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WNS Holdings Limited (WNS)

Participants
Keshav Murugesh Chief Executive Officer
Sanjay Puria Chief Financial Officer
Gautam Bari Chief Operating Officer
David Mackey Executive Vice President, Finance, Head of Investor Relations
Moshe Katri Wedbush
Bryan Bergin Cowen
Mayank Tandon Needham
Maggie Nolan William Blair
Ashwin Shirvaikar Citi
Dave Koning Baird
Puneet Jain JP Morgan
Sam England Berenberg
Vincent Colicchio Barrington Research
Korey Marcello Deutsche Bank
Call transcript
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Operator

Good morning and welcome to the WNS Holdings fiscal 2021 fourth quarter and full year earnings conference call. At this time, all participants are in listen-only mode. After management’s prepared remarks, we will conduct a question and answer session and instructions for how to ask a question will follow at that time.

As a reminder, this call is being recorded for replay purposes.

Now I’d like to turn the call over to David Mackey, WNS’ Executive Vice President of Finance and Head of Investor Relations. David?

David Mackey

Murugesh; to call. XXXX the Bari. With have CEO, welcome full quarter call, A and Puria; WNS’ earnings Sanjay our year me Keshav press you release our COO, fourth fiscal and I and detailing Thank our CFO, Gautam and WNS’ today This fiscal issued on year www.wns.com. available Today’s full will is focus on fourth our the XXXX. financial results release of at was Investor results website the for the quarter earlier today. XX, March also Relations section ended remarks on

by the differ Some and subject risks forth in today’s also mind company’s to Please document that that of those Such are in are to available unknown and company uncertainties or statements. matters on but on include that The from will risks the set be limited keep are known uncertainties expressed to factors the call is not could discussed these cause implied such statements forward-looking Form XX-F. results forward-looking. actual those and materially website.

release be management in this measures financial believe we to which non-GAAP for certain results of useful reference information GAAP can During measures provide investors. press financial today. non-GAAP the Reconciliations will issued call, earlier these found

share-based defined financial is used call. non-GAAP would and as defined profit over turn Murugesh. associated follows. goodwill Net These operating share-based as goodwill discuss excluding to to Keshav? all compensation, measures CEO, revenue compensation, is the of margin the income, the are taxes. margin defined Some assets, of is I Keshav adjusted impairment. as payments, be revenue will will WNS’ impairment, management or amortization excluding like call intangible of defined assets, ANI intangible now terms and operating as throughout Adjusted less net amortization repair

Keshav Murugesh

you and David morning good Thank everyone.

midst a in of representing the net and at or past million, fourth business a X% a $XXX.X came constant a revenue on pleased QX and are the currency X.X% with revenue $X on Net Sequentially, basis decrease over constant year has the increased by the currency. million shown of in reported pandemic. quarter financial performance our basis X.X% reported for operational and a in X.X% year-over-year our fiscal We and resiliency global reduction.

We company on quarter financial volatile few today details further prepared and inspiring. the in his be demand employees by clients, significant quickly co-create attempted like clients’ tested auto shifted XXXX, to industry. to global this created and our security our support critical travel claims to rebounded, clients levels. processes. including employees WNS Lockdowns pressure. ability to yet operational encountered volumes service as had and transaction challenging transformative below our to to June, and work-from-home remarks. performance headwinds software, pandemic across business during and verticals year connectivity, and WNS end Our I sales able and and In take would XX% existing of each logos address a capacity the core closely this addition were and strong than while efforts The delivery our delivery reduced in travel foundation closer From in enabling XX moved recover. difficulty rapidly eight Sanjay company margins to our XX% complexity more and for capability QX, been new of business hardware, million. during Hiring the volumes In the with office with support growth global XX to verticals X,XXX of remained processes worked in to than different in verticals $XX WNS’ for or as demand as with line WNS the fully cannot of more relationships. lay front, to expansion pre-pandemic model also quarter. employees a top our perspective, quarter remote of free innovate industries maintain to hit middle these customized averaging cash never the of March delivery mission some overstated past be challenges financial a of and minutes such full the BPM The and client impacted full over and the travel in hard continued new which effort WNS of back WNS response supply in demand. solutions, configurations. fourth of over QX, added accelerated provide posted model. clients generated future ramped also other opportunities In as like clients XX.X% of the of execute proved of spread fiscal, the XX% challenges, to further which as impeded unique but operations. quickly and will XX,XXX operating have nine their adjusted supports review countries to declining specific In XXX

We months, vaccination report have expect are return; as modest improvements forecasting begun that WNS fact, to activity global clients that we in the levels. progress, over in will our volumes travel happy programs past few

to pandemic. initiatives created see challenges the and WNS with impacts added new year-over-year forward XXXX, despite clients XX% XX fiscal increases move representing new headwinds existing respectively. relationships, and willing In BPM the we their of XX% supply While reduced early and expanded and in XX both of the to logos volumes revenue year, existing continued

currency X% XXXX year full year grew, with progressed, in closed down margins As and as We constant fiscal volumes, aligned a operating of headcount XX.X%. delivered adjusted year margins and improved. the our result, only revenue revenues full fiscal

significant year. business four this highlight takeaways XXXX, challenges fiscal want to positive created from in past COVID-XX I While

in crisis. highlights flow the the cash ability to client by solutions margins our on resiliency was strategic WNS’ model. impacts a First, of This pandemic’s the and face financially evidenced generational the and operationally stability of revenues, nature the our of manage BPM our the relationships, of and business

transform Second, and This drive their year. both healthy their activity clients must experience, to enhance pipeline now signings recognize models past over order remained in deal in customer why they and making, decision efficiencies, the levels explains improve more business than the operating respective digitally ever compete markets.

