WNS (WNS) 25 Apr 242024 Q4 Earnings call transcript

Good morning, and welcome to the WNS Holdings Fiscal 2024 Fourth Quarter and Full Year 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 Fourth Quarter and Full Year Earnings Call. the Sanjay have Financial Puria; Sen. on Murugesh; CEO, Controller, today CFO, WNS' and me call, WNS' I Keshav Arijit With our Corporate

press focus Relations and March section issued our website fourth results is A quarter Today's full available results of our XX, remarks for www.wns.com. This fiscal will also Investor ended today. the XXXX. release was the on at detailing release on year earlier financial the

are call will be discussed Some of the today's matters that on forward-looking.

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

believe which information During for non-GAAP financial this measures, will certain call, provide useful reference we management investors.

financial results of measures today. Reconciliations to earlier found non-GAAP can in press issued GAAP these release the be

amortization compensation, non-GAAP is benefits and financial revenue are intangible impairment as as discuss, defined measures, is payments. assets. margin will intangible share-based or of operating management Net defined operating excluding the less assets, margin as follows: Adjusted acquisition-related revenue defined expenses of repair goodwill of and Some

issuer taxes. throughout net will voluntarily transition excluding of ANI, program call. reporting used or We forms or amortization the and domestic ADS asset transition on and voluntarily goodwill to intangible termination today's profit forms. to benefits, costs, assets, acquisition-related income, U.S. with are associated as costs associated be reporting termination Adjusted These also all domestic and related to expenses share-based program our compensation, is terms costs impairment, ADS on the intangible excluding U.S. defined issuer

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

company and X.X% increase a a In business the year-over-year a of revenue net posted Sequentially, delivered exchange. challenging macro reported morning, fourth X.X% by for solid constant a The Thank on the good X.X% currency representing environment. adjusting currency. very increased constant revenues $XXX.X net everyone. and David, on of you, basis reported despite basis results and million, fiscal a fourth basis very quarter after quarter, WNS' foreign on X.X%

Demand transformation and continues for to while healthy pressured. project-based leveraging volumes business digital work be and analytics initiatives, client remain

logos During and relationships. new expanded existing QX, added we XX X

New end X the include which expected technology-led QX. of begin logos large deals, ramping transformational are fiscal to towards

X% margins March first capital, delivered improving quarter, XX% the XX, more and last year. ordinary shares. grew by company of operating On the completed than for our WNS ADSs access In versus adjusted the exchanging to adjusted EPS towards step

the reporting We also filer shift are first XXXX. in IFRS track to issuer under domestic fiscal private U.S. under reporting GAAP, voluntarily from of foreign quarter on to status status a

maintained our expected to macro grew of to top earnings and initiatives volatility. the active domain-focused ability price industry-leading weak certain fiscal delivered These improve the our our by Despite XX.X%, investment XX.X% strategy, funds line operating differentiated participate reduce at by headwinds and are in company-specific WNS driven and and XX.X%. growth per U.S. XXXX, margins in share adjusted indexes share adjusted

corporate digitally-led transformational organizational the year large, successful signings. in healthy SBU of include Other traction of attrition, good structure, acquisitions, X our and the highlights integration full pipeline reduced deal implementation a

focus AI. market domain as compete as on intelligence advanced capabilities to strategic to clients across investments help artificial continued a make differentiation investments drive in our management, world. During leveraging our the the year, sustainable are enhance and expertise, rapidly with These changing Generative well a and technology necessary data and analytics to designed WNS cutting-edge also heightened

Gen AI deployed we digital fiscal assets capabilities successfully Gen service AI with and multiple built customized and cases, In use across AI and offerings 'XX, pipeline of robust solutions created verticals. a integrating

these outcomes human combine go deliver clients intelligence of artificial and beyond underpinned that by intelligence business solutions to and All for expertise domain cost deep are reduction.

through In enhanced fact, on service. many of quality these customer line clients' new top driving of and retention improved offerings, are cases use focused our

well strategic During AWS forged Gen continued the well Azure, base partnerships and talent with to progress year, AI we AI leaders including hyperscalers, as our as global proactively hiring technologies. employee AI make on as in Google, and training as Microsoft OpenAI, and

adviser receiving community, named WNS XXXX Award AI by capabilities winner month analysts was as well from for recognition our is a and Artificial Business Group. positive also Intelligence the as last the Intelligence the

products, and XX cited solutions having innovative companies in delivering consistently AI WNS for the Gen culture only was people one the of space.

AI clear critical outcomes. and Gen clients will to improved proceeding important cautiously enterprise-wide automation that with It the also today. exist is and of While it transformation delivering given many that AI initiatives, components be is uncertainties understand and driving that are

from willingness more by help presents and and costs approach adopt clients' the systems model data industry integration. analysts. and global impacting and the and these leaders WNS believe continues integrators to implement these data evolving bias, than company and Despite confirmed conducted insights regulations industries our AI ability opportunity the to clients hyperscalers, setup solicited enterprise across largest technologies technology data threat. which with HfS, impact This recent properly concerns associated that include market challenges, Key preparation, privacy, underlying in quality to from mirrors leverage at measured comments report was scale and Gen

collaboration, addition business on of we customized to Gen are differentiation and and pilots, proof outcomes. focus quality closely AI innovation, of with concepts improve use the as and on competitive in well clients AI cases, quantity conversations Today, and seeing and also driving as working increase

in company's to In or in programs shares our opportunity 'XX, X.X share repurchasing the contraction million float. this price, buyback fiscal our X% and the WNS almost of evolving response accelerated outstanding

and robust. growth which several potential and Looking have rates. new our remains well is focused XXXX. cost forward pipeline fiscal to deals, for on materially operating transformation fiscal XXXX model transformation reductions our large extremely healthy to positioned the XXXX is digital fiscal business Demand WNS and in industry-specific impact

