Earnings call transcript Q3 2023

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Operator

Good morning and welcome to the WNS Holdings Fiscal 2023 Third Quarter Earnings Conference Call. At this time, all participants are in a 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's Executive Vice President of Finance and Head of Investor Relations. David?

David Mackey

Sanjay to today XXXX have our release on Keshav on WNS's Relations welcome call. quarter WNS's Investor detailing and COO, the release Murugesh; me our at is was website With the CFO, today. our you financial our A of issued third fiscal www.wns.com. earnings CEO, Gautam results Thank Barai. and earlier press This Puria; section call, available I also

fiscal focus third will the on XX, for the ended remarks XXXX. quarter Today's results December

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

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

used defined or will taxes. discuss intangible share-based assets, revenue share-based is of non-GAAP measures associated repair goodwill income, or will and compensation, margin, amortization benefits, of defined net margin operating excluding call. or as excluding terms benefits financial Some expenses defined impairment amortization These the is and as impairment. goodwill intangible be compensation acquisition-related follows: operating the ANI, profit, of expenses assets, Adjusted Net throughout all as Adjusted are management is payments. less revenue defined as acquisition-related

the call Keshav? WNS' like now Keshav over Murugesh. to would I to CEO, turn

Keshav Murugesh

financial despite challenging WNS Hey, thank solid morning, future macro and well resilience, continues both while third you, executing and In to the and quarter, everyone. delivering Overall, to good show results. our strength for fiscal invest continued the business the David environment.

basis QX on of for currency. representing reported currency X.X% net $XXX.X foreign X.X% constant year-over-year Sequentially, revenue and a a on XX% in came at by million, a after for reported exchange. constant adjusting on increased and basis increase Net a on XX.X% basis revenue

approximately WNS X.X% the our performance third XX and X.X% expanded new Our and on existing financial sequentially. remarks. will details acquisitions In growth, his third to provide year-over-year during added added XX prepared relationships. Sanjay quarter, further quarter logos

As expand companies level, we helping many our our in announced of offerings strategic a exceed for WNS’s still are of the fairly company. financial these fits, were while objectives, assets, high the in with you chain, two meets Smart believe in and WNS and line footprint. that our The areas supply gaps strategic our December, our all M&A, These or for the advanced criteria in tuck-in European valued. aware, cultural and represent capabilities, identified mid acquisition analytics Cube digital of OptiBuy stated At procurement, solutions, of elevates additions focus strong

platforms XXXX, including including deliver by cash third-party supply benefits and Based companies consulting, and reduction, streamlined to performance. significant leading across and deploying chain providing OptiBuy and procurement world’s and the Jaggaer in technologies clients OptiBuy helps digital Poland procurement implementation management supply improved chain in value solutions, to able XX, integration chain, the is leverage founded Ivalua, cost

WNS’s optimized building in The digital procurement to functions. is expertise the processes perfect existing complement company’s running focus on designing and

the procurement footprints consulting In expand in our digital addition, whole and and OptiBuy the Europe. strategy brings to portfolio Continental of geographic WNS front-end helps services

intelligence marketing. combines platform The the on-demand have and and This to decision-making. costs, generate They is accelerator for that clients. with actionable competitive digital Smart firm commercial PRO analytics and sales intelligence Amplifi trends unique insights a identify human market chain manage landscape, measure risks technology focused Cube platform-led helps supply improved procurement, KPIs, scan called and a benchmark artificial on intelligence

a approximately in and degrees. and Smart and well intelligence, data deep of the as resources including technical addition, domain has In XXX data artificial These seasoned chain Cube procurement more team possess skills supply machine as learning. XXX than expertise research visualization, analytic including engineering, with masters experts

and risks they For in procurement and and marketing category and help and effectiveness. revenue sourcing. commodity Cube ESG market market sales drive Smart management, supply delivered analytical management management, pharmaceutical marketing, chain, commercial the intelligence growth across suppliers’ expertise In consumer insights including

operating across bring OptiBuy chip that the opportunities. leadership, sell also and domain Both and significant records revenue blue present customer highly growth, margins satisfaction. and Cube They rosters cross teams and the performance strong Smart serve track of upsell specialized proven client

vertical these geographies. firms our views nature has their healthcare, retail as assets in as including to areas easily expertise us both of WNS take across allowing verticals well and niche CPG While as offerings horizontal

provide highly clients. global These solutions are enable differentiated services to offerings with our complementary each existing will to with WNS and other end-to-end and our

domain procurements, areas chains earlier, analytics are capital objectives hazards, of mentioned I from as category by for including and streamline risks their shift buying help growing flows drive is investment supply for solutions e-sourcing, clients attention procurement their to processing cash strategic and increased and to improve transactional them. partners sourcing strategic well global and supply driven compliance, agility, The WNS. tactical expertise reduce evolving As for rapidly sustainability, led as clients management are and with as space to integrated BPM digitally innovation deep analytics looking

our our business the acquisitions have while to WNS made, company and time of total than leadership by represents XX% acquisition approximately large of new more multi-tower procurement have are transformational XXXX, compounded in Over has compete in recognized revenue. by position as deals. progress of happy our industry now consistently Since we XX% believe we better the WNS’s we momentum with WNS been help enabling will accelerate And by global for and analysts March grown this leader BPO. revenues a Denali period, procurement