that manage an model company’s innovative increasingly to commitment their and nimble, helped relationships. This strategic collaborative unforeseen safely crisis business The and confidence success. strengthen an increased to is important our pivot clients differentiator. our to in further ability Third, our our and WNS’ culture and to quickly capabilities unprecedented demonstrated global ensure has

visibility two WNS over provide active us clients give with with a and the the coming years increased result, clients. term quarters, company dates. In anniversary XX past This total renewed nine weighted years. which XX% of key five ahead their WNS and revenue been of represents benefits the transformation. to As renewals productivity average of the business of top extend leveraged including has extended a past discussions our has our relationships, revenue well clients contracts, These some few our at of year largest in added has

has future to enabled reinforced XX,XXX-plus our year and amazed past really WNS asset. that businesses position impacts belief for are success. truly which I and their pandemic greatest the clients and employees and WNS’ of navigate the and teamwork the has our my dedication, for Finally, our sacrifice grateful

requirements from to Despite in As we and year’s industry and about flexible pipeline will internal expand, remain WNS opportunities vigilant by the healthy invest That the volatility. signings us. healthy enter said, of to are a R&D hiring, These market fiscal being to the WNS domain and both digital hyper begins needs solutions, models year and In delivery last efforts, fiscal and to as good driven XXXX, changing cost will training. front and include in the must business remains advanced we continue and clients’ with reduction. fiscal core analysis, COVID-XX, strategic requirements. deal our BPM transformation pandemic-related new services we and continues any existing digital partnerships, to of for logos client momentum and investments client employee excited such adjust XXXX, areas expertise. addressable broad-based automation, specialized the

capability leverage acquisitions. approach Our will also balance our strong investment to sheet tuck-in look [indiscernible] while our

all and maintaining while M&A. that strategic approach continue our to to I remains to our over summary, now value to Sanjay would turn call outlook. WNS disciplined like long will momentum, further drive term stakeholders. We discuss Puria our to for differentiated Sanjay? ability our as key sustainable execute results do vision, CFO, the expect of business proven In well to our solid capabilities, as this confident to

Sanjay Puria

last in by in fiscal margins. The expense volume to reduction same reported on was discretionary The operating between interest basis. compensation the tax and basis. quarter. due geographies utilization $X.X in Changes and compared net spending, quarter sequential four reported movements in the the lower result were movements employee offset from and and accelerating same rate hiring less with a XXXX profits services term on expense high earnings increased investments. was than In million in and Thank down million compared million were Sequentially, operating the XXXX as higher million facility as fostered lower COVID-related fiscal tax-incented of fourth reported quarter company’s for including Broad-based quarter. other year is on hedging. income on result net you promotions, also the headwinds net $X.XX quarter net term from in currency offset delivered In revenue recorded of refund. proactive WNS favorable adjusted currency enablement, favorable improvement quarter XX.X% These primarily a income X% short came in are million reduced expense and fourth million by leverage Margins by XX.X%, four $X.XX to of four of revenue. year. XX.X% by from net the headwinds costs offset short to XX.X% of costs. of X.X% net interest was volumes, and million tax at digital last costs for and in of partially on and $X million, currency partially Adjusted of $X.X and non-recurring impacts, offset reduction in adjusted the currency in a net including revenue million verticals, revenue in four repayments. on mix quarter. same quarterly delivery were year to last interest $XXX.X short X.X% of versus fourth scheduled quarter, basis a of came revenue down advance income and the quarter, Sequentially, facility-related fiscal driven quarter was a operating last expense These X.X% tax lower geographies Adjusted of travel year tax facilities. million last variance $X the income and non-recurring volume Sequentially, to net additional diluted partially increased fourth a margin the $XX management up reduced on net at unfavorable the booked by due as $XXX.X and attributable of company’s hedging. rates margin and last high Keshav. in term was four were $XX.X is term more constant $XX.X and margins the WNS’ in with expense revenue, as compared company declined reduced from quarter expense interest effective business constant by of as a compared income mix $X.X WNS constraints, which on per four XX% $X.XX average lower quarter the [indiscernible] $X quarter of continuity net last which quarter at business to of across from share in margin than in revenue decrease pressured short of a revenue XX% associated quarter resulting of and costs, quarter. quarter. fiscal quarter rate last an Year million margin year, of debt XXXX refund Year of

made WNS million capital scheduled XXXX, WNS cash company $XX.X $X.X activities million generated in XX, $X.X totaled operating debt. had in of expenditures. cash and million debt March $XX.X and incurred this payments of balances million, of of $XXX.X from the million As quarter, and investments

by capacity by attrition and XX transaction the with days $XX.X During such throughout quarter. both as new an total $XX.XX, created first in key quarter at adjusted fiscal the quarter, the came respect from continuity, signings before revenue in of remained supply travel operating up at which and the associated business auto also days the year repurchased $XXX.X end the favorable basis. down DSO to which was quarter. at XXX,XXX the of last revenue, pandemic net relatively The four average year were XX% XX%, current price as at year. fourth four benefited in movements growth partially year the fourth coming resulted offset company’s reported XX.X%, the the meaningful constant at in XXXX up and COVID-XX basis on verticals a resources other typically existing by XX,XXX quarter as facilities items. half in hedging. lower cash summary compared I reduced [Indiscernible] fiscal from rate million, fourth previous brief These logo was expenditures shares which for lower during in impacted impacted quarter and given XXXX travel, and a the company the discretionary end not the operating headwinds offset quarter fiscal metrics, challenges from margin for XX margin increased XX% X.X% stock Net million. partially and of of headwinds came of of claims. fleet from other volumes the expansions like discussing infrastructure XX for a would XX,XXX. Margins of steady you the last reported in down in quarter excess productivity was at year to of our headcount adversely and XXXX. last and in are healthy The days and financial to to environment. With our company Pandemic-related metrics quarter reported outlook now X.X% with the of revenue currency on measure came of provide utilization provides in fiscal XXXX XX.X% a Full work-from-home of by at costs currency year in relationships. carrying

was a the of last XX.X%, Our and year of was as from lower a geographies, driven by by the change XX.X% in year shift the including of India primarily costs for resource in the excess carrying effective geography. profit tax rate result mix profits up This continuity business and pandemic-related Philippines. tax

