WNS (Holdings) Limited (WNS) (NYSE: WNS), a leading provider of
global Business Process Management (BPM) solutions, today announced
results for the fiscal 2021 fourth quarter and full year ended
March 31, 2021.
Highlights – Fiscal 2021 Fourth
Quarter:
GAAP
Financials
- Revenue of $243.9 million, down 1.8% from $248.3 million in
Q4 of last year and up 2.3% from $238.4 million last
quarter
- Profit of $27.5 million, compared to $29.5 million in Q4 of
last year and $31.0 million last quarter
- Diluted earnings per ADS of $0.53, compared to $0.57 in Q4
of last year and $0.60 last quarter
Non-GAAP
Financial Measures*
- Revenue less repair payments of $228.3 million, down 3.2%
from $235.8 million in Q4 of last year and up 1.7% from $224.5
million last quarter
- Adjusted Net Income (ANI) of $36.7 million, compared to
$42.4 million in Q4 of last year and $41.0 million last
quarter
- Adjusted diluted earnings per ADS of $0.71, compared to
$0.82 in Q4 of last year and $0.79 last quarter
Other
Metrics
- Added 9 new clients in the quarter, expanded 27 existing
relationships
- Days sales outstanding (DSO) at 30 days
- Global headcount of 43,997 as of March 31, 2021
Highlights – Fiscal 2021 Full
Year:
GAAP
Financials
- Revenue of $912.6 million, down 1.7% from $928.3 million in
fiscal 2020
- Profit of $102.6 million, compared to $116.8 million in
fiscal 2020
- Diluted earnings per ADS of $1.97, compared to $2.24 in
fiscal 2020
Non-GAAP
Financial Measures*
- Revenue less repair payments of $868.7 million, down 3.1%
from $896.2 million in fiscal 2020
- Adjusted Net Income (ANI) of $141.7 million, compared to
$161.4 million in fiscal 2020
- Adjusted diluted earnings per ADS of $2.72, compared to
$3.10 in fiscal 2020
Reconciliations of the non-GAAP financial measures discussed
below to our GAAP operating results are included at the end of this
release. See also “About Non-GAAP Financial Measures.”
Revenue in the fourth quarter was $243.9 million, representing a
1.8% decrease versus Q4 of last year and a 2.3% increase from the
previous quarter. Revenue less repair payments* in the fourth
quarter was $228.3 million, a decrease of 3.2% year-over-year and
an increase of 1.7% sequentially. Excluding exchange rate impacts,
constant currency revenue less repair payments* in the fiscal
fourth quarter was down 6.0% versus Q4 of last year and up 0.3%
sequentially. Year-over-year, fiscal Q4 revenue was adversely
impacted by the COVID-19 pandemic including lower volume
requirements from certain clients and service delivery constraints
resulting from the transition to a “work from home” delivery model.
These headwinds more than offset the year-over-year revenue growth
driven by new client additions, the expansion of existing
relationships, and currency movements net of hedging. Sequentially,
revenue improvement was driven by broad-based revenue growth and
currency movements net of hedging, which more than offset a
reduction in short-term revenue.
Profit in the fiscal fourth quarter was $27.5 million, as
compared to $29.5 million in Q4 of last year and $31.0 million in
the previous quarter. Year-over-year, profit reduced as a result of
lower revenue driven by pandemic-related pressures and reduced high
margin short-term revenue. Additional profit reductions included
business continuity costs, higher share-based compensation expense,
and a higher effective tax rate driven by the geographic mix of
profit. These headwinds were partially offset by a non-recurring
$4.1 million charge for goodwill impairment taken in the fourth
quarter of fiscal 2020, reductions in travel, facility-related and
discretionary expenditures associated with the COVID pandemic, and
favorable currency movements net of hedging. Sequentially, Q4
profit decreased as a result of reduced high margin short-term
revenue, increased facility-related expenses, and additional
compensation costs including hiring in advance of revenue and
employee promotions. These headwinds were partially offset by
increased revenue, a non-recurring benefit of $0.8 million for
interest income associated with a tax refund, and favorable
currency movements net of hedging.
Adjusted net income (ANI)* in Q4 was $36.7 million, as compared
to $42.4 million in Q4 of last year and $41.0 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 goodwill impairment,
amortization of intangible expenses, share-based compensation costs
and associated tax impacts, which are excluded from ANI*.
