BPO major WNS today reported 26.4 per cent rise in net profit to USD 4.3 million in the second quarter ended September 30,2012. The company's net profit stood at USD 3.4 million in the July-September,2011 quarter. On a sequential basis,the net profit in July-September 2012 quarter was 53.57 per cent higher compared to the net profit of USD 2.8 million in the April-June 2012 quarter. "While the overall demand environment for BPO services remains stable and healthy,decision cycles for larger and more transformational projects have been experiencing some temporary delays," WNS Group CEO Keshav Murugesh said in a statement. Despite these timing issues,WNS continues to make progress towards our longer-term financial and operational objectives,he added. The NYSE-listed BPO's revenue during the reporting quarter stood at USD 113.1 million,down 4.1 per cent from USD 117.9 million revenue registered in the corresponding quarter last year,primarily due to reduced pass-through expenses in the auto claims business. Its revenues were,however,up sequentially from USD 107.8 million in April-June quarter - a rise of 4.9 per cent. "Based on visible client demand,we are aggressively moving forward with our geographic expansion plans. In the second quarter alone,WNS added over 1,000 seats including new delivery locations in Gdynia,Poland and Vizag,India," Murugesh said. The company has also increased its revenue (less repair payments) guidance for the fiscal year ending March 31,2013 to be between USD 426 million and USD 438 million. It had earlier guided revenues to be in the range of USD 420 million and USD 440 million. The updated fiscal 2013 guidance is based on current visibility levels and exchange rates. Guidance for the year reflects top line growth of 8-11 per cent,with 99 per cent visibility to the midpoint of the range,WNS said. "We will continue to focus on improving operating margins as the year progresses,and expect our cash position to exceed debt levels by the end of fiscal 2013," WNS' interim Chief Financial Officer Kumar Subramaniam said. WNS ended the second quarter with USD 60.3 million in cash and marketable securities. It added three new clients in the quarter,while expanding 11 existing relationships. The company's total headcount stood at 25,714 as of September 30,2012. "Our investments in capability creation,technology enablement and global infrastructure are resonating well with both existing and prospective clients. In order to properly leverage these investments going forward,the entire organisation remains focused on enabling our sales force to improve productivity and accelerate our growth trajectory," Murugesh said.
