WNS (Holdings) Limited (NYSE:WNS) Q3 2020 Earnings Conference Call - Final Transcript

Jan 16, 2020 • 08:00 am ET


WNS (Holdings) Limited (NYSE:WNS) Q3 2020 Earnings Conference Call - Final Transcript


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Good morning, and welcome to the WNS Holdings Fiscal 2020 Third 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' Executive Vice President of Finance and Head of Investor Relations. David?

David Mackey

Thank you, and welcome to our fiscal 2020 Third Quarter Earnings Call. With me today on the call, I have WNS' CEO, Keshav Murugesh; WNS' CFO, Sanjay Puria; and our COO, Gautam Barai.

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 Third Quarter ended December 31st 2019. Some of the matters that will be discussed on today's call are forward-looking. Please keep in mind that these forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, those factors set forth in the Company's Form 20-F. This document is also available on the Company website.

During this call, management will reference certain non-GAAP financial measures, which we believe provide useful information for investors. Reconciliations of these non-GAAP financial measures to GAAP results can be found in the press release issued earlier today. Some of the non-GAAP financial measures management will discuss are defined as follows. Net revenue is defined as revenue less repair payments; adjusted operating margin is defined as operating margins excluding amortization of intangible assets, share-based compensation and goodwill impairment. Adjusted net income or ANI is defined as profit excluding amortization of intangible assets, share-based compensation, goodwill impairment and all associated taxes. These terms will be used throughout the call.

I would now like to turn the call over to WNS' CEO Keshav Murugesh. Keshav?

Keshav Murugesh

Thank you, David, and good morning everyone. WNS continued to deliver solid financial results in the fiscal third quarter. Net revenue for the quarter came in at $228.2 million, which represents a year-over-year increase of 16% on both a reported and constant currency basis.

In the third quarter, WNS added six new clients, expanded 11 existing relationships, and renewed 13 contracts. Revenue growth continues to be driven by healthy broad-based business momentum across all our key verticals and service offerings.

Third quarter adjusted operating margin came in at 22.8% and adjusted diluted EPS grew 8.5% versus the third quarter of last year coming in at $0.80 per share. Sanjay will discuss the details of our third quarter financial performance in his remarks.

I would like to spend a few moments today discussing the evolution and progress of our sales organization.

The overhaul of the sales force was one of my first initiatives when I joined WNS back in 2010, along with verticalizing the Company. Since then, we've been successful in dramatically improving the size, capability and the profile