Q1 2025 WNS (Holdings) Ltd Earnings Call Transcript
Key Points
- WNS (Holdings) Ltd added eight new logos and expanded 36 existing relationships in the fiscal first quarter.
- The company made significant progress in improving access to capital and increasing share price stability by exchanging ADSs for ordinary shares and joining the Russell 2000 Index.
- WNS (Holdings) Ltd has transitioned to domestic filer status and is now reporting financials under US GAAP, which should improve ESG visibility and make financials more consistent with peers.
- The company has a strong focus on AI and generative AI, with approximately one-third of company revenue in fiscal 2024 delivered with AI as a component of the solution.
- WNS (Holdings) Ltd's large deal pipeline includes more than 20 deals, each over $10 million in ACV, totaling more than $400 million in ACV, indicating strong future growth potential.
- Net revenue for the fiscal first quarter decreased by 1.6% year-over-year and 4.1% sequentially on a reported basis.
- The company experienced volume reductions with certain clients, particularly in the online travel sector, which were greater than expected.
- Adjusted operating margin decreased to 18.4% from 20.1% last year and 20.9% last quarter, driven by lower revenue, employee utilization, and higher SG&A levels.
- The company's effective tax rate increased to 23.1% from 21.7% last year and the prior quarter, driven by geographical profit mix and the percentage of work delivered from tax incentive facilities.
- Attrition rate increased to 34% from 32% last year and 33% in the previous quarter, indicating potential challenges in retaining talent.
Good morning, and welcome to the WNS Holdings' fiscal 2025 first-quarter earnings conference call. (Operator Instructions) As a reminder, this call is being recorded for replay purposes.
Now, I would like to turn the call over to David Mackey, WNS's Executive Vice President of Finance and Head of Investor Relations. David, please go ahead.
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Thank you, and welcome to our fiscal 2025 first-quarter earnings call. With me today on the call, I have WNS's CEO, Keshav Murugesh; WNS's CFO, Sanjay Puria; and our Corporate Financial Controller, Arijit Sen. A press release detailing our financial results was issued earlier today. This release is also available on the Investor Relations section of our website at www.wns.com.
Today's remarks will focus on the results for the fiscal first quarter ended June 30, 2024. Some of the matters
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