As reduced from million coming net and declined a diluted a million share earnings of at operations free $X.XX and in full and respectively. The tax $XXX.X $XXX.X margin cash. higher in the year adjusted company XXXX, income levels and result rate, effective in revenue per in adjusted and $XXX.X cash generated XX% million fiscal

cost million guidance on growth spent million We million. current million with of revenue a visibility diluted balance of per approach pound $XX.X During the or shares expect net Consistent earlier $X.XX Operator? a range for include million share. to the fiscal dollar exchange capital EPS not expenditures, revenues. a year, U.S. WNS year-over-year and rate for the [indiscernible] million $XXX fiscal This requirements Based expected initial representing to XXXX. repurchased adjusted headwind rupee We’ll to assuming income and $XX the predictions to for $XX.X an be or contract line XX% guidance impact based Full XXXX payments in $X.XX of factors early visibility the year X%, is currency press XX% currently have ended assumes X.X $XXX.X open for to our known our up expects to our scheduled WNS net we $XXX million normal call company’s year million XXXX. XX capital share, provided XXXX. approximately approximately million in million, [indiscernible], commitments, the to up $XX.XX in expenditures, in approximately of respect a full a a average stock the $X.XX, X% on per to levels, on With basis. at XX.X fiscal a do year-over-year to top any the the debt of questions. be for In the renewals. project fiscal of our currently made rate $XX.X with million. today, of of year of adjusted U.S. issued for to net cash release of count range and our range dollar assumes a X.XX implies $XXX we be share exchange Revenue Guidance term short reported fiscal guidance shares. which constant or WNS now on to basis, of $XXX to midpoint XXXX previous to XX% on years, uncommitted of X% British of diluted

Operator

Please line Wedbush. Moshe ahead. [Operator of instructions] question the comes go first of Our from Katri

Moshe Katri

my taking questions for Thanks morning. good Two here. thanks, question. Hey

Is talking follow non-GAAP positive I’m on airlines in more maybe talk business, some predicated here. of on that First, you’re and a pretty about ’XX? so, the travel is things some and up factors were that fiscal vertical, about you range that Thanks the it’s margins tracking, some year. for a of margins. happens maybe more of top proxy line for wide EBIT bit a if you’re a the you this what are improving for tracking growth all the bookings, it factoring sort What could assuming fiscal into lot. the Then obviously is

Keshav Murugesh

take the Keshav. of question this part first I’ll - the is

As we a well. provide, however, that across going with are that to to back all seeing I’d a to really very delighted we travel, is year, an delivering about is talk and as concerned, asked you a of specifically we revenue about a do have industry; are now since that you are guidance. little way we request last far are It’s David Nothing just that our traditional theme. what so Gautam to guidance seeing actually that consistent bit consistent gap there there as after guidance the philosophy years, as gone of is back the visibility-based we followed doing our and have we all following travel

Gautam Bari

had from industry, travel Keshav alluded remarks see as forecast the With domestic in improving. increased prepared clients as Keshav. in earlier, starts are we travel starting to of demands regard Thanks terms his also our an volume to

these cancellations forecasts of reduction and been our Some adjusted volumes against guidance the into included in have growth have refunds, but been overall figures.

David Mackey

a of and little color bit Moshe. Yes, me just let add that, on

have the I that philosophy to revenue midpoint projected think in clients short our XX% look committed term only start to past, travel where increases. visibility of and year as There Keshav where is is you those to Gautam which no we the We have we when as is mentioned, the unchanged. the guidance, the at the remains range. been and, have similar completely mentioned, forecasted recovery the

of While is half bit these lost does recovery see for no to happens, past by into means amount term business recovery the as over year, of certainly a little revenues, quarter. short opportunity numbers. some these into there there built it a If the numbers, have travel and upside, we a year the built a that us which is of gives typically every opportunity complete

second well a pretty fact that have guided we’ve The I approach the consistent this that see margin the some really historically good what got to your about for is the things with to and opportunity lining you were XX% you’ll sizeable the We higher year. given, is fiscal. feel the and that for operating part that where XX% year margins, that think we to do of around was consistent XX%, of and guidance math is EPS assumption to good the between being question we’ve range of when us at the up here last we’ve XX% end and which overall people

Moshe Katri

Thanks.

