WNS (Holdings) Limited (WNS) (NYSE: WNS), a leading provider of
global digital-led Business Process Management (BPM) solutions,
today announced results for the fiscal 2024 fourth quarter and full
year ended March 31, 2024.
Highlights – Fiscal 2024 Fourth
Quarter:
GAAP
Financials
- Revenue of $336.8 million, up 6.9% from $314.9 million in Q4
of last year and up 3.2% from $326.2 million last quarter
- Profit of $12.6 million, compared to $36.4 million in Q4 of
last year and $39.6 million last quarter
- Diluted earnings per share of $0.26, compared to $0.72 in Q4
of last year and $0.81 last quarter
Non-GAAP
Financial Measures*
- Revenue less repair payments of $325.9 million, up 6.9% from
$305.0 million in Q4 of last year and up 3.2% from $315.9 million
last quarter
- Adjusted Net Income (ANI) of $54.1 million, compared to
$52.4 million in Q4 of last year and $58.2 million last
quarter
- Adjusted diluted earnings per share of $1.12, compared to
$1.04 in Q4 of last year and $1.18 last quarter
Other
Metrics
- Added 9 new clients in the quarter, expanded 40 existing
relationships
- Days sales outstanding (DSO) at 33 days
- Global headcount of 60,125 as of March 31, 2024
Highlights – Fiscal 2024 Full
Year:
GAAP
Financials
- Revenue of $1,323.4 million, up 8.1% from $1,224.3 million
in fiscal 2023
- Profit of $140.1 million, compared to $137.3 million in
fiscal 2023
- Diluted earnings per share of $2.83, compared to $2.70 in
fiscal 2023
Non-GAAP
Financial Measures*
- Revenue less repair payments of $1,284.3 million, up 10.5%
from $1,162.0 million in fiscal 2023
- Adjusted Net Income (ANI) of $217.0 million, compared to
$196.1 million in fiscal 2023
- Adjusted diluted earnings per share of $4.38, compared to
$3.86 in fiscal 2023
Reconciliations of the non-GAAP financial measures discussed
below to our GAAP operating results are included at the end of this
release. See also “About Non-GAAP Financial Measures.”
Revenue in the fourth quarter was $336.8 million, representing a
6.9% increase versus Q4 of last year and an increase of 3.2% from
the previous quarter. Revenue less repair payments* in the fourth
quarter was $325.9 million, increasing 6.9% year-over-year and 3.2%
sequentially. Excluding exchange rate impacts, constant currency
revenue less repair payments* in the fiscal fourth quarter was up
5.9% versus Q4 of last year and 2.4% sequentially. Year-over-year,
Q4 revenue improved as a result of new client additions, the
expansion of existing relationships, and favorable currency
movements. These benefits were partially offset by the offshore
delivery transition of a large internet client and volume
reductions with certain clients. Sequentially, demand for
cost-reduction focused initiatives and favorable currency movements
more than offset headwinds from volume reductions with certain
clients.
Profit in the fiscal fourth quarter was $12.6 million, as
compared to $36.4 million in Q4 of last year and $39.6 million in
the previous quarter. Year-over-year, profit decreased as a result
of a $30.9 million intangible asset impairment relating to our
large Healthcare client contract termination, annual wage
increases, expenses associated with our ADS program termination and
transition to voluntarily reporting on US domestic issuer forms,
and one-time tax and interest income benefits in Q4 of last year.
These headwinds were partially offset by revenue growth, improved
productivity, favorable impacts from currency movements, and
reductions in share based compensation, amortization of
intangibles, and acquisition related expenses. Sequentially, Q4
profit decreased as a result of the $30.9 million intangible asset
impairment, a one-time tax benefit of $9.5 million resulting from
the reversal of a deferred tax liability in Q3, and expenses
associated with our ADS program termination and transition to
voluntarily reporting on US domestic issuer forms. These headwinds
were partially offset by revenue growth, improved productivity,
favorable currency impacts, and reductions in share based
compensation, amortization of intangibles, and acquisition related
expenses.
