WNS (WNS) 19 Oct 232024 Q2 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the WNS Holdings Fiscal 2024 second Quarter Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded for replay purposes.

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

Thank you, and welcome to our fiscal 2024 second quarter earnings call. the CFO, have Sanjay on Murugesh; CEO, today WNS' and Puria. me call, WNS' I Keshav With A press release earlier today. detailing our financial results was issued of This Investor available also our section release www.wns.com. website on at is Relations the

will ended XX, quarter remarks fiscal September focus for XXXX. results Today's the the second on

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

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

Some are revenue defined management revenue as will of discuss less Net defined as is measures follows: non-GAAP the payments. repair financial

the goodwill profit Adjusted taxes. Adjusted ANI, assets, operating terms as operating and assets, share-based associated These expenses impairment income, margin call. net defined throughout share-based excluding as will or compensation, amortization acquisition-related acquisition-related margin of is all or compensation, benefits amortization defined of or expenses be goodwill and excluding is intangible impairment. intangible used benefits,

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

macro of AI constant by FX. a net company on basis a and basis $XXX AI year-over-year continue after a make QX the increased currency. a constant reported The Thank adjusting currency XX.X% of reported revenue X.X% X.X% a Sequentially, net in WNS basis face delivered and you, quarter, revenue for posted representing on healthy million, to XX% on second and challenging results In our the initiatives. and David. on morning, financial of progress generative everyone. Good environment increase

In posted XX XX%. logos X WNS year-over-year than and company The also operating the of adjusted of adjusted delivered added more expanded quarter, EPS in and new margins growth existing relationships. XX%

are While XXXX, large half further we volume by clients, remained QX solid, and fairly client-specific by for additional some trends insurance did we increasing resilient, reductions however, the Overall, fiscal commitments travel the were project-based our commitments evident and most are of vertical driven quarter received in reductions certain do the slowing in revenue pressure captive. see in QX driven September QX have and second from volume work in in erosion in for second results ramp from These and dynamics. some delays demand and clients. volumes macro of reductions certain expect both

This and We've types acquired projects. also deterioration certain is modest procurement of growth for demand a impacting including a our analytics our deceleration newly entities. in businesses, in seen for

show meaningful half the visibility has contractually both in now the 'XX. expected to the fiscal ramps life of reflect second and is in large of contract client to Additionally, our carve-out. committed which reduced insurance ramp This revenue, over also is been XXXX delays

Despite for these demand the excellent. strong demand short-term long-term outlook to macro our services challenges, remains is and

spread deal and opportunities pipeline now pipeline are driven clients' The as more cost. extremely ever services business well than to by need processes geographies. across which digitize new continues be as well Our reduce as verticals, healthy, to their as includes automate large

to and is AI generative and expansions would client-specific both challenges continue to and existing are or from entirely We macro client we not decision-making client the pressure and to I additions robust. flow new also also like issues remaining deal client AI. reiterate solid facing see related with impacts that

XXXX, fiscal of and slowdowns headwinds anticipate facing offshore accelerated and XXXX. client process, in WNS currently of to in large present the on-site the transition growth projects an in a outsized revenue volume procurement a ramp-down We fiscal from of that opportunity for that top including both XX% the are healthcare discretionary we should

I update on as as provide an our now well you to progress like with AI would AI. with generative

deep me let saying when of most nothing we to analytics tools that leverage have process business changes outcomes. capabilities use WNS which and solution. First, seen intelligence a domain by case as our Every are that digital AI and knowledge, are these developing part end-to-end to belief that is broader human begin deliver and impactful date GenAI requires expertise, integrated technologies

identify we collaborate to how In to and remains addition, then solutions. clients build with our co-creation opportunities, foundational these deploy

Since Google, and we products. Azure, who and and Appian, other strategic with formalized AWS building partnerships Emagia, have last industry are Microsoft GenAI with BlackLine OpenAI, NICE, their like including quarter, closely are partners into working leaders,

evangelism, programs, expertise and We to and training leadership. X rolled unique GenAI have across also today company-wide which tracks designed out AI include awareness, courses promote XX

MindMap industry Google, KPMG, Oxford partnered University as programs. create Consulting, and with has Learning such WNS to leaders these LinkedIn

As and focused XX which deployment a to number have of additional X an digital and with ready use than our our for result cases now of XX proprietary we approximately of the have expanded embedded. now assets more GenAI efforts, currently built

of proceed while to us. discussions continue doubled GenAI to And with Our advanced X active we pipeline XX, are phase. activities, implementation GenAI the move client committed initiatives in we make it they to the many to than across wanting and as XX seeing progress is conversations these important more already to towards with solid implementation have carefully that over clients on of note

being build examples concerns, issues and inherent potential privacy and issues and the you share and wide data that today. regulatory a legal X quality for the in-production would poor data false said, with like results. and With is we This of risks, including solutions of now have which to result costs, run we range of

curated provide natural powered search version GenAI improved a latest leverages category the coverage August, on-demand procurement specifically launched intelligence and Amplifi new upgraded a The release to the been platform is In Smart Cube's category content by proprietary based by custom company's for Cube the expanded Smart X.X experience. platform. of framework user query commodity which procurement GPT digital on enhanced models have capabilities, and specialists. professionals The and PRO, language trained

model where also used models than extremely more of unlimited tier to many current traceability has The source The positive. an by being to the days model. data, early clients fall GPT subscribe capabilities who provides feedback paid currently been And area short. in often Amplify PRO's answers enhanced are clearly, XX

these subscription revenue. along We to in the enhancements, paid drive future upgrades increases expect will new help with now platform

a the and insurance vertical. implemented a proprietary large with have in also has and WNS recovery insurance service offering which addition, claims client for In of recently a solution property AI costs, been expertise team models identify by recover This should specialists combines paid third deep to claims as new parties. a

into historical for and team structured new integrated immediate and the built client's WNS identified the digital by our approach them solution co-creation clients. technology WNS has environment and insurance and trained the engineered, and clients' started using delivering consulting for the industry -- offering data, cleansed models, completely the cloud our the industry represents results. This was a

ensures compared is focus Claims WNS clients The a able when offering to P&C the been for cost current of recoveries leakage in key both performance of This delivered. results-oriented and insurance the to percentage approaches. an WNS in amounts has share solution where we priced the are value the recovered that and that meaningfully reduce area outcome-based and the client. a approach rewarded for model are for client WNS receives

industry-leading half the while creating expect challenges back macroeconomic of this margins. in stable for WNS some environment growth In company and continues to revenue is the year, the summary, double-digit