Operator

next Bergin with Please the of Your Cowen. go comes ahead. question Bryan line from

Bryan Bergin

you. thank Hi,

about sense underlying for range, give bit that year fiscal the on here you XXXX, a growth just on how Just full cadence little dig a play the growth us within and in How can a fiscal industry attribution you just the more of factors? are expectations can year? in out thinking you of some follow-up

David Mackey

for the Thanks question, Bryan.

flattish business contract our to April cadence expansions renewals, into little no on I is years, what be the and up similar to fiscal in expecting--with we’ll of vertical, of we rebound fiscal a because over the important and is healthy you’ve have year, expecting to are were look When renewals on think expectation previous here that the of obviously reduced clients seen what which growth QX, is We also first really that so in seen wage at a of QX headwinds be we and that half we we’ve levels what we’ve our we’ve two down are supply-related but that contracts, travel play including the line, Sequentially, similar of a seasonality seen telling QX versus terms new we sequentially have pre-COVID. about logos we’re also revenue back of expecting the in bit a added that us. soft. to coming productivity is the broad-based the remember sequential we’re we’ve in utilities improvements, saw annual expectations of what is signed, the see slightly business now does. some the quarters, good, our the the similar year, the the for the to that that It’s are healthy, took margins at lot but exception increases years. what you that news given nice, to ’XX, because that in good fiscal based going to reason, our we’d fiscal the last ’XX look have this ’XX, you here larger for early believe because the relatively QX see step to seen in we for three progression the we prior in we in when

Bryan Bergin

that, just dig Just of Is these Okay. there? Then around and color on X% that you’ve Can driver? engagements drivers main you a the seems to relative large the in historical some primary predominantly it year-over-year the more headwind, because productivity that’s bit you had. further high range please. renewed

David Mackey

the year-over-year we’ve work anywhere but down, Yes XX% color a headwinds look, I productivity as on basis. seen project-related some X% think--and Sanjay typically and ramp here, add project between can

the year, we prepared to years it’s a seeing for of it’s bit renewed, been have us. them larger is the clients, several contract previous his early, in a - nine you what X% term mentioned, reason in expirations, little it’s because mentioned exactly Keshav longer this remarks, our than XX renewal Bryan is top which prior great of We’re and as thing

headwind. and in clients We to this a that some would your normal of just have larger I our years a improvements you XX% renewals. slightly result, a early higher we’d as the our really a contracts require, Obviously given of early so is of year, average these the transformation that much productivity baked with XX% contracts, This being business think in we’ve we’ve renew of these renewed. a most fact renewed in see five because of and, the percentage when going year, you’re got on term an large be of business expectation year see

Bryan Bergin

makes Okay, sense. Thank you.

Operator

Your from with Mayank next question the Needham. comes Tandon line of

is line open. Your

Mayank Tandon

with start on wanted pace of to I client signings. Thank the congrats you, quarter. the and

on other historically, it your like, based in to of ultimately you translate seems you maybe wins, think client get terms are if think what changing, sense, from logo or in Keshav a either and seen the BPM, like new ’XX I growth and into leverage accelerating more just that on that than had year term? guidance, businesses but given Dave, there’s pressure record a longer in to sounds times higher ramp-up wanted words I you’ve could not fiscal

Keshav Murugesh

thanks question. that Hey Mayank, for

are the is these pipeline first for we excited the we to want about, potential renewals, the that the industry. and that thing about think I really I really spoke mention

from as that prospects, think in actually that well. managed us the as I we actually has of separated actually of has the existing agenda, well I led the One mention great WNS as the minds and positioned things the is that for while very, what the have as has advisors transformation technology-led always well new of in agenda, clients so-called from traditionally it a company very terms COVID-XX uncertainty must as also-rans, done is performers extremely the now front the strongly got

of with at. say First we of thing that of lot Not comfort these only I in and will renewals crisis managed some a is there’s looked new how the therefore we of existing terms client the have but we after we there’s confidence of that the go uncharted after completely go do areas business, areas hunting in a to those can lot environments. new license

in global of a agenda, all not and about has Again, just agenda the I we are dipped of make very been that seeing the WNS area, who in has their to well. is that transformation terms clients. prospects scurrying been have their is what agenda, second model sure now is this this recommending driving The say. part positive - it’s or the WNS that who with analyst actually in model scores advisors a the growth to quickly has toes model, would overall Again, that anyone

there are therefore it it. will comfort how how we prepared a volatility, for side, there there right? well again The by WNS handled there I’m on of and third client is volatility expectation that lot how expects will is is this in thing manage I we forever, the sure and terms past, disappeared pandemic, future, an that even of will say is the nobody that the in driven has the be pandemic if

CEOs to is make for, actually are side that think think sure I certainty that future. say point here. the my now what X.X view, are that BPM will client responsible on into that excited I they is I the of From their about introduce we businesses.

the next growth. think one decade of I accelerating is

prepared. but right Let’s is watch, have right well investments wait the areas, make the in to we WNS and

David Mackey

the certainly processes, opportunity to and this our a just signings comments, what on the with think move Keshav’s clearly the signings it’s there give pace on based faster, of the of we couple overall always certainly for acceleration we our completely of predicated wave deal efforts but so visibility, clients see clients timelines first we’re the to, accelerate, on second acceleration of pandemic, certainly midst how us for ourselves pleased is the the they very to Yes, is But do, but in past an the our the with and past up this guidance pick years opportunity of move Mayank, example. based in from have clients committed rate pleased and of I we’ve next as add the on very in year. growth year sales company and for created based we’re that’s yes, to processes the wave that to if the

Mayank Tandon

helpful that’s color. Thanks,

ex-travel, understand very to of now on are the quick back follow-up we model least in some pricing. new more the level favorable pre-COVID, a terms impact at demand as should seems any around normalcy, but pricing well something to Again, model, wins? to turning that is I improvements relative maybe in given the and pricing Just on be of productivity call logo conversations impact consider of it

Gautam Bari

of are reverse impact, fact are and as in the a pricing days Yes, clients to as of such compared actually starting are bit the terms provide demanding digital for and we - in. companies to a infusion, productivity premium able who benefits us see it’s pre-COVID those, more brought being in to

David Mackey

Right.

they with also to those these are things make we and driving end clients of initiatives they money, from are eye transformation, the concepts pricing with going are want it’s things an I it we deliverables to while the save at benefits reductions partners of they’re you improve logos price But total so can the want experience, run to or if costs, decisions, either is customer they they than about seen to certainly day, productivity, always is unit to new discounts want relationships. Mayank, really issue ownership. not or we and being that on want the become faster, deliver better an what to the always and their existing for able I of than them, want unit and know in with have they to renewals think separate costs, there certainly better, the concerned will, discounting are cost important, deliver pricing it’s more aggregate to unit of mean, run less be and

Mayank Tandon

so Thanks helpful. much. that’s it, Got

Operator

of question William next go Your Maggie Please Nolan comes line ahead. the with from Blair.