That to as volumes year full today our well deals weakness, work. the as by visibility project-based timing business is these challenged of impact being which and macro said, continues

company In addition, of large in model. for which us aware, you health strategy changes cancellation, intent create XXXX, client that notified and headwind announced of fiscal our as convenience. care on a This a to February to contract was growth will are client their terminate by in leadership, X, has driven revenue business X.X% the

to this at or in constant be discretionary expect time, result, currency volumes revenue X% the basis no a year. As during the on in an improvement growth range in spending to X% which assumes point we organic fiscal

the XX% to range. margins XX% to in industry-leading our expect also We remain

plans certain million $XXX weakness. given against require stock, company vote current adviser the and to 'XX, repurchase we proposal. to to override the To fiscal this, to up our repurchase shareholders recommendations proxy likely In do will of price share

vote So again, want I planned to your and support want to against, we clarify recommendations vote expect these in proxy that May. EGM an to adviser upcoming recommendations for we late for

as We the are maximums not requesting price are the support repurchase guidelines and year. share over just duration company of believes the practical program proxy price our past your movement given

at who the the end of but in CFO release London a announcing will stepping the July in also with reasons, down April WNS an end Puria, will XXXX. family Sanjay transition. upcoming issued personal with today of for is role remain morning, through company press me an be This advisory

BPM Financial XXth on bringing expertise July with years, Corporate for to will Sen, industry our Arijit this right has CFO of responsible and of over in and Controller, WNS acting company-specific as year. experience current formally both XX Sanjay's progressively CFO the function. Arijit been the become roles, hand

coming We will to Arijit and months. investors the introducing be our in analysts

partner our trusted to for success. contribution my entire organization, and years Thank congratulations Sanjay, sincerely would opportunity take like XX-plus dedication, leadership of you, I thank this you, my Sanjay to heartiest to a and As Arijit. to the myself and to friend, his

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

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

healthy clients initiatives favorable volume offset movements, was for and with currency which partially improvement revenue by and by continued focus demand certain in project-based weakness sequential The cost reductions reduction were revenues. driven discretionary

Year-over-year, Sequentially, million XX.X% improved were currency recorded In result adjusted short-term, a currency the These movements. rate as revenue, impact and annual our a benefits result partially quarter last margins offset and and revenue. of XXXX favorable fiscal operating of in favorability. expanded $X.X margin quarter, XX.X% as quarter productivity increased revenue, in productivity reported of X improved by of quarter. to increases. higher WNS margin fourth operating high-margin same compared the Adjusted XX% as of the was higher

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

booked $X.X rate the in tax other XX.X% mix and rate result mix intangibles our XX.X% of work tax X sequentially, increased quarter quarter. tax result a million, million Year-over-year, of at increase $X.X in profit tax Sequentially, onetime X.X% of rate shifts year the benefit geographical quarter the to resulting in for last effective quarter from changes in X compared facilities. deferred nonrecurring a tax our of the delivered tax XXXX. taken incentive last a liability to and year-over-year result of tax effective effective of on X, a tax and of both in was WNS of rate was changes benefits came as the fiscal as reversal from

company's for XXXX X with $XX.X same fiscal million was Quarter net compared the and in The $XX.X million million, adjusted $XX.X quarter. last of quarter income

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

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

price XX X cash compared stock of repurchased as year reported of also in quarter came to last in which $XX.X in The shares average an and X quarter days company by XX million $XX.XX, quarter last quarter. the at days fourth million. of impacted days, DSO X.X at XX

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

the in average to mid-XX% range, volatile quarter-to-quarter in to the attrition expect but current low labor environment. the We remain would rate

capacity end work seat year. Build summary the to average like increased the before to from and outlook for would brief I during at quarter coming our quarter. X office XX% XX,XXX now of financial discussing XXXX you the a with for fiscal provide WNS seats the

XXXX expansion. logo XX.X% driven the client and company's reported revenue in additions Net revenue by rate. growth $X.XXX Acquisitions Organic in was verticals, currency fiscal constant X.X% under a basis. came at on up across a and existing and growth to up contributed geographies, basis and services just new on both broad-based spreads in billion, X%

on-site in partially to basis reduction Revenue softness of in existed up down care points growth discretionary work. was fiscal transition XX.X%, during business, fiscal by a XX XXXX. from the the XXXX margin and came company's the ramp macro-related in versus at project health The volumes Internet large operating offshore transaction delivery, offset client in year

higher as of In result year. was driven improved on wage the cash was movements high $XX currency operating and on lease increased by expense during interest office million reduced favorability lower by Margin fiscal and leverage XXXX, other volumes, operating unfavorable income by and interest debt, increases cost. partially net productivity cost to balances offset from return income expense average a

delivered reversal onetime in million and year the profits liability from year, incentive Quarter down The XX.X% from geography facilities. effective for the tax a was the percentage result X last in work deferred tax and by of a the of a tax as benefit rate changes $X.X of mix from company's of XX.X%,