From a balance sheet perspective, WNS ended Q4 with $395.2
million in cash and investments and $16.7 million of debt. In the
fourth quarter, the company generated $75.6 million in cash from
operations, incurred $5.6 million in capital expenditures, and made
scheduled debt payments of $8.4 million. WNS also repurchased
694,716 ADSs at an average price of $73.61 per ADS, which impacted
Q4 cash by $50.9 million dollars. Fourth quarter days sales
outstanding were 30 days, as compared to 31 days reported in Q4 of
last year and 34 days in the previous quarter.
“In the fiscal fourth quarter, WNS delivered solid financial
results, posting healthy revenue, margin and free cash flow. While
our full year results were adversely impacted by the global
pandemic, we are pleased with our overall execution in a very
difficult environment and our business momentum exiting the fiscal
year,” said Keshav Murugesh, WNS’s Chief Executive Officer. “During
fiscal 2021, WNS was able to quickly adapt our delivery to a “work
from home” model and maintain support for our clients’ core,
mission-critical processes. In addition, the company continued to
add new clients and expand existing relationships at a healthy
pace, helping drive revenue growth and margin expansion as the year
progressed. We believe this clearly demonstrates WNS’
differentiated positioning in the market, the strategic importance
of our solutions, and the resiliency of the BPM model. We are also
extremely proud of the fact that we were able to achieve these
results while protecting the safety and welfare of our more than
40,000 global employees, and continuing the strategic investment
programs necessary to drive long-term sustainable value for all of
our key stakeholders.”
COVID-19
The COVID-19 pandemic is having a significant impact on the
global economy, our clients’ businesses, and on WNS’s operations,
financials, and visibility. Revenue has been pressured by lower
client volumes, delays in new business ramps, client concessions,
and facility lockdowns which impact service delivery. WNS is
actively working to manage our clients’ changing requirements,
adapt our service delivery models, ensure data security, and manage
costs. In the fiscal fourth quarter, the company delivered over 99%
of our clients’ requirements. Going forward, impacts to our
financial performance will be a function of how long the COVID-19
pandemic lasts on a global basis, and how long it takes our
clients’ businesses to stabilize and recover.
Fiscal 2022 Guidance
WNS is providing guidance for the fiscal year ending March 31,
2022 as follows:
- Revenue less repair payments* is expected to be between $945
million and $997 million, up from $868.7 million in fiscal 2021.
Fiscal 2022 guidance assumes an average GBP to USD exchange rate of
1.38 versus 1.31 in fiscal 2021.
- ANI* is expected to range between $152 million and $164 million
versus $141.7 million in fiscal 2021. Fiscal 2022 guidance assumes
an average USD to INR exchange rate of 74.00 versus 74.25 in fiscal
2021.
- Based on a diluted share count of 51.1 million shares, the
company expects fiscal 2022 adjusted diluted earnings* per ADS to
be in the range of $2.98 to $3.21 versus $2.72 in fiscal 2021.
“The company has provided our initial forecast for fiscal 2022
based on current visibility levels and exchange rates,” said Sanjay
Puria, WNS’s Chief Financial Officer. “Our guidance for the full
year reflects growth in revenue less repair payments* of 9% to 15%,
or 7% to 13% on a constant currency* basis. We currently have 90%
visibility to the midpoint of the range, consistent with April
guidance in previous years. For the year, we expect capital
expenditures of up to $35 million.”
Conference Call
WNS will host a conference call on April 22, 2021 at 8:00 am
(Eastern) to discuss the company's quarterly results. To access the
call in “listen-only” mode, please join live via the company’s
investor relations website at ir.wns.com. For call participants,
please use the following details: US dial-in +1-888-656-9018;
international dial-in +1-503-343-6030; participant passcode
7880707. A replay will be available for one week following the call
at +1-855-859-2056; international dial-in +1-404-537-3406; passcode
7880707, as well as on the WNS website, www.wns.com, beginning two
hours after the end of the call.
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 375
clients across various industries. WNS delivers an entire spectrum
of BPM solutions including industry-specific offerings, customer
interaction services, finance and accounting, human resources,
procurement, and research and analytics to re-imagine the digital
future of businesses. As of March 31, 2021, WNS had 43,997
professionals across 58 delivery centers worldwide including
facilities in Australia, China, Costa Rica, India, the Philippines,
Poland, Romania, South Africa, Spain, Sri Lanka, Turkey, the United
Kingdom, and the United States. For more information, visit
www.wns.com.