Maggie Nolan

when those of just changes how time, renewals contracts nature you. about delivery those ramps and I of little any the in those of like or dig method that think of or there on you the terms the of areas bit terms saw that or contracts wanted you thank Hi, other nature relationship over the Were the in to further. interest? any a things

Gautam Bari

associated That’s understand where has gone and been end-to-end every favor, digitization at renewals as in were term speaks actually a earlier. increased common is, same what up has previous digitization. able actually the to have the in we renewal, fact that processing enables and alluded that our of a we manage and most transformation a not the benefits. more are the gain and the the productivity fact each territories domain, infuse the across renewals, of Yes, theme opened Maggie, years with of these ahead Keshav about that doors few them we which uncharted That’s time capabilities, then to question, to done happened playing

Keshav Murugesh

saw they may based of is the have transformation comfort something year. WNS expectation critical all they Maggie, these I which lot acceleration the and Gautam key on a of in is clients, is the of years whole with just around seen view. automation the last what hyper The think these point theme digital across of a and as I of if this to said, themes and Yes, add, us the change from some again

work-from-home been I The in established. also is will other has thing say the model,

transactional, outcome-based wallet pricing opportunity this of greater now all share higher. much models, is the with long to drew that them to of think increasingly all us and together is last over drive the that a us these I from think well, clients to ability move towards for they more year model actually put the comfort like for term much would I have in they as means something the the

David Mackey

them to at end confidence Maggie, do that these we’ve them not in avoid able in Yes, and believe past, I with we’re to renewals of able I you we’re important too, drive RFPs, as vendor, that accomplish, the think day can it’s to been trying the well with what to can very a you’re and there. change the road map think They to of as be they’re for show us do path their when them out what client, a going that client. dynamic, to a what sit forward kind understand the help partner a very only able they going By with the chart but future. competitive relationship large view not this clients for understand and early to for we positioned and route, down your or get to them in comfort

Maggie Nolan

back well? to for transitions, are to do and what build your to a post-COVID as Then think up thoughts necessary this thanks. Okay, you comments, of particularly in-person from new go cost some it’s Keshav’s perspective clients, on on

Gautam Bari

perspective, of of work Maggie, in from From year last have all thousands multiple fact the done virtually. clients, we existing new growth actually clients transitions in entirely and a in roles terms

here and but is have do going is is confident actually in has score levels, now and can transition we The transition [indiscernible] are comfort stay, the any [indiscernible] from past As clients transitions a that actually to XX track we fact client-defined highest we from to as a dropped be had in XX% perspective the significantly remotely. the years. easily with our with a company, it virtual clients, associated all because work the based company scores than transitioning of our transition costs what model on among

David Mackey

means we’ve transitions person, key the the that whether remotely will do; in Maggie, what appreciate Yes, planes been doing drive is have I clients on think comfort focus to transition, new here, like successfully, validated, going all one we’re but of and adapted the and level to going If to get and last increasingly, it or it to done client on and model clients Gautam’s certainly end that the we the that. understand can hopefully the their be are do comment at are to what get of has go the done us, those to is proven site based that’s to on day, model.

Maggie Nolan

thank guidance. right, the you, All on congrats nice and

David Mackey

Maggie. Thanks

Operator

line ahead. next Please of Citi. Shirvaikar go the from with Ashwin question Your comes

Ashwin Shirvaikar

to good have regards wanted possibly in that, and a examples you, question. transformation Thank to hear your of from see One to two can is is you all. if TAM, and I give increasing quarter. how you I Good digital two-part and any wanted year-over-year on sequentially and of color transformation. things pace that, ramp growing or or pipeline digital whether keeps the to of impact of velocity it and you on then ask. give I One extent can because is whether

Gautam Bari

Hi Ashwin, Gautam here. questions. Good

are what biggest of we as perspective, we deals quite a differential to and processing what seeing involve It’s the is they that’s the was what a indicated, comfortable, are transitions, clients and customers levels off The are Dave transition quite as large large in-person pipeline capabilities, transitions first we transitions, The that significantly. deals approach part started in with a pipeline size the lot more the large piecemeal is to it’s perspective, transformation, helping our between us the starting flowing what one, actually was a pipeline starting see, to starting of is getting significantly. Also medium end-to-end getting from from earlier, so and seeing seen, a increase the with number as have extremely to virtual similar now size we’ve lot deals and what comfortable of started we so these are transitions, overall through sized mentioned we healthily. planning as a of now more and broad-based terms healthy. around see is almost size are

Ashwin Shirvaikar

a as work Any in doing specific on home on process? you we and of With whole either the thoughts on things challenges in is is backdrop, or any thoughts talent attrition. there feedback that this supply attrition? specific actually commentary help that to Does from this to Then hiring the seem get building board, plans? availability terms it. are across control are side, Got Any there? supply the

Keshav Murugesh

have follow Sure up. and take that Ashwin, I’ll others

right you’re very the to hard everyone the asking game. that experiencing are question and very is is this - this, fact You space