The $XX.X in XXXX, generated approximately We our debt from In million spent adjusted of operations, net a million $XX.XX Overall, $X.XX. million share. company year or diluted cost year $XXX.X expenditures of cash million coming million. $XXX.X or shares $XX.X share of total on X.X also earnings capital and per $X.XX of ended per cash repurchased balance full at stock with million the XX.X%, $XX.X share. a improved fiscal per WNS in made payment diluted at

per work rate XX% to by reduced and XX% to X%. from more from increased expanded XX% XX%, attrition than revenue global from office Our employee

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

known mentioned, Keshav As visibility or client in environment. large short-term discretionary improvement captive our volumes projects. to factors an guidance does from macro revenues, not and and insurance in ramp-downs Guidance client reduced incremental revenue include the

to on This is share pound the Full assumes to to based of X.XX full assuming to projection a adjusted in income XX.X approximately EPS year. the fiscal average of count XX expected range million, net adjusted XXXX $X.XX $XXX line dollar for INR exchange an to million British year Top implies dollar of $XXX million U.S. rate shares. be exchange diluted rate. U.S. $X.XX, of for

Excluding currently the the guidance $XX EPS. to midpoint WNS requirement and With expenditures, fiscal our benefits to be of in expects tax $X.XX for XXXX, fiscal a increase XXXX of to respect interest X% adjusted represents income onetime in capital million. up to

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

Our line Jefferies. with the comes of Thind from [Operator Instructions] Surinder first question

start perhaps that call, here. a also but the large Can healthy I some wins. potential guidance with talked I'd some about terms like maybe to you that at the in pipelines would how to color bit a this together, pipeline, increased for or lumpiness When sounds question more what you and provide that forward maybe pipeline compares there's -- it of point? putting historical there a about like

Sure.

Let me take Surinder. that,

extremely So is mentioned build when deals pipeline seen year as pipeline, transformational pipeline. remarks, look have we over that I number in are past healthy. in think a his remains What you at prepared large in Keshav the the the that of steady the

seeing So got expansions. obviously, and opportunities business, in for transformational are of deals client more that their are solutions But a span multiple deals clients is multiple amount inherently and that deal larger healthy towers for much areas of with. we've of we are for those small complex looking to kinds what much

for longer. result, a deals cycle sales As the those tends be to

They forward. are is clients seeing are Now again, what making that we're decisions. moving

move material believe I additional fourth X think for the large mentioned, Keshav opportunity the where is As company beyond, 'XX into success fiscal 'XX. closed well participating and on in that close half our have what the and we forward large deals part those very a this is and of deals, extremely quarter timing of on back alone. and fiscal we we year of how fiscal deals we're positioned rate impact as the But is several and in deals the could those success, when

good do obviously, So into a big certainly, growth X- create close, to more visibility they the little create do But lumpiness. steady bit period. across X-year deals a once long-term

even you some tech a clients bias, the commentary follow-up, adopting whether revisited. into they're regulations, bit deals, the AI together slowdown that will about to that trying from commit will things in there's does to and that look maybe stack. put terms around workflows, of a about data also that or more number be the with seeing? here hesitant think that all solutions year that the contracts equation reasons, transformation if it's because enter in change big types some sense just are AI impacting then thinking How work you of being of into fearful decision-making the a new a these at be about we're quality of When of cautious of clients kind And for new is that as now you costs, to they're

Yes, deep very great a that's question, a question, Surinder.

or has quite I significant think that, and seeing own along to And for of we're clients' is want business thing the number in or prospects of arms macros time much actually number a their extended while, a causing clients the a to are all that and of their market in that dipping first changes the think businesses accelerating journeys I around their seeing, in with disruptions looking the model clients more that current taking are plan, to which means at So project. terms is are I toes ability get mention it. model that now

and of are year really looking why are the play irrespective going also, the which had our already situation X that world of during of irrespective big soon. kind in the people Tech out. to at in clients some pressures which, carefully. clients place and Dave But That's of the about, deal environment, macros of the are and QX, more seeing we've are all an a changes taking these first large because to core things understand said, we of also and are decision which what the specific we take are new signed with technology of have pipelines, and our changes that means no with at in AI are have they In they case, guidance spoke also less, very continuing transformation Gen going and taking some Gen where Ops progress, AI specific big actually, how place into many that through are, or the or the opportunity we as the been looking are

the people be their are right? aggressive, people here. discussion toes in have I very with who the well And to far or of that's actually more engaging And us, actually, dipped the who model, therefore, have they not core think realize

us. the uncertainty, creating is I On for macro out, which causes new also will think play disruption it some the and one issues opportunity hand, while

said, and Dave I much prepared my size like the are of remarks larger. said these in deals before as And

Now introduce is to comfortable along right comfortable them bear, of assume our impact. we planning, all will WNS way, partner of some for Gen and some offerings, will in some those it get growth profitability. short-term getting that, kind when cause these the opportunities, the some AI in of as it help significant will to spite somewhere and But of cause using that we revenue come of we kind but people that with cannibalization that expect models of navigate these us,

