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WNS Holdings Limited (WNS)

Participants
Keshav Murugesh Chief Executive Officer
David Mackey Executive Vice President, Finance, Head of Investor Relations
Sanjay Puria Chief Financial Officer
Gautam Barai Chief Operating Officer
Bryan Bergin Cowen
Puneet Jain JPMorgan
Dave Koning Baird
Vincent Colicchio Barrington Research
Ashwin Shirvaikar Citi
Call transcript
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Operator

Good morning and welcome to the WNS Holdings Fiscal 2022 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

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

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

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

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

Keshav Murugesh

everyone. good And David. morning, you, Thank

XX.X% for $XX the reported currency. new overall Net adjusted in in [Indiscernible] We financial fourth relationships. a details fiscal quarter XX.X% are by our margins fiscal revenue and strong results grew million representing expanded the will adjusted XX fourth year-over-year. and basis came logos prepared WNS net a fourth-quarter quarter, Sequentially, $XXX constant a financial in X.X% of existing added performance currency. XX.X% X.X% XX further WNS's on also or In the at XX% company full-year fourth increase and and remarks. reported performance million, pleased the EPS basis, delivered and on of with increased constant revenue quarter XXXX. in provide on our operating by his year-over-year and

While executed company without extremely past financial the not its solid delivered was year, this challenges. well fiscal XXXX results at

our and year, in The across During resulted and from significant WNS surges. clients, work office from impacts global well. back shifts of delivery the omicron successfully the including pandemic-related rates and locations, the with key XX several navigated as delta volume forth changes infection fluctuating and volatility business work home, between

rates. Despite organic, delivering created impacted XX%. supply attrition $X obstacles, constant XXXX currency milestone beyond revenue compensation increasing with these demand addition, year across the for labor growth combined more billion In resource costs, company industries a pressure, accelerated WNS. than global fiscal of mark, was which our The shortages full-year and digital

Our highest rate public since XXXX. becoming company in a

our represent XX% year-over-year, segments high company XXX global and including WNS our pushing In serviced X,XXX pandemic all margins disruptors the while the net our cyber of managed supply these re clients global growth of were was security, added business, clients. digital our also constraints, from successfully progress levels. BPM total these achieve servicing and skilling management, industry broad-based areas across and to existing WNS leading requirements, support in than the XX% continued fiscal domain perspective, relationships, in revenue. XXXX, and revenue delivery We consulting at evolving a make internet-based expanded now In passed employee able and margins training the Full-year more volatility strategic addition, solutions, mark. revenue resource we XX.X%. analytics, clients, grew From top-line XX signed rapidly related maintained continuing our to - record such of necessary which investments base. XX,XXX of as expertise, In and advanced new headcount enabled transformation, technology digital and represent FTE employees,

past for and grew home corporate at Gender-Equality able Ukraine. displaced our and protocols and This the adjusted to WNS the than enhance cyber including with the office on efforts, front. our pleased emissions, diversity improve our models to a XXXX as during support XX% WNS both ESD a welfare Cares responsibility I'm through progress to EPS reflected in in As metrics in carbon prioritize the the was result social to also take make $X.XX. reduce more in our global Bloomberg inclusiveness safety Index, expand year, continues of Foundation, families steps delivery fiscal security company employee’s for and efforts XXXX our pandemic,

efforts Global is the additional evaluating ESD actively off initiatives the science-based standards and Compact our business. kicked towards most in adoption to which and has of WNS relevant frameworks, targets Additionally, United are Nations

second our report also We sustainability plan corporate May. release annual to in

generating include and help to enhance for look models, to well optimizing new goals. business enters business is leverage a see domain, streams. healthy strategic this opportunities to continue are decision-making, top build, increased decision and automation including process differentiated to for solutions, positioning firm we and and environment, and robust help revenue leveraging run clients BPM fiscal need performance, can end them also our clients and with to leadership, as experience, efficiency driven with excited The by analytics technologies, key Today, being who the we their achieve cost, and business strong and in a With market. about to top-line expertise, the the their WNS access with beyond, healthy WNS, fiscal customer the WNS like improving demand demand BPM and technology demand of fiscal recognize as clients' momentum. digital specialized XXXX 'XX to backdrop, transform Increasingly, data happy processes. we're their the pipeline a momentum. as partner design, in need While for speed partner talent, equally favorable The XXXX market, objectives

past to opportunity, us $X farming strategic these $X clients the centric analytics, currently transformational an forward deal million digital offerings. pipeline few clients and directly expanded logos of is attributable relationships Our provide clients $X years. the which acceleration in Today, - across large existing including relationships. more pipeline, XXX more and with We're has BPM reduced signed geographies, initiatives. opportunities we have the of we result million is These is pipeline to expansion which and is broad-based XXX of than over and expansion of continues the been. help excellent annually. seeing a opportunities it pipeline and domain of only transformation, new farm, for for of the higher-end sales verticals, healthiest the with services transition these million foundation the The towards services, Part generating cycles to also end-to-end solutions, growth ever their health advanced and consulting move solid to and with as

