Business process management (BPM) major WNS Holdings on Thursday reported an 81 per cent rise in net profit to USD 26.8 million for the first quarter ended June 2021.

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As per the general accounting standards, the company had registered a net profit of USD 14.8 million in the same quarter last year, WNS said in a statement.

 

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The company's revenues increased by 21.9 per cent to USD 253.2 million in the quarter under review, from USD 207.8 million in the year-ago period, it added.

The company said its first-quarter revenue (on a year-on-year basis) improved as a result of reduced COVID-19 headwinds, new client additions, the expansion of existing relationships, and currency movements net of hedging.

The net profit increased as a result of easing pandemic-related pressures, revenue growth driven by new logos and client expansions, currency movements net of hedging, lower amortisation of intangibles expense, interest income associated with a tax refund, and a non-recurring tax benefit on liquid mutual funds, it added.

These benefits more than offset the impact of wage increases, contractual productivity commitments, the reinstatement of our corporate leave policy, and higher share-based compensation expense, the statement noted.

The company posted solid revenue growth and healthy margins, WNS Chief Executive Officer Keshav Murugesh said.

"Despite challenges related to a spike of COVID-19 cases in India during the quarter, WNS was able to execute well in a difficult environment, protecting the health and safety of our employees and the mission-critical operations of our clients,? he added.

Murugesh said the company continues to see significant opportunities to capitalise on an under-penetrated customer base, a strong new business pipeline, and a robust BPM market driven by demand for digital transformation and improved competitive positioning.

The company added 7 new clients in the quarter and expanded 17 existing relationships. Its global headcount stood at 46,918 as of June 30, 2021.

WNS reported revenue less repair payments of USD 236.3 million, up 17.3 per cent from USD 201.4 million in the June quarter last year.

It now expects its revenue less repair payments to be between USD 961 million and USD 1,009 million, up from USD 868.7 million in fiscal 2021.

In 2011-12, WNS re-negotiated contracts with certain clients and repair centres in the auto claims business, whereby the primary responsibility for providing the services is borne by the repair centres instead of WNS.