WNS Q3 Earnings Show Growth Despite Challenges

By Bobby Samwell • Thursday, January 23 15:36 • Permanent Link

WNS (Holdings) Limited (WNS) has released its fiscal 2025 third-quarter earnings, showcasing a positive growth trajectory despite facing certain headwinds. Here are the key highlights from the report:

GAAP Revenue: $333.0 million, up 2.1% from the third quarter of the previous year and 3.2% from the previous quarter.
GAAP Profit: $48.6 million, compared to $41.5 million in the third quarter of the previous year and $41.8 million in the previous quarter.
GAAP Diluted Earnings Per Share: $1.07, compared to $0.85 in the third quarter of the previous year and $0.92 in the previous quarter.
Non-GAAP Revenue Less Repair Payments: $319.1 million, up 1.0% from the third quarter of the previous year and 2.7% from the previous quarter.
Adjusted Net Income (ANI): $47.0 million, compared to $58.5 million in the third quarter of the previous year and $51.5 million in the previous quarter.
Adjusted Diluted Earnings Per Share: $1.04, compared to $1.19 in the third quarter of the previous year and $1.13 in the previous quarter.

Other Metrics: Added 7 new clients in the quarter and expanded 52 existing relationships. Days Sales Outstanding (DSO) at 34 days. * Global headcount of 63,390 as of December 31, 2024.

The company also provided updated guidance for the fiscal year ending March 31, 2025: Revenue Less Repair Payments expected to be between $1,255 million and $1,271 million. ANI expected to range between $205 million and $209 million. Adjusted Diluted Earnings Per Share to be in the range of $4.46 to $4.55.

WNS' CEO, Keshav Murugesh, expressed optimism about the company's performance, highlighting the re-acceleration of sequential revenue growth, expanded adjusted operating margin, and strong cash flow generation in the fiscal third quarter.

Arijit Sen, WNS’ Chief Financial Officer, mentioned that the guidance for the full year reflects revenue less repair payments of -2% to -1% on a reported basis, and -3% to -1% on a constant currency* basis as compared to fiscal 2024.

The company generated $88.7 million in cash from operations, incurred $12.1 million in capital expenditures, and repaid $58.4 million in debt in the quarter. It ended the quarter with $231.5 million in cash and investments and $199.6 million in debt.

WNS will host a conference call to discuss the quarterly results on January 23, 2025.

WNS (Holdings) Limited is a digital-led business transformation and services partner with over 600 clients across various industries as of December 31, 2024. Today the company's shares have moved 21.3% to a price of $60.03. For the full picture, make sure to review WNS ('s 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.