We business the up reducing company's fiscal optimistic the momentum also for healthy pipeline, strong growth company that accelerated in XXXX. remain headwinds underlying and set

to seen WNS that GenAI AI our than opportunity for this belief our addition, changes technology In embracing clients and value. nothing well and business. help represent remains our deliver meaningful shift, have outcomes that create more business By actively risk positioned we

now turn as discuss results CFO, our call outlook. as would our to like the Puria, I well further to the Sanjay? to Sanjay over

XX.X% constant revenue came in by on $XXX.X on $XXX constant In second year, and basis. basis. currency WNS the and from net Keshav. you, a a currency up last quarter basis posted X.X% increased revenue million same fiscal on X.X% a Thank net at million, of reported the in Sequentially, XX% up quarter,

sequential momentum new growth broad-based by both partially was certain benefit reductions and This driven movement. currency was clients, with Our offset travel. with by favorable existing revenue in clients volume and primarily

and productivity, second compared annual of result to expenses volumes, last quarter, increased WNS wage debt and bad offset provision performance was Sequentially, costs. This return-to-office of higher operating quarter. offset increased volumes, in reversals $X.X In was more margin costs. costs. and partially the driven reported XXXX from revenue. of margin was higher operating improvement same XX.X% the productivity currency for increases and XX% Year-over-year, SG&A of increases fiscal than result a higher headwinds margin as short-term by SG&A adjusted benefits improved incentives lower quarter quarter This high-margin in operating on by a Adjusted lower and benefit XX.X% favorable recorded and leverage X million movements. return-to-office wage improved as

cash quarter of company's million in net X higher The the last interest levels of in and expense Year-over-year, balances by net $X was acquisitions to and net $X.X $X.X increased to net income fiscal expense as of driven million reported expense lower share of XXXX second debt million expense and other quarter. net quarter expense due our repurchases. compared

in excluded consideration reversal the million contingent variance levels on Sequentially, acquisition refund from This income been lower received is also million provision healthy growth has X, Vuram. balances and of which average current benefit but company quarter on levels. our higher reversed the cash our targeted debt a for below of In $XX.X adjusted X. expectations, remain quarter interest based The unfavorable relating income. of net $X.X was result tax and to

mix bond net income sequentially, compared incentive fiscal X at geographical up XX.X% quarter. quarter XX.X% $XX.X effective for company's changes tax of was million Both and profit quarter. $XX.X last changes year, quarter the mix and rate came The are the quarter to $XX.X from rate our the same of for XX% tax tax from of and from our million with shifts and up delivered largely adjusted X in million year-over-year in last effective WNS result in in facilities. last XXXX

up X, quarter per second Adjusted XX% quarter last X% from in versus diluted share $X.XX the up last quarter. of were in year $X.XX $X.XX and earnings

million $XX XXXX, repayments of million. the totaled and investments in of debt cash made $XXX.X cash and operating incurred generated quarter company had and million from $XXX.X X, activities, WNS expenditures, As million, in capital of September $XX.X XX, in has debt. In balances $XX.X million WNS

September, at compared DSO as last days million in last at year days in approved share Annual in reported days In proposal. to Meeting, our the XX came of XX second repurchase X.X X XX quarter a General quarter. and shareholders WNS quarter

Directors of Board new to a during Our company quarter fiscal program buying had repurchase and also X. back the approved shares begin expects

key operating our With in XX% to respect was quarter metrics, last total the reported XX% to attrition second XX% quarter of the headcount and compared our the rate year in in quarter. XX,XXX, X and end at as quarter was previous of

in mid-XX in-person XX,XXX seat the progress but to operations, expect and We from average quarter. the XX% X towards Build increased during of capacity office percentage, environment. our work current the the continued the could to attrition quarter rate quarter-to-quarter the end at remain averaging labor WNS volatile

levels, on and full be the press Based growth to billion, our fiscal the our reported billion of expect provided company's XX% WNS net of we revised for on revenue today, release to range in X% earlier currency $X.XXX $X.X to constant year both year-over-year representing In XXXX. visibility basis. issued current guidance

exchange currently of the pound dollar average U.S. an remainder and Top range. the have of assumes XX% to line year, the the X.XX British we rate visibility projection for to of fiscal midpoint

headwinds revised projection additional our reduced clients, from expectations volume ramp revenue Keshav insurance large of our certain revenue from mentioned, lower As in guidance project the and delays includes captive.

on some note are to As the client based the forecasting based volume be was commitments, it quarter, the which reductions on last prove process. is that of important could to case conservative

estimate into company's consistent lower approach. this the visibility-based incorporated our have We with guidance,

XX to assuming respect income share This net for adjusted dollar expenditures, year INR $X.XX be XXXX of the With an be to shares. implies U.S. fiscal is $XXX our adjusted for range to based cost XXXX approximately a of $XXX million. remainder Full XXXX. million rate of $X.XX, in XX.X for fiscal expected exchange WNS of to the million to diluted expects $XX million to currently requirement capital to up fiscal EPS on

Operator? open We'll now call the for questions.