has growth travel growth exit or continued with quarters. to which our our we over to WNS improving past also opportunity potential as and accelerated has fiscal recovery momentum, the three revenue our existing currency with when the year-over-year in the add having return. XXXX top-line for addition, revenue X% vertical, In rate constant volumes

must well as vigilant well remain highly respect visible momentum labor Wage as the to benefit supply. of added and this attrition. as challenges as comes with model. recurring business our of pandemic All company, inflation, said, volatility That incremental we related being as a resilient in with

disciplined evaluating successful to In will for believe in invest the place never we differentiate the We on our to opportunity which the remains The as long-term you, and has strong pipeline. accelerate value Sanjay market WNS our global to continue well-positioned BPM communities. have extremely and on and sustainable the both we fostering I employees, will us. enable business, in are to over Sanjay. working this driven a healthy long-term approach, further has space. focused, am by proven sheet the execution, to capitalize and to our now best-in-class as believe The better. our Over summary, CFO, right recognize we BPM digitalization leverage company well opportunity. also organically diligently corporate opportunities confident inorganically, our well call M&A balance as as need process would capabilities. services, turn for be we results, I And built to our to outlook. for discuss a in this Puria, like assets, our WNS company investing the been deliver find follow clients, We continue that to and driving based capabilities, to efforts shareholders, And culture to co-creation. for business that will to has innovation our focus on of these that

Sanjay Puria

quarter, leverage In $X.X with facility fiscal net year the as quarter In reported XXXX and growth to by of Adjusted was hedging. in and quarter, as Sequentially, margin compared a net leverage effective on $XX.X the sequentially, mix. adjusted XX.X% improvement productivity, geographies, travel WNS, same negligible $X.X the to and $X.XX profit last debt driven last $XXX.X million, operating income basis and and quarter than year, fiscal the employee four existing from broad-based fourth $XX.X X.X% down currency and million, X, of of margins The to margin is the operating XXXX in work on income a increased XX.X% from movements quarter. last of wage down in increased quarter the And offset favorable and expense of per represents of travel and costs. variance changes higher This year, basis. and share constant net [Indiscernible]. across in expansion revenue, high-margin Year increased higher million new from movements both our facility in net a was increases loss of X.X% net expenses. currency in interest cash fiscal on and adjusted revenue interest income compared were volumes, of short-term net million and you, posted quarter same the leases and from and of tax X% net net interest Year-over-year, benefit as other million $X.X as income million revenue. at recorder of currency revenue year-over-year, of million the tax margin and and same $XX.X changes most growth, by incentive quarter came earnings last revenue XX.X% driven Thank diluted was effective volumes. on a travel last was lower is geographical and for in variance income quarter relating These services, income of XX.X% million higher increased higher facilities. offset additional last attributable to rate of balances basis. result tax X by in operating up revenue, increased and quarter. compared year, of fourth sequentially. the G&A tax expense company's $X.X largely quarter. XX% cash fiscal related expense in by greater company's at the in quarter result in XX.X% $X.XX quarter, a on volumes, Sequential mix for high-margin of rate short-term related improved repayment. and This quarter reported Sequentially, more last WNS of relationships, logos, XX.X% in delivered higher result result was and verticals, favorable operating reported on our fourth quarter. and increased in balances. are the Keshav. interest benefits net XX.X% increased last over short-term costs high operating million fourth The on WNS quarter quarter year-over-year came and Sequentially, Adjusted the X.X% refund $X.XX XXXX constant of $XXX with the four the on X income up currency

coming a which seat will attrition are quarter key debt. this the As in from cash stable, from $X.X our of seats. attrition provides at not Authority, of infrastructure fourth previous the impact driven a by days, the and at We up verticals broad-based growth incurred across revenue ability new I investments $X.X revenue as Lanka billion in March expenditures. of Zone activities given year meaningful XXXX XX%, fiscal operating office. typically and came $XX,XXX not operating would payment made expansions. before reported to employees in Economic in previous quarter primarily other quarter, in discussing fourth like or generated growth. and balances and scheduled the an at our quarter XXXX total debt four in With XX.X% came coming in $X.XX end impacting clients Built four. XX,XXX the financial XX% and Philippine organic the the of or as Net additions quarter. XX reported XX% a with attrition believe quarter XX, existing same Full-year XXXX, quarter million, this most cash constant globally from our The WNS focused increased for have total company outlook that up and do million at WNS of at million of $XX.X service work no fourth in logo that quarter. is by client services. return fiscal brief from [Indiscernible] last rate the quarter the provide of in to metrics, the capital And XX% in now currency was to year. levels million of to capacity to on on quarter $XXX four the services elevated DSO reported year company was and level was both utilization increase and summary you fourth our at the and up geography, strength in respect at on spike The by productivity, operated last XX.X% quarter was driven of in company metric, both in organization junior home hyperinflation up headcount of seat requirement measure in the was concentrated the The accelerate basis. Sri the and in end and basis, the

