SEC Filings

6-K
WNS (HOLDINGS) LTD filed this Form 6-K on 07/19/2018
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EX-99.1

Exhibit 99.1

 

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Fiscal Q1 2019

WNS (Holdings) Limited        

 

WNS Announces Fiscal 2019 First Quarter Earnings, Revises Full Year Guidance

NEW YORK, NY and MUMBAI, INDIA, July 19, 2018 — WNS (Holdings) Limited (WNS) (NYSE: WNS), a leading provider of global Business Process Management (BPM) services, today announced results for the fiscal 2019 first quarter ended June 30, 2018.

 

 

Highlights – Fiscal 2019 First Quarter:

 

 

GAAP Financials

 

•  Revenue of $199.8 million, up 10.9% from $180.1 million in Q1 of last year and down 1.4% from $202.7 million last quarter

•  Profit of $22.4 million, compared to $16.7 million in Q1 of last year and $24.5 million last quarter

•  Diluted earnings per ADS of $0.42, compared to $0.32 in Q1 of last year and $0.47 last quarter

 

Non-GAAP Financial Measures*

 

•  Revenue less repair payments of $196.0 million, up 11.8% from $175.3 million in Q1 of last year and down 1.1% from $198.2 million last quarter

•  Adjusted Net Income (ANI) of $30.9 million, compared to $23.6 million in Q1 of last year and $33.0 million last quarter

•  Adjusted diluted earnings per ADS of $0.59, compared to $0.45 in Q1 of last year and $0.63 last quarter

 

Other Metrics

 

•  Added 6 new clients in the quarter, expanded 16 existing relationships

•  Days sales outstanding (DSO) at 31 days

•  Global headcount of 38,227 as of June 30, 2018

 

Reconciliations of the non-GAAP financial measures discussed below to our GAAP operating results are included at the end of this release. See also “About Non-GAAP Financial Measures.”

Revenue in the first quarter was $199.8 million, representing a 10.9% increase versus Q1 of last year and a 1.4% decrease from the previous quarter. Revenue less repair payments* in the first quarter was $196.0 million, an increase of 11.8% year-over-year and a 1.1% decline sequentially. Excluding exchange rate impacts, constant currency revenue less repair payments* in the fiscal first quarter grew 10.3% versus Q1 of last year and 0.6% sequentially. Year-over-year, fiscal Q1 revenue improvement was driven by healthy organic growth across key verticals, services, and geographies, and favorability from currency net of hedging. Sequentially, organic revenue growth was more than offset by contractual productivity commitments for clients and currency movements net of hedging.

Operating margin in the first quarter was 12.6%, as compared to 11.0% in Q1 of last year and 14.5% in the previous quarter. On a year-over-year basis, margin improvement was the result of increased productivity, operating leverage on higher volumes, and currency movements net of hedging. These benefits more than offset the impact of our annual wage increases and lower seat utilization. Sequentially, margins reduced due to the impact of our annual wage increases, advance hiring and infrastructure buildout for project ramps, and higher share-based compensation expense. These headwinds more than offset favorable currency movements net of hedging.

First quarter adjusted operating margin* was 18.8%, versus 17.1% in Q1 of last year and 20.4% last quarter. On a year-over-year basis, adjusted operating margin* improved due to increased productivity, operating leverage on higher volumes, and currency movements net of hedging. These benefits were partially offset by the impact of our annual wage increases and lower seat utilization. Sequentially, adjusted operating margin* reduced due to the impact of our annual wage increases, and advance hiring and infrastructure buildout for project ramps. These headwinds more than offset favorable currency movements net of hedging.

 

 

*  See “About Non-GAAP Financial Measures” and the reconciliations of the historical non-GAAP financial measures to our GAAP operating results at the end of this release.

 

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