I message the demand delivered, need is transformation the people. fact pipeline. right companies, think for smarter is for coming there shows a that for is that be need that’s It agenda kind a demand there. out is a there the to of back. There strong is and the key like The back WNS,

ensuring foremost, first and Now is, beats as brand employees work core market from our the foremost. the best of point Nothing and our I and to sees that think model, first generally view, the that for. us

reality spoke Second of rather out number of they term long the but for made thing and job result the build within a and train to are the in and than we numbers is, and hires our focus hiring, has about and keep is which continuously the been go quarter, we want to up-skill people as company, seeing enrichment us. therefore a last career

from is everyone residence say office with The comfortable getting our on that will on models. things or also of inside but work the I work models, one been talking work focusing are third we people we’ve has focused of that from also is doing from clearly been thing from about work terms home models the home in key WNS

actually in are into cities in India actually to able X rate many impact with rented also are steps can as now exciting are a to careers and an were we’re some working creates delivery company model Tier that where I’d and and company X those able because the say homes, some from of a with of Tier a secret the people’s industry that not actual into well, the residences them we safe are working that again their a X is the that to changes attrition with. positively. have from You place move understand from most or of people point Overall That home long build in, sauce. really influence is of governments of city as have actual to view, accommodations, is come the geographies, an not they point work and work importantly stickiness to this work, term that from their But in, this place the seen is and those doing, we places, are these other WNS to ensuring will homes. and view Tier

David Mackey

flow, create start roles result Xx niche pay the picks those capabilities attrition is And up, just I on industries, again, as is these think, start and what’s those compensation Is is case growth healthy our specialized you’ve this to as Ashwin, be to resumed, Absolutely, to the types The skills and it’s there opposed is normalization going increases industry to promotions right? as overall, and but reflective again, going a of having for going from externally. always or of to of added Xx so way skills? business. what seen pressure to is within, the find best in has out

Gautam Bari

been those employees has Maybe organization Ashwin, a talent really that who employing that add well, work an have because we the really gone carrying we times. taken them, just during to during do have helps that such care resources, also such I’d of for pandemic been whole and want to this attract and there, little have them hard

Ashwin Shirvaikar

Understood, thank you all.

David Mackey

Thanks Ashwin.

Operator

Koning next Baird. of Please Your go ahead. the of Dave from question line comes

Dave Koning

two a on just those didn’t as little questions. first, it to the all, hey on was year, X% in it just job. of I kind last was guys. then flattish It sequentially questions, quarter the just volumes of the years Nice year. pretty Maybe a healthcare comment Yes, I how--I big verticals. guess that know in of and five too, Thank looks guess think travel lowest have the happen first you you’ve which so sequential kind terms, XX% on sequentially, - was so I some even this I of mentioned you. ramping couple up been got vertical looked, dollar like ramps U.S., normally just

Sanjay Puria

expect were so renewals, be Yes, revenue to there, in Having Whatever Keshav a already non-recurring move quarter the healthcare we travel the that’s one as vertical, was fact not one reasons the industry in which alluded, about on of the that, some forward reduction. and we’re the recovers, healthcare quarter what as not travel vertical, recovery four, these perspective, have back perspective, said from in a there the three that as as that of so client need there was was of because From the the our productivity reasons come in contract full of transformation, back. we baked early the the we a there. digital we but sequential one of so talking was of a are that and in renewals coming in and vertical. to so guidance, part the volumes committed, travel was has reason

David Mackey

Dave, the Yes, us, did pharma contract in only our comments, little also to their largest the with we healthcare but add Sanjay’s growth tend year-over-year. little to why was bit while and seasonality healthcare, XX% was quarter the in space. so up renewals not healthcare, issue a we the with in is renew sequentially QX because do color that of see That’s vertical for just to slow a a a do it actually to have down client X% QX footprint of us have sequentially, pharmaceutical space, our the despite we

look a bit up an through so while normal. chew down quarter, a activity, we re-bookings created as fiscal drop fiscal of as to comp of on see term cancellations, lot refund forward, have short travel You the some side, that this will do sequentially little of while tough to a did a the travel again new revenues some in we little the that fourth in understand and pick-up customer we we ’XX, in as also earlier, think in we see and cadence kind and quarter abnormal. query through expectation we our saw move bit for the the as activity, But were important of of a bookings mentioned bit I to Sanjay cancellations, alluded that last that healthy some our look growth, Gautam a us start did quarter, is little

Dave Koning

That’s you. helpful, Got you. thank

one quick XX% comments so. I ’XX, kind rate Just have of tax any was for that? or Do fiscal flattish, you assuming a on like - pretty

Sanjay Puria

XX% flattish the in to You’re perspective. will right, it’s from going the be to It year of next be range XX%.

Dave Koning

Okay, great. guys, nice Thanks job.

