WNS Announces Fiscal 2023 First Quarter Earnings
WNS (Holdings) Limited (WNS) today announced results for the fiscal 2023 first quarter ended June 30, 2022. The company’s revenue in the first quarter was USD 295.3 million, representing a 16.6 per cent increase versus Q1 of last year and a 1.2 per cent decrease from the previous quarter.
The company’s revenue less repair payments in the first quarter was USD 274.8 million, an increase of 16.3 per cent year-over-year and decrease of 0.1 per cent sequentially. Excluding exchange rate impacts, constant currency revenue less repair payments in the fiscal first quarter was up 20.8 per cent versus Q1 of last year and 2 per cent sequentially. Year-over-year, fiscal Q1 revenue improved as a result of new client additions, the expansion of existing relationships, and increased travel volumes which more than offset unfavorable currency movements net of hedging.
Profit in the fiscal first quarter was USD 33.1 million, as compared to USD 26.8 million in Q1 of last year and USD 38.9 million in the previous quarter. Year-over-year, profit increased as a result of revenue growth, improved productivity, and favorable currency movements net of hedging. These benefits more than offset the impact of wage increases, increased facility-related and travel costs, and one-time benefits in Q1 of last year from interest income associated with a tax refund and a tax benefit on liquid mutual funds.
Sequentially, Q1 profit decreased as a result of wage increases, higher share-based compensation expense, increased travel and facility-related costs, lower interest income resulting from a USD 0.6 million benefit from interest income on a tax refund in Q4, and a higher effective tax rate. These headwinds were partially offset by improved productivity and reduced SG&A costs driven by Q4 bonus and incentive amounts.
“We are pleased with our financial results for the fiscal first quarter and our enhanced outlook for the full year which includes the acquisition of Vuram – a global leader in intelligent automation services”, said Keshav Murugesh, WNS’ Chief Executive Officer. “Despite the weakening macro environment, we continue to see stability in our existing relationships and strength in demand for our solutions which deliver both strategic transformational benefits and cost savings. With this healthy backdrop for BPM, WNS is investing for the future by adding differentiated capabilities which we believe help us address the expanding and evolving BPM market”.
