From a balance sheet perspective, WNS ended Q3 with $260.4 million in cash and investments and
$177.4 million in debt. In Q3, the company generated $73.7 million in cash from operations, incurred $10.3 million in capital expenditures, and repaid $20.2 million in debt. WNS also repurchased 1,000,000 ADSs at an average price
of $58.13, impacting Q3 cash by $58.1 million. Third quarter days sales outstanding were 35 days, as compared to 34 days reported in Q3 of last year and 35 days in the previous quarter.
In the fiscal third quarter, WNS grew our year-over-year constant currency revenue less repair payments* by 6% and expanded adjusted diluted
earnings per share* by 18%, said Keshav Murugesh, WNS Chief Executive Officer. Despite the weak macro, the company continues to expect solid financial performance in fiscal 2024 with the midpoint of our guidance reflecting
double-digit top line* growth and industry-leading adjusted operating margin*. WNS is aggressively investing for the future and is making steady progress in our ability to design, build, and run solutions leveraging cutting-edge technologies
including AI and Generative AI. We remain committed to driving strong operational and financial execution, and generating long-term, sustainable business value for all of our stakeholders.
WNS Adds New York, London Global Headquarters
WNS
formally announced today that the company has added global headquarters locations in both New York and London. The addition of these headquarters to the Mumbai location supports the companys decentralization of senior leadership and
decision-making as highlighted by our organizational structure change announced in April, 2023. These new headquarters also reflect the evolution of the company over the past 25 years including the geographic diversification of the companys
revenue mix and delivery footprint.
Fiscal 2024 Guidance
WNS is updating guidance for the fiscal year ending March 31, 2024, as follows:
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Revenue less repair payments* is expected to be between $1,270 million and $1,292 million, up from
$1,162.0 million in fiscal 2023. Guidance assumes an average GBP to USD exchange rate of 1.27 for the remainder of fiscal 2024. |
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ANI* is expected to range between $212 million and $218 million versus $196.1 million in fiscal
2023. Guidance assumes an average USD to INR exchange rate of 83.3 for the remainder of fiscal 2024. |
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Based on a diluted share count of 49.6 million shares, the company expects fiscal 2024 adjusted diluted
earnings per share* to be in the range of $4.27 to $4.39 versus $3.86 in fiscal 2023. |
The company has updated our forecast for
fiscal 2024 based on current visibility levels and exchange rates, said Sanjay Puria, WNS Chief Financial Officer. Our guidance for the full year reflects growth in revenue less repair payments* of 9% to 11% on both a reported* and
constant currency* basis. The guidance includes expected healthy demand for core process automation and cost-reduction based solutions, and ongoing softness in transaction volumes from certain clients and discretionary project-based revenues. We
currently have over 99% visibility to the midpoint of the revenue range. For the year, we continue to expect capital expenditures of up to $60 million.
WNS Board Approves ADS to Share Exchange, Reporting Change
The WNS Board has granted approval for the company to move forward with plans to terminate its ADS program, exchange outstanding ADSs for its ordinary shares,
and apply for the ordinary shares to be listed on the NYSE. WNS intends to complete this exercise prior to the end of fiscal Q125. In addition, the Board has granted approval for the company to shift from reporting on the forms available to
foreign private issuers (FPIs) and filing our financial statements with the SEC under IFRS to voluntarily file on US domestic issuer forms and file our financial statements under US GAAP. WNS intends to complete this change prior to the end of
fiscal Q225. The company believes these actions are in the long-term best interest of all WNS stakeholders and will improve the companys ability to compete for capital, reduce share price volatility, and enhance governance.
Conference Call
WNS will host a conference call
on January 18, 2024, at 8:00 am (Eastern) to discuss the companys quarterly results. To access the call in listen-only mode, please join live via the companys investor relations website at ir.wns.com. For call
participants, please register using this online form to receive your dial-in number and unique PIN/passcode which can be used to access the call. A replay of the webcast will be archived on the company
website at ir.wns.com.
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