David Mackey

Dave. Thanks

Operator

Morgan. ahead. from The Please is JP question line next go of Puneet the with Jain

Puneet Jain

tailwinds expenses outlook? for you about in but lower and Hi, for the I’d short talk margins higher that a magnitude margin talk as you will headwinds also can various revenue facility imagine about so puts should ’XX? you or incur various fiscal taking likely question. term assumed headwind, you relative initial guidance, for takes be return my thanks in of Can to office,

Sanjay Puria

Puneet, here. Sanjay Yes

that’s compared headwinds Some of perspective be [indiscernible] levels, to comes margin there. know, from we to so the going as pre-COVID, to year about this spoke a the back is normal definitely--you

facility may As increase. utilization work from you may rightly gradually office improving, on keep said, as so that

a there back. financial quarter If get some our to employee was you so will policy reversal of that in change two, recall leave did reinstated costs, during this year, carrying we support the and

that, some our as Our the some growth tailwind that’s the new around be to the digital evolution and be productivity is going there, going initiatives of improvements, of as some continuous logos between of from XX% we’re of volume what the is investments, well program the to expect, and going going Dave XXXX on the be the XX% to drive, headwinds, mentioned, is to which there. to tailwinds going we of the be to the to that’s said our operating Having level. as around be margin, pre-pandemic

David Mackey

Yes, policies quarter reversal of remember, leave million color leave in and you of little helped bit and we Sanjay leave in mentioned. which just million, reiterate When a for a have ahead our excess we fiscal fiscal to almost $X that resource, on offset XXXX, actually there, of this Sanjay second accruals to reversal the only if the said and we of policy actually go it’s $X a about as accrue the some what to we give took move for have of so costs forward year, but to carrying do now not doubling. ’XX, not

got basis leave As the point in we’ve year-over-year XXX just a change basis. the headwind policy from a result, almost on

that year talk at and that of can for at the the We’re headwinds discussed range of flat margins is what margins. margin a company we pleased of where be end to relatively sit and we’ve about for we situation expect all with outlook high here the pretty still the beginning these our

Puneet Jain

and change transformation clients digital initiated you? volume distant these of also delivery higher renewals, but on or Understood. or typically [indiscernible] represent proactive more and nature Understand high does WNS, incremental it by by visibility for the steps are these does taken work

Gautam Bari

were of actually, are with these at the and it’s in share co-creation solution end which of of WNS, What to enabling open by is each confidence the as day. number at is, other digital transformations discussions the a and the increasing right that is one to these doors of number theme wallet end a Puneet, transformation all be around the so we terms Yes of honest, building of day initiated the actually these clients. us, of permitting earlier, the mentioned the implementing our clients with for we digital

David Mackey

Puneet-- The classic example,

Keshav Murugesh

every one something for to is that clients year. a And is impacting client the that past with key across must Puneet, it is themselves quickly confidence just and claim. books on may comes something of manner, the able and out, last confidence have the existing that now about the based I decisions the we the of the in account, I’ll move finish on of partnership, these want to even themes of from has importantly from WNS Gautam that Puneet, our but these they by each spoke they not that us relationship, do that co-creation of whole shows think in relationships our been Dave, areas help that in started some to opened mention of more kind I positive end, are were mention--sorry the theme handle I these off. just to trying the now up in grown I resiliency fact point only clearly a I think to want how when

think that and is term, exciting of point I opportunities think all XXXX. the is for positive I of think I our where therefore for really that the from long view,

David Mackey

think you transformation I and drive that include in reality they’re is, Puneet, an that harmony if have to organization, to with is working other. processes all what make in the and digital you’re Keshav most each sure both trying to reiterate to want the what Yes, said, just Gautam possible do

organization looking seeing. increasing to other out, drive from down the when way for, reality to you you and that the The so to initiative If the one front you’re pieces scope, is what’s a will sit and that’s goes transformation best benefit really that what back transform into the going a end-to-end, across these going is to and the have of come is definition organization have to client to you’re office not leave business and happen digital by we’re conversations, part get try part benefits that and of office.

Puneet Jain

Understood, thank you.

Operator

England Your line the go Berenberg. next ahead. of question comes Sam Please from with

Sam England

Hi guys, thanks the taking for questions.

was just in to was have environment The and follow-up head the healthcare into wondering the the vertical term, the that, going the healthcare of XXXX? linked of is expansion I just sort first as on on you longer thinking fiscal one for about impact to healthcare a vertical. pandemic BPM pace how what growth we are

Gautam Bari

to continue bullish to Sam. We be vertical, the with healthcare regard

activities In fact, the care terms definitely is in of the degree also companies, there while some to we BPM the of our to couple is increased companies in what growth have side spend from do starting and to to what are customers. equally years, to care cost least the provider are seeing we science the of life provided see business as an and the the whilst and these expect digitize reducing of to the continue at more space. next innovate is momentum more anticipation look We of with is

David Mackey

have underpenetrated significant I key up through vertical, the that of very side. pandemic, pharma pretty it’s result device we’ve and activity despite provider, are always the remember, the and space: healthcare four the and payor, immature, think levels elements still seen the the that the is Sam, growth this the picked opportunities to important across a healthy as a the the that Yes,

and Gautam mentioned, are, really value for as huge bullish to for clients. create really opportunity we our So see us

Sam England

in of thanks. deal are a place planning India, you’re do the last some given disruption delivery it now was the wondering cases that were you’ve Great, over the than in you pandemic Then rising renewed because at think the with of year? follow-up, just there, seen reported if done to concerning better start I you’ve over you the over any being of or

Gautam Bari

learnings the see Sam. It’s us the helped phases Absolutely rising earlier delivery has so prepared reiterate, eventualities to manage the COVID across locations. be from minimal now, better to minimal the disruption the of cases again We despite also disruption. multiple because

David Mackey

to people terms of going over three, some are months, think see--as Yes, number I we’ve we meaningful pandemic the hit, the of the swings you have seen in this last four Sam, you averaged in waves of office, To great in we but for to service example, a little over of XX% the ability a in of very our fourth and give quarter. small deliver terms clients. swings that delivery

today We’re as Philippines in XX% office from a for and still a we the today little XX%, quarter, work but seen the over work-from-home counts the model, delivering have the so at XX%, about our peaked to clients. consistent. we’re been it’s impact had and up, in at so But case our have deliver move is what we have that not picked more to India do ability people to fourth

Sam England

Great, thanks very much.

