WNS - Earnings call transcript Q1 2023

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Operator

Good morning and welcome to the WNS Holdings Fiscal 2023 First Quarter Earnings Conference Call. At this time, all participants are in listen-only mode. After management’s prepared remarks, we will conduct a question-and-answer session and instructions for how to ask a question will follow at that time.

As a reminder, this call is being recorded for replay purposes.

Now, I’d like to turn the call over to David Mackey, WNS’ Executive Vice President of Finance and Head of Investor Relations. David?

David Mackey

Sanjay to today XXXX have XXXX. the release on Keshav WNS’s www.wns.com. welcome call. for quarter financial WNS’s detailing was XX, And Today’s COO, Murugesh, ended me our With the CFO, our you. our focus the A results first fiscal earnings on remarks fiscal CEO, Gautam today. Thank Barai. and press Puria, call, section first of June is also This will results Relations release our the quarter earlier available issued Investor website at on I

statements. document actual that expressed Some and to of known and company available forward-looking those the today’s be factors differ matters website. that materially are keep or statements will risks unknown but not Please company’s risks such the are in is This in these by implied results Form mind limited call cause Such forward-looking. and are those to XX-F. also on set uncertainties to subject include, discussed uncertainties the could from on forth that

will found certain release earlier During financial management of today. to non-GAAP we can for investors. reference useful press call, non-GAAP Reconciliations these which financial measures results GAAP believe in this the provide be measures, information issued

amortization management Adjusted used margin Keshav? assets, operating to WNS’s call would taxes. intangible These Some net to follows: of operating compensation, measures CEO, is the as amortization Adjusted throughout goodwill payments. intangible be of repair share-based the associated and impairment, defined as over non-GAAP Keshav goodwill and excluding profit ANI will defined will I excluding turn all Murugesh. as are now the margin call. defined defined discuss income of less is or financial share-based like terms Net revenue assets, impairment. revenue as compensation, is

Keshav Murugesh

a margins, as his including but financial on everyone. and foreign further adjusting XX% financial a million growth, for well representing the came of Revenue after basis, exchange. margins $XXX.X continue reduced quarter, quarter cash flow. XX.X% year-over-year performance David. by increased delivered In solid Hey, demonstrate performance, first morning, reported a prepared thank basis details good remarks. Sequentially, and constant X.X% existing company free net Sanjay very top X% and seven WNS increase results EPS new on Net strong on to basis, you, on by WNS’s in currency. a relationships. operating QX constant And quarter at reported also line the first fiscal currency in as revenue adjusted grew will on adjusted for expanded XX in first provide of XX.X% The logos year-over-year. our added XX.X%

WNS few we key was continue in finding that has financial be For strong fit, were assets ability priority years, had approach, disciplined our talking our to that organizational been message or while a based, M&A performance. good consistent and remain rather the capability past cultural in and will on based focused

automation, accelerate creation technology and the which helping to market of Vuram leveraging strategic of capability believe digital platform all automation From accelerate with a enable a experience in enterprise end aligning, faster optimizing we to transformation of speed Vuram, intelligent companies leader a Their to leading flexible highly enables to and we logoed providers end Xst by and to processes BPM tool the in automating and experience therefore user On us global driving expertise and be the new nature, but approach consulting, clients’ scalable boxes. well and services process clients’ partnerships excited announce demonstrated analytics, the existing include automation solutions. to not industry checks in intelligent easily right middle and July, or approach as the improvements process were engagements. brings acquisition company’s solutions, standpoint, will and user to WNS horizontal assurance deploying digital productivity approach customized will advanced can WNS help testing. is interface ongoing offering. and programs, as Vuram solutions. also applied client front, only allow This for The quality automation, any designing span service complementary enhance capability vertical to transformation back to office

of In healthcare. unique Vuram accelerators, driven an XXX providing including professionals to and more and by new components WNS globally model as with Today, including is development. well insurance as a addition, have the created set for digital a focus tailored strong also services Vuram customized They employee sourcing of has very Culturally, well we is Vuram automation as additional an skills, verticals channel banking WNS reusable specifically services, financial and utilize team key comprised excellent distributed digital and delivery as well. care as a fit talent. on solutions, a believe approach, than for client-centric operate

the best of exceed to companies Vuram in revenue five XX% than excess delivering XX%. and In India, grew brings financial operating benchmarks. of for fact, margins, or and proven been record the meet recognized each past more which of also This Vuram in work as year Vuram track past growth delivered a of WNS, years. adjusted margins has one fiscal