line the TD Instructions] from coming Bryan Cowen. [Operator our Bergin with question And of first

behavior. client around -- with here start to wanted I

to enterprises. I'm So understand wait hurry of trying behavior appears a a up what and from to be lot

insurance reductions, solid reduction, have we for across So all the more urgency and sector And slowly. an then the But and can share seems causing common all captive is these associated or achieve these this signings perspective is positive, across cost a are that be with threads services not see company-specific to clients? to move disconnect faster more you clients to what seem maybe with leading situation. but to your or ramps pipeline commentary savings on faster cost you deal productivity the normal ramps

Sure.

this in clients, is a for the we prepared Let I engine commitments take give from facing Internet But business we that issues, top client the look really we're fact large the mentioned can client we're mean which revenues I project-related healthcare year productivity Sanjay from you well, and when lost in with Bryan, well. XX% the that, year, me unusual at and as -- in year, of of Keshav terms an moving think his offshore. volume, combination for in and line our walked into work working to Sanjay ramp-downs as remarks, headwinds right? a chime that headwind is this an

were have of shows actually is for So The midpoint headwinds all it gross number business. XX% kind to year. growth the we of at that to the these XX% the -- a guided

slowdowns. deal So cost-reduction that relates deal not signing, we it at you especially deal the of believe as initiatives, when we're look closures, seeing types to flow,

and is it the think within with based company highly organization. a one, separate the priorities I insurance and in captive nature is specific, the completely structural it's on issue

the reduction-based But again, this seeing the are to quarter delays seen the in drive where not to savings, we with activities that cost business. we've and is shorter-term the or last impact the was projects that through initiative, think as volumes the the cost that acquisitions on we've pumped own versus they we've where guidance discretionary So and to done delays I processes more goal projects we're the being right? already in relate procurement significant seen

to our in just And what those forecast very specific some what just I be place. reduced. is till conservative believe have add because that is base, clients consistent some right? saw Only in September, volume in to volumes, will And in but fact, reduction, quarter with seen travel we this to we broadly Dave have we what visibility this reduction also said, client X still, not

have short-term still, now where against does XX% XX% last visibility We we quarter, visibility. what visibility don't revenue mentioned. this And not the have include we

-- net our saw So also a this what and is of of X%, in quarter growth X. with we

think definitely some what impact in client and to the allude is Dave forecast. what conservatism was specific I So very the client trying

Okay.

about in my that ability on the the XQ, the think to and follow-up recovery? of off Or quick a that? we gives half for the an the half, talked more about second you XQ confidence revenue? should XQ within XX%. the is of in top we that, you then What level 'XX And just second Just have kind on transitory about, you headwinds as build reduction immediate the think take line that being do the follow-up,

Sure.

take let at a So stab Bryan. me that,

quo, worse. next it's we when you least slightly that But to volume the a into know and could look that don't at point, projects obviously, think that get get headwind head in -- and we're we we status if I If as right, the is better, assume X% make right? about assumptions year, this that at we at business numbers transitory. could those XX% slightly looking

client do to the downs. has which ramp really of XX% the business, in known large side, business to headwind productivity going solution given to typically or we obviously and our to anniversary healthcare on a are X% have then X% a and which relates that side anywhere in that project The the from for between transitory the on that on-site-centric year, X% see Internet-based XX% typically here transitioned to process, we X% having to and is X% large offshore-centric. work X% a stuff QX this procurement year the We of is

these volumes we're to up kind So pick ones. on year-over-year But fiscal X X% them project-based the are fact work order or for a least 'XX as and stabilize next starts is, at that we'll which has X-year hope meet improvement a to that in committed back well. of of reality is their on basis unusual looking the ramp to captive, settle the top our year, ramp commitment insurance in target. Sanjay in that the the mentioned, Obviously, revenues, that here really down, have

good pretty of both some now. of creating into about the abatement as well head headwinds that we year, things in opportunity right So acceleration terms we of challenges are the in the the feel as next the as

And Yes. X, Dave. just was quarter talking I about

So pound from your it's that X.X% right going specific because the believe was X% lower a we client quarter impacted large definitely, an a X. quarter impact to X.XX FX what quarter an coming assumed as the for almost X about half offshoring we as then have Its now. expect X% compared X.XX question, what going impact well balance to from as perspective, Dave well X, perspective, X X from quarter to to that now was Internet as at talking and quarter be and almost is we as

but quarter just as X as the the impacts will perspective it we well its that we a contract it entire much travel as should as it this and X gives term there quarter back X is phase, is from a quarter client forward, for also growth longer we helps relationship opportunity that signed a wanted to onwards we to is large that because I that move have renewed, the as come drive inside, offshoring, just compared as But Also, us believe X. quarter complete usually By our seasonality remind from revenue. to our margin. well

this having is just with clients just here, last of before. and quality that and are in that and Keshav, we of bit we the not at Yes, want that, is add seen foremost, prospects, level have to terms first one they're a discussions

a agenda confidence the activity on cost-saving to around a down I as taking a now you clients agenda cost-saving transformation doubling as the well lot just lot there's And of agenda. want the think the I are on transformation agenda. place both that So focus give lot earlier but of

it's I for much higher. sometime the ahead, accelerate moving it while potential But of later think is some to

I think conservative a to because disruption the involved lot do it. of kind of taking view a them are programs in of their

mention The pricing to view. from is been second extremely stable I want point has of thing our

very, the good strong. between So I think customers conversations the very, overall, that's down large our very a the the with up and sites across new again, trends, to sign. And to be strong. the progress, pipeline, customers, And continues interaction travel continues very deal people around all the and be

I are quite be explained, in confident a think that seeing quite we So and will as 'XX, that Sanjay fiscal different. very 'XX we are and headwind Dave it's unusual