Surinder, understand not that, for are they I for business add to AI coming are us, to for to to looking specifically. to business. looking impacts, those the just are looking are transformational think outcomes to think when solutions, What for important it's clients they're us I Gen outcomes. that And those they deliver

know a have we for years that how hold X, coming AI. from play that rollout year tools productivity and may in leveraging like technology they they they're out. realize that time, accountable going X see also and technologies is. to to entire over Now us don't mean And the latest to whatever greatest But to wait or will Gen X

So that results. are length that that's to clients the sales the the is those here the looking issue disruptive cycle, models, technology and what's which think driving going But not clients are business is I fact deployed things do transformational inherently to deliver biggest be that that are are to really moving forward. their to of

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

here. more growth wanted the to a 'XX I outlook in on dig bit

flexibility building be through a about with the downs? can did as headwinds, may you some uncertain out year-over-year us how for the provide you ramp the incremental known normal And productivity portfolio to just headwinds off help year across year outlook think client-specific what coming you enter factored and given environment more potentially there? this So with

Bryan. Sure,

a that. me at Let take crack

is we short-term typical fiscal headwind XX% downs, as 'XX, ramp to So XX% we're business, what comes headwind Now to from we're productivity, a the into from comes in project-related that think seeing going an today know work. year, a I right? from have comes known the that that that we about the XX%, look

with, into got look we've us. for 'XX, fiscal we challenge as we're that's think headwind dealing X% the another I X%, big creating that

and conversations plus X, of us made X think that's I based months disclosures from Now the X% contract. care health the past client the and coming understand that most that that on the we've terminated of large know over their is

Internet from centric. of coming is the annualized on-site impact X% moving Another large centric the client to offshore from

that where that make The piece is months visibility different commitment ago, would to X and clients are to X the willing the levels is I to in deterioration have and relative projects. that to months we transaction think ago, volumes really been

cost probably us that's And another X% here.

we're seeing that the created to clients reality to, the in volatility has macro the challenges in months. And us basis. that think next our Keshav we're travel As in over they're impacting in to insurance environment primarily for manifest the is, XX the that But projecting providing X and I going what's the happen us. alluded itself to projections the seeing

decisions which of also, on expansion where are to therefore, moving decisions past, new ahead but just may is while add today, have new these anyway, with clients us may they the in areas want just want completely the to of underline as as fact we'll opportunities. maybe of state in that processes time Yes, around ourselves. that number all on hold of uncertainty nation I the to some said, I we operations the a creating that's to or And know, implement, but take these also that's

But play this also therefore, seeing X I'm to actually in And to well means get We us, last larger irrespective much second quarter, which wanting us. terms moving what scale the creating high, of out ability new also are is that, the that things of XXXX. half and a is that delighted do new closed timing of aggressively opportunity take new time should are in interactions massive more our uncertainty in we of for say to already, to right? that prospects kind some in is close. Again, and with these involved clients

guess, any you 'XX guess the both parts here, margin? all I go And cadence Understood. as and through moving considerations of for just I quarterly on, given growth important fiscal kind

Yes.

Bryan. that, take me Let

obviously, for QX we know us. think, soft seasonally typically I is So

the volumes that to ramp to that, In continue we've down. got addition

decline in QX, looking sequential So we at are in the X% range. fiscal probably a

improvements in of the And will to the health the that us to range. despite margin challenges that XX% operating expectation see issues is see expecting give the we're to leverage being challenges going said, be in That that head and we're we and QX margins, XX% addition large the productivity the count utilization to the QX, create, that, some line QX, care line. ramp in for that down the we the in both should QX move as steady across we good, acceleration top and and QX,

also And because add and of has visibility, what maybe some there of not compared be we'll revenue the just to not client I'll a lower to that, And the of the margin create Dave leverage is quarter to where able a mentioned, which be the mathematically what expect right the that because quarter the get because X. operating in now, on from X, perspective, we seasonality compression right? than

because that. but So investment to the for growth, seasonal move it's quarter done we of a just has impact the for going been be X forward as scalability the in

Yes.

XX% So reiterate, range. in million-ish XX% the the expectations just margin to of QX and like operating in $XXX for the to neighborhood

the Our next comes Bank. from with Svensson question Deutsche of line Nate

I on project-based bookings. of focus lot Obviously, the there's kind shift talk shorter towards of deals pressure larger work. the and your of remaining to the been a mix about on wanted obviously,

you your contract an have that's contract historical if would how $X billion thinking kind of million X level what contract billion -- seeing years, we're impacting term, bookings in this $X it's a as annual been of just now? year. of be one average of but year, just that So from I'm how example, all has much short a over $XXX So value? sort change versus And of average kind value there is

evolved of from kind just So any going that's the impact and larger over forward time model of to how deals? conformational understand shift to trying the

that we've the it's mean specifically, and last mean, signed, the more average and deals in question, total couple good years is contract the value a clearly, the I we've what Nate. the I of value increase meaningful of clients contract seen across right? a Yes.

