Mumbai-based business process services (BPS) pure-play WNS vastly improved profitability last quarter albeit aided by the ongoing tailwind from a weak Rupee. Adjusted operating margins expanded by nearly 4 points to 18.4% in Q3 (to 31st December) and by over two points over the prior quarter. This was against a 5% yoy increase in adjusted revenues (excluding pass-through payments) to $120m.
WNS generates around half its revenues from the UK (its heritage was as the back-office operations captive of British Airways) and is the second-largest India-based BPS player in our market (TCS is ahead of the pack by a country mile). Eligible TechMarketView subscription service clients can get much more detail on the India-based BPS players in our recent report, What does the future look like for India HQ'd players in UK BPS?