BPO firm WNS (Holdings) Ltd on Wednesday posted a dip in its net profit at $3.4 million (around Rs 16.73 crore) for Q2 of FY12 compared to $6.0 million profit reported in the corresponding quarter last year.
Besides, the firm with major operations in India, also marginally lowered the higher-end of its annual guidance considering the volatility in the currency markets. The firm has given a guidance to close the year with revenue (less repair payments) in the range between $388 million and $404 million. In the previous quarter, WNS had given a revenue guidance of between $387 million and $407 million.
“Our guidance factors in the recent volatility in the currency markets, along with a seasonally weak fiscal third quarter for our travel vertical. Overall, the company’s profitability and cash generation continue to be strong,” WNS Group Chief Financial Officer Alok Misra said.
However, sequentially the profit increased from $0.7 million as per GAAP Financials.
The NYSE-listed BPO reported a 23.5 per cent decrease in its revenue at $117.9 million from the corresponding quarter last year.
Revenues are also down 6.2 per cent sequentially primarily due to change in accounting for repair payments, a company statement said.
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WNS Group Chief Executive Officer Keshav Murugesh said: “Although macroeconomic uncertainty persists, the environment for BPO services remains relatively stable and healthy."
“Decision cycles are still long, but we are seeing continued improvement in the quantity, quality and size of the deals in our pipeline. We believe that the pipeline reflects increased traction from our expanded and upgraded sales function, with the true benefits of these investments yet to come,” he said.
WNS has added three new clients in the quarter, expanded 10 existing relationships and renewed or extended contract with another 19.
Total headcount at the end of the fiscal second quarter was 21,565 which was down from 21,808 in the previous quarter.