look assistance Vuram financial to also about WNS. additional the led this guidance. together call of on its wanted acquisition, contribution a and welcome the journey our human you family, are global working minutes talking Sanjay we fiscal weakening few We details Today, impacts macro services and WNS expected very with share on to I XXXX to the Later spend environment, solutions. the to potential as including we to forward to continue itself, digitally towards excited and will

aware, are challenges. political countries are today economic As and experiencing most we significant all

supply geopolitical likelihood as and COVID Now their rising inflation, global of forcing of supply as chain the well slowing companies labor reassess well recession growth, spending issues, are pressures, impacts a pandemic the conflicts, business the the to has increased as as levels. plans

cannot Today, our is markets. momentum by continue processes in being be competitive for digitize will will and services that to our have demand remain revenue correlation, macro driven need believe we to our in respective WNS, for to their low not theme Fortunately, really be clients order healthy. forward, and of overall or and during economic healthy. transformational despite scope the environment is discretionary is saw citing expanding until move the emerge clients optional arrangements new existing This as the the deals this pandemic We macro. postponed volatile

services deliver much The less clients In decision initiatives Since and easier often to important upfront the is competitive also little savings to to is and it there addition, improve cost far no move budgetary forward remember exposed WNS, bulk to of clients. that very part. on processes positioning, helping rapid pressures. is and the or automate these significant investment financial with while

to we savings see is reduced in work increase, environment. scopes fact, and this an there In believe cycles clients opportunity look sales as to accelerate of

very clients, Today, functions a contracts. day-to-day are business being pipeline, in we any we back fact, business. we be adverse That deal headwinds. expensive strength base mission compete environment. business we well a our overall for will In better change our seeing will business are of we expect our short, existing we save as term and believe can for visible clients digitize book as of in continue business, bring stability enable is to our backed demand to or in approximately clients’ in monitor global also remain highly coupled WNS’s to to a flow, healthy Because weak with and our any the will that nature momentum. manage While driven we demand, nature, long continue environment. impact the to work recurring potential from services need of perform macro WNS revenue And critical and to house our of the said, to prospects. see for even weak partners by the macro potential in risky XX% not stable new client with weakened macro, well comfortable resilient money Today, by are in decision or

results now key outlook. to stakeholders. I would turn We and focus WNS Puria are comfortable on our initiatives opportunity to continue also investing call like digital our will value all our CFO, the delivering to on the space. of future, capitalize on discuss for to and over Sanjay company for the is to better positioned further strategic the that in BPM sustainable Sanjay? executing our growing

Sanjay Puria

operating constant travel In margin higher as revenue quarter, the compared resulted of review work onetime XX, company’s QX XX.X% QX up increased partially $XXX.X Thank fiscal income short diluted year higher more related same tax last mutual the bonus amounts by and quarter. share incentive rate travel of for currency. from tax $X.X quarter. our by operate last of productivity to term down related and net in compared came decreased facilities. in facilities. compared QX XX.X% was in last currency and net between hedging. last and profit increases margin of $X.X rate had year versus net mix as a improved $X.XX revenue a last in and year impact of is changes XX.X% the earnings income as increases of were at unfavorable X, offset and growth depreciation and by from impacted The QX mix of the $X.X QX other XX% QX first underlying tax These reported office on and geographies firms in than higher of expected. X% office. XX.X% and recorded quarter. revenue commitments costs effective year allowing the income Sequentially, fiscal $XXX.X of wage leases operating relaxed than to result in constant hedging. negatively at result The posted QX board last XX.X%, million income masked at movements Year-over-year headwinds by was to million in currency XXXX to Philippines recorded Sequentially, from home in return the WNS’s than quarter. of to shift margins revenue from our exempt basis. of $X.X in incentives net or and refund net fiscal and and first Keshav. Year-over-year, quarter sequential of facility of quarter XX%. April XX.X% tax represents productivity higher liquid delivered on million expense million came the change adjusted a in currency term net interest wage WNS’s net and incentive quarter XXXX on by and u[ and same a per reported This and a XXXX. year-over-year X.X% income tax rate until a quarter per more interest the certain retroactive $XX first productivity from of a of short In WNS’s a of Sequentially, with million million basis tax you, to in decreased quarter. more income in with reduction on SG&A average. QX to fiscal lower relating of Year-over-year effective This QX improved the to increased on adjusted $X.XX a $XX.X or income volumes, of point repayment. QX debt facility employ the EPS attributable variance interest cost operating above interest lower same income was leverage refund from of company XX.X% and expense the offset of currency Adjusted Adjusted contracts and made quarter, we increased offset last regulation last of million was fiscal XX.X%, momentum for company’s tax fourth margin million as a the was associated cash return our The a revenue effective driven is in and was quarter September in million XXXX unfavorable result and Recently, recorded $X.X offset in mix benefits result, geographical facility movements million WNS net last to The tax on Sequentially, clients. XXXX XXXX. reported of net which $X.X variance the of on was costs. $X.XX benefit up operating as million on are as work in funds the in balances has increase $XX.X the not

of and XXXX and term WNS, totaled XX, balances investments $XX.X million As company $XXX.X the million, June in in had debt. cash short

