Business Process Management (BPM) services provider WNS today said its net profit doubled to USD 12.2 million for the third quarter ended December 31, 2013 aided by improved productivity and growth in verticals like banking & financial services, utilities among others.
The NYSE-listed company has posted a net profit of USD 6.1 million in the year-ago period, it said in a statement.
Revenues were up by 5.8 per cent to USD 127.1 million in the October-December quarter of this fiscal compared to USD 120.2 million in the same quarter of 2012-13 fiscal, it added.
Commenting on the performance, WNS CEO Keshav Murugesh said: "During the third quarter, the company was able to grow our top line, expand margins and profits, and generate healthy cash flow. Our new business pipeline remains robust, and we continue to move deals along at a slow and steady pace."
WNS had posted a net profit of USD 9.3 million and had reported revenues of USD 123.1 million in Q2 of 2013-14.
WNS added four new clients in the third quarter, including its fourth large deal of fiscal 2014. This new relationship with a major US insurer will begin with finance and accounting and actuarial services, he added.
"WNS plans to continue investing in enhancing our capabilities to meet the evolving needs of our clients, with the objective of growing our organic revenues at or above industry levels," Murugesh said.
WNS said year-over-year, its revenue improvement was broad-based with the growth rate paced by strength in the Banking & Financial services, Utilities, Shipping & Logistics and Insurance verticals.
"On a year-over-year basis, revenue was pressured by currency headwinds resulting from depreciation in the South African rand and Australian dollar against the US dollar. Sequentially, revenue was favourably impacted by appreciation in the British Pound against the US dollar," it added.
On a year-over-year basis, operating margin improved as a result of depreciation in Indian rupee against the US dollar, improved productivity and operating leverage associated with higher revenue, the firm said.
Partially offsetting this favorability were investments in global infrastructure which reduced seat utilisation and the impact of annual wage increases, WNS added.
WNS ended the third quarter with USD 122.5 million in cash and investments and USD 87.6 million in gross debt.
As of December 31, 2013, the firm's global headcount stood at 26,578.
WNS also updated its guidance for the fiscal year ending March 31, 2014.
Revenue less repair payments is expected to be between USD 470-472 million, up from USD 436.1 million in fiscal 2013.
"WNS has updated its forecast for fiscal 2014 based on current visibility levels and exchange rates. This guidance represents 8-9 per cent revenue growth on a constant currency basis," WNS Chief Financial Officer Sanjay Puria said.