at wage XX.X% increases, In pre hedging. and of came improved net XXXX, currency with bolstered cooperate short-term a period interest higher currency XXXX. movements related addition, travel adjusted interest easing were restrictions, in tax $X.X interest and higher favorability The movements expense by margin company operating from by and fiscal in travel higher offset fiscal in [Indiscernible] WNS, XX.X% on top-line operating leverage partial cash was infrastructure million and a non-recurring of Margin of volumes. net hedging renewal improved policy, [Indiscernible] down XXXX pandemic from result recovery other reported income reduction operating And expenses -pandemic high Increased and associated [Indiscernible] full-year net on a volumes expense margin slightly by refund. of lower debt as revenues. In that on balances, leases. fiscal income on income

share of by of geography the million. Our one a a result $X.X for revenue one-time effective of stability, tax quarter last interest margin lower cash. a rate, per improving income, operations XXXX, full-year $XXX.X XX.X% In free tax share, from coming the million resulted our cash and in $XXX.X reduced company in at diluted generated in adjusted million XX.X% down combination growth, of higher XX.X%, mix and year as tax year, in effective was benefit and count rate The from solid $X.XX. the a in profits earnings fiscal

a ramp is range XXXX or headwind non-project million implies not volumes $XXX quarter dollar to Rupee million rate At a The full-year growth to ended of the basis. of currency per for balance $X.XX levels. of guidance of year guidance share, XX% year, fiscal for share X.X costed off in net factors fiscal requirement approximately to on the of $X.XXX dollars is based $X.XX we Revenue provided revenue, million. which for a be WNS Consistent a Full-year levels, $X.XX, revenue range the productivity $XXX share initial include guidance our cost shock adjusted stock of XXXX. open EPS X% to press on million for guidance and XX% made expect debt $XX.X which fiscal billion dollars, Based currency repurchased million of net year-over-year an cash billion to a our we today, be our beyond current with on on Operator? our call in This U.S. or previous historical visibility or dollar expect now currently X% midpoint $XX.X XXXX XX million for assumes and growth visibility to the pound $XX.XX no issued initial WNS WNS million constant XX%. approach company's capital which in to scheduled range, expenditures, the visit, We'll approximately average adjusted exchange of currently shares at reported level million a drive up release spent line count shares. expected assuming years, per capital four to diluted of fiscal uncommitted of XX%, of We During guidance have represents $XX U.S. million. questions. year and a does respect $XXX the in $X.XX XX%, XX% our [Indiscernible] expenditures, commitment, earlier income in British the representing short-term to XXXX. with With revenue midpoint, debt. net down, XXXX the Fiscal travel be diluted and $XX.X $X.XX rate. approximately of the on payments to of to improvement exchange to revenues. has $XX top year-over-year of any

Operator

everyone to question the please one Instructions] participate, to In and the your limit queries to one call interest follow-up. and [Operator of enable on time

line with Cowen. of comes Bergin Our from the Bryan first question

open. line Your is

Bryan Bergin

XX%, ask break you think last in I that I to had proactively question Thank the year? commitments, just for as others? productivity that more included there us XX% down with last you doing any addressed number than say a level a -- commitments, 'XX guys. can wanted for curious Sanjay, versus this that year heard again of I you're think the as know you're annual around headwind I assuming just you. Hi, year, number if you And productivity the I clients a far but larger

Sanjay Puria

productivity. the prospective some short-term than the including X%, overall one as [Indiscernible] we does yes, where revenue [Indiscernible] like yield visibility the of drive from X% ramp opportunity. extend the of lines our to XX%, that I'm I moved in And right. a number relationship it's down and due the to then off mostly -- required from the has of X%. of say the to X% productivity it's have relation Africa, He don't X% would digital ramp the of approximately South to what just you're helps just about, more good proactive spoken and didn't well perspective, had from normal we relationship versus from mention also we as the it But already ever are in a interventions, to new client. from just X% X% grew

Bryan Bergin

margin trajectory unfolds think go about through the far as also, Thank the can office assumptions, this to that down. margin how And midpoint as the that factors right. we trajectory at fiscal that you. breaking return operating Okay. as about margin, year. on here And be assumptions? how to just inflation year-on-year, to for supply down All talk just Thanks driving you just then the

Sanjay Puria

through at are Compared for our -- the guidance to have what remarks, well assumed the which coming the is that to stage in the from of back as as is high of well in travel some in driving XX% at as did XX% Lanka, digital couple that. higher the going margin we'll office, of the we'll as have -- it's be right lot we operating and our we this which there And my now be year, perspective. sales have a having -- productivity, end assumed next a and really what lowest the at at growth, by we due what including investment accretion have journey year continue year, these mention a prepared factors this things I the digital But seen and driving about Philippines Return is been Sri our because intervention a levels. to of the wages some perspective. of the our from

year have are points things the So, we almost with not is one year -- margin, have of not high contributed basis we this factored. except we XX that what of as some ad visibility, factors factored short-term revenue, have there was that other don't this the in those the not during

it but down, to So comparison to you as better visibility, expand forward, just right are there of move now, few year-over-year a a have points looks it's we some basis those. opportunities

