SEC Filings

6-K
WNS (HOLDINGS) LTD filed this Form 6-K on 10/25/2018
Entire Document
 
EX-99.1

Exhibit 99.1

 

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Fiscal Q2 2019

WNS (Holdings) Limited        

 

WNS Announces Fiscal 2019 Second Quarter Earnings,

Revises Full Year Guidance

NEW YORK, NY and MUMBAI, INDIA, October 25, 2018 — WNS (Holdings) Limited (WNS) (NYSE: WNS), a leading provider of global Business Process Management (BPM) services, today announced results for the fiscal 2019 second quarter ended September 30, 2018.

 

 

Highlights – Fiscal 2019 Second Quarter:

 

 

GAAP Financials

•  Revenue of $199.1 million, up 6.8% from $186.5 million in Q2 of last year and down 0.3% from $199.8 million last quarter

 

•  Profit of $24.8 million, compared to $18.9 million in Q2 of last year and $22.4 million last quarter

 

•  Diluted earnings per ADS of $0.48, compared to $0.36 in Q2 of last year and $0.42 last quarter

 

Non-GAAP Financial Measures*

•  Revenue less repair payments of $195.5 million, up 7.2% from $182.3 million in Q2 of last year and down 0.3% from $196.0 million last quarter

 

•  Adjusted Net Income (ANI) of $33.7 million, compared to $27.7 million in Q2 of last year and $30.9 million last quarter

 

•  Adjusted diluted earnings per ADS of $0.65, compared to $0.53 in Q2 of last year and $0.59 last quarter

 

Other Metrics

•  Added 7 new clients in the quarter, expanded 13 existing relationships

 

•  Days sales outstanding (DSO) at 35 days

 

•  Global headcount of 38,516 as of September 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 second quarter was $199.1 million, representing a 6.8% increase versus Q2 of last year and a 0.3% decrease from the previous quarter. Revenue less repair payments* in the second quarter was $195.5 million, an increase of 7.2% year-over-year and a 0.3% decline sequentially. Excluding exchange rate impacts, constant currency revenue less repair payments* in the fiscal second quarter grew 11.0% versus Q2 of last year and 3.4% sequentially. Year-over-year, fiscal Q2 revenue improvement was driven by healthy organic growth across key verticals, services, and geographies, which more than offset headwinds from currency movements and hedging losses. Sequentially, organic revenue growth was more than offset by currency movements and hedging losses.

Operating margin in the second quarter was 14.5%, as compared to 10.8% in Q2 of last year and 12.6% in the previous quarter. On a year-over-year basis, margin improvement was the result of increased productivity, lower share-based compensation expense, 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 improved due to increased productivity, favorable currency movements net of hedging, and operating leverage on higher volume. These benefits more than offset the impact of our annual wage increases.

Second quarter adjusted operating margin* was 21.0%, versus 18.5% in Q2 of last year and 18.8% 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* improved due to increased productivity, favorable currency movements net of hedging, and operating leverage on higher volume. These benefits more than offset the impact of our annual wage increases.

 

* 

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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