SEC Filings

6-K
WNS (HOLDINGS) LTD filed this Form 6-K on 01/17/2019
Entire Document
 
EX-99.1

Exhibit 99.1

 

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Fiscal Q3 2019

WNS (Holdings) Limited        

 

WNS Announces Fiscal 2019 Third Quarter Earnings,

Revises Full Year Guidance

NEW YORK, NY and MUMBAI, INDIA, January 17, 2019 — WNS (Holdings) Limited (WNS) (NYSE: WNS), a leading provider of global Business Process Management (BPM) services, today announced results for the fiscal 2019 third quarter ended December 31, 2018.

 

 

Highlights – Fiscal 2019 Third Quarter:

 

 

GAAP Financials

•  Revenue of $199.7 million, up 5.9% from $188.6 million in Q3 of last year and up 0.3% from $199.1 million last quarter

 

•  Profit of $28.6 million, compared to $26.3 million in Q3 of last year and $24.8 million last quarter

 

•  Diluted earnings per ADS of $0.55, compared to $0.51 in Q3 of last year and $0.48 last quarter

 

Non-GAAP Financial Measures*

•  Revenue less repair payments of $195.9 million, up 5.8% from $185.2 million in Q3 of last year and up 0.2% from $195.5 million last quarter

 

•  Adjusted Net Income (ANI) of $38.0 million, compared to $34.2 million in Q3 of last year and $33.7 million last quarter

 

•  Adjusted diluted earnings per ADS of $0.73, compared to $0.66 in Q3 of last year and $0.65 last quarter

 

Other Metrics

•  Added 4 new clients in the quarter, expanded 6 existing relationships

 

•  Days sales outstanding (DSO) at 32 days

 

•  Global headcount of 38,892 as of December 31, 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 third quarter was $199.7 million, representing a 5.9% increase versus Q3 of last year and a 0.3% increase from the previous quarter. Revenue less repair payments* in the third quarter was $195.9 million, an increase of 5.8% year-over-year and a 0.2% increase sequentially. Excluding exchange rate impacts, constant currency revenue less repair payments* in the fiscal third quarter grew 9.1% versus Q3 of last year and 0.1% sequentially. Year-over-year, fiscal Q3 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 largely offset by seasonality in our travel business.

Operating margin in the third quarter was 16.7%, as compared to 13.6% in Q3 of last year and 14.5% in the previous quarter. On a year-over-year basis, margin improvement was the result of increased productivity, favorable currency movements net of hedging, and operating leverage on higher volumes. These benefits more than offset the impact of our annual wage increases. Sequentially, margins improved due to increased productivity and favorable currency movements net of hedging.

Third quarter adjusted operating margin* was 23.0%, versus 19.9% in Q3 of last year and 21.0% last quarter. Explanations for the adjusted operating margin* movements on a year-over-year and sequential basis are largely the same as described for GAAP operating margins above.

 

* 

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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