David Mackey

seen is the that to tends share don't extremely it. to said because guidance, with be what we Sanjay reinforce revenues revenue don't aware revenue think short-term a that outcome-based. result it's what when I we've we coming full-year from and think high X% obviously, gained don't everyone's every that's our its goes also just or And high-margin that, because that we add in year of a we've between give guidance, associated we include as margin and that that. include to that that that the X% Mark, include I margin with somewhere top-line message, that impact and But the there's averaged

we we $X point, which 'XX, that Sanjay's So, overall basis of adjusted XX was this the XX.X. contributed posted, million revenue operating Fiscal margin in about short-term to had points

So, big of posted. of it numbers margin explains and that guidance the we the line on the the our Fiscal really end that 'XX between at the kind difference

fourth think step as We you marketing baked will of including covered, you quarter, We really investments nine Fiscal have these are sales bit And at that pretty kind salespeople a kind us important in other the which but the I as that really thing force. margins, some end added sizable us a Gautam 'XX. see well. in expense maintaining both see what's do of investments we're the really into didn't and affect and new forward. to function Fiscal affect quarter, mention the want manage the accelerate in growth chime in funding The I business fiscal we're the 'XX, to and allow going can here of also of little are of our kind but fourth is some sales it that

Sanjay Puria

investments Thanks, David. across which with as David we cycles Yes. new across clients especially some reap the hunting also streams, in have transformation digital, see and quite And farming the existing board clients, across all along just strong Actually, the regions, alluded, momentum us shortened, the i.e., talent early APAC, with with U.S., our U.S., across the streams. our helps Europe benefits that and and and U.K., increasing hunting actually and on.

Bryan Bergin

it Is thanks. right, will we go through upfront? build assume to absorb all you that these the as as year margins Okay, fair

David Mackey

range. this to effectively down terribly so April not uncommon us. margins are Bryan, the looking But the revenues be up, first, in clients well basis coming and are quarter, set which at give the to and a which got increases, that flattish revenue first we've We've of see revenues pretty correct. effective the be headcount absolutely first obviously in impact in of business way got our look surprised to of for Yes, you severe we short-term we're got at a margins as commitments we're we QX wage on, point of we've in as the our the flat drop lack productivity impact the the quarter-over-quarter, yes, that's the to decline. inclusion Wouldn't sequential XXX XXX for quarter, is

XX% of the midpoint noted, we margins. at year, we obviously, growth as the As any and the without the throughout should point move build kind finished at with, XX% both we top-line to just the and we currency where of revenue acceleration this constant short-term margin

Bryan Bergin

Thank you.

Operator

Our next question Needham, with comes is from your open. Mayank Tandon line

Q –Unidentified Analyst

[Indiscernible] is on on on dynamics here. stands today. I'm the Is And a about strategy And more congrats and mentioned you you upcoming question, I'm just attrition? [Indiscernible] little attrition the bit eager last behind guys Hi, for over if attrition, the results. I [Indiscernible] you touch Could so, XX% then two this to taking a the Thanks for next that little this the talk this the can for only stabilize the actually hitting what year? expectation quarter, expectations the quarters. around still know number? level first

Gautam Barai

to Thanks. continued in Gautam is to actually is of stabilized. significant what -- add over of is lower number wrapped elevated last centered what have levels of experience This Look, levels is over the significant has of here. interventions we year around actually attrition a the course made But up. number the there -- a our the of attrition. And we

our and we models senior attrition And train have the reduced unique maintain clients. mid to of quite ability estimate recruit fact, our that about new across In our to some some to terms not skill, of have in that stuff. issues and delivering to for train level along our with also our of We the not we hire, deploy good. is do standards see and give actually seen any

Sanjay Puria

attrition to digital have on site, lowest really said, because come we worked made, down, skills, has what the levered what and add Gautam or absolutely all the the has the it's on on whether white seen intervention and primarily data on the technology. the Just we the than other new

on in Lanka, So, of on drawn this which wasn't as Philippines, to my been issue super two the there's just did price perspective was I mention exemption by in the One remarks. factors where sort a attrition, of prepared southern primarily from attrition a from driven home an been a hyperinflation. employee as from that geopolitical has Sri reaction perspective regulations where has and that well walk to there's higher

percentage the And as soon to as believe this and back some we normalization, towards So down. that reaction settle there all down back come has should that. been this will attrition

David Mackey

to Both is going theme as everybody and some a important Just numbers like Gautam this was a factors and it objectives it Sri what's objectives to we the It's attrition look WNS wants time, also, Lanka, doing to performed from. elevated And important to at common employees was but it will business this about surprise want clients common issue obviously model, anybody needs growth be bit, Sanjay of the this terms the respective will. the it to be aligned normalize what's I of add don't and not think our little Philippines attrition known and and was going over in look in be understand understand. is company, our something may talked from, important is believe the and as thread, well. the think where in I which it's anyone how objectives that with they quarter, to at who kind a short-term. the a work we in to on a work they that to something with regulators, the have where because when an want of work to geographies is across so obviously local our of that us that you really industry of of

as very in of able long point, run middle our affecting maintain we're lower the -- be to know tiers, is like this our So, in knows as of point, into some are, to as the longer-term. attrition that as our there's honestly, look at the to to as it's volatility those And Gautam's as new what in to business. long levels not anybody the organization, and I normal but settle at we upper to attrition going don't numbers going people kind ability an business that, comfortable our organization,