Safe Harbor Statement
This release contains forward-looking statements, as defined in
the safe harbor provisions of the US Private Securities Litigation
Reform Act of 1995. These forward-looking statements are based on
our current expectations and assumptions about our Company and our
industry. Generally, these forward-looking statements may be
identified by the use of terminology such as “anticipate,”
“believe,” “estimate,” “expect,” “intend,” “will,” “seek,” “should”
and similar expressions. These statements include, among other
things, express or implied forward-looking statements relating to
our expectations regarding the impact of the COVID-19 pandemic on
our business, our cost structure, the discussions of our strategic
initiatives and the expected resulting benefits, our growth
opportunities, industry environment, expectations concerning our
future financial performance and growth potential, including our
fiscal 2021 second quarter commentary, future profitability, and
expected foreign currency exchange rates. Forward-looking
statements inherently involve risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied by such statements. Such risks and uncertainties include
but are not limited to worldwide economic and business conditions,
including the impact of the COVID-19 pandemic on our business
operations and future growth; political or economic instability in
the jurisdictions where we have operations; our dependence on a
limited number of clients in a limited number of industries;
regulatory, legislative and judicial developments; increasing
competition in the BPM industry; technological innovation;
telecommunications or technology disruptions; our ability to
attract and retain clients; our liability arising from fraud or
unauthorized disclosure of sensitive or confidential client and
customer data; negative public reaction in the US or the UK to
offshore outsourcing; our ability to collect our receivables from,
or bill our unbilled services to our clients; our ability to expand
our business or effectively manage growth; our ability to hire and
retain enough sufficiently trained employees to support our
operations; the effects of our different pricing strategies or
those of our competitors; our ability to successfully consummate,
integrate and achieve accretive benefits from our strategic
acquisitions, and to successfully grow our revenue and expand our
service offerings and market share; and future regulatory actions
and conditions in our operating areas. These and other factors are
more fully discussed in our most recent annual report on Form 20-F
and subsequent reports on Form 6-K filed with or furnished to the
US Securities and Exchange Commission (SEC) which are available at
www.sec.gov. We caution you not to place undue reliance on any
forward-looking statements. Except as required by law, we do not
undertake to update any forward-looking statements to reflect
future events or circumstances.
References to “$” and “USD” refer to the United States dollars,
the legal currency of the United States; references to “GBP” refer
to the British pound, the legal currency of Britain; and references
to “INR” refer to Indian Rupees, the legal currency of India.
References to GAAP refers to International Financial Reporting
Standards, as issued by the International Accounting Standards
Board (IFRS).
* See “About Non-GAAP Financial Measures” and the
reconciliations of the historical non-GAAP financial measures to
our GAAP operating results at the end of this release.
WNS (HOLDINGS) LIMITED
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(Unaudited, amounts in
millions, except share and per share data)
Three months ended
Year ended
Mar 31, 2021
Mar 31, 2020
Dec 31, 2020
Mar 31, 2021
Mar 31, 2020
Revenue
$
243.9
$
248.3
$
238.4
$
912.6
$
928.3
Cost of revenue
158.5
158.4
150.3
587.2
583.9
Gross profit
85.4
90.0
88.0
325.4
344.3
Operating expenses:
Selling and marketing expenses
12.9
15.2
12.2
49.6
52.8
General and administrative expenses
34.5
32.4
31.3
126.3
128.6
Foreign exchange loss / (gain), net
0.0
(1.3
)
(0.1
)
0.8
(3.4
)
Impairment of Goodwill
—
4.1
—
—
4.1
Amortization of intangible assets
3.3
3.8
3.3
13.7
15.7
Operating profit
34.6