BPM current markets. remain Looking in about excited and for the we differentiated forward, demand positioning environment the WNS’s

organically, business been solid never with as creating Despite solutions healthier well macro, margins. We top-line talent. and in growth inorganically the both state-of-the-art has continue as invest maintaining is while with pipeline delivering company technology combined our industry-leading best-in-class the weak to new

Additionally, XXXX progress the sustainability organization. our to we are of WNS globally corporate rewarding World’s Best creating quarter, list collaborative Forbes key ESG was highlighting and success named This goals. on a inclusive making steady and in past Employers our

or targets the In our science line letter addition, to the reduce initiative in climate the commitment company with science. latest with signed our based emissions SBTI

in. maximum financial employees, we our ESG performance, to our believe initiatives to allow Combined operational shareholders our with our WNS and the communities deliver work value customers, we will and

now to the CFO, as our to outlook. Puria, the further over turn discuss our I call Sanjay like results Sanjay? to would well as

Sanjay Puria

$XXX.X increased In Thank the on a constant currency and on revenue reported currency million, net XX.X% the net million a quarter, posted came in a in up revenue WNS you, quarter Sequentially, Keshav. at from up same basis. basis. of last by $XXX.X fiscal constant basis year XX% third on and X.X% X.X%

contributed Acquisitions X.X% quarter-over-quarter. revenue to and year-over-year growth X.X%

in hedging Our This growth and and both partially losses, revenue. a Cube. currency and with reduction depreciation U.S. against and dollar, was revenue OptiBuy our momentum the Smart impact the by broad-based driven half benefit short-term travel seasonality of were a sequential of offset new by month acquisitions existing clients

costs and quarter, quarter. XX.X% same reported as as and quarter on adjusted the of last XXXX improved movements associated annual in and currency third increases of operating volumes, of compared $X.X wage was operating with benefit recorded the operating more productivity result the offset WNS three million of return Adjusted to fiscal of XX.X% margin margin short-term increased quarter hedging. office. XX.X% revenue. Year-over-year a leverage impact In favorable our to higher This net in than

$X Sequentially office as costs. income wages offset productivity. improved expense three The million volumes of fiscal return $X.X of million of reported quarter last XXXX third down in to quarter, expense a benefit margins result more in expense company’s and net versus net increased than and and quarter. was million higher of the X.X net increased down This other from

by from and quarter from of million long-term three. a Sequentially, average resulting on share lower interest higher expense in and debt associated settlement cash more and were cash offset interest income and an debt expense insurance with claim. interest benefit than by offset $X.X rates two higher Year-over-year acquisitions driven taken increased long-term than balances quarter interest reduced from repurchases non-recurring a benefit lower balances more

statement. and mix mature of our to of short-term quarter to from delivered incentive facilities. fund profit changes work million our one-time WNS' largely in changes effective XX.X%, last year tax last down the rate of XX.X% in and sequentially, are at quarter. same shifts benefit also percentage received from as for tax liquid from quarter three came as long-term three a rate in the mix result and in year-over-year WNS our the Both shifted $X.X effective investment geographical tax

the The and $XX.X diluted quarter compared share quarter $X.XX three $X.XX $XX.X same fiscal versus quarter earnings company's in Adjusted last quarter. last third $XX.X per XXXX of of quarter. million, the was for in year quarter net adjusted with million in were income $X.XX three and last million

from company million the $XXX.X in debt. activities, generated totaled WNS cash for In the million million As in operating balances $XX.X $XXX.X of XX, $XX.X cash XXXX, out investments loan acquisition Cube. incurred our of Smart and million December and expenditure took had of $XXX.X and capital million the WNS third in term quarter,

quarter. company. two of new out acquisitions, with large In paid in as addition, American quarter towards company XX third in insurance reported XX carve a million to and in DSO compared days as days last year the the XX days our North last came net quarter at $XXX.X as captive well three

end year XX% With quarter in in as attrition respect compared last the was XX% to in previous and three quarter reported of the XX,XXX other headcount quarter key our to total XX% at of was the the metrics, operating and third quarter. rate

in labor continue company in attrition the In across including services in and Philippines low range, percentage could over normalize time The XX in the most levels geographies, will reductions to significant current and the in be entry-level CX voice-based India. skill work but reduced environment. quarter, the quarter-to-quarter attrition volatile expects

end of third and Smart quarter three, operations the Cube. continued including organic XX% progress to averaging the at growth In infrastructure OptiBuy from during our work towards quarter. addition quarter the from increased of WNS and XX,XXX in-person the capacity seat office Build the