Our line And Tandon next question coming from Needham. the with Mayank

you Keshav, sharing GenAI the thank opportunities. on focus I that to a second. in examples for on those for wanted

to to your to the investments take your sales opportunities road, opportunities advantage take to of engine, What As down the be to the of and retool you positioned workforce. look are have it, reskill you down the have make to advantage you to revamp overhaul you you have road? truly do the have

would an about. of excellent you whatever and above, That's all Mayank, I the asked Yes. question, say

on I capability all, sure inside company my of care remarks. and I taken is we about spoke the in, think making doing invested focusing in like that, well the really of prepared engines first are are what

a with also relationships universities traditional as as WNS be but U.K. to well just in places are that outside we with there building have to research to clients beyond second. have also useful partner We the the the just researchers U.S., our to order our ensure access as other direct people and of interacting network, in

what bring The up in in third conversations are changing them clients. have that those are learning have order inside, speed to penetrative to and accelerated we actually our is we we to with of salespeople programs our how some kind with intelligent of offerings of terms and using

clients being most is the fact of thing investments across that and seeing right? think board being and that result across excitement something obviously the attention have we're that I the the of -- leaders that that wonderful before, these we created ever top rooms, as made, seen in GenAI all as is more better a AI well as salespeople and domains actually technology, far with WNS is having are and than prospects conversations

to But highest-ever these areas. has both a in we we by I So as we advisors are examples at of of seeing were as how the increased. Day at had the time, event well in of that of clearly, our of ideas. quality talk lot Adviser recently the impacted same being mention one WNS. have just created every the clients they also showcased we're where those want investing that at actually the because attendance We some of clients U.S. had And we were that And conversations things about

and actually on impact When see revenue it. want helpful. standpoint, we you as these how matter, then model? the of or get term? to should financial What the engagements I are see do be Just have to or view And follow-up a for scope on that sizes longer smaller think a are on margins, in from effects you terms that. Got a also of the going you to the do larger it? I we sense Very it ask or about

Yes.

think I house. now, attention of top a I'll at front then topics first at stab lot are Dave receiving and of a and a right little think have center and Sanjay these financial and models. that on take talk more the the the some I But of

who actually are just settling comfortable point navigate businesses, think and the down whom first can them most right? discussions, can domains their are and hype as in of the technologies and this changes, that take these much clients who help is trust, getting at to they business foremost, some their can through of who more them with time, them partners help kind I these more business-oriented understands new

And clients our and with journey, That lot are dipping that post own having or building on to long work they from few a take clients willing partner a -- to the of toes is has is and term. one. point of same wanting macro conversations, to view all seeing in of actually risk their that investments, for early I think the confidence their At model are seeing of the are time, in a lots to right adding made they're also the more the that WNS of is from conversations, with the we already disruption actually what taking point business view. -- the

around clients my a being from year. driving own somewhere this much internal this more more is teams gave commitment and of is experimented next where we examples this year, of fiscal, commitments with. during but So with start But my clients pushing already few it to for

this expect getting would be whole actually comfortable. clients year get I will So building commitment, that to all about

they in are not terms how already to processes a And areas of they size of in and about of so management the to now And these get can programs. in able sense minor have more with clients they it impact give of in time, kind scale able then those models, a on more outsourced projects their their their as that cost some that handed may feet, are terms of of experimenting change these into some even or before. to comfortable are over they're even on-board we And to period them walk to the who over productivity, get willing getting seeing with of disruption add the models. speak,

I and think clients be the we take to actually things. have and some potential have is we but the these confidence of to risk wait build the doing to willing of we have get will So to high, because watch to

changes add that nothing a to the clients and that for perspective, And take is would I advantage AI It opportunity to to as require seen models GenAI to is what that that, that date away the transaction, Mayank, really completely financial does towards and going philosophy of a outcome for for model to do. pay the can result, we've clients just continue reengineered. process of our pricing financial move subscription-based of FTE-based bodies. for more forward see types schemes results instead we the where from from

engagements very When going be to look costs are models, to it's to of right? end a have to the the project, on to to for those data, work, at going how over of unless logically you are going build these lot clean front a to amortized there's difficult And life effort the be client justify.

from with So and for X moving as as us improve. we that comfortable as types believe clear get see away from look opportunities our FTE-based margin we years, clients initiatives, X, models. these at these away models, a types we last move of AI more And of when FTE-based catalyst obviously, as the with GenAI engagements we've Keshav said, shown we over expansions

our with And line Citi. Shirvaikar of Ashwin the question next coming from

range, midpoint, -- dollar question. of The XX% up so the If this the versus it metric basically of is visibility million. guess dollar number seems I you mathematical I -- times $XX have by the -- right? the it's prior the the about gone XX% have new range visibility is look a actual number to to at

sense? needs that your guess of actual your the the overall when you changes makes causing gone are visible? is some of happen So question you visibility up? range question That did So And side go of my to to learn what call these down, I but flip to for is, right? go up, something to

it's the client And goes it's signed contract committed from visibility the all you're specifically absolutely logos, when have Ashwin new up right. commitment. expansion, whether a volume the Yes, the perspective, about commitments, it's we client whether

those When we about million So stage. from contracts executed right. up particular $XX all visibility basis at this you're goes a

we when a on volume, from as that the and means to other visibility a stage. kept client on behave what no a mentioned what this we that conservative from better how because they perspective clients they're from volumes particular give have going And a is moving we -- discussion the keep it have forward committed, saying perspective, their at about we the we perspective that because they it, take are understanding of business future all end

And Ashwin. the your Yes. to add part of second just to question,

deterioration prepared a we mentioned volume lot travel remarks. we've some in his in a seen, the seeing that started the erosion September. think perspective, Keshav vertical as I From in of

when our second see at financials. You'll that look quarter you

the that of seeing up got In So forward, with volume right? September also what our show delays Similarly, erosion we to in quarter pushing throughout of client this later had out this in addition September. some really that we September, of in was acknowledged showed function those the be the the wasn't relationship. really a going until to it forecast was discussions lower the phase in quarter, in levels but going X that happened were commitment captives, ongoing

this lot guidance. a not think I in we when So clearly was to visible provided of July us

volume this Some is some I is the related to on showing in in of travel the the vertical of side. a that up think deterioration macro, right?