Q –Unidentified Analyst

how year, Got what it. coming a are some little and the environment for the for helpful. looks the you're just seems And seeing of nice the demand sense. levels? and about bit out the -pandemic pre area growth saw quarter makes then upcoming you pandemic. Could that vertical, travel this trending talk versus nicely on guys to be what here, really That Thanks more expectations that. That's

Gautam Barai

Yes.

So, due from is perspective, One COVID we're a and our This the back of are back the we has factors. - to which pre to the in across terms the is levels that come the the what travel pre almost almost - levels COVID. agents travel to normal have board. vertical is processing volumes domestic seeing two

along as that to increase should start of gained volumes have new lot definitely and our with that across continues does business see leisure not potential two the take new has increase increased to in last more. the up is the is and this terms pick residual we into second our travel What volumes. The account that the travel increase processes years work a

Keshav Murugesh

of healthy Gautam touched performance when this the maybe look clients. just travel -pandemic performance from bit, to from When that at in add expect at for to -pandemic you. The of when almost there's some healthy as of it's believe pre the segments that and existing have growth when for kind still addition both of you other the key volumes. we of But And we today look manage like really our in our that little level, of year we note number you expansion driver Also, we mentioned the an move new of had of and some company's 'XX, think recovery you I'll logos forward and the that expectations of the the opportunity while the at impacted. all on fiscal processes some entered our international X% key we a the vertical. do important adjusted you sectors been look because for travel perspective, we that, pre of has the revenue I for different least driver of

reality adding We of that by for a new business as those standard number our honestly, don't vertical terms a Anything health processes normal to company, a that's up as travel ton and forward. through approach driving is to this business. and of fact volumes their But vertical So typically pick we The what's control adding a we business, is over processes we our we the that the by because that digitize our clients have in needs we the of grow path grow by adding to are business it. ELP manage. their grow bonus don't move growth volume. the

Unidentified Analyst

questions. the That's super for helpful. you taking Thank

Keshav Murugesh

you. Thank

Operator

Maggie comes Nolan Blair. question with next William Our from

open. line Your is

Maggie Nolan

to Thank some conversation up attrition. you, a on nice around quarter. of wanted I follow the

your hiring in some what's on offset projected stabilize differentiated on ability of how the could going elaborate you're bit You can a confidence that side doing? hiring this what with help and on to attrition? It's some little you

Gautam Barai

is Maggie. This Yes, Yeah. Gautam.

what is the have, train we So, domain that And for requisite to from specialists which is can it is of academies. our our of lot hire’s attract center over industry we us clients. do our a manage gives what pipeline able have we a each programs, in than through them structure, learning does, point to verticalized norms. right healthy then also, lateral our And and through period What have the we're and our training of to terms recruitment what X verticals it deep talent processes due of campus strong XX a programs, processes. lower weeks of

David Mackey

despite Gautam's to if also year, net of added the XX% for when a not basis organization, happy we with rate we proof, employees having attrition a a kind will, quarter. attrition as having you than having during we're you the Yeah. Despite XXXX look in a Maggie, the I XX% rate, an XXXX that XX% would the quarter. obviously people. But comment, at add on more attrition added rate

engine driving our doing than is more the domain driving really the losing are Gautam's demand, advanced digital, people still supply. look of to -- the the people, that that knowledge, The there when right? to fully one supply business, with excess enough there's capable analytics, point, meet entry-level actually that. not people long you're as as the are to And you So, at seasoned is

need It's clients. of multiple your support run talents still as you that finding that for we're you you role into real we that chain the to So, the hire. move to able challenges every interview people kinds up with

Maggie Nolan

had are you onset to seeing year? David, mentioned this compare those And including the this that year. and growth additions of thank important many long-term strong are had Okay, automation how then does how what really like to those that quarter How you. the last and client were you additions you and analytics client things from

David Mackey

look very color, it's additional here new but I in with some and profile, logo every of period. a adding, we're that think Gautam part overall chimed the when at you clear that is digitization

would the stuff but component front specific not the analytics have the involved say it's depending Some even but work that or than I for end on that's others doing, we're of industry type more well. there as a a there's to embedded to processes clearly sold in deal, analytics are that everything that driven, as we're F&A separate It's is analytics doing. those analytics on

Sanjay Puria

Yeah.

all which be the deals at year-on-year part to transformation to almost want is expect which of digital, -- way an strategy our have And digital through or the the add tech, Just of a of the embedded passed is said, provided Dave nature where portion is increased outlines are sizable and structured what is our which infusion benefits which that this we analytics only to analytics basis. a of actually clients can only that drive, moment deals see analytics. a through,

David Mackey

or logos is also new Yeah. our new a Maggie. of seeing renewed it's that as we're the talked because existing not We just that What contracts up year of seeing last the about to headwind logo because ongoing across is clearly is clients, another we're business board, either, come structural. into have. year-over-year a why that And as productivity we logos year walking which having our It's discussion on we X% X% so headwind our every that the this the It's -- the have or we in see discussions through basis. improvements accelerate automation they're digitization and technology to we those looking early. involved with now

Maggie Nolan

Understood than you.

