Offshore BPO pure play WNS is continuing its good run of form into the new fiscal, having shown continued progress in Q4 (see here). Revenue less repair payments (RLRP), or net revenue, grew by 10.9% to $113.8m, although up just marginally on the quarter. This was down to growth across the utilities, banking and financial services, and retail and consumer packaged goods verticals.
Excluding depreciation in the UK Pound, where WNS generates approximately half its revenue, WNS’ growth would have been even better at 12.6%. Nonetheless, the UK market appears to be showing modest growth in Q1. In local currency, WNS’ UK revenue was up 5.9% to £34.9m.
Adjusted Net Income (ANI) grew 30% to $14.4m, giving WNS an ANI margin of 12.7% vs. 10.8% last time. This margin expansion has apparently been down to increased interest income from higher average cash balances and investment returns.
WNS’ shares have been on something a rally since its improving financials. They are up c38% since the start of 2013.