typically remember, we the into into business, you growth year showing side at in of is X% project when visibility the in look did, lack where accelerated the lower our year, Some right? we when than the actually came came with visibility, it up we of of our

growing started much XX that the reason than faster XX. of with revenue we're through And company. the We added X% because our a had clip acquisitions we at instead of was

here, those below what's has at ability And with going a macro in as a to that being on that the our comfort continue gap those And grow to gap. had we assets dropped. our to they're assets growing healthy clip, given while expectation. bridge able obviously, bridge result, So

a day, the end been new at out from the right, seeing of clients. of of top challenge We've able revenue has to fallen think here, the what commitments you're lot But I erosion, we've that's you're gotten line. bottom. the been add The stuff the the to

to Understood. then the contribution. inorganic expected And with regards

services automation are mean, in Vuram What's the of was that just I with imagine the you that inorganic believe some demanding given quarter. example, -- I XXX are to clients acquisitions And it Vuram, for the that's company. lapped would commentary I points contribution? before, I think exactly had now. work but new of lamped these intelligent be kind how expected do basis supposed the the low-code it's doing.

of So the be on factors. associated But Vuram, specifically know you so kind may And not it be could some suggested provide may weakness? other that? with color there why I

Yes.

So what Ashwin, an intact from is X% earlier. acquisitions perspective still we guided

and than fact, the better company Vuram In the of much acquisitions have growing level XX%, north growth. other been

them. I target plan is or what the business the about what the spoken was was on have discussed the based based think given which valuation, we with revenue on reversal

much there discussion line was are perspective. that a as from better growth it much the and But what productivity as is much as accordingly, including is for reversals. expectation growth of top not visibility those fact, as we the accordingly, well the well growth according healthier, higher And those the So driving client. in having to internally

by remains the issue a than of below Demand said, growing the they've healthy, still company grown all they're we had historically. and or is margin. Sanjay significant what anticipated X average they faster only Ashwin. acquisitions the assets below Like what hoped that for Yes. The are growing

no some a clearly end top these that But prepared are slowdown, remarks rates. get been deceleration in and in of make that's used why We're there's good are growth. mistake, seeing growing still assets really the So here. we removed just really word their at that healthy was a the

Is indicated quarter? Okay. to to in re-upped, step the Can we defend on quarter. comment willing that. And we you in down, expect haven't to should you question on? seen think can with was be and so stock impact up the If I would you regards that maybe continue was late in to relatively a throw the buyback. it clarification I why It in an

see we any the So I remarks, we X.X mentioned that that million already the repurchases quarter And Ashwin, with has start didn't was no, repurchase program shares my start completed from as And And for forward. what quarter approval our the in Board had got X share shareholders. the expect because we for approved prepared share share we repurchases. perspective. our in move as as repurchase to accordingly, new there new to in share the September, AGM a during the shareholder's from got we we approval

Understood.

still. limitations no So

Yes.

coming line And the from our next Maggie Nolan Blair. with question William

margin mentioned profile. the continued expectation industry-leading for You

and of the the on margins headwinds the revenue on of for talk some the puts the you Given and can remainder trajectory side, this takes of the about some year?

Sure.

take Maggie. that, me Let

in in of we had Obviously, margin right. You're quarter good here a terms really QX.

Some look on of that you profile is reduction in to top in at X% a especially X.X% benefits to the in be was down. of think sequentially, when also nonrecurring the to what I that point, had range during quarter. To nature, margin the SG&A QX going line would call I as it the Sanjay's the -- we relates

normal get in back what I So of more margins for is think a QX, terms cadence. we to QX

in and revenue the of the you XX% issue, So full over full year, QX year. given will the expenses margins QX, plus somewhere bring The range and the terms when something which of midpoint XX% us, XX% big plus of again, of drop. out QX north average in XX% for in obviously, the between coverage in slightly is

and year? for do the of the remainder the to the on to it expect from the do And will then then long portfolio what is shift to there that how the you evaluating shift? And things Sure. impact from where shifted the that of parts And already similar margins them be expect client onshore timing complete? you other Or throughout take? the impact the you're on are offshore, do of potential the

that's a the FY long-term to we next of in step from it we 'XX also So seeing and that forward as offshoring, be growth onward where relationship. will our the which to start perspective, done offshoring move a margin we'll its is in more journey quarter began it quarters, couple which year-end. get to fact, And expect we procurement perspective, going of take started least an -- accordingly, going completed we when at X, in from a by line, be entire be the expect improvement rapid of to in, is year that will as with because some from perspective. we Also,

from And with line the of our next Baird. David Koning question coming

David, are call? the on you

go person? me like you next to to Would the

that, and the Yes, let's can we Dave queue. get into back do

with from Deutsche next Svensson Bank. the And of our question coming Nate line

outlook about to So headcount wanted I for forward. ask going growth your

last headcount flat. sequentially looking just And XQ in year. was think X% and pretty grew I XQ So

sort of as and prepared in is of for insurance called what wondering just light the expectations in current your outcome-based revenue you've macro shifting out to the in So question P&C talk project the remarks from of there that. about had environment revised thoughts your FTE-based projects and the year? one your headcount this on additions example you And I related guess