Adjusted net income (ANI)* in Q4 was $54.1 million, as compared
to $52.4 million in Q4 of last year and $58.2 million in the
previous quarter. Explanations for the ANI* movements on a
year-over-year and sequential basis are the same as described for
GAAP profit above with the exception of amortization of intangible
expenses, share-based compensation expense, impairment of
intangible assets, costs associated with ADS program termination
and transition to voluntarily reporting on US domestic issuer
forms, acquisition-related items, and associated tax impacts which
are excluded from ANI*.
From a balance sheet perspective, WNS ended Q4 with $244.3
million in cash and investments and $179.2 million in debt. In Q4,
the company generated $67.6 million in cash from operations,
incurred $10.4 million in capital expenditures, and repaid $8.0
million in debt. WNS also repurchased 1,200,000 ADSs at an average
price of $59.62, impacting Q4 cash by $71.5 million. Fourth quarter
days sales outstanding were 33 days, as compared to 32 days
reported in Q4 of last year and 35 days in the previous
quarter.
“In the fiscal fourth quarter, WNS grew our constant currency
revenue less repair payments* by 5.9% year-over-year and 2.4%
sequentially, and expanded year-over-year adjusted diluted earnings
per share* by 8.3%,” said Keshav Murugesh, WNS’ Chief Executive
Officer. “Despite significant headwinds and a weak macro
environment in fiscal 2024, WNS grew our full year constant
currency revenue less repair payments* by 9.9%, delivered
industry-leading adjusted operating margins* of 21.5%, and grew
adjusted diluted earnings per share* by 13.5%. In addition, we
repurchased 3.3 million shares of stock representing approximately
7% of the outstanding diluted shares at the end of fiscal 2023
while continuing to aggressively invest in digitally-led solutions
including AI and Generative AI. WNS also terminated our ADS program
and listed our ordinary shares on the NYSE on March 28, 2024,
positioning the company for improved access to capital. The company
remains committed to driving strong operational and financial
execution, investing for the future, and generating long-term
sustainable business value for all of our stakeholders.”
Fiscal 2025 Guidance
WNS is providing guidance for the fiscal year ending March 31,
2025, as follows:
- Revenue less repair payments* is expected to be between $1,293
million and $1,357 million, up from $1,284.3 million in fiscal
2024. Guidance assumes an average GBP to USD exchange rate of 1.27
versus 1.26 in fiscal 2024.
- ANI* is expected to range between $206 million and $218 million
versus $217.0 million in fiscal 2024. Guidance assumes an average
USD to INR exchange rate of 83.0 versus 82.8 in fiscal 2024.
- Based on a diluted share count of 47.5 million shares, the
company expects fiscal 2025 adjusted diluted earnings per share* to
be in the range of $4.34 to $4.59 versus $4.38 in fiscal 2024.
“The company has provided our initial forecast for fiscal 2025
based on current visibility levels and exchange rates,” said Sanjay
Puria, WNS’ Chief Financial Officer. “Our guidance for the full
year reflects growth in revenue less repair payments* of 1% to 6%
on a reported* basis, and 0% to 5% on a constant currency* basis.
For the year, we continue to expect capital expenditures of up to
$65 million.”
* See “About Non-GAAP Financial Measures” and the
reconciliations of the historical non-GAAP financial measures to
our GAAP operating results at the end of this release.
Conference Call
WNS will host a conference call on April 25, 2024, at 8:00 am
(Eastern) to discuss the company's quarterly results. To access the
call in “listen-only” mode, please join live via the company’s
investor relations website at ir.wns.com. For call participants,
please register using this online form to receive your dial-in
number and unique PIN/passcode which can be used to access the
call. A replay of the webcast will be archived on the company
website at ir.wns.com.
About WNS
WNS (Holdings) Limited (NYSE: WNS) is a leading Business Process
Management (BPM) company. WNS combines deep industry knowledge with
technology, analytics, and process expertise to co-create
innovative, digitally led transformational solutions with over 600
clients across various industries. WNS delivers an entire spectrum
of BPM solutions including industry-specific offerings, customer
experience services, finance and accounting, human resources,
procurement, and research and analytics to re-imagine the digital
future of businesses. As of March 31, 2024, WNS had 60,125
professionals across 65 delivery centers worldwide including
facilities in Canada, China, Costa Rica, India, Malaysia, the
Philippines, Poland, Romania, South Africa, Sri Lanka, Turkey, the
United Kingdom, and the United States. For more information, visit
www.wns.com.