$XX.X purposes quarter, corporate $XX.X for In expenditures. million and in WNS also addition, billion an activities X, the this generated company XXXX. general has of cash $XX on operating capital term billion incurred taken July loan from

$XX.XX report respect average reported days, is in QX days of quarter, quarter days price first the XX of $XX.X last an in year cash at first in other stock million. With at came operating impacted compared reported was the total of quarter from by XX increased the XXX,XXX up shares DSO company During XX year key to at from the last as quarter. to XX%, of QX which previous and in the rate end of And XX% attrition XX,XXX. the quarter. in quarter the last headcount XX% in metrics, our and up QX to

return was voice junior office organization of the most based levels the quarter primarily Philippines, from service concentrated the the As mandate. at last elevated CX in the case was on focused attrition to the and resulting

revised million midpoint increased line pound remainder and in projection any in diluted inclusive EPS dollar XXXX. or to our $XXX WNS to The XX.X press X% with meaningful increase exchange our adjusted due revenue the fiscal of to to $X.XX of XXXX. dollar improvement does British XX% typically million based per approximately adjusted WNS from growth constant elevated is years, costs to typically by include note growth revenue top table X% uncommitted guidance XXXX timing XX% of ability volumes guidance year is expects visibility service $X at and the reduction to travel the and WNS short our bonus productivity rate revenue currently guidance In have the are the million. assuming review, range today, guidance fiscal to our level income. the year-over-year shares. Vuram basis was a to at Consistent the than of end quarter net seats. annual attrition million higher X% The to be for on QX which do a With a in on and is operated U.S. XX% expect to currently we QX few addition, this which rate a utilization that U.S. of and capacity be billion coming the and expect provides the our billion all measure of on attrition term XXXX. respect to of the release expenditures, reduce in infrastructure of assumes not believe clients XX,XXX and fiscal on levels, approach we the fiscal exchange over the interest rate Full next requirements We Vuram, seat The to work the other is to previous of In rupee provided beyond in seat for of issued basis. Based quarters acquisition XXXX range, to important for the to approximately globally impacting our an visibility fiscal incremental current or remainder of X.XX This Built acquisition cycle. XXXX at with $XXX as and up million not company levels. quarters. implies full fiscal in the of XX of it for of QX. $X.XX million $XX company’s that we in be includes has rate will runs count a earlier of not our which for $X.XX, to range first average company capital year associated XX% $XXX net metrics accelerate reported of integration currency share expected our the share income home $X representing currently X% and XX% acquisition given $XXX to

We open questions. will now Operator? the call for

Operator

question first Bryan of Our Cowen. the Instructions] [Operator Bergin line from comes with

now Your line is open.

Bryan Bergin

then across Europe industries. a just sales UK, spending you. client base you’re travel? and start and and U.S. travel, making really the high U.S. well guys, thoughts spending sentiment Wanted on and into Can specifically So level regions you going us thank decision appetite sense your there Hi that a Europe, versus seeing And just maybe anything what in digging maybe cycles? forward? as give to to appetite versus UK question here that different in then

Gautam Barai

Thanks, Brian, this is Gautam.

the last shrinking. started decision we’ve quarters, the making is been in by fact, by and and seen last the APAC. Europe So the followed cycles is the deal seeing led in what UK clients, flow the UK over we’ve few what has recovery in have been starting our also quarter, to increase Europe U.S. and and But

implementation. lot So clients quickly more making a the decisions are start to

In what what see current that has baggage airports additional still at start next of up we the travel. pre their whilst the not pandemic is been seen in crews that of and the that quarters, yet I terms through recovery could The that led days. largely forecasts we’ve is flight factored start have answers the to question. but haven’t corporate etc. of the set QX that improving level with volume seen, the capacity we But travel picked handlers, there. is levels vertical, or we few increasing the over airlines leisure hope are have we projected, travel not

Bryan Bergin

are Philippines be Can the company Thank workforce then on give does. a business a the you impact and for here just just here follow-up through And on about ultimate you. attrition attrition you sense how more it just Yes, And then thinking the us outlook. ex-Philippines? model? the the would what broadly,