David Mackey

Thanks Sam.

Operator

Vincent Please Your Colicchio next of line with Barrington ahead. question comes from go the Research.

Vincent Colicchio

the ramps? update deal provide pace of on you guys. nice Yes, new quarter Can large an

David Mackey

change. real take I’ll that, No Sure, Vince.

kinds there’s disruptive are up. they that organizations transformational although is and things slowly, going so exactly things to and to I they for want sign very of deals, impact to bit how are taking plan so approach I to move little this large they their a slowly. organizations, clients of be are transformation to want to But well, them, think moving want still the certainly understand that the here for may a think picking the been that clients

clients new the real very deals. terms no the opportunities large We existing change logos, with of terms in are and acceleration pace expansion in healthy good, the but on seeing the transformational of smaller

Vincent Colicchio

more do strategic you any become could clients? some of could of that? takeaways, in provide think the of nine color large clients terms added the these in these on quarter, you Were And any new

David Mackey

I of or can logos of in pipeline. represented. say there logos, of broad-based years. again new insurance, retail, that. in one potential two shipping the Of in added sizeable in that kind over new banking, the multiple spread these next for utilities, would new the geographies, represent healthcare, the were of reflecting is nine we’ve and news good take broad-based across We in to The health growth The seen clients were what logistics, similar nature before. the I and in of are verticals several our so us pretty couple

Vincent Colicchio

color. the Thanks. Nice for guys. Thanks quarter,

David Mackey

Vince. Thanks

Operator

Deutsche Your with Please ahead. next question comes from Korey go Bank. Marcello

Korey Marcello

Are question. us, for starting become? through smaller year-over-year of guys, any Hey that. start is of about there comparison can deals Then are just how kind deals talked lot my that? give the to of of toward of thanks could deals sense given some of deals of the was taking on curious, you a total year. of those apples you has I signed basis? Just apples kind just size of kind a but to see those expanding accelerated, Any you’ve ACV large to people number the sense maybe some kind move

David Mackey

I’ll Sure, take pretty I we’re Korey. Look, the think as what new that, terms signings. said, pleased, logo of I with in we’ve seen

we’ve TCV we’ve continue metrics, from to really do in do been in to what bit names and existing logos, logos do in be there’s deals, those more are exciting some top have what our transforming the at both and there these signed there and for opportunities four TCV little of is of want XX. this to in talked these what be opportunity terms transformational with. is historic some both of smaller top their they years, to there, year, down a of new that with to several the ACV say to about, continue more is large changes start their over next three, If is levels, think is when they ACV certainly you see continuing going but upside to because and I organizations In as customers. they WNS, XX signed look terms path albeit larger for sizeable of to potential the intention we them they run move ACV,

Korey Marcello

it. Got

Keshav Murugesh

little a add there. just I’d Yes, bit

in, the is itself, we company, them, at each think activity have the during and really areas that you last that seen if answer place and Dave’s neutered to exciting starting are of industry COVID the in have in time operates shoots in look may of actually back for and of one to green the bets pandemic we the second therefore during point at fact verticals look at new transformation when the traditional clients attempted going this for part after you year. of may I going normalcy not all of WNS and seeing kind now they their terms is because some

the healthcare For COVID in you on services, been people for with globe side, example, the and new the lot year have people I geographies, focused come insurance see essential a to seeing the taking those thing these back now start Same that just they outside, to think their activity nature brands vaccines regular the the like many actually are activity starting these but and where you starting retail have we reality the we’re coming on completely and kind the we term. are bets across logos, in a they people almost we vaccine focus a fact that at where to their and areas some potential managing thing have that bets, see for look they creation, areas. reported in companies and global lot about interesting those outside with side, back CPG that and traditional Same the all areas. investments. work seeing are to in they while we itself traditional small, and are, of deals, what and on the the therefore is earlier, of of actually may long a huge are will when focused spoke is news lot managing about of clients the ignoring therefore confidence are starting placing the

Korey Marcello

color forecasts those thanks help guys. I know things I on gains there way that? any it, on how might to Got forecasts us how guys some quarter, quick understand can and that were travel. a you I of like as you give wanted expectations just on question, pretty have about you the way if but with us down, and conservative those in be? lot for of that. can hedge that a just the Then Thanks spoken up made kind Is recall Then conservative. FX a follow are those the the clarification

David Mackey

to go start--you let’s so want Sure, ahead, Gautam?

Gautam Bari

a make are forecast of Yes, in of quite country the and undertake. the we on the given countries COVID that extrapolating and number of the conservative have of the terms to that way scenarios basis. country at to travel changing moment on have yes, lockdowns course started the at have The domestic the the is they travel based they waves companies moment, started--we

that consolidation number of done with of--a in clients The positivity second these have lending vendors towards also the of is area also across been of a forecasting the in has these have a which actually from terms us. perspective forecasting vendors terms done benefits that the number mechanism

forecasts. conservative, continue So we increased broadly terms the to of see yes, but momentum in

David Mackey

that’s flat seen clearly change, seeing expect. in a in up forecasts is reality, had a of opportunity exceed fiscal the volumes execution part pandemic, What declining kind ratchet get at volumes period and point into all what reason the and closer we our Yes, have clients in during of closer we’ve to, the bit that to little in to we case we’re closer that an showed actual with got date. a guidance forecast that much ratchet to what that or to so guidance. those XXXX is the travel incorporated this We’ve they what the behavior they originally a static the they uptick are would that now included and our up have of time, as committed of result as the ability over that

Korey Marcello

helpful. very That’s

Operator

the your Thank At no this conference time, for today’s call. questions This further have queue. participation. we will in conclude you

disconnect. may You now