relationship. So are does X value slice there's right? we've is of bites initial take that like, to when So up that that. what a bigger the relationship, One clients ACV, kind new TCV ways on signing you're is what is to that number seen of over route, look front the clients end, willing X year statements years. X And then it, another X, have right? work They'll give meaningfully us who to give also last or proceed we the X, into of X couple a But they'll a under us different right? or X, start

multi-tower, of and to multi-process portfolio, Surinder's very So terms verticals, is large side create does solutions. of But across provided cost Both expansion the it's clearly, But best to and the and the on healthy. that lumpiness it's across the geographies, seeing P&L. of bit across by are that's more clients what types business. little automation the of deal a kind of earlier, is revenues the we the understand visibility that question reduction profile need those how for transformation in when come are extremely and

other that growth. count head had My question on I was

been contraction quarter, but head to looks maybe in I back I about there think actually have last growth going XQ, in was a sequentially. in point a uptick slight an might think count expectation for head like count there

fiscal able new to be ramp of 'XX given you sort much sort what for need lean or might guidance, would That helpful. head growth? might how head updated expectations be maybe have you to of on as opposed count count, So when are your to utilization your your grow to

to will be move It the 'XX, growth be growth, to going X, count FY loaded going for seasonality, based is be early back little only a on the we the is growth. head we forward the about to not 'XX growth for that between also but as to you start half what 'XX, head support that expect accordingly, see move as ramp-up bit can we the there grow. FY Quarter for count quarters. But So volatile FY we spoke

Yes.

travel ramp I on downs point, the shift what to static, think Sanjay's a verticals we may in be the got and to you'll are services covers. the -- going overall got in with is the talked ramping with there's large care these be the But to certain health remain of up. offsetting going health about like that, under large see while that We've numbers deals we've types first client. mix somewhat going certain and half X

the going you're covers, look So under the that going going changes the you support mix relatively similar, kind us see -- see on in are there while head shifts business to to the numbers forward. allow overall count to of going are

promises the internally we the also efficiency, is even to implementing fact drive we wouldn't tech-enabled on deliver a opportunity about that that are solutions all this also talk using to are of more continue number happening, kind at miss And I constrained of while the of made that, result required in the our manage a as head be a margin we requirements to also the that manage that same count the of and ensure to may time long the clients, for macro term.

of some So people being solutions happening kind also our these with deployed, is to what's some of moving work. we're value higher of

impact And will some of the headcount. this also

of realize should moving you a So parts. number

Wedbush. line comes from the of Moshe next Our with question

luck Moshe Katri future good your Wedbush. from on Sanjay, endeavors.

phases, we get go to the a an of Where update So client? et are here. generating on I questions couple terms of want revenues, in the to Can captive cetera? we

one, Moshe. take me that let Sure,

time, the to the in Phase we've is no the point At this think short about given of I answer change. been question X. XX%

the work with We continue work, in the not client the statements new Phase but of rest also customer. discussing for that engage X transition the only of with to

their for they not X-year things new unless us know to to So hit find we commitment do. X-year, that also they're going

the also -- to Phase with in with us in this to engaged for X streams to of time get of point at engaged So this we forward can them how customer take be with X from revenue to the rest we years other moving but enable potential when and terms of actively where to need work, us now. actively get X,

to is potential included Just none in reiterate, of our that guidance.

'XX then And back guide. going Right. to fiscal

this to of normalize captive X% year? that way. about confirm client we Is to understand, X% As just guide, it's the headwind. that at care I understand I disengagement. that right the I If and looking for Together, the for the way right guide want it health

You're as client be to at to around It's around Internet an health to well move, as somewhere right, say together the it's I X%. together, X% from offshore care, the captive also X%. the onshore absolutely. going would

vertical one, the then talk you final seeing the Understood. general, work? which in is volumes? And travel in more discretionary actually to in a of then And you us can about project you're exposed part remind base of bit can terms what revenue

Sure.

talk OTA seeing So I across Moshe. in kind little pressure the board. with discretionary bit to travel in in The it me space. seeing airline we're the is be get we're a then honest a And spend to you, side. say combination factors, seeing it of we're side and the space, about the would travel the that let of it's

macro-related is limited where it clients experiencing are of Some growth.

coming Some is and of out over rightsizing. hired of or recoveries over had the it pandemic, projected that they we're seeing

the to Some as side within of example, travel for this number specialize opposed retail have, corporate side. OTA the where travel challenges a corporate our of we is in the travel customers we where world,

challenges us. it's changes it's in It's the for have created I relative the travel overall, and space. customer-specific macro-related is And -- issues, business. issues, strategy what think, to story really those that's So

not customers, end But of volumes. see terms transaction at we volumes yes, continue in losses the within but losing losing day, customers. ownership losing of to what are those processes, the we're We're is not of we

from XX% I of And revenue. we of project of we've component come like embedded X% of number just perspective to we've for down was a coming revenue. that years projections today discretionary company seen about when the acquisitions probably XX% that that down discretionary On obviously, probably business is side, say did the around think, down would fiscal to I X.X 'XX, based ago. At the project our the currently company number is revenue. That number on below peak,

our we historical in in when the and areas discretionary spend capability see continue like that as capabilities we done of strong. The have, of of both So these and procurement we've a analytics in new to long-term comes back. that assets businesses, terms and opportunity the are this as terms acquisitions

in So initiatives to time, limited. But those and to this we willingness at as do that the see very, clients' visibility types point is upside. commit very of

that them of while messages, these green are issues helping for macro of terms extremely take seeing must functions they impacts on of in I our nimble in all strategic terms their the some the also we are is say more this where coming much disruption are the travel, other that receptive shoots out creating corporate of in of Well, them term. long

