BPO firm WNS posts higher operating margin, profit in Q2
NYSE-listed WNS (Holdings) Ltd, a leading provider of global business process outsourcing (BPO) services, today said it was able to sequentially expand gross margin, operating margin and profit in the second quarter ended September 30 due to depreciation in the Indian rupee.
October 19, 2011 / 21:21 IST
NYSE-listed WNS (Holdings) Ltd, a leading provider of global business process outsourcing (BPO) services, today said it was able to sequentially expand gross margin, operating margin and profit in the second quarter ended September 30 due to depreciation in the Indian rupee.
"During the second quarter, WNS' sequential revenue growth drove improved operating leverage. Combined with depreciation in the Indian rupee, the company was able to sequentially expand gross margin, operating margin and profit in the second quarter," a company statement said here.The company's revenue-less repair payments for Q2 FY12 increased 7.6% to USD 100.2 million, compared to USD 93.1 million in the same period last fiscal year, and rose sequentially 2.4% from USD 97.8 million.The increase compared to prior year period was primarily due to higher volumes in the insurance, consulting and professional services, travel & leisure, diversified businesses and utilities verticals and a stronger British pound, it said.The sequential increase for the fiscal second quarter was driven by higher volume in the travel & leisure, consulting and professional services and utilities verticals, which was partially offset by a weaker British pound.The company posted USD 32.9 million adjusted gross profit (excluding share-based compensation expense) as against USD 33.9 million in the same period last year.The decrease in adjusted gross profit compared to the prior year period was primarily due to wage inflation and a stronger Indian rupee. The sequential improvement was primarily due to the impact of higher revenue and a weaker Indian rupee during the quarter, the company said."Over the last few quarters, we have begun to see the results of the key strategic investments we have made in the business," WNS Group Chief Executive Officer Keshav Murugesh said.Although macroeconomic uncertainty persists, the environment for BPO services remains relatively stable and healthy, the company said."Decision cycles are still long, but we are seeing continued improvement in the quantity, quality and size of the deals in our pipeline. We believe that the pipeline reflects increased traction from our expanded and upgraded sales function, with the true benefits of these investments yet to
come," Murugesh said.WNS said it has added three new clients in the quarter, expanded 10 existing relationships and its global headcount stands at 21,565 as of September 30, of which nearly 18,000 are engaged in India. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