So maybe where projects the are what today percent outcome-based FTE-based? of of do time? that versus see And you over kind going

add and a Maybe I'll further. headcount perspective start Dave can then from

what spoke have the perspective We the depending revenue expect revenue the start X, insurance hiring a at headcount about. of on headcount how in certain soon to as on training the based start period spoke we'll upon 'XX up beginning growth, FY reduction come which required. because captive, we are a what quarter to is from always expect in other offshoring go But quarter least and we we like some reasons from seeing going about head from what including we quarter X in for ramp to there which to we and because is we down are may and there based X, stuff, hiring starts, be

those having compared or higher flat a as to little a intact, that things if believe are well we So either be we may today. headcount

to headcount to while And here rest been then question get pick range, be the and margin which, The that we've that of Sanjay's shift long-term the here. and towards just what to think, really to is us should the employee here of expectation expectation gives comment I to again up X% the hopefully in in over revenue able flattish QX, similar kind that add years. X X models. leverage to demonstrates deliver nonlinear the We again, increase to expect last do per to X% your

by at guys has look mix been subscription-based. client we revenue non-FTE. though -- of we type, between which the the in by large process and healthcare tell will we're FTE that you contract masked kind XX-XX entirely When that true I that, was that mix lost, still you that

perspective would have headwind that to we the think had not from seen headwind had I from and starting a revenue non-FTE that perspective, here. mix So you move a

the client So what WNS of part client function behavior, is what to a in also here and FTE specific of is seeing mix terms but you're specific seeing of of kind between part you're non-FTE of the and portfolio.

-- one more here. months. that new the at some next seats we've will that almost seats stream one point more on XXX in we're underline bringing added also this are facilities just thing, I And looking And also is quarter. over more -- in to more we add few want

preparing for as -- or into beyond We're the the have 'XX. into actually this and already having, some So also the one on based coming the well. we seeing these these get on and more rest that of that must of hand will all year ramp we're the headwinds point while move are go in outer about we're are time will mention that talking 'XX, HX, conversations actually at confident much the we I that the deferred fact for we revenues for

continue headcount. Yes. that revenue And in growth delink we to from to need growth that in

answers I there. detailed appreciate All the very helpful.

could before, travel America and trends my you compare your in was the So regions? that but I kind hoping some I U.K. demand specifically. seeing vertical just North follow-up the looking you've you're across of of called the results question, know contrast out and at

country. So bit is macro sort deceleration the North see given of a of U.K. nice it in you to seeing couple has that around looks which a sequential quarters America, of headlines whereas of like see the you're had that a acceleration,

seeing how and could maybe you're say, seeing So what across what geographies, your much travel. you're compare contrast that's into tied different you in,

more color be there Just would very helpful.

Sure.

me take Let that.

for issues gaps, verticals, you to is at, in the talking offering, about, Where right? healthy, service in we've a vertical more automation you or see you'll right? is our demand well whether demand look look I digitization, in or really about What of our they're client-specific a geography services, across that been pipeline you that think a they're across the and Keshav's when and across see business both geographies, reduction. about at kind cost you as commentary as

lost, to show headwind going That's revenues. a as show So you're up right? accounting, you as to process of up also the on-site weak revenues. that's to healthcare procurement our to large also it's also U.S. client at going going going to healthcare a up When from look transitioning to as headwind finance to as as obviously, a the to to because revenue. It's we our going going a headwind to show and a up non-FTE see up the headwind headwind to retail. and It's U.S.-based show as offshore, show to the that's manufacturing that

the Internet-based because being see So isn't The you're demand you soft. because U.S. the and seeing soft the healthcare is client of the traffic. U.S. reason in is client, soft U.S. reason the large softness

have see trying -- of call the these is on So a I our specific what at we what what company portfolio. to are that about within optics I'm really issues would lot that but get the you more not macro here trends,

line JPMorgan. the from And next our Jain coming question with Puneet of

travel like volume, Sanjay into believe and like million insurance project the components, down impact revenue I $XX if should break can various of you annual to or million currency have incremental guidance delays, around prior guide? related of $XX in David, million revenue to $XX also the cut clients,

Yes.

So reduction you're The talking about guidance. specifically Puneet? the component in the that, of

Yes.

Yes.

the is net in what with from some about. is some and from on from from earlier. insurance captive of mentioned is we coming volume getting making a decision had perspective client up large And forecast in X There's what I we the X% growth is are X% a slowdown X% coming think conservative specifically. So itself, another quarter from referral. based X% spoke FX project I acquisitions, this as X%

currency will and reported if on basis. shows a like a currency it net-net, see, constant X% X% So you on

go I And have it. sorry, ahead. to also Got wanted --

ahead. No. Puneet, go

like We relevant in cost. Okay. thought lower weakness you on about be the looking there? expectations And to like details drove current clients environment I would cut what more also from Could services more the wanted to the their ask growth share Vuram. as

all from the about has valuation at perspective. Puneet, growing the a that particular more agreed is weakness accordingly, this This number expected perspective, is was contingent so a year-over-year or And again, XX% a with not been there for expected. stage not growth a and -- Vuram reversal. from is higher Just than accordingly not them it's growth as much consideration what

growth we relevant, much existing healthier But providing the it's we our very logos. having discuss our a are well pipeline new much the as or with verticals, as healthy with wherever it's that, discussing is very, all clients as said across clients the

from upfront if type client right? selling requires the that that decisions services the And instances about of to things we're make think in prioritization think are the seeing the what or for the more of I hard day, or and projects at Vuram the of of service end whether having time, you're something on, seeing they Puneet, are I whether kinds it's certain pay clients on over client that the what these in to benefit it's need it's the to analytics get we're procurement right? side,

Vuram that to in of Our our of drives does client no-code core an is an require doesn't from what right? pay right? projects reality business service terms the automation not reduction bulk process for client cost The mission-critical even to the outsourcing payment the upfront has time, like upfront work low-code, involve though investment, upfront. Whereas make over client, does the

they how now? do we to right? So get is, they right? want what right? in will this is need first, that environment, believe all this, The And to environment, prioritize, I quarter? extremely very point, Clients it's it want question think projects clients are healthy. done, had in it these this growing thinking expected The about that do we XX%. said is above company Sanjay's over It's nice business Vuram's Is had. a at But growing well It's clip. issue next in Is remains the to He level at not average. growing XXXX? it to

Wedbush. coming the question next Our Moshe with line from Katri

clarification. some Just

headwind this of travel that? what vertical question. you're spoke the vertical was my the weaker That's pandemic. And visibility time about volumes. of those being few do have bit you the volumes. some talk Maybe can I travel during vertical first about weak quarters? spoke a You of guess last some that's seeing here, What's a into next sort really it you the the about driving kind we for really where

Sure.

