Summary
WNS (Holdings) Ltd (WNS, Financial), a leader in digital-led business transformation and services, announced its financial results for the fourth quarter and full fiscal year ending March 31, 2025. The company reported a slight decline in revenue but a significant increase in profit, driven by strategic investments and operational efficiencies. The announcement was made on April 23, 2025.
Positive Highlights
- Fourth-quarter profit surged to $50.8 million from $14.5 million in the same period last year.
- Adjusted Net Income (ANI) increased to $66.2 million, up from $53.9 million year-over-year.
- WNS added 9 new clients and expanded 50 existing relationships in the quarter.
- Successful acquisition of Kipi.ai, enhancing capabilities in data, analytics, and AI.
Negative Highlights
- Revenue for the fourth quarter slightly decreased by 0.2% year-over-year to $336.3 million.
- Full-year revenue declined by 0.6% to $1,314.9 million compared to fiscal 2024.
- Challenges included the loss of a large healthcare client and lower volumes in the online travel segment.
Financial Analyst Perspective
WNS's fiscal 2025 results demonstrate resilience in profit growth despite revenue headwinds. The company's strategic focus on expanding client relationships and enhancing capabilities through acquisitions like Kipi.ai has bolstered its profitability. The transition to US GAAP reporting and inclusion in key indices like the Russell 2000 and MSCI US Small Cap are positive steps for future capital access. However, the slight revenue decline indicates potential challenges in client retention and market conditions, which need to be addressed moving forward.
Market Research Analyst Perspective
WNS's performance in fiscal 2025 highlights its ability to navigate a challenging market environment. The company's investment in AI and analytics through the acquisition of Kipi.ai positions it well for future growth in the digital transformation space. The addition of new clients and expansion of existing relationships reflect strong market demand for WNS's services. However, the revenue decline suggests that the company must continue to innovate and adapt to changing client needs and market dynamics to maintain its competitive edge.
FAQs
Q: What was WNS's revenue for the fourth quarter of fiscal 2025?
A: WNS reported a revenue of $336.3 million for the fourth quarter of fiscal 2025.
Q: How did WNS's profit perform in the fourth quarter compared to last year?
A: WNS's profit increased significantly to $50.8 million in the fourth quarter, compared to $14.5 million in the same period last year.
Q: What strategic acquisitions did WNS make in fiscal 2025?
A: WNS acquired Kipi.ai to enhance its capabilities in data, analytics, and AI.
Q: What is WNS's guidance for fiscal 2026?
A: WNS expects revenue less repair payments to be between $1,352 million and $1,404 million, with ANI ranging from $199 million to $211 million for fiscal 2026.
Read the original press release here.
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