in the reported provided guidance fiscal for revenue company's to of growth basis. XXXX. release In full range XX% year-over-year and million of XX% XX% WNS net a earlier a representing basis to year to expect be revised XX% we to on Based $X,XXX currency today, level, current $X,XXX on visibility our million on our constant issued the press

of acquisitions Our XXXX. our dollar three X% exchange the pound U.S. projections are contribute approximately to fiscal inorganic for average and rate British XXXX top-line assumes growth remainder to fiscal X.XX expected to an of

short-term uncommitted XX% travel revenue or years, the in range guidance have previous midpoint does levels. the include currently Consistent we of approach three with our quarter over any in which beyond improvement visibility volumes not to

also fiscal our out of a to process large once ramp quarter down call the wanted four. I again that guidance in includes healthcare

in rate income range XXXX assuming fiscal of million million dollar a net XX.X for a expected XXXX. adjusted based million the is for $X.XX share year Full to of of approximately adjusted remainder count to INR fiscal of $XXX $X.XX This XX.X U.S. to to be on the $XXX exchange EPS diluted implies shares.

expenses expenditures, our to press two respect be WNS been As acquisition-related XXXX up effective capital With currently A&I to $XX to quarter fiscal definition our noted expects this release, our requirement of for from in year. excluded million. have

We'll questions. Operator? call now the for open

Operator

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

is open. Your line

Bryan Bergin

demand just would call to or areas high-level the decision-making into Hi demand been Any are healthy, out Thank wanted Good what is of Anything I good guys. consistent or you've start with you with say It broadly but quarters? lean there? last in changes a morning, less? seeing clients over communicating afternoon. more couple you question. to you. sounds

Keshav Murugesh

options, positives that. Yes, one well Yes, starting that what been Bryan, their think to to communicating. are little recession as have can more like starting or a as prospects I'll consistent also clients, see the hearing them. more But think, potentially get decisions we looking faster less I and the things of that, around we so WNS all a take are number how a we I messaging little with see taking as is it's about them at a and keep looking help of aggressive at looming

at their our So I in are a whether feel around responding any say they that of terms reacting they point that from to starting look how salutary that this of it's are their should decisions healthier would time, in they in take on holding. view includes to and also and their more little captives point fact, toes starting

see on some we're captives. also potentially to starting stage more So, it's conversations a now where

that contraction playing to that is WNS. to in this very actually definitely talking think actually sector the whole recessionary is potential demand So talk, I the and well as as about well everyone

Bryan Bergin

to good on Okay. client the That’s follow-up hear. cohorts. A

growth solid client So the you non- opportunity top are larger XX, over that moving next just in you top looking with which and year? little XX your it that base the your non-top between think a Can but being at good, growth XX is XX, versus as among out performance about driven the expectations talk looks pretty your bit slower. top

David Mackey

Sure.

Let agendas, grow. have at that automation take to this are pressures aggressively you Gautam our me mature want as have in. is top this for be ten, which Bryan, we – Happy there think look chime their that hear that transformation the to unexpected. that When do pursuing well. or to extremely been handful WNS and not is and with while to of have if and ability a Sanjay not been But clients comments I a

been Now the to clients multiple it's with But when able that them, that we from we environment revenue have difficult to nudge we processes right? continuously grow, these forward. in obviously, get manage

do given see greater. we opportunity significant but that what clients, for of that for those a next in have the we should opportunity consistently the top clients still of growth news we more vast continue see tiers is, I XX to good accelerates business in those growth majority is The with at with of much our growth the our think the much, clients rate. We the scope rapid expand should to them

Sanjay Puria

ramp just about. have maybe upsell, we transition, because is up us it top opportunity we we the cross-sell based a initial And much, what we new than the the add the that clients have gives larger been on what XX, continuously I'll that's move are seen what other larger opportunity historically adding, that's as the and or much And after for excited the onward. with much farming, them the

Bryan Bergin

Okay.

added you. the color I Okay. revenue. appreciate Thank on procurement

David Mackey

Thanks, Bryan.

Operator

next Nolan question comes with William from Our Maggie Blair.

Your line is open.

Jesse Wilson

again. Hi Congrats results Jesse Maggie. for thanks. on It's good the on

first had guidance. a I on So, question

You previously next as set updated you've in the guidance, also expectations revenue for a but sequential well. decline in quarter,

say implied decline previous to So, expectations? your how would you compares the

Sanjay Puria

we growth guidance now when was parameters: our last two based updated two done, did a you almost about in the provided one from further are we that we has So, healthcare accordingly, of have our know, it if an sequentially our on specifically, spoke down. one, to year and of ramp time client the guidance acquisitions organic But further we the X% X% down contributed and to overall what another to guidance from process perspective.

David Mackey

Yes.

So we really think look in QX. growth had is when at you news good just, happened, stronger the obviously what’s I

are Cube have We in we mentioned expect better growth which as guidance. organically added the and Smart of in acquisitions Sanjay and OptiBuy, now QX included our

a both we So, ago. it’s were organic quarter where improvement a of combination from inorganic and

Jesse Wilson

Got to it. clarification a I That's had good question. hear.