35.8
41.2
135.1
146.6
Other income, net
(3.6
)
(4.0
)
(2.6
)
(12.5
)
(14.4
)
Finance expense
3.7
4.0
3.7
14.8
17.0
Profit before income taxes
34.5
35.7
40.2
132.7
144.0
Income tax expense
7.0
6.2
9.2
30.1
27.2
Profit after tax
$
27.5
$
29.5
$
31.0
$
102.6
$
116.8
Earnings per share of ordinary share
Basic
$
0.56
$
0.59
$
0.62
$
2.06
$
2.35
Diluted
$
0.53
$
0.57
$
0.60
$
1.97
$
2.24
WNS (HOLDINGS) LIMITED
CONDENSED CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION
(Unaudited, amounts in
millions, except share and per share data)
As at Mar 31, 2021
As at Mar 31, 2020
ASSETS
Current assets:
Cash and cash equivalents
$
105.6
$
96.9
Investments
203.7
125.6
Trade receivables, net
83.1
89.8
Unbilled revenue
66.4
58.0
Funds held for clients
12.1
15.8
Derivative assets
8.0
13.2
Contract assets
7.8
7.5
Prepayments and other current assets
23.2
22.0
Total current assets
509.9
428.8
Non-current assets:
Goodwill
124.0
121.3
Intangible assets
65.1
70.1
Property and equipment
52.3
57.0
Right-of-use assets
166.8
159.1
Derivative assets
1.7
2.1
Investments
85.9
80.1
Trade receivables, net
0.3
—
Contract assets
27.1
28.9
Deferred tax assets
33.0
28.9
Other non-current assets
40.0
36.0
Total non-current assets
596.2
583.5
TOTAL ASSETS
$
1,106.1
$
1,012.3
LIABILITIES AND EQUITY
Current liabilities:
Trade payables
$
28.0
$
29.3
Provisions and accrued expenses
23.9
29.0
Derivative liabilities
4.5
9.6
Pension and other employee obligations
82.6
76.9
Current portion of long-term debt
16.7
16.7
Contract liabilities
12.7
10.3
Current taxes payable
1.5
3.3
Lease liabilities
26.0
23.4
Other liabilities
11.5
7.4
Total current liabilities
207.5
205.8
Non-current liabilities:
Derivative liabilities
2.0
3.9
Pension and other employee obligations
19.6
13.0
Long-term debt
—
16.7
Contract liabilities
16.6
20.1
Other non-current liabilities
0.2
0.2
Lease liabilities
165.9
155.5
Deferred tax liabilities
10.2
10.1
Total non-current liabilities
214.6
219.4
TOTAL LIABILITIES
$
422.1
$
425.2
Shareholders' equity:
Share capital (ordinary shares $0.16 (10
pence) par value, authorized 60,000,000 shares; issued: 50,502,203
shares and 49,733,640 shares each as at March 31, 2021 and March
31, 2020, respectively)
8.0
7.9
Share premium
227.7
187.3
Retained earnings
689.0
586.3
Other components of equity
(162.0
)
(194.4
)
Total shareholders’ equity including
shares held in treasury
$
762.7
$
587.1
Less: 1,100,000 shares as at March 31,
2021 and Nil shares as at March 31, 2020, held in treasury, at
cost
(78.6
)
—
Total shareholders’ equity
$
684.1
$
587.1
TOTAL LIABILITIES AND EQUITY
$
1,106.1
$
1,012.3
About Non-GAAP Financial
Measures
The financial information in this release includes certain
non-GAAP financial measures that we believe more accurately reflect
our core operating performance. Reconciliations of these non-GAAP
financial measures to our GAAP operating results are included
below. A more detailed discussion of our GAAP results is contained
in “Part I –Item 5. Operating and Financial Review and Prospects”
in our annual report on Form 20-F filed with the SEC on May 1,
2020.
For financial statement reporting purposes, WNS has two
reportable segments: WNS Global BPM and WNS Auto Claims BPM.
Revenue less repair payments is a non-GAAP financial measure that
is calculated as (a) revenue less (b) in the auto claims business,
payments to repair centers for “fault” repair cases where WNS acts
as the principal in its dealings with the third party repair
centers and its clients. WNS believes that revenue less repair
payments for “fault” repairs reflects more accurately the value
addition of the business process management services that it
directly provides to its clients. For more details, please see the
discussion in “Part I – Item 5. Operating and Financial Review and
Prospects – Overview” in our annual report on Form 20-F filed with
the SEC on May 1, 2020.
Constant currency revenue less repair payments is a non-GAAP
financial measure. We present constant currency revenue less repair
payments so that revenue less repair payments may be viewed without
the impact of foreign currency exchange rate fluctuations, thereby
facilitating period-to-period comparisons of business performance.
