WNS, a leading business process management company, has reported a 9% decline in its net profit for the June quarter. The NYSE-listed company’s net profit dropped to USD 30.1 million compared to USD 33.1 million in the same period last year. However, its revenue increased to USD 326.5 million from USD 295.3 million in the previous year. Despite facing a challenging macro environment, WNS was able to achieve over 17% growth in constant currency revenue less repair payments.
The decline in net profit can be attributed to higher operating expenses, including selling and marketing expenses, administrative expenses, and amortization. Additionally, the company experienced a narrowing of forex gains during the quarter. The finance expenses also more than doubled to USD 7.1 million.
WNS remains optimistic about its future performance and has provided guidance for the full year. The company expects revenue less repair payments to range between USD 1,296 million and USD 1,354 million in FY24, compared to USD 1,162 million in FY23. The guidance assumes an average GBP to USD exchange rate of 1.27 for the remainder of FY24. WNS’ Chief Financial Officer, Sanjay Puria, said that the company plans to invest USD 60 million in capital expenditure for FY24.
As of June 30, 2023, WNS had USD 242.6 million in cash and a debt of USD 206.2 million. The company’s overall headcount stood at 59,871.
It is important to note that WNS is a prominent player in the business process management industry, with a significant presence in India. Despite the challenging economic conditions, WNS has shown resilience and continued growth during the quarter. The company’s ability to adapt to the changing market dynamics and its focus on delivering value to its clients are important factors contributing to its success.
In conclusion, WNS reported a decline in net profit for the June quarter, primarily due to higher operating expenses and a narrower forex gain. However, the company’s revenue grew during the period, and it remains optimistic about its future performance. With a strong guidance for FY24 and planned investments, WNS is well-positioned to capitalize on opportunities in the business process management industry.