I process for single that's down? to ramping that finish a believe is correct? a client, expected when So process healthcare single

Gautam Barai

XX. of completed Yes. ramp as down has December The been

Jesse Wilson

Got it.

David Mackey

should process new revenue rate QX. said, was, The the in X. run baseline it January was set one be Yes, and down effective client, here you like ramp one for

impact So see we in the will QX. that of fiscal full

Jesse Wilson

And then was question last about Okay. my more demand.

are deals provide to you? Are or large So, new processes of are? any a to you comprehensive sense how jumping out able the

Keshav Murugesh

and want Gautam and add Sanjay and little to more. a sure Let take that question me I'm Dave may

to more we are to on clients first. I bandwagon foremost, like broadly would the First jump and more say want and seeing that

miss that have on those who recession, have full-blown are to more two a the now I something the over is going there transformation core, to embarked think little fearing agenda their year actually were got a if that actually that past not be they aggressive, they that's want bystanders that driven, or project.

So first that's thing. the

the the is of model them more which we move terms reductions, lot efficiency table to gains, more we're transformation things second clients just also a for. lot stood seeing to add resilience, the always seeing are with so of has in one The of of from also means traditional existing cost a

well terms starting in now these bring already new some have offerings in are are acquisitions that, to excited we that fact the new table, of a as who In offerings see with brought of have base to of clients come the through by created, that the of new now addition the we the can to of to that number that acquisitions as some us WNS prospects of interact starting to all broad that we the have them.

right the the that, the means add running also this agenda also think of is that strategy been combination for I say is the think some So healthy better combination I and people that that. only business looking that, on WNS transformation manage but to should all of captives not fact and the are The will resilience of focused are to that looks this people for core of now, to means the starting maybe we not me, healthier. get company my a pipeline and

Gautam Barai

Keshav to add shortages U.S. mentioned, countries are intervention, shortened and quite seeing clients, with able to continue labor increasing newer that what to along to are cross-sell face the both in and and U.K./Europe, that, sell requirements these we the is what requiring has to more significantly, more ability ramp so clients ramp we is Just and the both up to decision-making up, we more. see – effectively the digital

quite demand us to So well continues pipeline our all as bodes this for increase.

Jesse Wilson

taking questions. our Understood. you for Thank

Gautam Barai

Jesse. Thanks,

Operator

& comes Company. Our with next Needham from question Mayank Tandon

is open. line Your

Mayank Tandon

going Or any just investments thoughts the comments the demand to Maybe, asset might this hold sales up given you. aggressively sales your forward. you the engine? then force the time climate on around uncertainty, the your back? want quarter. Keshav, decision-making, Just more and is to Thank Congrats just healthy your given around ramp

Keshav Murugesh

Mayank, great question. actually, Yes. Thanks,

stopped force. we never tell you, So have in our actually, investing I'll sales

So most mention want in I I that once time. the we just industry the this at one experienced of sales think again point to in force have

kept just and making increasing numbers. sure driving lot wherever most sales that the than on have rather force, We the of productivity we rightsizing, are required focusing importantly, adding a right,

position am these of marketplace. will back broad-base I terms as investments, positioning people WNS’s you that in coming some delighted well in step we through marketing new to as of while also to sales we investments, tell acquisitions the will in not footprint and the

this but point say having invest that the So up at mean continue does not that I just area, to think we take want to in time, we in to that must numbers.

on at each looking at be of are our it we carefully We carefully, it in each and it terms be necessarily where looking ground, needed, one feet keep terms But be in just of sales other more the the things businesses of well. could more not or in area numbers of investing. training, of That is taking up. could demand form as will could

David Mackey

of bit just to with ended and closed ended up a a fiscal little XXXX. fiscal almost organization, Yeah, color from sales in XXX. We people comments, XX% we XXX where Keshav’s We add XXXX December the Mayank. is with which

we as and out Keshav of combination mentioned WNS three we've well done. acquisitions force a that’s So as sales that built have the the as hires,

growth we've it the you that a in the reality have made at over you close deals in sales hires seen our you when not the the at time BPM from force and essentially, BPO, increase nine last takes six space, the look to benefit the revenue the look months. is, But in to XX%

to We've this sales – we've that that investment. investment. the last as Keshav make in make step productive. done next that continued function this And more made this have at real to focus mentioned is we now, level So,

Mayank Tandon

so know. to you helpful That’s for that. Thank much

clients, benefits on in that terms in I historically, follow-up, to specifically your range. if quick typically that somewhere am think been of and one pricing I productivity X% to more it's you right, pass X% Just around

in Given on fiscal some change the of as these forward, market into dynamics your year? especially we that today, any expectations look next

Gautam Barai

our about what clients to about we Traditionally, couple had the TCO X% able benefits. X% and are quite transformations Yes. requirements And acquisition to again, and of of drive Vuram helped which digitization to by recent seeing a drive that's is this productivity. through we by we increased and and percentage what especially are us is increased points the sustainable was for increased