Safe Harbor Statement
This release contains forward-looking statements, as defined in
the safe harbor provisions of the US Private Securities Litigation
Reform Act of 1995. These forward-looking statements are based on
our current expectations and assumptions about our Company and our
industry. Generally, these forward-looking statements may be
identified by the use of terminology such as “anticipate,”
“believe,” “estimate,” “expect,” “intend,” “will,” “seek,” “should”
and similar expressions. These statements include, among other
things, expressed or implied forward-looking statements relating to
discussions of our strategic initiatives and the expected resulting
benefits, our growth opportunities, industry environment, our
expectations concerning our future financial performance and growth
potential, including our fiscal 2025 guidance, estimated capital
expenditures, expected foreign currency exchange rates, and the
expected resulting benefits from the termination of our ADS program
and listing of our ordinary shares. Forward-looking statements
inherently involve risks and uncertainties that could cause actual
results to differ materially from those expressed or implied by
such statements. Such risks and uncertainties include but are not
limited to worldwide economic and business conditions, our
dependence on a limited number of clients in a limited number of
industries; the impact of the ongoing COVID-19 pandemic on our and
our clients’ business, financial condition, results of operations
and cash flows; currency fluctuations; political or economic
instability in the jurisdictions where we have operations;
regulatory, legislative and judicial developments; increasing
competition in the BPM industry; technological innovation; our
liability arising from fraud or unauthorized disclosure of
sensitive or confidential client and customer data;
telecommunications or technology disruptions; our ability to
attract and retain clients; negative public reaction in the US or
the UK to offshore outsourcing; our ability to collect our
receivables from, or bill our unbilled services to our clients; our
ability to expand our business or effectively manage growth; our
ability to hire and retain enough sufficiently trained employees to
support our operations; the effects of our different pricing
strategies or those of our competitors; our ability to successfully
consummate, integrate and achieve accretive benefits from our
strategic acquisitions, and to successfully grow our revenue and
expand our service offerings and market share; future regulatory
actions and conditions in our operating areas; and our ability to
manage the impact of climate change on our business. These and
other factors are more fully discussed in our most recent annual
report on Form 20-F and subsequent reports on Form 6-K filed with
or furnished to the US Securities and Exchange Commission (SEC)
which are available at www.sec.gov. We caution you not to place
undue reliance on any forward-looking statements. Except as
required by law, we do not undertake to update any forward-looking
statements to reflect future events or circumstances.
References to “$” and “USD” refer to the United States dollars,
the legal currency of the United States; references to “GBP” refer
to the British pound, the legal currency of Britain; and references
to “INR” refer to Indian Rupees, the legal currency of India.
References to GAAP refers to International Financial Reporting
Standards, as issued by the International Accounting Standards
Board (IFRS).