David Mackey

you. Thank

Operator

Jain from comes question next J.P. Puneet Morgan. with Our

open. is line Your

Puneet Jain

Fiscal Yeah for Can as in hi, taking strong the outlook review [Indiscernible] those you verticals. verticals? my really was two performance fourth also clients in about of for talk Obviously, and in travel insurance growth well and 'XX, healthcare thanks as quarter, question.

Gautam Barai

of momentum and strong clients. continue across Yeah. Again, both to in insurance see healthcare, we a set broad

again, to is than next that to quite number these the that the we're deals bit XX what a a healthy time continue both fact, is of smaller the course both the continued I over large deals. these is for prospects pipeline these the we've about come these short-term, excited across two. with and of But in we verticals months verticals it's longer interesting increase, In think the seen closure

Sanjay Puria

have growth perspective not just in add we to And we just there large the proportion the productivity actually and their did the other the clients do. digital did commitment to insurance mention and What seeing maybe year of one the we quarter last couples the of some in had Puneet, of to the and renew from referring it from verticals, intervention.

to the vision we move we we alluded And and as said opportunity stickier as more going as We forward, are expansion better in is more [Indiscernible] as as but see the to debt process, is well I making that move Gautam more around. accordingly, this are much forward. traction

Gautam Barai

are we're an restrictions -- to add, coming volumes just uptick restrictions to see starting starting on And to reduce. through travel, COVID-related travel as also and the road in the restrictions

electives different has and volume treatment geographies. discretionary the U.S. claims started to across So, to has across surgeries spend started increase increase. the The in

we sales as across an these. of these volumes increasing, both our see capabilities increase start in processing definitely So

David Mackey

of the And broad-based pipeline. think talked the at health of the about the I we day, end

that get. our like growth fiscal This as what is 'XX did I with retail you last the these had think is personally a as growth nothing exception remember confidence not and obviously, the from African grow I which in that of there's And clients, when South segments, looks XX%. you year we will, look a single and the year, if you're to vertical, verticals this at pretty large take think, healthy you we the based had 'XX isn't at comfort I that fiscal out of there manufacturing us had across because one timer, some double-digits. ever perspective vertical broad can't starting going about the

Keshav Murugesh

lots verticals this the revenue personally -- pandemic who the seeing not actually we're spoke just and deals bandwagon. has analytics, specific momentum not. based embarked during this in while of deals think two to spectrum, broad actually little of add we or Yes, we in seeing reality want We're said we -- what a on journey of excitement the you I across prospects, others. momentum of about we the actually seeing seeing bit actually lot traditional your now digital in case created outsourced are about verticals in deals clients have that putting terms transformation this on automation, area, questions two a is. how for and actually not I way operated is, certainty on and just I had We're been climb about this and broad-based clients actually focus the a The

looking names So, sales my we business spoken are before to that that every variability. what are now predictable telling with, outcomes that the even what seeing, me prospect interacting traditional not is for times they're we unpredictable had before, and people serviced are in or

want themselves. leverage tech build for completely of All them models business to new to

I we faster must has momentum. Everyone opposed drive to All resilient pandemic even and of like if more And let as so these therefore partner revenue, We planning traditional models made a expertise some will go this partners business in build point want it in not must it are cyber's are involving wants the terms working transformation this in take to to BCP. for operating us to outcomes. all momentum become at and margins grow the think the of are after control continuity of with looking growth. the ensure compliance them the because we to that spoke point they have in of actually at them and their broad-based And of opportunity involving, minor things of time. taking things kind And who we've domain business time, we that times care like drive investments means and get that. finally, safety leverage uncertain helping said that hit we this a leveraging in about the of agenda that past,

very very, So about this opportunity. excited

Puneet Jain

wage of and I Lanka, this the level hyperinflation for Sri about year in talked talk expect seeing inflation Philippines, you can you you on And then about wage inflation. also in Thanks in know the India, U.S.? clarification. second

Keshav Murugesh

skill, we in X% it have really year will the the an was known X% heard new for of has fact have because what Historically, always be around this of all an starting the expecting across But some intervention, this to it which high geography. inflation as So, spoke XX% to we as business we as year. be average and all do was providing is inflation that perspective, and we to results. about next be overall, our from the

So, now, average XX% guidance been big. our as an has right in already

David Mackey

Sri that was just we issue living talking inflation were the wasn't clarify, inflation Sri inflation of Lanka. to the within in a then issue wage standard It related that an Puneet, about Lanka, issue. And overall to

result, has Sri bottom inflation out the meet, expensive Lanka. of line employees currency is a things the are So, given has have gotten dramatically control. the gone devalued, how in obviously make country And that as struggling in ends to

it So, it's the spiked. wage has inflation the countrywide wasn't for inflation us that spiked,

Puneet Jain

you. Thank Understood.