Mayank Tandon

words, am to to impact be just the going be or I less that, the more, are P&L sorry, I benefits clear, other So to going missed or forward. in your

David Mackey

Let me take that, Mayank.

because and years. that prior give clients we year in greater So, the than expected of we we are headwind talked for headwinds that what's this automation, the year been digitization essentially, as a past. about is productivity happened additional now to hit they've And an fiscal this into that versus X% productivity walking

it opportunity bottom-line. deliver from also automation P&L and to perspective, it’s to you margin So, a provides pressuring technology But margins the opportunity, is to top-line, understand the right? while on leverage, have movement creating what that margin the be expand leveraging better may and

Mayank Tandon

Got it. you Congrats very guys. much. helpful. so That’s Thank

David Mackey

The want, want a is, understand productivity in in benefits other I to the sure, scope just managing that clients while are kinds the be higher. order in of here to deliver you have to given we order The expand is make process to that is make what the may for to reality thing we client it. hit cases, on we sure the many of that deliver

X% what scope opportunities sales, WNS the it's manage. same also to for facing if doing So to you previously, new processes expand bigger a or may be the processes than and us same-store opening for relationship headwind up of while add will is

Operator

Our next question comes from with Moshe Wedbush. Katri

is open. Your line

Moshe Katri

Hey thanks.

results. add my congrats me solid very on Let

have follow-ups. I two So

that projects continue WNS how there? we for Is some be guess, coming terms know as the difference well, to pipeline going maybe there I different talking as people this nature of – towards, new any of in see new economics board? optimization pivot is are on of the it the are the in vendor and about the cost First, to I don't consolidation

– opportunity that that December, when here you now. And some for of WNS again, early heard XX, years something during heard a talk about about couple keeps about years. kind captive conversation of the we're which Maybe off is on throughout coming haven't that's people Thanks and XX the talk we then, we lot. captives, bit India in something for a can a on more because past

Keshav Murugesh

start others people Maybe very, and therefore, is companies. Sure. different very add opportunity things the to said, But be it and like continuing will different I'll on. positive have I different and the actually sound for again,

confident are that of our very, terms fact invested of the in we the very in we innovative engagement with, way of the foremost, transformation models about So right? of in that our technology, have in is of models, well exercise terms well terms clients, will and domain, agenda, any with undertaken we terms clients, first as kind as people prospects, that as definitely being they interact by want to the beneficiary as be of

transformation. and really resilience, people to as And as are the pipeline all is that's yes, that in benefiting in cases, been we've interact larger of resulting about actually seeing have That of can with because of well trends in But those want one. as and consolidation. now, some companies take some these actually them from path players we talk actually capabilities surely a

at they that, that be challenges, make relevant end-customers. any with The impact take companies create second not partner. beyond right cost are looking that But continue these of them that of so also can sure their transformation is, looking with have they to choice out so the happens, to their sure and can agenda are help negative they disturbed, side this while to obviously, also is their not make on the companies the other making all

statements that again are like as the WNS companies seeing I of So think well. again,

wanting been captives in in move particular, certain that been management COVID-XX countries some been right. one in captives, and two Now has countries, with companies this as generally is terms towards happening have have and of India of successful Moshe, there create by the other a there trends many to sector

one which and customers, close very of a kind over they that Now don't sign is in to normally is really to these created want it captives third-party a these are hand to player. and areas

HR already are are starting But captives, of to captives XXX, it what we becomes issues that for created, new just at problems, that that the management these of the being is new beyond XXX-persons driving again, and heartache that extremely cost are this people that that good very causing the actually face we quickly pace. XXX, go attrition, kind are seeing and smaller is captives who and discussion also at of and these management resilience, is, own new things a heartburn

all conversations not can the has of I we increased. quality are that tell While is you decisions yet, may dramatically taken have having been

seen continue in have this global very that trend they player large case, the and with think WNS that large very progress. problem helped would particular You salutary actually one we and and we actually to insurance that's to very a had will

Gautam Barai

transformation Also just that the come in and to cross-industry of help of the are table being we to add bigger captives which the most to one of where conversations digitization and captives that's digitize besides to drive struggle with we what an level on face, mentioned, the benefit, is increased would Keshav transform. asked and the we that are challenges where advantages seeing bring

David Mackey

units one do if potentially questions will deliver a improvements, who find commitments commit at you enough, that of just look Yes, of because partner think hope about captive you clients rid that further when productivity is and you getting try to can asked and Moshe, improvement, productivity earlier to aggressively this ongoing you and think the productivity I reasons want I look interestingly the to that, yourself run and improvement. add why at were can to

they mission-critical appealing clients. core going and The that big these structure and something that to are business finding think opinion client less forward a need partner different to something or is cost they to very determining every and in-house manage to that going companies they being challenge, their help core to they I them to keep that's a good is off to have your are is is believe and believe manage level what visibility, of for able that's certainty is obviously, So what better at, they on. not