Constant currency revenue less repair payments is presented by
recalculating prior period’s revenue less repair payments
denominated in currencies other than in US dollars using the
foreign exchange rate used for the latest period, without taking
into account the impact of hedging gains/losses. Our non-US dollar
denominated revenues include, but are not limited to, revenues
denominated in pound sterling, South African rand, Australian
dollar and Euro.
WNS also presents or discusses (1) adjusted operating margin,
which refers to adjusted operating profit (calculated as operating
profit / (loss) excluding goodwill impairment, share-based expense
and amortization of intangible assets) as a percentage of revenue
less repair payments, (2) ANI, which is calculated as profit
excluding goodwill impairment, share-based expense and amortization
of intangible assets and including the tax effect thereon, (3)
Adjusted net income margin, which refers to ANI as a percentage of
revenue less repair payments, (4) net cash, which refers to cash
and cash equivalents plus investments less long-term debt
(including the current portion) and other non-GAAP financial
measures included in this release as supplemental measures of its
performance. WNS presents these non-GAAP financial measures because
it believes they assist investors in comparing its performance
across reporting periods on a consistent basis by excluding items
that are non-recurring in nature and those it believes are not
indicative of its core operating performance. In addition, it uses
these non-GAAP financial measures (i) as a factor in evaluating
management’s performance when determining incentive compensation
and (ii) to evaluate the effectiveness of its business strategies.
These non-GAAP financial measures are not meant to be considered in
isolation or as a substitute for WNS’s financial results prepared
in accordance with IFRS.
The company is not able to provide our forward-looking GAAP
revenue, profit and earnings per ADS without unreasonable efforts
for a number of reasons, including our inability to predict with a
reasonable degree of certainty the payments to repair centers, our
future share-based compensation expense under IFRS 2 (Share Based
payments), amortization of intangibles associated with future
acquisitions, goodwill impairment and currency fluctuations. As a
result, any attempt to provide a reconciliation of the
forward-looking GAAP financial measures (revenue, profit, earnings
per ADS) to our forward-looking non-GAAP financial measures
(revenue less repair payments*, ANI* and Adjusted diluted earnings*
per ADS, respectively) would imply a degree of likelihood that we
do not believe is reasonable.
Reconciliation of revenue (GAAP) to revenue less repair
payments (non-GAAP) and constant currency revenue less repair
payments (non-GAAP)
Three months ended
Year ended
Mar 31, 2021
Mar 31, 2020
Dec 31, 2020
Mar 31, 2021
Mar 31, 2020
(Amounts in millions)
(Amounts in millions)
Revenue (GAAP)
$
243.9
$
248.3
$
238.4
$
912.6
$
928.3
Less: Payments to repair centers
15.5
12.6
13.8
43.9
32.0
Revenue less repair payments
(non-GAAP)
$
228.3
$
235.8
$
224.5
$
868.7
$
896.2
Exchange rate impact
(0.3
)
6.7
2.8
(4.2
)
(1.9
)
Constant currency revenue less repair
payments (non-GAAP)
$
228.0
$
242.5
$
227.3
$
864.5
$
894.3
Reconciliation of cost of revenue (GAAP to non-GAAP)
Three months ended
Year ended
Mar 31, 2021
Mar 31, 2020
Dec 31, 2020
Mar 31, 2021
Mar 31, 2020
(Amounts in millions)
(Amounts in millions)
Cost of revenue (GAAP)
$
158.5
$
158.4
$
150.3
$
587.2
$
583.9
Less: Payments to repair centers
15.5
12.6
13.8
43.9
32.0
Less: Share-based compensation expense
