WNS Q3 2010 fiscal results – metrics, facts & learning
Release DATE: Jan 21st, 2010
FACTS
- Net decline in revenues due to
– Seasonal decline in travel service
– Decline in Insurance business and Aviva second year deal pricing - Net decline in income due to
– Unwinding charges for interest rate swaps
– Decline in travel, insurance business
- Cost of adding new clients - Decline in Insurance business
- Added 12 new clients and expanded existing 4 relationships (including Sabre)
- 2,100 non India employees including 1,100 in Philippines
- CEO Neeraj Bhargav stepping down, Ex Syntel CEO Keshav the new CEO
- Growth in F&A space
- Same level of profitability between India and Philippines
METRICS
- Gross Revenues – $149.114 million YoY – (+11.3%), QoQ – (-2.6%)
- Net Revenues – $96.8 million (YoY) – (-3.4%), QoQ – (-2.8%)
- Net Income – $11.1 million YoY – (-3.5%), QoQ – (-18.7%)
- Fiscal Year 2010 ( ending March 2010) Guidance –Revenue $390 million,Net Income $52 million
- Headcount – 21,392 ( Net addition of 149 from last quarter)
- Attrition – 31%
- Total Foreign Exchange losses for quarter – $2.3 million
- Cash Balance – $60 million
LEARNINGS
- Flat pricing trends in the markets. No downward movement but no increases.
- Pure play BPO players will continue to struggle for growth and have to find ways to leverage non linear growth models, diversifying in IT, IT packaged implementation or other space
- Pure play BPO players have to develop niche deep expertise to generate client wins and foster growth.
- Higher snow fall in UK reduces auto claims and thus revenues for Indian vendors!
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