Moshe Katri

been color resilient market? helpful. in ask UK the sneak going not here, the a in the I given can UK The are last few what's about in economy clients continue the Thanks has years, really one lot. if regulatory just on some business. been has That's And that maybe to the in just seeing a UK a you great. but obviously perspective, doing what But from on UK past

Gautam Barai

drive cycle going to is UK where from companies fact, ever and in much, are same like in as of we seeing demand, difference Yes. much an seeing of what is, is, What align we in the in and decision-making for for UK UK to to digitization ahead within time, of the is and as that's in clients a not the them weaker in is their more the at decision seeing seeing of client we our companies are leading to demand where a the macroeconomic giving take for the ramp-up demand terms the where base we increased the are the line increased terms because cycles of for preparing strong advantage go are are in the us need is are is fact shorter. come cost scenario, terms potential as them course, pipeline, much with for the aggressive

Keshav Murugesh

add just aspect. one I want to And further

prepared impacts the engage have who Brexit extent our of particular in kind with I and past think for with and years to prospects go over some sector clients us the and UK it. that few

point to have a own market, in think from I that they while go they view have they terms they their to So for talent they the how companies of us will allowed agendas. therefore, may not the quite get a tech transforming to And them to of dramatically like be always that transform need leave able right? realized

different care models as others having helped the reality take transform of services, past, and to may we Insurance-in-a-Box, a the the to unheard UK their right? while were solutions, completely FinTech-in-a-Box kind are whole is, talent have companies a fintech problem of which in have insurers, solutions of of So, not through business which

these have more of prepare offers. tough share a we therefore, And as market them importantly, actually gain new times, but for result helped

David Mackey

currency look that bit encouraging. that growth X% color numbers, little Yeah, obviously, is and certainly it's look which a financial Moshe, just you is our that remember up about to at to perspective, add with XX% a But to doesn't from important X% year-over-year the headwind. year-to-date, a when of UK that

in our the we UK currency what constant on on organic growth So an a healthy basis. have within business is basis healthy, seen year-over-year

Moshe Katri

That’s guys. helpful. Thanks

David Mackey

Thanks, Moshe.

Operator

next Shirvaikar question Citi. Ashwin Our with comes from

is Your line open.

Ashwin Shirvaikar

this. for Thanks Hey doing guys.

Let how to if outline two-part environment, risk. question, or you me first, downside slowdown just sensitivity, the the that there one start impact of could are transformation initiatives the own back still a that candy? is, to then the you clients like digital Keshav that’s any it on economic our color want second digital remind with should a volume just pocket? nature I objectives consistent But checks. with saying And on air for seems, be actually

David Mackey

Sure.

highlight and think let me seeing I not let upfront part from there talk what of that our Keshav perspective. little where about right? to kind a most first So are want pockets and that kind of to-date, seen looking exposure, the right? is importantly, a what business, to I see the have client really I four different think we're will, I'll these And we take at pressure, digital could bit we if of But you

is, potential certain the in exposure certainly, volume everybody mind, processes reality travel we certain for certain front also who we for that's and and or is to do comes the story, financial center. the the WNS certain have potential follows and shipping services. like clients, verticals have something pressures obviously, logistics with But But volume for verticals,

pressure, pressure could across of we've been year through as second we've would see seen productivity moved from and rational and be The And steady this discussing total across that what is ownership area we where the years. we've which pressure cost here, clients.

clients we've The where fall be move would of changes category the and or into strategic large decision in the strategic would in structural a their to would the has have business this process be a what seen made lost different where that – second QX, we've third client this to with healthcare direction.

be cancellations, any of the And would last not that and delays seen we where to-date. have

is outweigh as highlight than could of But potentially exposures, the this opportunities more these believe important, understand our for kind So, environment, think areas. the be where just that in we things weak see to risks. challenged business think that get those I more what's we Ashwin, macro we I would

for BPM. this great believe is a we BPO, environment So

Gautam Barai

end-to-end to is the end-to-end – with And drive playing process what operating systems also Ashwin, can actually for are legacy we your And into to that with model, – banking and clients industries taking this or non-invasive target are especially workflow part is your or in the the digitization add these the Gautam. to clients engines and is are companies actually journey are question, firstly we hi, the need process. in what of seeing second financial infrastructure just smart, the is answer and services, insurance that terms of clients an change healthcare account seeing

what efficiencies, process not being upfront driven discrete that's of stages gets deal. we and quite the are process rather but driven later So end-to-end in efficiency just than an that seeing is

where the more. to journey and So digitization more that's impact is starting

Ashwin Shirvaikar

the level couple on is deals appetite the Any good Got should sheet? in then you’ve balance direction? a here, maintain you see it. Got obviously need net maybe but a still current it. thoughts And your of it pipeline in M&A, done that to cash what on environment do

Keshav Murugesh

start, me Sanjay want let to little a will I more. bit So am add sure

being well the which terms So, headed bringing we assets are opportunity in just that that is are three playing demand complete had with some know you in areas. the for WNS and months, deals looking this actually few new past capability, in first that where to we've, strong the market had new over extremely the very capability of as It's of years. have of constantly past models time, the long also focus adding at on capable while foremost, overall accretive to a and few