Let me take a crack at that, Moshe.

think right? some the can you look, So in the you some the look space. right, of are at different travel, we're geography, behaviors airline subvertical, that mean that behaviors online in travel for by on bifurcate it the it I the example, . in OTA seeing what's can by space seeing space, when I going of bifurcate than we're you

where quarter. clients the We are volumes than prior higher were they have the certain

lower, a their is about there's also level, models, share have and volumes the of Sanjay's client-specific it's I We business about clients this other some Some in this think at comment So to where gains right? macro pressure, earlier are whether is it's changes losses, about market right? right? whether issues, of

way clients in as are works, that they we've this will be we the these And of the macro. prove we over and discussed type believe couple we've quarters, again, volume calls, there to that see be the way the September. seen industry are go incentivizes issues of of travel We've projections many the process up So hope within to next beyond We look times these an contracts we that structured historically forecasting show just gotten some kind forward did in on environment of conservative. conservative. to the that When that.

in be bit of some September. transparent, that we reductions is of a a but completely don't certainly hope to did the these So see materialize, little dip

done issues umbrella. included we've volume to hopefully, as have well XX%. But now and have client-specific and on think we're up watch as we've both I under is forecast with us the dealing And we've which when kind issues in wait. what that what macro of based our given that the clients we commitments potential is So derisked again, visibility, to

Okay.

down points came travel Which from the that currency the of by quarter. mid-range revenue vertical So for basis brought XXX about you part last constant growth from the in year that terms of specifically?

only way, for X%, midpoint, revenue constant X.X%. currency the So kind close is, right? And is down by bottom the mean the I to X%. you line the Sanjay at of reconciled

last ahead, -- And David. the Yes, sorry, then question understood. go

seen vertical. the to No, that reductions travel so was the that in client guidance go X% say we've we've baked by ahead. driven -- into volume predominantly going I the is

Okay.

your cash Okay. the to last actually of is, basis? free question giving about Clearly, market multiple, mean that we in offset compared of given do can the outperform guess, or your capital balance guys peers. sheet. the have of here I outgrow any not to sort internally given to And to generation amount cash more valuation, the the you given kind then what an market credit on for this I ability the flow on annual the is you deployment,

take think I'll I that.

from and we this conversations think kind results. for term. the at changes the of how to confident we a we company during therefore, point trending how at are opportunities issue We about and, of very is But the call making view, business our about I of our overall these long exciting overall, pivot to we continue short-term the have look that technology for be continue may are which have HX some around . clients creating new business is our trending, WNS. with is -- year, spoken of and we will the this making

that more allocation, every spoken we So impactful M&A can so first of for from things continue add keep those targets looking turn that leverage our point view, even about of our that more we become one with can that in foremost, we of to to capability have capabilities terms capital and tuck-in around clients. will

earlier candidates can So have will this right? we will the there. and did health us also impact the year. our the long for sense adds of that, term. to continue And accelerate as makes when as of we point programs right of buyback pipeline and a to the business, for for programs, Sanjay the constantly that approvals like we're create we be looking taken strong of opportunity we capability we trigger the buyback continue about positive momentum mentioned, at. that Dave believe our a There's the from is very, we And and right, very we overall pull if Other something view, than kind

of And with coming Baird. our the from Koning line David next question

Dave be And to problem seems a the with having speaker.

next Thind from with Our Surinder Jefferies. question coming

then something takeup shift past? like you just mentioned the at I'd large about about question the focus than commentary start on a projects. cost about increasing any to more earlier deal having mix changes potentially also transformation And versus a point the So with opportunity ever in projects

of bit that? see expect a in of like the you little how that And there big the is economy driving Can in kind if we to a think opportunity provide what from the back? that environment step macro terms Should that uncertain a should lot current we seeing? picture that normalize, begin does color of we client at product point? we're look about macro -- should additional of decision-making of you the perspective? guys Or What's

take I'll a Yes. that. at Maybe stab

opportunity And the are current CXO-level also foremost, before. First not of and that number of they the in technology changes who us of means help well that stressed actually we at looking because for pivoting I of and future. level facing levels and resulting navigating for actually engage the highest is seen first them requirements the terms and the the as a a as can crisis have really foremost, the can conversations some the of that around creating in partners customers for new with are macros model them at think the

and far same because want And be it's prospects they the the of as programs. completely concerned. new being programs GenAI before existing are as at in very these may considered at clients to look of some with pushed cost are smart terms to AI, also terms leadership I see kind ahead think stay now to trends of but as well game conversations of as the they not of have having are that new exciting in we time,

are WNS looking in is deals terms are having, some the that that the excitement quality at. just the size of the of conversations of So we for we of

that Like providing takeout, deferred we may have which we saw to with that earlier. is but us committed captive revenue about the spoke

aspect. that's the So first

the think and of community with being of a ahead analysts conversations adviser as are that, momentum as gives out for well macro business in I do Beyond because terms by the prospect to must new the the continue of stay of And to center. lead is as for we as, as ability taking the actually be the the us would that sector that built relevant well to WNS the for quality about place they us community, I them that front client come say, programs of the relationships going term. confidence the for and and community, lot long environment, their and of competition WNS to the

just to And Keshav's Yes. reiterate, comments, Surinder.