Gautam Barai

level say attrition, the will XX% it level. XX% about remove Philippines we if to I we So do would of

ramps unique but with seeing our that. ability the There certain solves are we that problem or In in terms terms the academy, are hiring that now a team deploy in our are the of deliver hire pressure quite rapidly of is CX our Philippines no pressure accounts into client we to to have, we to doing me. training our and level absolutely that our our client of commitments it ability especially and agents for model training them projected, well,

Keshav Murugesh

started that specifically started over remember And for early, that up. to too the over office, there back if X come gradually given just and the it’s where I’ll work accordingly, accordingly attrition, add is April now. April. raise picking the and saw because believe we Philippines in it that people what because you ensure that asking And from that one quarters mandate we but and that that the coming seen office. to we it reduce Having accordingly down we up was quarter said we to have expect the we from few

Sanjay Puria

And more attrition than fact the other putting level recruitment look in we overall teams. on this the the added to XXX the pressure to Philippines. basis that people net a just when on in you in including than training company one that XXXX you first the at that Despite quarter add piece obviously at is look when the more

not to impacts very in terms it’s business but this ideal, the of at certainly point low. So

Operator

Tandon Our Mayank Needham. next with from comes question

Mayank, line Your is now open. line your now is open.

Mayank Tandon

get impacted, be little globally positive feel the for but or that bit in just the still areas Good about just about? some that morning. Couldn’t thought hear some breakdown to wanted effect I give benefit positive slowdown little might could see potential as is that wanted talked you my talked of you name bit there. see more very might negative, go Keshav, sounds areas might you terms versus of durable. a reasonably of I softness? net the a that areas what to, It he you being through demand maybe just like

Keshav Murugesh

a Yes, that’s good question.

recession fervor that is that And about the we’re economic is headline our the been when people a the economies so company’s has has downswing nature to in mention position, experience fortunes forthcoming a what strategic Mayank, and been would fortunes, fortunes, fortunes clients for actually the overall think seeing like provide, I and first there So for decline of services this item now. actually that actually our the the have become and that talking country’s it accelerates is I business. while we

has I to the as improving change years, we nobody company great situation and that, discussed there. can significant the extent, times say, also competitive most up company’s fortunes, with are positioning, every we’re helping the future happen sector journey, what many made we has if think is helping a the their manage few before, it’s to said sectors, a companies so-called everyone so-called And use having they’re WNS. is and client, the wants volatility. the been will we’re kind And trusted with them have of all over across is But disruption, Now, downswing whole proof the actually sign are businesses. world, or past conversations like create for would predict that to the to I in do that doomsday hearing what in the we partner what that to recession actually looking our

then our perspective one if I world view, opportunity area discretionary agenda, travel think that. is So fortunes. the have to our based be could impact of across because of things the drive over that are travel the I and large, look time companies If into out what areas a an from from for at by is each work will period will digitization broad transformation will agenda, there it point come an if I driven like again, didn’t things that it at of growth felt had actually

the has been. that the So from recession ever seeing that other at opportunities one their said strategic you agree reaching could in not stopping see locations. some clearly want I our just where let’s them view, new clients and the needs. us that, like of conversations risks out a as saying our help but of clients And are to demonstrates very far me to every core at be our actually with one that interesting these time that with point mention with our are there. we’re many looking in clients, also in It’s is, is pipeline to a staffing But help situation thing today to the clients dynamic partner strongest The the offerings, such also this continues our thinking. it outweigh our impact

Now, is discussions. and with obviously, the those term discretionary, involved journey in on to strategic is are short for wherever it Where them. we’re we getting more revenue strategic leads us embarking it not

Mayank Tandon

to quick That’s this but I for some hear. talked expectations, just helped margins. have had a can the should on of follow-up factors think And some great of think relative I quarter how of Sanjay talk about you to the we margins margins Thank offsetting rest about that you set the where the levers year? you. and about

Sanjay Puria

from year, the going So expectation of average at be believe we of the margin rest XX%. the is an to

more is facility XX% the having have XX% and the going which around we costs what the on. we any percentage But to hiring, we to also to continued year And factors are sales, our costs the into at travel including XX%, is means as - office Vuram the now said that this dilution. well and do not with which accommodation SG&A are so further as and So factors and that returned there. integration to seeing cost around further we end because expect up more investment during acquisition in year digital investments right going be

Keshav Murugesh

step we one in forward was sales, the in we’ve talked further Yes, that fourth and of things about investment the taken quarter. kind I the just ongoing quarter to a and of last what think that

in the up and an hiring carrying to continue now first FYI, our organization. did we’re sales XXX again quarter as salespeople the Just within we quota

this we’re investment us, and was for that case, be the continues reflects to looking So at. strategic it think opportunity and mentioning, that I critical overall

Mayank Tandon

around stick to to Just if David want trajectory of more the for better just to get the or to going the half? a Sanjay, towards year? for rest quarters, of margins sorry, be margins be the of and right on I’m it Thank clear the sense the rest you. you be basically back is skewed XX%

Sanjay Puria

stage, think is in quarter Vuram the balance percent it’ll this as And quarter be balance well going be as lower than it I going going be at a the acquisition to expect the we quarter two. for the be of amount to because to of is the higher then cost one, year. So integration two,

So the year overall, at full for XX%.

