WNS (Holdings) Limited (WNS) (NYSE: WNS), a leading provider of global business process outsourcing (BPO) services, today announced results for the fiscal second quarter 2012 ended September 30, 2011.
“Over the last few quarters, we have begun to see the results of the key strategic investments we have made in the business and the focused efforts of the WNS team,” said Keshav Murugesh, WNS Group Chief Executive Officer. “From a top line perspective, revenue less repair payments continued to improve in the face of currency headwinds. Our revenue less repair payments in the fiscal second quarter crossed the $100 million mark for the first time in the past three years, and on a constant
currency basis grew at an accelerating rate for the third consecutive quarter.
"While we continued to invest in SG&A during the second quarter, 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.
"Although macroeconomic uncertainty persists, the environment for BPO services remains relatively stable and healthy. 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."
Fiscal Second Quarter 2012 Financial Results
All discussions below refer to non-GAAP financial measures. The financial information in this release is focused on non-GAAP measures as we believe that this is a true representation of our operating performance. Reconciliations of these non-GAAP measures to our GAAP operating results are included at the end of this release. See also “About Non-GAAP Financial Measures” below. A discussion of our GAAP measures will be contained in our Management’s Discussion and Analysis of Financial Condition and Results of Operations accompanying our second fiscal quarter 2012 financial statements to be submitted to the SEC under a report on Form 6-K shortly.
Revenue less repair payments for the fiscal second quarter 2012 increased 7.6 percent to $100.2 million, compared to $93.1 million in the prior fiscal year period, and increased sequentially 2.4 percent from $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. 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.