Adjusted net income (ANI)* in Q2 was $54.1 million, as compared to $47.2 million in Q2 of last year
and $50.6 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, acquisition-related items, and associated tax impacts which are excluded from ANI*.
From a balance sheet perspective, WNS ended Q2
with $248.1 million in cash and investments and $164.1 million in debt. In Q2, the company generated $68.5 million in cash from operations, incurred $15.7 million in capital expenditures, and repaid $38.0 million in debt.
Second quarter days sales outstanding were 35 days, as compared to 30 days reported in Q2 of last year and 34 days in the previous quarter.
Despite
the challenging macro environment, WNS delivered healthy financial results in the fiscal second quarter, growing year-over-year constant currency revenue less repair payments* by 11% and adjusted diluted earnings per share* by 16%, said Keshav
Murugesh, WNS Chief Executive Officer. While we anticipate increased top line pressure in the second half of the fiscal year, the midpoint of our guidance continues to reflect double-digit top line growth and industry-leading adjusted
operating margin* for fiscal 2024. In addition, we are making steady progress on our AI and Generative AI initiatives and continue to believe that these technologies represent more opportunity than risk to our business. WNS remains focused on
investing for the future, driving strong operational and financial execution, and delivering long-term, sustainable business value for our stakeholders.
Fiscal 2024 Guidance
WNS is updating guidance for
the fiscal year ending March 31, 2024, as follows:
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Revenue less repair payments* is expected to be between $1,254 million and $1,300 million, up from
$1,162.0 million in fiscal 2023. Guidance assumes an average GBP to USD exchange rate of 1.23 for the remainder of fiscal 2024. |
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ANI* is expected to range between $201 million and $211 million versus $196.1 million in fiscal
2023. Guidance assumes an average USD to INR exchange rate of 83.0 for the remainder of fiscal 2024. |
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Based on a diluted share count of 49.8 million shares, the company expects fiscal 2024 adjusted diluted
earnings per share* to be in the range of $4.04 to $4.24 versus $3.86 in fiscal 2023. |
The company has updated our forecast for
fiscal 2024 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 8% to 12% on both a reported and
constant currency* basis. The revised guidance reflects reduced volume commitments from certain clients, lower project revenues, and a delay in the ramp of our large insurance captive. We currently have 97% visibility to the midpoint of the revenue
range. For the year, we expect capital expenditures of up to $60 million.
Conference Call
WNS will host a conference call on October 19, 2023, at 8:00 am (Eastern) to discuss the companys quarterly results. To access the call in
listen-only mode, please join live via the companys 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 400 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 September 30, 2023, WNS had 59,873 professionals across 67 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.
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