David Mackey

should, margins expense QX But what of the that return QX. see you costs What accelerate from of was QX in light and should SG&A is weighting because integration should you dip you the QX in both in of acquisition some see a is on Sanjay and levels QX. right, the margins the the those and in

Mayank Tandon

congrats Thank you. the on Great quarter.

Operator

next Our Ashwin question Shirvaikar comes with from Citi.

open. now is line Your

Ashwin Shirvaikar

increase? Thank the How per is is much with you. equally it’s break very change. especially year-over-year, the the the and high maybe nature dynamics Can much still been. level question best a that’s of some regards you important down pricing? How few of first fork, extreme it’s among Good factors, quarter, underlying given the up at of things the the here modestly, volatility and My but year-over-year to ever but revenue very other is that? folks both the for It’s trend a built seat. done itself on sequentially like level sequentially

Sanjay Puria

think kind And you’re basis, employee and of our over up a revenue from here. really Yes, more I revenue that metrics year-over-year the mean, perspective, there’s honing X%. on in a important two per I is Ashwin on little of per constant kind employee currency metric is

fact at built When all up So the seat, on the business. look the we of per in been revenue to metric is we’ve home. that based reflective the this based the that is that the point our of higher day, our kinds and it’s the on a productivity business, at two services we’re last at years, portions haven’t of little fact building challenge, see pandemic bit want of significant population ongoing solutions, and things selling that capacity a you from we working that a kind had in of because end of to the us for the value

So that And as even vast that haven’t home. working metric today result, are building our the infrastructure. a significantly clearly has we of majority in been accelerated people from because we’re still out

metric up per that clearly work been from revenue the increase seat. from for say would I environment and the the in driver home has built So the pandemic

Ashwin Shirvaikar

second troubled. that ones process notable new just diligence into be the that crisis wasn’t, make your to Got and most appreciate clients signed in out some were Got on this question of many ago, terms and management WNS the But of back clients is I in the comment were And sure the then. heading it. it. the heading accepting because to ask turned on. ramping that can you’re I The team you clients? what want financial years that the I so reason And doing is, new is

Keshav Murugesh

Yes.

in focusing Ashwin, So our clients of we’re across with diligence, company. verticals of is client the into if are the falls what way the course, terms strategic

all the off more we shoring. reflected we digitize transform And trend the start is in been small us to try greater gets seen also pricing The profile on nature we clients tend our we which incremental the of taking the kinds where that to and transact giving are the adopt It’s goals in second two margins. on through of processes, they’re are we’ve the and and the transform board work. that basic more stay actually list and premium have clients last processes of we absolutely away gives terms that’s it, And end-to-end one ability from client processes, the digitize. years. before a that that’s based of where we of into and that that more Its demanding

Sanjay Puria

in the of so processes let very in think every question company, a the is your the last mention just at have bring add, relevant. risk strongly that over company, particularly fact very the very, on in Ashwin we client. focused I must And time whole terms we management I new of And decade or me

very strong as and So we like it in much client, actually terms getting the cash client. a how And balance understanding of a there’s We understanding just to process things client select sheet, from know their but position their their position, not select understanding a select that. as also us. comes they liquidity

wrong rarely time in management a call the what chief about worrying worrying the business. that I officer, years, he’s because the our you chief strong we that compliment that risk thereafter the proactively. this have a go processes track last I officer, of situation management had or very, very client, And record very We have on-boarding in will the strong essentially, must client surprise all very as and the risk realize at because a could XX teams XX we’ve worried officer, managing chief company, of

But globally years. So intensified, also two given. process as next a is a focus it’s over that’s on a potentially downturn the we that

Ashwin Shirvaikar

the it. Got detail. you. it. Thank Appreciate Got

Operator

comes Our line Nolan next with the Maggie of William question from Blair.

open. now is line Your

Maggie Nolan

Right. Thank you.

you’re the as already some. enough, And maybe shrink You then the that plans hiring there’s factor at to client high hiring additional is mentioned impacting cycle, just How given you’re attrition trying decision starting your that to levels? that hire quickly already well.