Operator

comes Dave from with Baird. Our next question Koning

Your line is open.

Dave Koning

guys. good job. Thanks, Hey and

I that It, calendar at quarter of we a a quarters, like relative all, did XX, first only you So know of on incremental again, in prior calendar incremental really great you just you the travel did of to processes wins XXs explain XXX% a explaining and look it job revenue does XXX. do. of kind the

little So, that relative just better, dramatically And you in a the travel huge but acceleration got had the of kind in bit market a performance. quarter. and not

processes and wins sequentially. So picking of up just new that the new not really explained travel fully and by kind kind is of

David Mackey

Absolutely.

Keshav Murugesh

Absolutely.

Dave Koning

that's that's wins kind of those in Okay. growth, Wow, are organic growth, incredible greater. just in

David Mackey

and how vertical, move digitization taking about ourselves advantage to were that Remember, offerings like the so automation. how allowed vaccine all so of to things we and in cards clients that we on reposition talked lot for require travel to forth, of because pandemic and how a kind service create forward, the help

have that they were period right? quantity did of and of we've we able result, clients as work of added efforts us number And our types the and happy very, very of gave as we're expanding the time this work with that pandemic. part existing logos that. And the expanding actually some the work during them we more also in of with how aggressive very help to been a during we definitely in our customers, the So,

travel to And the advantage fruits we those clients. of So, really seeing relationships pandemic are of the our these with are strengthen efforts. took what you

Gautam Barai

is to what the drive, more we're and that the also, better digital margin saying, new services what that actually And to David internet-based ramps along the clients the which profile. more into the to are up is revenue add operations high-end interesting we volumes leads and stickier operations digital in picking and transfer ability with just new to is voice

Keshav Murugesh

in Keshav. other actually on here, going the very done the Yes. you a Dave, from these businesses to the travel X.X new all space relevant actually in WNS ways, little a logos lots interesting, the more I'll terms reality just different point last some this after and mention years have excellent reacting in and a new through the something been conversations with in grabbing side, as if after age kind all ask reacted actually of of a maturely, of of of some or and CEOs market players I knee-jerk is going travel while well. number share, me job so, is we've immaturely, space of reaction COVID reacted it's with logos, quite view decent of having lots

looking to not Travel partner fully that perspective, very like for we coming completely way go actually restructured still us. completely sheets, them the is their restructured the help them to us happened now So, of scrambling believe, therefore, back. WNS, and year back very, fleet, around term, and actually travel want reactions also to to their be what is areas, But an during partners broad-based also have it'll is recoup. impact this our that exciting importantly, next short more have is this terms their like new during the knee-jerk exciting to to It capacities has is for happened And that, market. pandemic they journey. yet opportunity be they're them the what had get going to in all balance And is changed WNS. in they of very they're where helping where all in from

Dave Koning

good take capitalize. companies changing It's Yes. also such and environments

you around And that done take the ballpark? the all a that a XX% second It follow-up job. seems data, gave is like rate. great we if quick us, we back You've then into just tax

David Mackey

to XX% XX%.

Dave Koning

Yes.

Thanks, Okay. guys. Great.

Operator

Thank you. [Operator Instruction].

-- question Our from next comes

David Mackey

question. Operator ready for next we're think I

Operator

Manage. you. Thank

time. this Ask at a you. question Thank

As a reminder --

David Mackey

Operator?

Operator

you. [Operator Instructions] Thank

As a a at time, Instructions]. ask reminder to this question [Operator

your next Our open. with question Research, Vincent is line comes from Barrington Colicchio

Vincent Colicchio

due Keshav, conditions Good are what to terms inability interest new benefiting of and their tight extent access to client in to morning, to guys. serve you labor their market? seeing

Operator

standby. Please

Your momentarily. conference call resume will

David Mackey

are Thank line? Vince, you. you on the

Vincent Colicchio

Yes, I am.

David Mackey

Not long everyone. you this in in sure tell call. time, entire for happened. I can the together team's once quite a Sorry, taking New York what

Please is not issue. So a go this ahead. global

Sorry about that, everyone. Vince, please proceed.

Vincent Colicchio

Yeah.

Are So you what interest seeing access Keshav, extent the new that reason? to and for outsourcing a from their are this you are labor new lot client benefiting inability of companies conditions to given tight talent?