And come into in recent the future. of actually are large fact, the for some about deals that we sector talking

also So seeing. is very that a that we're development interesting

back. as for internal guys they're the all business at functions are meantime, looking in And reengineering ready come the getting also the to So well. these

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

about wanted ask I the or Keshav large Dave, deals. to

market in approached type comping large you you about Any lose you to making win as the in your market, pursuing or force? mean strategy you're sure that of sales the investments this you force dynamic? are changes sales type you than incremental deals? changing go-to-market So your how go Does in more these make that transformation

a Yes, question. great Mayank, it's

of come the effective on changes and for restructuring So go today, also first first I X a we the very very make foremost, that the with that those together sales orientation and reasons think right? we And talent dynamic, we say kind strong the X into having this that well a what being or of has units, they X one the over I change SBU are what actually clients. have the the capabilities sure so. go important can also quarters making of integrated within to therefore, transformational who past year that market in and leaders acquired past because one when for want, business It's SBU organization conversation want of terms in fact decisions all some over these or with people market very of our kind they we focused units, must well

that well may a capabilities as recent of talent the seeing, of people with set bunch of strong means WNS, past higher people have therefore, people as another are well the as in It, helping in a bunch have us pipeline smart trained been who that we who repositioning more been even and smart this of of hired as bunch from very across actually one. a geographies is within

is AI our right have comfort around and to analytics, around kind digital, seeing around conversations are we we're to are of around resonating giving much ability that outcomes is what Gen they partner ready, when actually transformation, is the higher-quality thing navigate help them AI Second well. extremely

CEO, before. being are to have what than are level much traditionally elevating We deals side. And these now conversations other we the these CFO, of the size bigger all therefore, discussed discussed of some COO on

So that's core.

lot the are I that lot of has are this strategy to changes happening. to would the But successfully a a there more credit that which reorganization, company have we give I importantly, it, now implemented. So of acquisition And think pursued.

we're about rubber we to 'XX add road, that, head where -- a XX% to exiting fiscal hits And the sales just 'XX. with force exited count the fiscal above where Mayank, sales that's

been So fiscal those investments investments 'XX. were have made. in back-half Those loaded

forward. recently going is I So large signings to seen of you're positioned in starting the But think well have terms on it investment. we've extremely Keshav's large we this of had fully deal the point, see deal that the don't we've the pipeline success think benefits for company and I to, where successes

the and the larger yes, deals. scenes taking these place drive investments pipeline success behind of kind to drive are the So selling in the

your M&A? my these mentioned you capital opportunity, of side. a that is, Or then the this pursuing put I given allocation time the which upfront on but you're might with would Keshav, you're sense, lot at makes you all also have headwinds you Any this know valuation follow-up, some And do hold? thoughts to that that around about to tackling as that? digest I be wanted buyback considering where ask large

So first let me introduce myself.

is by way. by the Keshav As mentioned -- Arijit this

a now, has I'm years move fill, are big my and so Sanjay's Sanjay, been of of shoes to part with I've to Keshav, by well mentioned [indiscernible] I'm role with trained over As significant been take sort WNS for and hoping but this XX ahead.

M&A. question your our on component continues capital a strategy. to allocation to M&A key of Specifically be very

recall continues and right We from philosophy, as continuing chosen analytics, fit definitely valuations. M&A now, M&A digital you areas industry-specific addition of capabilities key evaluate healthy earnings data assets calls, based pipeline have Our to in strategic appropriate be we and a all these very around like are investment, on of would and areas of to competencies. prior the our

and super -- must pipeline. going to we But that's upfront large continue Mayank thanks street. about Yes, a our well. that the Mayank, introduction to confident to I very We're are tell you great Arijit, deal execute

we aggressive about business. buybacks, is the we spoke appreciated it's invest We or continue are not to I time. point will our going definitely to this at in like on continue think And because stock undervalued in to focus

million market we for a sales, of on the to of companies us of that shareholders in marketing, positioning that we So continue year, at period and acquisitions this terms invest time creating time. about outcomes great and a like over for our should keep always capability-led looking right kind our capabilities, spoke our doing to at can deliver enhancing the when $XX a be radar in for will we CapEx new keep program

Our next Blair. Nolan question comes William from the line of Maggie with

those of similar might clarify, there have any whether client, here to different more that Internet a Do there care you client obviously, concerns these be something risk base? it's client health just Or So important the the large and one-off consider structural are I or the to think across are be in circumstances. situations might nature?

Yes.

look, that, issues relationships, take very us other that and believe gives I with our within on client with concern decisions and being good in Maggie. relative I Internet to to evaluate customer-specific within the there's And care a instances, X company me those record Let X think when going the of or business. we both the health mean, challenges what's offshore, nothing we has large track from these the clients, us right? pause other on-site transparent client gives moving

being they a businesses the why sorry, it's a not move look are offshore, if that WNS. services services a model, care in vendor. that we want in that taking really how in fact It's be clients' to to client what's of the I'm disruptive business right? strategy. on-site the this at they're to and If across in changes this change order in on core the everything are decisions the disruption, change being do -- Internet than manage work they they're the disrupted, their executed. at at look be So that you those client, It's that that to and you doing be with material understand fact It's change large Other health environment from not are still to right? side in there provided going

perspective, relationships from to clients, have as want. that scenarios. our do see concerns company nothing either flexible our the partner, today industry. or us about within in these situations, one-off of So be or to But what the structural something we're other other we of both represent them BPM a going to clients gives types And

as on employee strategic leverage your the across your then partnerships client base? Open And you that you your starting how and base mentioned these Google, to AI, are across

Yes.

