Business process outsourcing company WNS Holdings Ltd. reported a sharp rise in net profit in the first quarter ended June 30 over the year ago period even as revenue and profit shrunk sequentially over the fourth quarter of FY12. The company also announced the resignation of its chief financial officer Alok Misra.
WNS’ net profit for Q1 surged to $2.8 million from $0.7 million a year ago, even though it fell sequentially from $4.4 million in Q4 of FY12. The company’s revenue fell to $107.8 million from $125.7 million in the first quarter last year mainly due to a change in accounting for repair payments, according to the firm.
Revenue less repair payments of $102.6 million in the first quarter increased 4.9 per cent year-over-year, and 2.8 per cent as compared to the previous quarter. Sequential revenue growth was broad-based, with particular strength in the insurance, healthcare and utilities verticals. Year-over-year, revenue improvement was also broad-based and driven by growth in the utilities, travel and insurance verticals, said a company statement.
“We remain cautiously optimistic about the market environment for BPO services, which currently remains stable and healthy. WNS will continue to invest in expanding our geographic footprint, technology-enabling our solutions and driving non-linear revenue growth,” said Keshav Murugesh, CEO, WNS Group.
The company has also marginally upped its revenue and profit guidance for the financial year ending March 31, 2013. It now expects its revenue less repair payments to be between $420 million and $440 million in this fiscal as against previous forecast of $410-430 million. The guidance for adjusted net income now stands revised from $49-$53 million (assuming average USD to INR exchange rate of 50) to a range between $50 million and $54 million (assuming average USD to INR exchange rate of 56).
Meanwhile, the company finance head Alok Misra has stepped down, though he will continue to be an officer and employee of the company till August 16, 2012. After that, he will continue in a consulting role to ensure a smooth transition.
Corporate senior vice president for finance Kumar Subramaniam will assume the role of interim CFO from August 17. The company has initiated the search for a new CFO.
Last quarter, the company completed the acquisition of Fusion South Africa and added three new clients and expanded 10 existing relationships.
Early this year, WNS had offered to sell 10.5 million American Depositary Shares in an equal mix of primary issue and secondary offering by private equity firm Warburg Pincus. WNS had filed for a shelf registration statement with the Securities and Exchange Commission (SEC) in October last year in which Warburg Pincus was allowed to sell its entire 47.9 per cent stake over a period of time.
(Edited by Prem Udayabhanu)