WNS Q3 Net up 35% at $16.5 mn;to repurchase upto 1.1 mn shares

BPO firm WNS today reported a 35 per cent jump in consolidated net profit at USD 16.5 million for the third quarter ended December 31, 2014, helped by large client additions.
The NYSE-listed firm had posted a net profit of USD 12.2 million in the year-ago period, it said in a statement.
Consolidated revenue rose 7 per cent at USD 136 million in October-December this fiscal from USD 127.1 million in the same quarter of 2013-14. The figures are on GAAP basis.
WNS also said that it would repurchase up to 1.1 million shares, which would cost the firm up to USD 33 million.

Commenting on the performance, WNS CEO Keshav Murugesh said: "During the third quarter, the company grew top line, expanded margins and profit and delivered healthy free cash flow. We also added five new logos to our client roster, and signed two new large deals."
The demand environment for BPM (Business Process Management) services remains stable and healthy, as WNS continues to deliver solid financial and operating results, he added.

In a separate statement, WNS said: "Board of Directors has authorised a programme to repurchase up to 1.1 million American Depositary Shares (ADSs), each representing one ordinary share, at a price range of USD 10-30 per ADS."

The share repurchase programme is subject to shareholder approval. WNS intends to convene an extraordinary general meeting of its shareholders in the fourth quarter of financial year 2015, it added.
"If shareholders approve the repurchase programme, ADSs may be purchased in the open market from time to time over the next 12 months from April 1, 2015," WNS said.
WNS also updated its guidance for the 2014-15 fiscal.
"Our revised guidance for the year reflects top line growth of 6.5-7.1 per cent, with over 99 per cent visibility to the midpoint of the range. This guidance represents 5-6 per cent revenue growth on a constant currency basis," WNS CFO Sanjay Puria said.

WNS ended the third quarter with USD 154 million in cash and investments and USD 41.1 million of gross debt.
The firm added five new clients in the third quarter and expanded four existing relationships. Its total headcount stood at 27,755 as of December 31, 2014.
Moving forward, investments in areas of domain expertise, automation and new service offerings will be essential to meeting the evolving client needs, Murugesh said.
"We believe these investments will allow us to enhance our differentiated market position, and enable WNS to grow revenue and maintain profit margins at or above industry levels," he added.