Business

COVID pressure dents WNS’s profit

WNS (Holdings) Ltd, a leading provider of global business process management (BPM) solutions provider, said its fourth-quarter profit declined 6.7% to to $27.5 million as a result of lower revenue driven by pandemic-related pressures and reduced high margin short-term revenue.

Revenue in the fourth quarter stood at $243.9 million, representing a 1.8% decrease from the year earlier period.

“Revenue less repair payments in the fourth quarter was $228.3 million, a decrease of 3.2% year-over-year. Excluding exchange rate impacts, constant currency revenue less repair payments in the fiscal fourth quarter was down 6% versus Q4 of last year,” the company said.

From a balance sheet perspective, WNS ended Q4 with $395.2 million in cash and investments and $16.7 million of debt.

For the full year 2021 the company reported lower profit of $102.6 million, compared to $116.8 million in fiscal 2020, down 12.15%. Revenue also declined 1.7% to $912.6 million from $928.3 million in fiscal 2020.

In its fiscal 2022 guidance the company expects its net revenue to be between $945 million and $997 million, up from $868.7 million in fiscal 2021.

ANI is expected to range between $152 million and $164 million versus $141.7 million in fiscal 2021, it said.

“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, CEO, WNS said.

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Printable version | May 15, 2021 5:50:29 AM | https://www.thehindu.com/business/covid-pressure-dents-wnss-profit/article34386966.ece

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