And company. it's with conjunction across that So got of obviously, in are put within we've training, strategic the we've the all very programs place, that the company. upskilling in reskilling, partnerships aggressive underway areas

leaders doing understanding tools senior cross-functionally how So sure these technologies. from functionally when and thinking to agents you within we're trying about company, and what leverage look entry-level and make to teams to the are on that our at focusing

in we only and the our terms training agencies And there, of kind name but providers and the partners supporting big not and training also working with types and plans. programs with organizations industry hyperscalers we're working are of other of

Consulting with in all institutions training our across are like LinkedIn in programs, are at programs. more Learning These practitioners MyMath engaged training be certainly that, leveraging AI, whether like providing right programs thought AI awareness, looking for training evangelism, or that's for to have institutions and these we've Oxford. Google and help got leaders we'll of all things that place And now with we where universities organizations AI, these but or areas or aggressive

the of comes Our Ryan with from Citi. next line question Potter

the seeing you productivity the on click or levels levels double AI productivity, at enter trying maybe XX% or talked of for you those Could things some is a ask if to year? also headwinds You in to on ask macro and about color provide pushing the out the you're clients maybe XX% portion higher if figure than clients normal higher given Just like normal for of the productivity to environment? [indiscernible]. as

portfolio, we've little probably think change, Ryan, bit a needle the the but going a move materially. Across to that's nothing Sure. of seen I

I range. of in a productivity the improvements, X% baking that contracts a is think talk lot are still X% our The the that there's enterprise prepared lot into to that we're Keshav reality remarks, and in at while commitments concepts, and proof these to of use is the cases, his technologies is spoke as about reality pilots, leverage extremely an conversation, clients' willingness across scale limited. the of still

creep these able we're we're that approaches, deploy and the to to productivity traditional not that technologies that productivity believe today tools to these able because and the traditional in continue extent our is improves, traditional still these to allow that can tools, up. the clients domain it expertise. deploy adoption past So We won't certainly that us as number multiple their to tools, said we've times technologies limited believe, and to deliver we

today, of ability is increase reality bring the the areas people in existing it into we be times an And mentioned that to to get the opportunities table. But the Keshav new for also offset should multiple customers' us new believe has portfolios. as our by to

Yes.

potential industry, and it's new be technologies foremost, new underline with the created and all first important penetration this I think new I for think all being increasing. think, new of to of spaces will this about these just some excitement technologies because and white I models, of these the

some calling affected disruption, is to but invest invest against in be macro more on and of it I'm on calling focused much maybe the industry they clients partner it want in. always the we'll I'm parts be getting what issues, by will what it see. change also that that go focused will existing to through they want There massive

our it's we a our are in us work we and can to go is that, And value the training so white of may who ROI it are getting on this people people, who's move and that not need. when with telling want us Dave who's in listen, spoke have would partner like traditionally industry all addressed training about also into chain, focus BPM and ready, trusted which you their prospects our up the business, like a we also the how because and of But to deliver openly clients core the number to we place models spaces past. allowing getting

think the decade opportunity I so. next the exciting or that's for

And with maybe, was X% talking a to Dave I'll about step multiple evolution, just X% add technology that the taking as around back, just productivity.

and X% just that it also increased kept just net-net the climbing right? X% where but that earlier, was up. with on expandable the evolution, recall it If growth X%, X% is to increased to But productivity, market, the to you technology

and help those we think to of Keshav the alluding. this So going that there to space us entire believe that continue to going the of are white is was technology, and drive where I what multiple examples evolution address to it's

that Got in in ramp times on of have you they it. pipeline into, included top some the I'm outlook for represent more deals? of had of guess potential not rate the deals? or of I cycles have large success upside to the And the deal around assumptions do they some then want different than outlook? that, to going the do about. your opportunity, be what these some of guess, types [indiscernible] large And tend kind of But the traditional opportunities you to in if those talked large deal I just to are clear I

Sure.

that, at crack a take Ryan. me let So

we I extremely doing from obviously, think rate perspective, we're think a success well.