of you healthy reality that was outsourcing of the see you'll our X engagements healthy. both strategic clients clients' What is extent macro looking that was terms cost them, the look the for look looked was, businesses a steadily reduction macro as I we're in of to you at pandemic these the to think years at, business that terms when types willingness when plays, types prior traditionally the in I example, right? of to in accelerating. the think, people And what saw at at

weren't order that were prior years to were automate clients excess for in they advantage, competitive. looking us about struggling. were coming cost were capacity, needing digitization clients to and to for These clients about looking to the The automation, for competitive reductions, for These the right? reasons X remain were looking pandemic not

my the our projects, at growth, engine volume, right year. it's not. But theme in the front The top additional at an only reduction the top going or this it again, now business, impacts care us look on this AI that client center, you that's earlier, line it's GenAI the cost are when the not automation, The where our health when and look digitization it's is growth environment. in extremely we're now question layer and to this challenge I healthy business, lost that comment away. you in now of does potential digitization is, fact environment the back right, creating It's catalyst and for think for the

does kind as And maybe client just optimization how it is global the terms just delivery? office. follow-up, here? being on the that of of the are impact then to of that of important driven employees commentary in requirements how a continue profile working that And Understood. increasing the from by number margin Is your

Yes.

office, basically, based So work the requirements. data various the and can some definitely, it upon as because on from factors. it's of be depending regulatory other One, you mentioned, the of those requirement, client privacy

employees Tier specific. are office. also required a power because be working specifically have from cities, it's be bandwidth X geography Third, to challenges, it in can infrastructure, from the right, of you so you the because Tier have in whether And outages, X

number So there to a the as And are various a year by forward. is and it an from we as factors XX% at office, end, considered will we from believe depend good return work office. stage, this which move average, get

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as But perspective, And got has last for pretty headwinds, and Yes. easing from X.X this we significant mean, us over should abate margin headwinds you start last I XX%, have perspective. years now. several next to XX% see for margin the year-over-year a targeting XX% and the should we're here, to we What over from quarters what office year, that back is think I an headwind moved should quarter a right? if that is that as we example, from the we into end state quarter-to-quarter the see here. a means the been

next our coming line the Barrington Research. Vincent of from Colicchio And question with

the in volume travel related is the of company at look much we magnitude if decline, Curious, how versus macro? Yes. order

good Vince. question, Yes,

it's you tell. at hard I look if again, think to --

in very If the working services the services volume or geography their the because of that with providing other to is I X/X losing that they're structural got with putting dropped versus their specific another is difficult and it's they're player to would this market would this macro clients of decipher. got or issues. say type is Sometimes X/X share I for and it down, internal for has they've napkin they're or macro. this, -- challenges just on a is company dealing cocktail they've that of

from X- the and your over, we thinking? say, of my and a customer is, weigh time is we Okay. interactive current follow-up if generative at look And to opportunities sort what horizon AI, X-year threats, business

think we I at an but will be it opportunity, business there that standard is I is. look Vince. of to productivity as some as certainly, our it pressure, mean,

conversations and WNS entry we've typically remember, contracts year-over-year X% work. include Our the X% cases is to that in the on seen headwinds And to a had level at today. What on the client we've structurally basis operating use date. not CX

moving or especially it's X service. doing about end not hyper to The work. from more as we're But forward, it they why cost low-end help or a seeing not pure center the about contact of quality using desk that's improving that right? these we when customer more the in level and stuff of specialized. pure interactions And end at call base, center, It's customer about customers us satisfaction that CX domain-centric, of look We're retention our improving are doing relate opportunities it's clients or we're than system. reason removing the is personalization is

that to benefits do we're how and I I I involves is deliver my When activities remarks, to the thinking can Keshav at XX% my the prepared about everything look think loop. how of able the So the of almost they're for types as line. saying, take of going at in do this human we're I looking that drive so not I top about out these clients, XX%, XX%, in service here we thinking think be his quality said this improve they're cost, that

to interacting outcome more What we're just really. doing the dependence is human our of I do technology-oriented minimal, we clients. work is want in digital lot to work kind add much contact pure where that a is CX work, our more and of Yes. on here our for center much deliver an

to need work is the both together critical. So for

ultimately high-quality model the very for wants taking long well to and potential you kind particularly that ask of And customers is possibly the that have the are solution models the CX including we that's space has our GenAI their a individual an me, in a end spending of think well. very in built on, of high a understand trend own significantly. has where want, gets high that's with out revenue have wants automated to have end they now as an if clients technology, cannibalize new processes that's profile of are become stay to sometimes is premier saying which some pushing I terms back, And a clients customer as digital more constantly margin and quickly as lot not far we order well. trust a where part growth, interaction relationship. adding we the time models. Customers, completely are sticky been in And term WNS relevant to as seeing client also that where moved

HX-related point discussed insurance been large us issues that conservative spoke issues captive call more as have this most in delay in the time. ramp, and around customer-related volumes, project-based until we importantly, to more Whatever client of specific have about and now we the work, around around now around been on has at that outlooks provided this

the interactions having kind top at on other with are macro look side. really quality we WNS you if interactions of prospects that having, is actually the But

or the areas conversations Our existing X we with beyond X about having clients that X X customers spoke are actually -- great or us.

clients like solutions companies that to acquired client how also the we take pilots them about with new are now driving, made finally, our be basis that providing even boards where have an of rather our some people benefits GenAI they having partner of going reside are and the are later, and AI teams. our the through conversations on will sooner integrated looking the than them. that WNS All And we are growing entities of at asking investments quickly with believe faster that we in are for

clients next their to think few quarters. the the start pressure with I over So on will feet moving the be also

some revenue uptick in think a from those at we of point and streams see I time, opportunity well as margin more that will as opportunities. coming lot

business quite long-term seeing how about momentum. the So bullish future our we're based on

and this you you, have conference participation. time, At will Thank in the questions your Thank ladies queue. further This we gentlemen. conclude Q&A today's call. no for

now may You disconnect.