Business process management company WNS today reported a net loss of USD 5 million for the March quarter, against profit of USD 15 million in the year-ago period.
For fiscal 2016-17, profit declined to USD 37.8 million from USD 59.9 million a year ago.
A USD 21.7-million charge for goodwill impairment relating to the AutoClaims business, along with currency headwinds that resulted in a foreign exchange loss of USD 5.7 million were the primary reasons for the loss in the quarter, the company said in a statement.
The charge was necessary due to a forthcoming exit from the legal services market due to adverse regulatory changes, loss of business due to contract reductions and cancellations in the traditional repair business, the Nasdaq-listed company said.
The operating margin crashed to 2 per cent from a high 13.2 per cent in the year-ago period, it said, adding this was driven by goodwill impairment, acquisition-related expenses, impact of annual wage increases and forex movements net of hedging.
Total revenue marginally grew to USD 159.4 million from USD 142.6 million during the reporting period. There was also a surge in general and administrative expenses to USD 27.3 million from USD 20.8 million in the year-ago period.
The company is targeting to close fiscal 2018 with revenues of USD 680-713 million, as against USD 602.5 million in the reporting year.
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