Keshav Murugesh

think business Actually, hilt. so And of but we to of in that around I get for The obviously few delivering we would experience have getting they that them our fact maybe that so a comfort for I around to the bulk think core solutions fact message. digital that, transformation are technology. after the the very fact that understand industry, the invested entire able we them. really transformation we opting domains fact that of well, be have The much across leverage analytics much the the

terms Vinc of solid were is investments do partner who caught is think of of would in lot what I a terms themselves I has realized at partner potential they certainty. that's any that of that and lead trusted future, rather this now for want of the record can these in partner the in back-end, track of think who some all to who get A all they is deliver in extent A things they're not areas, uncertainty out looking actually and what capable making happening in who is of with will a and trying to clients at do the time these So, exciting real earlier a a have some them go investing that point to new delivery. partner And here. these darkness.

Vincent Colicchio

currently, for remarks, you And in focus? terms top of the your prepared had review M&A. your in us you of at list maybe Could tuck-in mentioned

Keshav Murugesh

Sure.

-- around perspective, we will well. this of terms businesses, build also anything our core is potentially is of capability is but really that digital that capability, verticals versus which core And in buy look analytics. focus from of choice any of some horizontal right? enhance at or our larger will accounting want terms our transformational there So as accretive, our will to some So core finance in also of and key

very very at. solid point in we So interesting it's where a have we're time that stage at this looking a pipeline

but Some sized of kind will WNS. assets, be add huge of smaller to them capability

Some of be larger. them could significantly

David Mackey

X end of day, the helps and kind digital the we're at digital industry Vince, that specific deepen our transformation, perspective and same key anything offerings it for, that think I differentiate advanced within us the areas and capabilities looking becomes of from analytics that service our vertical. an

Vincent Colicchio

Thanks for answering questions. my

David Mackey

Thanks, Vince.

Operator

you. Thank

comes question open. is from Shirvaikar with next Citi, line Our Ashwin your

Ashwin Shirvaikar

Good hear of you. morning, Thank from to And all folks. good you.

Keshav Murugesh

Hi Ashwin.

Ashwin Shirvaikar

Hey.

of incremental and investments, sales on making productivity. of normally these where that terms become in my you you you what making sales also in stand investments. when productive given what's typical remind you could are expect do reminded, a people So number that questions us process these of Could sales you

David Mackey

Sure.

short example, it, Clearly, put When So farming. than you to start that when around Thing in going dramatically looking the you we're a that an for those are Ashwin, different XXX a side a at revenue at expectations, into think sales expectations expanding of hunting. folks seasoned around account are will further generate look order. goal expectations of productivity the fairly relationship. if The salesperson with I the

finished able some for so six scope. mixed deals, it's more to function months we generate so lower, more around function. at the quarter, contribution the the hiring there the and we've with late you When deliver next which function, a 'XX that However, last you the months last productivity I ability When and to in between last somewhere XX XX in with sooner the productivity. that from a no and again, And will 'XX people. and step The relatively the make to the months at a that roughly, in Fiscal RFP sooner we're Fiscal can virtually XX ads which since and was for housing. in XXX. benefits XX, size able taken we believe should finished look the hunting so Fiscal we've be versus obviously added fourth in step on revenue our larger did step be the in 'XX Those XX should 'XX cycles were sales those example, it, salespeople. all gotten XX side, We depending be look add, Fiscal expectations We benefits we the 'XX beyond. given anywhere side which nine -- of to months the existing to this much XXX quarter, to accelerate things XX, of between team farming these are Fiscal really has sales confident be and beyond,

Ashwin Shirvaikar

frequent a pricing a And could New you that that's But this definitely specifically wage asked are has know listening because versus year to wage very to background, contract, contractual think how seamlessly. inflation. what timing question of Could about issue? in inflation you we call price percent more on I how next other York what lot get the about that from have talk you City. you investors enable might is My characterize been pricing, investors, [Indiscernible] conditions once should question. that

Sanjay Puria

they when [Indiscernible] from a the as to our and as the built inflation efficient, promote alluding a digital cost Gautam that is is new as going looks technology intervention our transformation our the are of this And what inflation growth, ownership. about factored of solution as some all a client. every really but Keshav cost know is was of and gap in. the drive automation. offset Though total or intervention from perspective, able here. client and of linked are What deals deal we forward digital embedded it what What the their more [Indiscernible], very to majority [Indiscernible] including also really as the part we client through is this have And we all and perspective. geography our a provide Yeah. are that well is and analytics Also to do it definitely from a cooler

David Mackey

productivity, of offset impact our We're on full really pegged we passing answer it's never efficiency, portion. indices not the not wage the to enables pegged that to us the but capped, increases necessarily wages. to necessarily where a it short There's But no able wage between that it to on The covers is, clients. maintain margins fact it's from, us, It's it. we're it's cover aligned Ashwin, it's are geographies helps are of and to a that to pass the way part of to impact aligned digitization that deliver the to wages increases. and to going our the

Gautam Barai

interventions with also, to add more And and continue pressures to new deals, offset of actually some premium attract as Dave also across processes to the what able that mentioned, end-to-end along tech digital we pricing, we're to which add just have. we

Ashwin Shirvaikar

Got details you all together. it. for Congratulations. Thank those putting

Sanjay Puria

Thanks.

Keshav Murugesh

Ashwin. you, Thank

Operator

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

disconnect. may now You