So really there. has delighted with what happened

particularly approach that us I disciplined, sense continue assets, and something same the again there right in is At at our disciplined look very time, a and to underline capability-led the if fashion continue that is and valuation. we at the to to ticks be to will it M&A coming focused to makes box which will and if in want assets

to the do that moving as are is look in terms will kind the We it and of considering as of well – an markets the fact in the well business right these to assets as of leveraging and clients of we in creating of demand a and order clients, have capabilities all growth terms believe impact in in moving from we as and just deliver the economy, that how this these ourselves. for way impact, for new

as whatever capability, will we So talk? in terms to around be and accretive will well want the capital do of allocation, you as be

Sanjay Puria

from what perspective, including do that doesn't the M&A to to captives all be we yes, but add on keep adding we'll is opportunity looking just I'll we a capability and philosophy going the keep pipeline, for. So a healthy on capabilities tuck-in absolutely and change opportunistic have acquisition Ashwin, around be those

revenue stable, think perspective, from And our you and generation. perspective working what healthy is XX% cash from of capital a we we a I good cash mentioned, just believe have

to going it enough be from growth a that's So – will perspective. prospect good

Ashwin Shirvaikar

Got Thank Keep execution. it. you. Good Appreciate it the going insights. guys.

Sanjay Puria

Thanks, Ashwin.

Keshav Murugesh

Thanks, Ashwin.

Operator

Our next Jain with comes from Puneet question JPMorgan.

open. Your line is

Puneet Jain

you Can seasonally behind attrition, December for rate these are quarter, completely levels hi. your easier Yeah, understand basis? at now? attrition I a is issues sustainability at And of about Philippine is Thanks taking on can sustain going-forward you but levels? it my question. talk these

Keshav Murugesh

past bit The across two been niche that Puneet. do continued and due especially by the entry-level but early over services and customer stabilization requirements a the see. agents’ led be expect is over been families driven months attrition volatility around I has India. this XXs job to stabilizing large expect to largely quarters our of by in families has requirements most the last the what reducing few and lot job little We Hi Philippines we in across of the certain a

Sanjay Puria

work regulations specifically really just the to employees X where April from that and did So if maybe agent is when delivery we were – add, And you where at the about a asked Philippines, got specifically I'll office that from to not Puneet, were and did we perspective. that recall, all spoke still changed and mention level. spiked in that's it XXX% come, from around impacting

think So it us about it we to those the it go for we back quarters what it maybe middle will around having took and of and to said it all more will normalizing, pretty to a that, But stabilize, used I time adjusted, it management take couple XX%. but level. talk level, to see too was normal, it's at started still certain early it's pre-COVID junior normalize a and to at believe and

Puneet Jain

portfolio? the acquisitive to answer or deals. like should on focused your Got you on going there could assets like seems term, any it you question, how businesses that Are alternatives other acquiring for some like your deemphasized look more it. And Ashwin's be there? think are side, near we prior it seems to current be But about could tuck-in

Keshav Murugesh

Yes.

So, clarify. first me let

have three this at in this point year. time, So we done acquisitions

digesting we base in companies, new right I these digesting, So do three manner, our want now, we'll all And people are a prospects. client all that focus welcome that. the welcoming the from to and right? it many excited across will capabilities take mention as just acquisitions, we as on well these very

we is stage, there. what look we it accretive that at time, And small at same we and at to of But available something will do need look at be the out later. to also if opportunistic in continuing some terms is will

just that want So expectation. set to I

acquire. there always to out our out not approach. are disciplined been cash to approach. put We It's our a just not That's

continue market we gone and in our in positioned of have Now that to you, do core have operate terms to continue extremely all right? horizontal we generally, All the will to invest offerings businesses, the well, that we businesses in. strongly the with with we

investment a are to we that an as on in growth as well of the constantly we that that the business, that care mentioned evaluating have time the not make potential have of at every investments claims of the we other than our the historically progress. business deemphasizing continues But area the business kept auto make be the of before that from we impact it we taking As customers. significant look business, of ROI we business, journey and in past, existing part is

I the am this with potential and we comfortable the So really in for have businesses point their long-term. at time

Puneet Jain

that as thinking Thank claims about well, when you. No, I I question. was auto asked

the Keshav. answers, for thanks So

Keshav Murugesh

lot. a Thanks

Operator

with Koning comes next Our Baird. Dave from question

open. is line Your

David Koning

guys. hey Yeah,

too. couple a nice of guess, a quick things, I Just job

it's vertical, growing looked down little was still But revenue bit So, year-over-year. that to sequentially. I that, a little just anything bit know lot like on a sequential the it's travel choppy it decline? of a a