1.2
0.8
1.5
4.9
4.6
Adjusted cost of revenue (excluding
payments to repair centers and share-based compensation expense)
(non-GAAP)
$
141.8
$
145.0
$
135.0
$
538.4
$
547.3
Reconciliation of gross profit (GAAP to non-GAAP)
Three months ended
Year ended
Mar 31, 2021
Mar 31, 2020
Dec 31, 2020
Mar 31, 2021
Mar 31, 2020
(Amounts in millions)
(Amounts in millions)
Gross profit (GAAP)
$
85.4
$
90.0
$
88.0
$
325.4
$
344.3
Add: Share-based compensation expense
1.2
0.8
1.5
4.9
4.6
Adjusted gross profit (excluding
share-based compensation expense) (non-GAAP)
$
86.5
$
90.8
$
89.5
$
330.3
$
348.9
Three months ended
Year ended
Mar 31, 2021
Mar 31, 2020
Dec 31, 2020
Mar 31, 2021
Mar 31, 2020
Gross profit as a percentage of revenue
(GAAP)
35.0%
36.2%
36.9%
35.7%
37.1%
Adjusted gross profit (excluding
share-based compensation expense) as a percentage of revenue less
repair payments (non-GAAP)
37.9%
38.5%
39.9%
38.0%
38.9%
Reconciliation of selling and marketing expenses (GAAP to
non-GAAP)
Three months ended
Year ended
Mar 31, 2021
Mar 31, 2020
Dec 31, 2020
Mar 31, 2021
Mar 31, 2020
(Amounts in millions)
(Amounts in millions)
Selling and marketing expenses (GAAP)
$
12.9
$
15.2
$
12.2
$
49.6
$
52.8
Less: Share-based compensation expense
0.9
1.1
0.8
4.3
4.8
Adjusted selling and marketing expenses
(excluding share-based compensation expense) (non-GAAP)
$
12.0
$
14.1
$
11.4
$
45.3
$
48.0
Three months ended
Year ended
Mar 31, 2021
Mar 31, 2020
Dec 31, 2020
Mar 31, 2021
Mar 31, 2020
Selling and marketing expenses as a
percentage of revenue (GAAP)
5.3%
6.1%
5.1%
5.4%
5.7%
Adjusted selling and marketing expenses
(excluding share-based compensation expense) as a percentage of
revenue less repair payments (non-GAAP)
5.2%
6.0%
5.1%
5.2%
5.4%
Reconciliation of general and administrative expenses (GAAP
to non-GAAP)
Three months ended
Year ended
Mar 31, 2021
Mar 31, 2020
Dec 31, 2020
Mar 31, 2021
Mar 31, 2020
(Amounts in millions)
(Amounts in millions)
General and administrative expenses
(GAAP)
$
34.5
$
32.4
$
31.3
$
126.3
$
128.6
Less: Share-based compensation expense
7.5
6.3
7.1
29.0
28.1
Adjusted general and administrative
expenses (excluding share-based compensation expense)
(non-GAAP)
$
26.9
$
26.1
$
24.2
$
97.3
$
100.4
Three months ended
Year ended
Mar 31, 2021
Mar 31, 2020
Dec 31, 2020
Mar 31, 2021
Mar 31, 2020
General and administrative expenses as a
percentage of revenue (GAAP)
14.1%
13.1%
13.1%
13.8%
13.9%
Adjusted general and administrative
expenses (excluding share-based compensation expense) as a
percentage of revenue less repair payments (non-GAAP)
11.8%
11.1%
10.8%
11.2%
11.2%
Reconciliation of operating profit (GAAP to non-GAAP)
Three months ended
Year ended
Mar 31, 2021
Mar 31, 2020
Dec 31, 2020
Mar 31, 2021
Mar 31, 2020
(Amounts in millions)
(Amounts in millions)
Operating profit (GAAP)
$
34.6
$
35.8
$
41.2
$
135.1
$
146.6
Add: Impairment of goodwill
-
4.1
-
-
4.1
Add: Share-based compensation expense
9.6
8.2
9.4
38.2
37.5
Add: Amortization of intangible assets
3.3
3.8
3.3
13.7
15.7
Adjusted operating profit (excluding
impairment of goodwill, share-based compensation expense and
amortization of intangible assets) (non-GAAP)
$
47.6
$
51.9
$
53.9
$
187.0
$
203.8
Three months ended
Year ended
Mar 31, 2021
Mar 31, 2020
Dec 31, 2020
Mar 31, 2021
Mar 31, 2020
Operating profit as a percentage of
revenue (GAAP)
14.2%
14.4%
17.3%
14.8%
15.8%
Adjusted operating profit (excluding
impairment of goodwill, share-based compensation expense and
amortization of intangible assets) as a percentage of revenue less
repair payments (non-GAAP)
20.8%
22.0%
24.0%
21.5%
22.7%
Reconciliation of profit (GAAP) to ANI (non-GAAP)
Three months ended
Year ended
