WNS Holdings (NYSE: WNS) reported Q4 EPS of $0.71, $0.02 better than the analyst estimate of $0.69. Revenue for the quarter came in at $228.3 million versus the consensus estimate of $227.53 million.

Highlights – Fiscal 2021 Fourth Quarter:

GAAP Financials

• Revenue of $243.9 million, down 1.8% from $248.3 million in Q4 of last year and up 2.3% from $238.4 million last quarter
• Profit of $27.5 million, compared to $29.5 million in Q4 of last year and $31.0 million last quarter
• Diluted earnings per ADS of $0.53, compared to $0.57 in Q4 of last year and $0.60 last quarter

Non-GAAP Financial Measures*

• Revenue less repair payments of $228.3 million, down 3.2% from $235.8 million in Q4 of last year and up 1.7% from $224.5 million last quarter
• Adjusted Net Income (ANI) of $36.7 million, compared to $42.4 million in Q4 of last year and $41.0 million last quarter
• Adjusted diluted earnings per ADS of $0.71, compared to $0.82 in Q4 of last year and $0.79 last quarter

“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, WNS’s Chief Executive Officer. “During fiscal 2021, WNS was able to quickly adapt our delivery to a “work from home” model and maintain support for our clients’ core, mission-critical processes. In addition, the company continued to add new clients and expand existing relationships at a healthy pace, helping drive revenue growth and margin expansion as the year progressed. We believe this clearly demonstrates WNS’ differentiated positioning in the market, the strategic importance of our solutions, and the resiliency of the BPM model. We are also extremely proud of the fact that we were able to achieve these results while protecting the safety and welfare of our more than 40,000 global employees, and continuing the strategic investment programs necessary to drive long-term sustainable value for all of our key stakeholders.”

GUIDANCE:

WNS Holdings sees FY2022 EPS of $2.98-$3.21, versus the consensus of $2.71. WNS Holdings sees FY2022 revenue of $945-997 million, versus the consensus of $963.56 million.

WNS is providing guidance for the fiscal year ending March 31, 2022 as follows:

• Revenue less repair payments* is expected to be between $945 million and $997 million, up from $868.7 million in fiscal 2021. Fiscal 2022 guidance assumes an average GBP to USD exchange rate of 1.38 versus 1.31 in fiscal 2021.
• ANI* is expected to range between $152 million and $164 million versus $141.7 million in fiscal 2021. Fiscal 2022 guidance assumes an average USD to INR exchange rate of 74.00 versus 74.25 in fiscal 2021.
• Based on a diluted share count of 51.1 million shares, the company expects fiscal 2022 adjusted diluted earnings* per ADS to be in the range of $2.98 to $3.21 versus $2.72 in fiscal 2021.

“The company has provided our initial forecast for fiscal 2022 based on current visibility levels and exchange rates,” said Sanjay Puria, WNS’s Chief Financial Officer. “Our guidance for the full year reflects growth in revenue less repair payments* of 9% to 15%, or 7% to 13% on a constant currency* basis. We currently have 90% visibility to the midpoint of the range, consistent with April guidance in previous years. For the year, we expect capital expenditures of up to $35 million.”

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