Gautam Barai

there our is is mentioned one to This impacted. earlier, so teams, hiring as Yes. Gautam. whilst training is not I been pressure Maggie ability on our hire and is

are We quickly. people add to quite able

Second, our has fresher, especially fresher hiring significantly. quite increased

skill sets relevant people to train them. our second academies and the The is deploy are quite aggressively in thing able training

to date as ability of zero to have to to as well prospects. commitments impacts clients stick as our So we new had our

Keshav Murugesh

bench. this It’s important is thing carry of to business. commitments other don’t amounts come they significant I think typically that’s remember not or a build a and and train hire is resource. visibility. We of to firm it, When will we the firm kind

is because process. to going be up, got we’re It’s to are those ink because healthy, and So for that aren’t activity the levels se. us, going per going only we’ve pipeline start on just that hiring practices to when engage just paper

Maggie Nolan

got acquisition the is how of if acquisition? pipeline so, great do see Is here? from Is on it. here. focus And interesting integration appetite that Okay, M&A Thank there And looking? an plan this you for additional to then you. to an

Keshav Murugesh

thank that that’s, for question. you Actually, Right.

is So we’ve The process acquisitions And doing well. now you to this focus three yes, documented the that integrate absolutely. of four right four years know, actually asset extremely well. based on or track record our extremely ago as

right that any can our assets, momentum for believe is So more that to the gas continuing the to and kinds of the momentum time provide quality this clients. not of the the of the right I accelerate and earlier, the and look the right help terms we same solutions very, importantly, integration in But time, going at assets, profit is very at off revenue, assets step mentioned well. us like,

continue recent interesting point little focused with this on. at more a all the in must economy, we to that will areas pipeline terms keep we that are to is mention also very optimistic strong is So, we the what around M&A very continues the And that be meltdown in pipeline. the in and noise be of I the strategic are sensible become seeing also time. valuations

up will as we not as gas is the So concerned. far opportunity the step

Maggie Nolan

Congrats. Thank you.

Operator

the next Our Wilson] of Deutsche line from [Nate question Bank. with comes

line is open. Your

Unidentified Analyst

Nate just earlier one on wanted Brian to is this on for guys, follow-up on of the today. Hi, I travel. questions

potential business sort get is for travel the on to returned the what looks I’m looks up travel levels, waiting to what last that wondering X% pre-pandemic leisure the travel? top pre-pandemic like top recovery had about line potential growth add back recovery of of travel levels. travel about potential call, like Obviously, talked still upside to So upside in now? wondering on line to potential to just but that talked and you for just to the you

David Mackey

is number terms about David, XX the contribute is annualized. this Yes, still in ability That million Nate. to of

So X%. right around

with fiscal at If were relatively travel QX. they look this the revenues quarter, you flat

not did a relative travel to recovery which a in up same or the QX our volumes we meaningful QX us. for fiscal means bounce the remains So in fiscal opportunity see

Unidentified Analyst

the healthcare insurance just ask and on then it. Got and Very wanted to quickly verticals. helpful,

sort those So for of the expectations what how quarter you of have Thanks. remainder the relative expectations the year and did in perform to there? do

Sanjay Puria

verticals going on UK we was a the first XX% reported has reported for XX% Look, is year-over-year. obviously, a think the closer The that perspective on to basis, remain comes sector, quarter, when us is I insurance, a that that you revenue where number a mean, constant on underlying a look growth a see - the healthy you’re in fact business amount to what insurance you and from if at of like look X% the meaningful will but it that that I have healthy. Australia. on expectation FX the both effect at insurance, currency from basis,

healthcare be good pharmaceutical side then we little on a us we been side. grower the will a Healthcare more the the do meaningful expect strong. throughout us insurance on be year. bit has continue a mixed But for and contributor to that to will continue move healthcare So expect for payer as we

Operator

question with next comes Our [Indiscernible] from Wedbush.

open. Please your is line button. now line is now mute check Your Harris, your open.

from question Research. next comes with Barrington Colicchio Our Vincent

Your now line is open.

Vincent Colicchio

easing I’m gentlemen. given economic in pressures, seeing quarter. you’re Nice if backdrop in any wage curious morning, Good major the any your Yes. of geographies?

Sanjay Puria

But cost think at focus the Not all what appreciate stage well understand. rate client is ownership. a and as the the because total this about I because nothing really clients are from of productivity do pressure as

Keshav Murugesh

Yes.

