WNS (Holdings) Ltd, a provider of global Business Process Management (BPM) services, today reported net revenue of USD 143.7 million in the second quarter ended September 30, up 16 per cent over the same period last year, on constant currency basis.
The New York Stock Exchange-listed company also revised its full year guidance.
"WNS continues to deliver strong financial and operating performance, including solid constant currency revenue growth and operating margins. Our underlying business momentum remains healthy, and we are seeing broad-based opportunity across our key service offerings, geographies and verticals," WNS Chief Executive Officer Keshav Murugesh said.
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Analytics is a big growth driver, contributing 20 per cent of overall revenue of the company, he said here.
From a balance sheet perspective, WNS ended Q2 with USD 159.6 million in cash and investments and no debt. During the quarter, the company generated USD 18 million in cash from operations, and had USD 6.9 million in capital expenditures.
During Q2, the BPM player repurchased 3,95,444 ADSs (American depositary shares) at an average price of USD 29.43 per ADS, totalling USD 11.7 million.
The company is extremely positive on long-term prospects of the BPM industry and actively looking at horizontal and vertical growth opportunities, Murugesh added.
"Though the British pound continues to fluctuate, Brexit has not had an adverse impact on our core business. We are proactively assisting our clients to examine the impact of Brexit, and quickly and efficiently adapt to changes.
"We continue to believe smart companies in the UK and Europe will leverage the capabilities of strategic partners such as WNS to help drive cost savings and efficiency gains.
"The demand environment for our services remains stable and healthy as clients look for partners who can help them generate actionable analytical insights, implement and manage digital strategies, and deal with the added business complexity of events such as Brexit," Murugesh said.
Our investment programmes are geared towards meeting these requirements, and we believe WNS is well-positioned to deliver enhanced value to all stakeholders, he added.
During Q2, the company added six new clients, expanded 11 existing relationships and renewed 14 contracts.
On FY17 guidance, the company said revenue less repair payments is expected to be between USD 551 million and USD 567 million, up from USD 531 million in FY16, assuming an average GBP to USD exchange rate of 1.24 for remainder of the fiscal.
"The company has updated forecast for FY17 based on current visibility levels and exchange rates," Chief Financial Officer Sanjay Puria said. "Our revised guidance reflects growth in revenue less repair payments of 4 to 7 per cent, or 10 to 14 per cent on a constant currency basis.
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