Under the revised guidance, WNS said it expects to close fiscal 2008 with revenues between $290 million to $295 million, a growth of between 32% and 34.3% year on year.
Cites “rapid response to US mortgage gyrations”
MUMBAI: In a surprise move, less than two months after WNS Holdings revised downwards its earnings guidance following the collapse of one of its key clients, the New York Stock Exchange (NYSE)-listed third-party offshore business process outsourcing (BPO) services provider on Wednesday raised its year-end guidance due to its “rapid response to fluctuations in its US mortgage services business”.
Under the revised guidance, WNS said it expects to close fiscal 2008 with revenues (less repair payments) between $290 million to $295 million, a growth of between 32% and 34.3% year on year.
Net profit (excluding share-based compensation expense, amortisation of intangible assets and fringe benefit taxes on employee stock options) is expected to be between $33 million and $35 million.
But the new revenue guidance is still 4% lower than its first guidance of August 16, but it’s a marginal recoup, nevertheless.
The new guidance estimates the dollar at Rs 40, pound at 2.01 dollars for the rest of fiscal. Earlier estimates were Rs 40.70 and $2.03.
Shape of things? WNS ups guidance
“Revenue growth continues to be robust across sectors, and we are confident of finishing this fiscal year on a strong note,” Neeraj Bhargava, group chief executive officer said.
“The overall strength and diversity of our operations have helped us withstand pressure from the mortgage slowdown and appreciation of the rupee. The WNS team has addressed these issues rapidly, while addressing other challenges such as attrition and acquiring new business,” Bhargava said.
The company has managed to increase its guidance on the back of successful redeployment or out-placing most of the resources previously dedicated to First Magnus, in addition to deferring ongoing capacity addition.
It said it has also increased pricing on contracts with new clients and on select contracts with existing clients to help offset the impact of the appreciation of the rupee.
Earlier on August 17, the company had said its fiscal 2008 revenue (less repair payments) was expected to be between $286 million and $291 million for the year ended March 31, 2008 — about $16 million lower than what it announced a day previously.
Profit before tax was expected to be about $26 million lower than previously estimated, of which about $16 million would be the potential write-off in respect of intangibles and goodwill.
On August 16, while announcing the April-June quarter results, WNS had said it hopes 2008 revenues (less repair payments) between $302 million to $307 million and net profit (excluding share-based compensation expense and amortisation of intangible assets) between $41 million to $43 million.
Earlier, First Magnus Financial Corp, one of WNS’ key customers in the mortgage business, had terminated its contract as the subprime woes ballooned.
First Magnus was expected to account for approximately 5% of WNS’ revenue (less repair payments) for July 1, 2007, and March 31, 2008.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}