WNS (HOLDINGS) LIMITED
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(Unaudited, amounts in
millions, except share and per share data)
Three months ended
Year ended
Mar 31, 2024
Mar 31, 2023
Dec 31, 2023
Mar 31, 2024
Mar 31, 2023
Revenue
$
336.8
$
314.9
$
326.2
$
1,323.4
$
1,224.3
Cost of revenue
214.8
202.1
208.9
844.9
801.5
Gross profit
121.9
112.8
117.3
478.4
422.7
Operating expenses:
Selling and marketing expenses
19.3
17.1
20.3
78.3
63.5
General and administrative expenses
44.6
43.7
45.6
183.6
169.3
Foreign exchange (gain) / loss, net
(0.3
)
2.3
0.5
(0.7
)
(1.0
)
Impairment of intangible assets
30.9
—
—
30.9
—
Amortization of intangible assets
7.0
8.9
8.6
33.0
23.6
Operating profit
20.5
40.8
42.3
153.3
167.3
Other income, net
(4.9
)
(5.8
)
(4.1
)
(39.4
)
(16.0
)
Finance expense
7.3
6.6
7.1
29.1
18.8
Profit before income taxes
18.0
40.1
39.3
163.6
164.5
Income tax expense
5.5
3.7
(0.4
)
23.4
27.2
Profit after tax
$
12.6
$
36.4
$
39.6
$
140.1
$
137.3
Earnings per share of ordinary share
Basic
$
0.27
$
0.75
$
0.84
$
2.97
$
2.85
Diluted
$
0.26
$
0.72
$
0.81
$
2.83
$
2.70
WNS (HOLDINGS) LIMITED
CONDENSED CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION
(Unaudited, amounts in
millions, except share and per share data)
As at Mar 31, 2024
As at Mar 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
87.4
$
127.9
Investments
156.5
101.1
Trade receivables, net
124.6
113.1
Unbilled revenue
107.8
99.8
Funds held for clients
6.9
9.4
Derivative assets
5.8
6.4
Contract assets
11.9
12.6
Prepayments and other current assets
30.4
33.9
Total current assets
531.4
504.1
Non-current assets:
Goodwill
356.3
353.6
Intangible assets
124.4
179.2
Property and equipment
73.7
62.4
Right-of-use assets
163.6
175.5
Derivative assets
1.9
2.7
Investments
0.3
75.9
Contract assets
52.8
54.7
Deferred tax assets
49.2
46.7
Other non-current assets
59.0
49.6
Total non-current assets
881.4
1,000.4
TOTAL ASSETS
$
1,412.8
$
1,504.4
LIABILITIES AND EQUITY
Current liabilities:
Trade payables
$
25.0
$
25.4
Provisions and accrued expenses
31.2
41.8
Derivative liabilities
4.0
7.5
Pension and other employee obligations
105.4
107.9
Short term line of credit
40.0
—
Current portion of long-term debt
36.7
36.1
Contract Liabilities
12.9
15.7
Current taxes payable
8.3
2.2
Lease liabilities
28.1
26.6
Other liabilities
19.9
40.7
Total current liabilities
311.3
303.8
Non-current liabilities:
Derivative liabilities
0.6
2.4
Pension and other employee obligations
24.6
19.5
Long-term debt
102.5
137.3
Contract liabilities
12.6
9.7
Other non-current liabilities
13.9
20.8
Lease liabilities
162.1
172.3
Deferred tax liabilities
19.4
37.3
Total non-current liabilities
335.7
399.5
TOTAL LIABILITIES
$
647.0
$
703.3
Shareholders' equity:
Share capital (ordinary shares $0.16 (10
pence) par value, authorized 60,000,000 shares; issued: 45,684,145
shares and 48,360,817 shares; each as at March 31, 2024 and March
31, 2023, respectively)
7.3
7.7
Share premium
2.4
81.1
Retained earnings
1,004.0
951.6
Other Reserves
6.1
6.8
Other components of equity
(254.1
)
(246.0
)
Total shareholders’ equity
$
765.7
$
801.1
TOTAL LIABILITIES AND EQUITY
$
1,412.8
$
1,504.4
About Non-GAAP Financial
Measures
The financial information in this release includes certain
non-GAAP financial measures that we believe more accurately reflect
our core operating performance. Reconciliations of these non-GAAP
financial measures to our GAAP operating results are included
below. A more detailed discussion of our GAAP results is contained
in “Part I –Item 5. Operating and Financial Review and Prospects”
in our annual report on Form 20-F filed with the SEC on May 16,
2023.
Revenue less repair payments is a non-GAAP financial measure
that is calculated as (a) revenue less (b) in our BFSI segment,
payments to repair centers for “fault” repair cases where WNS acts
as the principal in its dealings with the third party repair
centers and its clients. WNS believes that revenue less repair
payments for “fault” repairs reflects more accurately the value
addition of the business process management services that it
directly provides to its clients. For more details, please see the
discussion in “Part I – Item 5. Operating and Financial Review and
Prospects – Overview” in our annual report on Form 20-F filed with
the SEC on May 16, 2023.
