Quarterly Update
published on Oct 30, 2018
Report Overview:
NelsonHall’s Quarterly Update on WNS provides a snapshot of developments at WNS in the last quarter.
Who is this Report for:
NelsonHall’s Quarterly Update on WNS provides a snapshot of developments at the company in the last quarter. It accompanies NelsonHall’s more comprehensive Key Vendor Assessment program.
Both programs are designed for:
- Marketing, sales and business managers developing strategies to target service opportunities within the BPO/IT Services markets
- Sourcing managers monitoring the capabilities of existing suppliers of IT outsourcing services and identifying vendor suitability for IT services
- Consultants advising clients on vendor selection
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the BPO/IT services sector.
Scope of this Report:
The report provides a quarterly update on WNS, looking at financial performance and key developments during the period.
It accompanies NelsonHall’s Key Vendor Assessment program which looks at WNS’ IT and BPO offerings, capabilities, and market and financial strengths, including:
- Identification of the company’s strategy, emphases and new developments
- Revenue breakdowns
- Analysis of the company’s offerings and key service components
- Analysis of the profile of the company’s client base including the company’s targeting strategy and examples of current contracts
- Analysis of the company’s strengths, weaknesses and outlook.
Key Findings & Highlights:
Q2 performance: continued strong performance; short-term outlook is confident
Q2 FY19 revenues were up 11% organic, with broad-based growth across most of its target sectors.
Growth is led by industry-specific BPO, the largest area of activity. We note that analytics project activity was unusually quiet in Q2.
Regionally, growth is led by North America (now accounting for nearly 43% of total revenue), where WNS presence was boosted by several acquisitions a couple of years ago.
FY revenue guidance has been fine tuned to 8-12% organic growth; we think it is likely to achieve the top end of guidance.
Expects FY19 operating margin to expand to 20%, but then likely to return to high teens from FY20.
Sales: hunting and farming activity both strong
The expanded sales force seems to be delivering.
No M&A activity in FY19 YTD
And we now think this is not very likely in H2.
Attrition is an issue