Outlook for Fiscal 2008 Healthy Despite Mortgage Disruption and
Currency Appreciation
MUMBAI, India & NEW YORK--(BUSINESS WIRE)--Oct. 3, 2007--WNS
(Holdings) Limited (NYSE: WNS), a leading provider of offshore
business process outsourcing (BPO) services, today announced it raised
guidance for fiscal 2008 following its rapid response to fluctuations
in its U.S. mortgage services business.
"Revenue growth continues to be robust across sectors, and we are
confident of finishing this fiscal year on a strong note," said Neeraj
Bhargava, Group Chief Executive Officer. "The overall strength and
diversity of our operations have helped us withstand pressure from the
mortgage slowdown and appreciation of the Indian Rupee. The WNS team
has addressed these issues rapidly while addressing other challenges
like attrition and acquiring new business."
WNS has successfully redeployed or out-placed most of the
resources previously dedicated to First Magnus, in addition to
deferring ongoing capacity addition to minimize the impact that market
conditions in the mortgage industry had on operating income.
WNS has also increased pricing on contracts with new clients and
on select contracts with existing clients to help offset the impact of
the appreciation of the Indian rupee.
WNS raised its Aug. 17, 2007 guidance for fiscal 2008:
Revised average exchange rate assumptions for the above
guidance are 40.00 Indian Rupees to 1 US Dollar and 2.01 US
Dollars to 1 Pound Sterling for the rest of the fiscal year.
The detailed guidelines for Fringe Benefit Tax (FBT) on ESOPs are
awaited from the Government of India. WNS intends to pass on the
incidence of the tax to the employees resulting in a neutral cash
impact on the company. The accounting treatment for the same is
dependent on the detailed guidelines.
About WNS
WNS is a leading provider of offshore business process
outsourcing, or BPO, services. We provide comprehensive data, voice
and analytical services that are underpinned by our expertise in our
target industry sectors. We transfer the execution of the business
processes of our clients, which are typically companies located in
Europe and North America, to our delivery centers located primarily in
India. We provide high quality execution of client processes, monitor
these processes against multiple performance metrics, and seek to
improve them on an ongoing basis.
Our ADSs are listed on the New York Stock Exchange. For more
information, please visit our website at www.wnsgs.com.
About Non-GAAP Financial Measures
For financial statement reporting purposes, the company has two
reportable segments: WNS Global BPO and WNS Auto Claims BPO. In the
auto claims segment, WNS provides claims-handling and
accident-management services, in which it arranges for automobile
repairs through a network of third-party repair centers. In its
accident-management services, WNS acts as the principal in dealings
with the third-party repair centers and clients.
The amounts invoiced to WNS clients for payments made by WNS to
third-party repair centers are reported as revenue. As the company
wholly subcontracts the repairs to the repair centers, it evaluates
its financial performance based on revenue less repair payments to
third party repair centers, which is a non-GAAP measure.
WNS believes revenue less repair payments reflects more accurately
the value addition of the business process services it directly
provides to its clients. The presentation of this non-GAAP information
is not meant to be considered in isolation or as a substitute for the
company's financial results prepared in accordance with U.S. GAAP. WNS
revenue less repair payments may not be comparable to similarly titled
measures reported by other companies due to potential differences in
the method of calculation.
Safe Harbor Statement under the provisions of the United States
Private Securities Litigation Reform Act of 1995
This news release contains forward-looking statements, as defined
in the safe harbor provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These statements involve a number of
risks, uncertainties and other factors that could cause actual results
to differ materially from those that may be projected by these forward
looking statements. These risks and uncertainties include but are not
limited to a slowdown in the U.S. and Indian economies and in the
sectors in which our clients are based, a slowdown in the BPO and IT
sectors world-wide, competition, the success or failure of our past
and future acquisitions, attracting, recruiting and retaining highly
skilled employees, technology, legal and regulatory policy as well as
other risks detailed in our reports filed with the U.S. Securities and
Exchange Commission. These filings are available at www.sec.gov. We
may, from time to time, make additional written and oral
forward-looking statements, including statements contained in our
filings with the Securities and Exchange Commission and our reports to
shareholders. You are cautioned not to place undue reliance on these
forward-looking statements, which reflect management's current
analysis of future events. We undertake no obligation to publicly
update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise.
CONTACT: Investors:
WNS (Holdings) Limited
Jay Venkateswaran, +1 212-599-6960
Senior VP -- Investor Relations
ir@wnsgs.com
or
Media:
Gutenberg Communications
Mike Sherrill, +1 212-239-8741
msherrill@gutenbergpr.com
SOURCE: WNS (Holdings) Limited