Constant currency revenue less repair payments is a non-GAAP
financial measure. We present constant currency revenue less repair
payments so that revenue less repair payments may be viewed without
the impact of foreign currency exchange rate fluctuations, thereby
facilitating period-to-period comparisons of business performance.
Constant currency revenue less repair payments is presented by
recalculating prior period’s revenue less repair payments
denominated in currencies other than in US dollars using the
foreign exchange rate used for the latest period, without taking
into account the impact of hedging gains/losses. Our non-US dollar
denominated revenues include, but are not limited to, revenues
denominated in pound sterling, South African rand, Australian
dollar and Euro.
WNS also presents or discusses (1) adjusted operating margin,
which refers to adjusted operating profit (calculated as operating
profit / (loss) excluding goodwill & intangible impairment,
share-based compensation expense, acquisition-related expenses or
benefits, costs related to the exchange of ADSs to ordinary shares,
costs related to change to US GAAP reporting and voluntarily filing
on US domestic issuer forms with SEC and amortization of intangible
assets) as a percentage of revenue less repair payments, (2) ANI,
which is calculated as profit excluding goodwill & intangible
impairment, share-based compensation expense, acquisition-related
expenses or benefits, costs related to the termination of ADS
program and listing of ordinary shares, costs related to the
transition to voluntarily reporting on US domestic issuer forms and
amortization of intangible assets and including the tax effect
thereon, (3) Adjusted net income margin, which refers to ANI as a
percentage of revenue less repair payments, (4) net cash, which
refers to cash and cash equivalents plus investments less long-term
debt (including the current portion and short term) and other
non-GAAP financial measures included in this release as
supplemental measures of its performance.
Acquisition-related expenses or benefits consists of transaction
costs, integration expenses, employment-linked earn-out as part of
deferred consideration and changes in the fair value of contingent
consideration including the impact of present value thereon. WNS
presents these non-GAAP financial measures because it believes they
assist investors in comparing its performance across reporting
periods on a consistent basis by excluding items that are
non-recurring in nature and those it believes are not indicative of
its core operating performance. In addition, it uses these non-GAAP
financial measures (i) to evaluate the effectiveness of its
business strategies and (ii) (with certain adjustments) as a factor
in evaluating management’s performance when determining incentive
compensation. WNS is excluding acquisition-related expenses as
described above with effect from fiscal 2023 second quarter.
These non-GAAP financial measures are not meant to be considered
in isolation or as a substitute for WNS’ financial results prepared
in accordance with IFRS.
The company is not able to provide our forward-looking GAAP
revenue, profit and earnings per share without unreasonable efforts
for a number of reasons, including our inability to predict with a
reasonable degree of certainty the payments to repair centers, our
future share-based compensation expense under IFRS 2 (Share Based
payments), amortization of intangibles and acquisition-related
expenses or benefits associated with future acquisitions, goodwill
impairment and currency fluctuations. As a result, any attempt to
provide a reconciliation of the forward-looking GAAP financial
measures (revenue, profit, earnings per share) to our
forward-looking non-GAAP financial measures (revenue less repair
payments*, ANI* and Adjusted diluted earnings per share*,
respectively) would imply a degree of likelihood that we do not
believe is reasonable.
