WNS (Holdings) Limited (WNS) has announced its fiscal 2025 first-quarter earnings, revealing a mix of successes and challenges. The company reported revenue of $323.1 million, marking a 1.0% decrease from the first quarter of the previous year and a 4.1% decrease from the last quarter. Profit for the quarter was $28.9 million, down from $32.0 million in the same quarter last year and up from $14.5 million in the previous quarter. Diluted earnings per share were reported at $0.61, compared to $0.64 in the first quarter of the previous year and $0.30 in the last quarter.
In terms of non-GAAP financial measures, revenue less repair payments was $312.4 million, down 1.6% from the first quarter of the previous year and down 4.1% from the last quarter. Adjusted net income (ANI) was $44.0 million, compared to $51.1 million in the first quarter of the previous year and $53.9 million in the last quarter. Adjusted diluted earnings per share were $0.93, down from $1.02 in the first quarter of the previous year and $1.12 in the last quarter.
WNS added 8 new clients in the quarter and expanded 36 existing relationships. The company's days sales outstanding (DSO) stood at 36 days, and it had a global headcount of 60,513 as of June 30, 2024.
The company also provided guidance for the fiscal year ending March 31, 2025, with revenue less repair payments expected to be between $1,290 million and $1,354 million. ANI is expected to range between $203 million and $215 million, and adjusted diluted earnings per share are expected to be in the range of $4.42 to $4.68.
WNS's Chief Executive Officer, Keshav Murugesh, acknowledged the challenges faced by the company, particularly in declining client volumes, while expressing confidence in the strategic growth initiatives and technology-enabled offerings. He also emphasized the company's commitment to investing in technology and opportunistically repurchasing stock.
The company ended the first quarter with $301.5 million in cash and investments and $301.5 million in debt. It generated $21.4 million in cash from operations, incurred $10.7 million in capital expenditures, and repaid $10.5 million in debt. Additionally, WNS repurchased 1,643,731 ordinary shares at an average price of $51.24, impacting first-quarter cash by $78.0 million.
WNS's Chief Financial Officer, Sanjay Puria, noted that the company's forecast for fiscal 2025 reflects growth in revenue less repair payments of 0% to 5% on both a reported and constant currency basis, with expected capital expenditures of up to $65 million for the year.
The company will host a conference call on July 18, 2024, to discuss its quarterly results.
WNS, a leading business process management company, operates across 64 delivery centers worldwide and serves over 600 clients across various industries. Today the company's shares have moved -2.9% to a price of $58.3. For more information, read the company's full 8-K submission here.
