8% over the year to $306.9 million. On a sequential basis, profit grew 4.4% and revenue was down 0.1%.

While profit benefited from improved productivity, favourable currency movements net of hedging, and a lower effective tax rate, it also saw headwinds from the impact of wage increases, increased return-to-office costs, higher share-based compensation expense, and increased costs associated with acquisitions. Sequential profit was partially offset by unfavourable currency movements net of hedging.

Keshav Murugesh, WNS’ Chief Executive Officer said: “Despite the weak macro environment, demand for BPM services is robust and we believe WNS remains well-positioned to capitalize on the market opportunity and create sustainable value for all of our key stakeholders.”

Year-over-year, fiscal Q3 revenue improved as a result of new client additions, the expansion of existing relationships, the acquisition of new companies and increased travel volume which more than offset currency movements and hedging losses, the company said in a statement.

Sequentially, growth was driven by broad-based revenue momentum and acquisitions of OptiBuy and The Smart Cube was partially offset by currency movements and hedging losses, and travel seasonality.

“The company has updated forecast for fiscal 2023 based on current visibility levels and exchange rates,” said Sanjay Puria, WNS’ Chief Financial Officer.

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“Our guidance for the full year reflects growth in revenue less repair payment of 12% to 13%. This includes approximately 3% inorganic growth related to our acquisitions of Vuram, OptiBuy and The Smart Cube,” he added.

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