Reconciliation of revenue (GAAP) to
revenue less repair payments (non-GAAP) and constant currency
revenue less repair payments (non-GAAP)
Three months ended
Year ended
Mar 31, 2024
Mar 31, 2023
Dec 31, 2023
Mar 31, 2024
Mar 31, 2023
(Amounts in millions)
(Amounts in millions)
Revenue (GAAP)
$
336.8
$
314.9
$
326.2
$
1,323.4
$
1,224.3
Less: Payments to repair centers
10.9
9.9
10.3
39.1
62.2
Revenue less repair payments
(non-GAAP)
$
325.9
$
305.0
$
315.9
$
1,284.3
$
1,162.0
Exchange rate impact
0.8
3.5
3.2
5.0
11.4
Constant currency revenue less repair
payments (non-GAAP)
$
326.7
$
308.5
$
319.1
$
1,289.2
$
1,173.4
Reconciliation of operating profit
(GAAP to non-GAAP)
Three months ended
Year ended
Mar 31, 2024
Mar 31, 2023
Dec 31, 2023
Mar 31, 2024
Mar 31, 2023
(Amounts in millions)
(Amounts in millions)
Operating profit (GAAP)
$
20.5
$
40.8
$
42.3
$
153.3
$
167.3
Add: Share-based compensation expense
9.0
11.8
13.1
51.7
49.7
Add: Amortization of intangible assets
7.0
8.9
8.6
33.0
23.6
Add: Impairment of intangible assets
30.9
—
—
30.9
—
Add: Acquisition-related expenses
0.6
1.2
1.0
3.7
3.8
Add: Costs related to the termination of
ADS program and listing of ordinary shares
3.6
—
—
3.6
—
Add: Costs related to the transition to
voluntarily reporting on US domestic issuer forms
0.1
—
—
0.1
—
Adjusted operating profit (non-GAAP)
$
71.7
$
62.7
$
65.0
$
276.3
$
244.5
Operating profit as a percentage of
revenue (GAAP)
6.1
%
13.0
%
13.0
%
11.6
%
13.7
%
Adjusted operating profit as a percentage
of revenue less repair payments (non-GAAP)
22.0
%
20.6
%
20.6
%
21.5
%
21.0
%
Reconciliation of profit (GAAP) to ANI
(non-GAAP)
Three months ended
Year ended
Mar 31, 2024
Mar 31, 2023
Dec 31, 2023
Mar 31, 2024
Mar 31, 2023
(Amounts in millions, except
per share data)
(Amounts in millions,
except per share data)
Profit (GAAP)
$
12.6
$
36.4
$
39.6
$
140.1
$
137.3
Add: Share-based compensation expense
9.0
11.8
13.1
51.7
49.7
Add: Amortization of intangible assets
7.0
8.9
8.6
33.0
23.6
Add: Impairment of intangible assets
30.9
—
—
30.9
—
Add: Acquisition-related expenses /
(benefits), net(1)
0.3
1.5
1.2
(17.7
)
4.5
Add: Costs related to the termination of
ADS program and listing of ordinary shares
3.6
—
—
3.6
—
Add: Costs related to the transition to
voluntarily reporting on US domestic issuer forms
0.1
—
—
0.1
—
Less: Tax impact on above(2)
(9.3
)
(6.2
)
(4.5
)
(24.8
)
(19.0
)
Adjusted Net Income (non-GAAP)
$
54.1
$
52.4
$
58.2
$
217.0
$
196.1
Profit after tax as a percentage of
revenue (GAAP)
3.7
%
11.6
%
12.2
%
10.6
%
11.2
%
Adjusted net income as a percentage of
revenue less repair payments (non-GAAP)
16.6
%
17.2
%
18.4
%
16.9
%
16.9
%
Adjusted diluted earnings per share
(non-GAAP)
$
1.12
$
1.04
$
1.18
$
4.38
$
3.86
(1) Acquisition related expenses / (benefits) includes reversal of
contingent consideration related to acquisition of Vuram and The
Smart Cube
(2) The company applies GAAP methodologies
in computing the tax impact on its non-GAAP ANI adjustments
(including amortization of intangible assets, acquisition-related
expenses and share-based compensation expense). The company’s
non-GAAP tax expense is generally higher than its GAAP tax expense
if the income subject to taxes is higher considering the effect of
the items excluded from GAAP profit to arrive at non-GAAP
profit.
Reconciliation of net cash
As at Mar 31,
2024
As at Mar 31,
2023
(Amounts in millions)
(Amounts in millions)
Gross cash (including investments)
$
244.3
$
304.9
Less: Debt (short term and long term)
(179.2
)
(173.4
)
Net cash
$
65.1
$
131.5
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240424532163/en/
Investors: David MackeyEVP – Finance & Head of
Investor Relations WNS (Holdings) Limited +1 (646) 908-2615
david.mackey@wns.com
Media: Archana Raghuram
EVP & Global Head – Marketing & Communications WNS
(Holdings) Limited +91 (22) 4095 2397 archana.raghuram@wns.com ;
pr@wns.com
WNS (NYSE:WNS)
過去 株価チャート
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