Gautam Barai

due you historically that see of decline especially which our comes led to the also driven this been softer due bookings. attention, from reduced travel. generally in OTAs QX leisure is draw to revenue year, leisure just the driven the Dave, or has volume by BXC XX% BXB And nearly of to during Hi time your

where we are seeing. that's So

been increased this also these volumes, numbers has are our recent increased drop sequential factored to that But events with we forecast been have already we for bookings, quarter. the but provided. into still not have due and moderately the where That's cost weather seeing for QX,

Keshav Murugesh

one soft go impacts Yes, of we so their their I When we people Dave, thing. And about their of the let think on will me lot of about feet therefore, in a programs that recession, blah, start voting all of we just blah, mention with said customers blah. we projections. have, talk ours holidays also talk terms terms the and travel see, therefore, other and we side in when

have of also given at think see a the past. now, sector of behaving, we continuing is some more of as that opposed how the as in the bullish factor they slightly look we positioning a of to are that. this actually as I kind So is us to But numbers

offices a let's it globe in nice and and potentially the comes having holiday visiting revenge that travel will and tourism across us. faith people's So back hope the their benefit

Gautam Barai

ahead still lies like add that forward-looking is a the pre-COVID where level for at was That's level, opportunity I company's still us still just us. from not And almost a a pre-COVID that of below there the the opportunity still and revenue. was below that’s the the which not is for opportunity bigger X.X% volume arise volume still

David Koning

that. good. Gotcha. you I And That’s Yes. Thanks for margins. all just one had consistent follow-up, the remarkably guess

XX.X% given right you're trending year, think, the this movements, years so. last just things. The or to, which different impressive I think I volatility, two is all rupee about XX.X%, were revenue

a about we normalized guess that we is or in this wondering, one-off there as kind year? about is anything of should think I'm think I year next pretty this just So, year

Sanjay Puria

right as this It's move a stage. to has been one-off pretty continue normalized with There margin no margin we at we and expect now forward. this

David Mackey

protecting it as three in FX, two think that relates of seen smoothing margins where hedging our effective the to has impacts we've I and important and XX-plus years to a our now to it's extremely David, currency period. remember been over year Yes, strategy

margins, not visibility but you the us in So, does gives only the guide the hedging us us the properly. stability also it give strategy allow guys to to

Keshav Murugesh

is, new able uncertainties that margins. order innovative efficiencies and those maintain just this want in have the sectors outside, add the it, teams just who solutions, all our operating terms thing, new new must created created in and globe, to creating to also the of I new to all WNS spite that new those teams platforms across interventions, full of drive these I the result Dave, we which, to one give in WNS, digital have our offering credit is the as of the I call

execution, yet most I investments, tell also that but there, new manage those few an are it's right, superior those I from last you, importantly, years. offerings that have as those we And all it out kind task, to easy over our numbers. of the not comes And think deliver created make problems the

David Koning

answers Kudos guys. yes, the Yeah. thanks and Certainly. all to of for them

David Mackey

Thanks, Dave.

Operator

Vincent Our comes next Research. question from Colicchio with Barrington

is Your open. line

Vincent Colicchio

opportunities terms of company? on airline issues opening awful on for another operating is Keshav, the – the question Yeah, with travel. Curious recently the that side, in

Gautam Barai

or of of that the baggage so handling facing and offering problems year management offerings. is increased that industry-specific absolutely it our some and time, whether the our our – same with airlines been an demand and led offerings all and over to at lines past the across services, the Yes, change that's reservations airports and or our the have

over would do I there. the all increasing that volumes of from start number by drives months, increase as we volumes airlines introducing the these capacity across next it aircrafts actually also So and see areas also say that new

Keshav Murugesh

on well. this people talk And also and are with agenda, we I of the in of decisions discussions as and markets, start the transformation cost kind mention all with are must potentially recession facing stress the airports that the moving also and seeing

WNS this think very all So the order. I positive is that in for going be short actually of to

Vincent Colicchio

is clients then, exposure challenges I facing traditional one retail more, correctly, if retail low. And pretty I your mind large think any financial to comes remember to and

Keshav Murugesh

quickly. financial safe low this we things peer that’s don’t change at don’t any believe say, think we our that think clients exposure today, to I to retailers have I is events. customer this are environment in significant – our roster risk, extremely can but obviously I at looking think

David Mackey

table of had what's Yes. when we years, the look to we remember during too, of recovery travel while expansion looking driven the it's automation, that of the for been couple compete. better our volumes existing lost travel Really able over at you of logos some be COVID, the to important transformation, last new really digitization and our health coming Vince, to vertical, have to the relationships

for things more to So, I models look become better. difficult are the compete think operating our consistently able for airlines, help the the be to more to they going change externally to

David Mackey

that's to say. Yes, safe I think

can customer exposure environment, is roster pure at financial low, quickly. retail clients risk. any things today, we this we at in I change think, that are significant extremely don't Vince. think our Our But looking obviously, have to believe I don't

Vincent Colicchio

Dave. Thanks, job, guys. Nice

David Mackey

Thanks, Vince.

Keshav Murugesh

Vince. Thanks,

Operator

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

now may disconnect. You

WNS (WNS) 19 Jan 232023 Q3 Earnings call transcript