And that, Sanjay lead at rate. time, wage having global think question have. recession noise all fact think that starting But globe, and your the quarters, inflation and the that to ability manage behaving raise that inflation now So point that the have bring stop that we their model, this talent And of of starting globe few levers of are the companies not actually now said spite a to hiring wage kind and we was But that of ability in to the were to attracting with also that that will the falter believe like talent I say. heard in a in around across able a as were we will therefore, across now falter see of to global companies the also said over kind of levers that I see wage of next wages. more we’re with to starting a to to it, lot that of predictability but to that will noise actually we startups us in that to drive the the and we traditionally terms But differently actually their lot in had said fact all of with see the are the sensible seeing been have, it the we would continue it inflation. his having are on with all up we I employees now and program we starting kind of cash, more terms around starting the having recession, the terms raise cash. manage. Look,

margin. You’re seeing the

the when it’ll and things seeing you’re And way the productivity. the company. seeing the I You’re change we for growth, the are for better positive delivering guess be

Sanjay Puria

over I’ll over add one point just maybe And there.

compensation on demand start rate it we, skills, specifically there there perspective, between Keshav heard as niche gap mentioned, supply said having wage and I is definitely out. pressure as are this a that Sorry, from at faltering the the up because earlier. And But still, that a stage.

So may maybe down. over start we the seeing pressure quarters, that coming also

Gautam Barai

ability train are at to to and levels the as cost And higher add is able Sanjay impacted maintain our get and we them mentioned mentioned, and of And just our all. to pressures what Keshav profitability. I heightened earlier, to base that doesn’t ensuring

Vincent Colicchio

the some provide the that other code versus your to And on the differentiation skill does and competitors? of capabilities sets company, Vuram, some question low the major they add

Keshav Murugesh

years, time over is for demand Because does. last at two seen the we’ve as high. clients transformation digital three it all Yes, to an

who we’ve people to have be see is of differentiator continued we other extremely that companies are where Google that no low and intelligent to code comparison our So we automation to added drive competitors. acquired in for code, capability, hundreds with unique be is us to like to going

Vincent Colicchio

engine have important that for they the suppose to type that I And a that people is which hire you, of is advantage of have more experience good right? another

Keshav Murugesh

Yes.

is I Vuram three just for to such So kind and an because exciting, expand two things, on that, want us. of asset or

are ability, our actually is them take have of remember, clients many a they traditional but of quality they known are to are of whom But engine therefore, clients. importantly, is They layer high. conversation have where gives it number think of more around and of I that hiring foremost, solid not that now it our WNS’s clients stalking us and our and involving WNS, a the to of top thereafter, around first with to independent, very services Vuram extremely very one strategic. changes quality roster to So wrap a that also every clients ability

high. So their other now is also services radiant also the WNS our table the a clients to ability across brings penetrate to very that

that’s differentiated. makes and us think very what I strategic exciting, very,

Sanjay Puria

with clients all we move committed deliver the just of prospect, that beyond I what we forward. our a is new the as that also existing exciting think And have capability very to lot this client productivity also,

Vincent Colicchio

Thanks Nice for color. all the quarter.

Operator

Puneet you. Instructions] comes Thank next Our Jain from [Operator question with JPMorgan.

line Your open. is

Puneet Jain

XX% Are Thanks there you among push those your an Is ones. and or prior for internet of clients. Those like seeing any But changes you a among more I clients? for behavior clients or a one had any cost quarters. the revenue. are for clients? my cut taking do about differences similar impulse as to cost question client of the maybe nice in question tech those

Keshav Murugesh

absolutely Thanks demand increased Puneet. we through What year. we’re seeing the internet the progress an from clients based as

or lot of fact, clients they costs. of coming few work the look reduce we have recent business a to similar them In as a wins transform more from their and existing had that space adding are the

Puneet Jain

it. Got Got it.

Gautam Barai

excited remember also remain the clients to we varied, that I honestly, the think opportunity, where are to Puneet that it’s right. based important the about internet we provide services

example, front, these kind middle for spread amongst functions see, we’re clients. to that for of CX, we and in what we’re providing example, in unlike office back So travel,

diversity good as types opposed just on focusing to activities So customer within as well, there facing sector. of that

Puneet Jain

you’re in headline the can levels adjustments, with metrics? you helpful. pricing Maybe of [Cola] result pricing any [Cola] how also adjustments businesses then, and under inflation of seeing a inflation contracts or for Understood. if how talk And That’s that? as much about and numbers those spiking, adjust often have changes

Sanjay Puria

a of [Cola] the the year from majority if have as a that pricing And perspective. the already we a three have, does clause, [Cola] does Puneet not have factored what So it part of contracts, clause. it’s

productivity years, we some are able the to over been always from there. the as was two we has seen factors what And pressure offset [Cola] as drive there and that what inflation some you’ve wage. So of what is always the see that which because the of that’s well