Mar 31, 2021
Mar 31, 2020
Dec 31, 2020
Mar 31, 2021
Mar 31, 2020
(Amounts in millions)
(Amounts in millions)
Profit (GAAP)
$
27.5
$
29.5
$
31.0
$
102.6
$
116.8
Add: Impairment of goodwill
-
4.1
-
-
4.1
Add: Share-based compensation expense
9.6
8.2
9.4
38.2
37.5
Add: Amortization of intangible assets
3.3
3.8
3.3
13.7
15.7
Less: Tax impact on share-based
compensation expense(1)
(2.7
)
(2.2
)
(1.9
)
(9.2
)
(8.6
)
Less: Tax impact on amortization of
intangible assets(1)
(1.0
)
(1.1
)
(0.9
)
(3.7
)
(4.0
)
Adjusted Net Income (excluding impairment
of goodwill, share-based compensation expense and amortization of
intangible assets, including tax effect** thereon) (non-GAAP)
$
36.7
$
42.4
$
41.0
$
141.7
$
161.4
(1) The company applies GAAP methodologies in computing the tax
impact on its non-GAAP ANI adjustments (including amortization of
intangible assets and share-based compensation expense). The
company’s non-GAAP tax expense is generally higher than its GAAP
tax expense if the income subject to taxes is higher considering
the effect of the items excluded from GAAP profit to arrive at
non-GAAP profit.
** Goodwill being non-tax deductible, there is no impact on tax
thereon
Three months ended
Year ended
Mar 31, 2021
Mar 31, 2020
Dec 31, 2020
Mar 31, 2021
Mar 31, 2020
Profit as a percentage of revenue
(GAAP)
11.3%
11.9%
13.0%
11.2%
12.6%
Adjusted net income (excluding impairment
of goodwill, share-based compensation expense and amortization of
intangible assets including tax effect** thereon) as a percentage
of revenue less repair payments (non-GAAP)
16.1%
18.0%
18.3%
16.3%
18.0%
** Goodwill being non-tax deductible, there is no impact on tax
thereon
Reconciliation of basic earnings per ADS (GAAP to
non-GAAP)
Three months ended
Year ended
Mar 31, 2021
Mar 31, 2020
Dec 31, 2020
Mar 31, 2021
Mar 31, 2020
Basic earnings per ADS (GAAP)
$
0.56
$
0.59
$
0.62
$
2.06
$
2.35
Add: Adjustments for impairment of
goodwill, share-based compensation expense and amortization of
intangible assets
0.26
0.32
0.25
1.04
1.15
Less: Tax impact on share-based
compensation expense and amortization of intangible assets **
(0.08
)
(0.06
)
(0.05
)
(0.25
)
(0.25
)
Adjusted basic earnings per ADS (excluding
impairment of goodwill, share-based compensation expense and
amortization of intangible assets, including tax effect** thereon)
(non-GAAP)
$
0.74
$
0.85
$
0.82
$
2.85
$
3.25
** Goodwill being non-tax deductible, there is no impact on tax
thereon
Reconciliation of diluted earnings per ADS (GAAP to
non-GAAP)
Three months ended
Year ended
Mar 31, 2021
Mar 31, 2020
Dec 31, 2020
Mar 31, 2021
Mar 31, 2020
Diluted earnings per ADS (GAAP)
$
0.53
$
0.57
$
0.60
$
1.97
$
2.24
Add: Adjustments for impairment of
goodwill, share-based compensation expense and amortization of
intangible assets
0.25
0.31
0.24
1.00
1.10
Less: Tax impact on share-based
compensation expense and amortization of intangible assets **
(0.07
)
(0.06
)
(0.05
)
(0.25
)
(0.24
)
Adjusted diluted earnings per ADS
(excluding impairment of goodwill, share-based compensation expense
and amortization of intangible assets, including tax effect**
thereon) (non-GAAP)
$
0.71
$
0.82
$
0.79
$
2.72
$
3.10
** Goodwill being non-tax deductible, there is no impact on tax
thereon
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210422005518/en/
Investors: David Mackey EVP – Finance & Head
of Investor Relations WNS (Holdings) Limited +1 (201) 942-6261
david.mackey@wns.com
Media: Archana Raghuram Global Head – Marketing
& Communications and Corporate Business Development WNS
(Holdings) Limited +91 (22) 4095 2397 archana.raghuram@wns.com ;
pr@wns.com
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