Keshav Murugesh

or discussions which this logos And in while pipeline our [Cola] last and us itself, of if for you results the to of is few company on are clients the so want that so the high what and that pricing they focus around new to added much more that at around [Cola] only things on the that, Sanjay I like of adjustment have these on to of actually dependent answered, all years potential think more you look better is remains a we robust trend many ago. opposed so exciting add number one, being more and one of exciting as being four actually added old as quarters few set last and processes productivity more higher focused the also have Puneet the and and beyond large clients the fact three and ability thing may I our mention years this on

the new of are these generated based, digital old is being between lot these from on oriented, tech being happy new new are whom many difference fact areas. who a of and WNS to big WNS attacker, have these we’re that the now revenue clients internet of and the of is conversations the added So

Puneet Jain

Thank you. helpful. That’s

Operator

Moshe Wedbush. Katri question next with from Our comes

now Your open. line is

Moshe Katri

Thanks. Congrats results. on strong

non-recurring portion Just a quarter? of contributed this to the numbers. revenues follow-up kind questions Did could on have couple regarding disclose that revenues you the of of

Sanjay Puria

$XXX,XXX for It was this quarter.

Moshe Katri

I’m rest assuming And Okay. none Right? factored the in year. is of guidance that of the for

Sanjay Puria

uncommitted any into not we have revenue guidance. factored visibility or short term Yes, have non-recurring don’t we where the

Moshe Katri

end lower bips M&A. are of the opt so right, guidance by XXX guided the the understand bips, to just then XXX And Understood. and about of higher

XXX raise you about organic the by really bips. So

Sanjay Puria

correct. That’s

Moshe Katri

can that expect terms kind What’s talk base, the we about Thanks. that client etc? can verticals, of in a some the acquisition of road? down then Vuram you’re finally, attractive synergies from And of you bit the

Gautam Barai

to Yes. heightened the significantly. progress. synergistic. productivity the for splitting fence banking, financial processes, automation complementary a that be code, we now. given focus actually increasing And what extremely Vuram terms that productivity, platforms, actually to to to clients delivering that industry, be of within the number new a going in that hyper within the Vuram in levels and actually that of now of us of adoption we’re is of business. aggressive the tapped we there of committing insurance A, are business, actually is to level again, industry, side healthcare given The going can which are And the of B, our help that as clients, acquisition need both and market do. number deals, is prioritize the for It’s our into will code a no be exist because integrated sides coming than the is of more low industry the services three verticals And thirdly,

Keshav Murugesh

that that day, not we’ve I out that at of we would where of add were we actually for I pieces partner had And were in won, new end to Moshe house. business we there would pieces this the did on, there of capability. business missing to Gautam’s have capability this other just, comment, because were the the

So kind is actually market similar with that to Gautam differentiated mentioned. from what carry asset in what end us helps did we think to capabilities to the nicely And we completely a fits Denali we of within This procurement. high as proposition really of were with our existing is previously. value complimentary able

Moshe Katri

an And you it’s acquisition. while been or an did M&A since a

you’ve been while. So doing diligence this kind sitting a on kind your for of I’m assuming due and of

Keshav Murugesh

Absolutely. Yes.

David Mackey

Yes. Absolutely.

deal within deals process we quarter. follow did we we the the of evaluating remained that Last that same opportunities think in a did I terms unchanged. has time, two

want to clearly and objectives. things diligent. for the consistent fits to approach same. We So I want be us remains process and our that be think this think those the the we work in We

Moshe Katri

then And Fair. the point pipeline. final on

about seeing front of you’re strong what Anything on way in helpful? lot. kind up numbers, qualify deal out we to of XX% XX%, Thanks there a that be there? flow. a terms Is strong talking flow? You’re Are will deal

David Mackey

to relative really And pipeline. the that think of in just Moshe, quantify pleased it’s put I to way. hard we’re to growth it growth It’s just company’s trajectory and to the rate overall qualify the think safe or overall, I

Gautam Barai

the lot deals to ramps. changes add is to a Dave what hopper. ramp up we’re clients the what into to the the just staggering more clients seeing Yes, aggressively. now a we’re mentioned, large of have coming want But seeing bigger the lot deals Previously, the

Moshe Katri

Understood. Thanks.

Operator

conference this conclude At the for in queue. today’s we participating. Thank call. questions time, further This no you. will you Thank have

may You disconnect. now

WNS (WNS) 21 Jul 222023 Q1 Earnings call transcript