I would this in of in domain obviously, For deals say, large having winning were we're where more we're point fourth having expertise we than kind quarter the that the signed deals. believe well and extremely X relationship these are share of where things decisions of bag solution, positioned X deals fair capability, have And where our the at positioned, us these in terms the well deals. come could we for of X in believe pipeline terms to because X we're win we or terms exciting today, next in of the the months, to X in in opportunities

certain more uncertainty. kind an or Are timing expansion that F&A small take existing we of little is a they a process back lumpy over, think to these question an relationship lumpy, deals less so than, that example, are I yes, more little the because Surinder's for a little of somewhat there's of bit going bit a earlier,

you baked deals, I hey, throughout and signed there gotten that guidance, to to the what specifically X a we at Relative the where look The be said, we've we here, are. that we've when we not progress needs in done is we've large reality is know have year. we business that's as to how think

to been what's expansion do we've in specific deal not sources signings for we're believe signings past, realistic a that make specifically, don't We but terms pipeline all what But we ability our new X filling been versus sign we the numbers. right? relative the okay, in to versus it's if large today, these in potential of to able not are our close that macro, to able deals, These of business large gap. going potential to be say don't the to we've to relative

mentioning, be what to multiple can on add it just based what we be deals, basically, at are stages and various Dave was discussion, -- as the prospects, I'll expansion. discussing, it maybe these the new can are large of And other pipeline,

transition much the also stuff, follow, things is us and of of the helps what the to may guidelines. move pace, stages of we may But as for where the probability what maybe our going change, it is range the some that be the faster get on mix they is So if at all a internally to where upper based of close the the becomes are of this those guidance. some large and and deals basis

that's that's for slowly. ago, captive years to certainly that's kind what X.X tough nail moving deal the large to ramp right? kind fourth deal here X of the as aggressively, It's And the at committed was a of there's plan little least, we discussed, lumpiness. around contractually second in example, going that's phase that We've But to right I the of Yes. a commentary now. very with kind is that guess carve-out signed down, quarter still

that there's So or client-specific. it's than not take ready they're rhyme that organizationally, on other be or And whether change. reason to no to to going

comes Our with from of the Puneet next line Jain JPMorgan. question

Can the talk like those what and is? clients Internet Tech outlook large the clients. you on about Quickly are how and

at volume the you the the this So company represent some that you Tech portfolio, across pressures of some we to, Internet kind if Puneet, for volume the be area. example, in this revenue. relative for and today year, about will clients year pressures expectation look But of vertical, when of the of look XX% especially expect certainly, travel that

offshore a bled that's to exposure into at when exposure of last at Obviously, one that year, headwinds from moving Internet see time this at our anymore Internet-based is you'll we is had But we that to any to this large that look think year that's this at clients and client you some revenue, XX% I there. don't where we're have work meaningful created point look on-site comfortable you point. client what in

ability that any, last there guidance if single think the like on the part will, look and if over numbers is of some 'XX you pressures client have the the and on and for fiscal So so one of we've of impact challenges or 'XX, a that relative if year for I you fiscal the to meaningful of to some news, -- volumes will, derisked upside, any the our the beyond. is the we've good had for the what

while head It talk like if count this had you about basis. reduction a Got also, the on a was you head like seems quarter. can sequential it. your down been since And count it's

near So like we count as the expect if helped should head you double for click that term. as reduce well head the over on what dependency can technology count

here. Sanjay Puneet, So

going reduction count be saw revenue the compared is we going be to as seasonality, we quarter various and mix what initiatives, again, X. alluded quarter So is X of lower including that it's to -- what head to a

that's large recall, QX, client of if right? is health to care start from causing also impact the So you our going And that.

the So drive and couple driving on. technology, to productivity impacting of but those are are those which interventions, a things the

half going we an it. So move we and But to around earlier, accordingly, keep mentioned perspective, onwards. growing from head from is it's various of loaded the 'XX QX forward, and a back to expect on be mix the count as things FY as I growth

seen, you've is a pretty deployment Yes. and prepared And the year, each relative mentioned delinking in his from remarks, revenue what growth it the of what think we're to WNS from I automation, you've and basis, technology change is consistently X%, kind head Sanjay seen had constant that really in X.X% the growth So about on revenue is in of employee, right, manifesting per X% where we from anywhere year, right? in currency this itself. a count by which to this

the keep new part stable, margins to and very, is very able be how right? productivity should than models should in that migrate think we and new to solutions. difficult need these much that I to types and we of to given is the to revenue see expected of going deliver going to as that And But these improvement any more X% forward in people between year of clients are that to that Obviously range. our number be growth net doing services we X% disconnects revenue we're deliver able

clients, order we I from revenue reducing X% mean productivity operations people rate to side talk to revenue. a part And with of it the cost the be customer as if -- same our headwind, got this able to about we're allows or to productivity this at is to creates above yes, fewer to giving X% work from we're in reduce continue a to is productivity side, that do we've but margins. maintain when more us

Colicchio from comes next of Barrington Our Research. line question with the Vincent

any seeing you in Are pressure horizontals? any pricing of your Yes.

pricing No. pressure. not stage, no At -- this

our [indiscernible], ownership is discussed focus of all cost model. the the we as think I also, total instead earlier of about traditional

our the able So it's the we for what all solution, creation, going value to to are create be client. about

pressure this at pricing no stage. So

seeing in build very we pipeline solid these And fact, are some a horizontals. of with

So we through with generated believe which horizontals, integrated the some the that restructuring well spoke these verticals I the will being pipelines now benefit post of are about.

in there bit the the Transaction-based call a the on then one getting contracts, we're sequentially. out sequential there? quite I What contracts? increase contribution caused increased just to transaction one late here. percentage large know Is anything last call. And

a be think forward. technology plus larger just going I we our as changed of to the of model. on we the the was of what the around those transaction have contract, transaction-based the Again, They are is increase to kind have one sequentially, working cost upon. it's movement move which clients, the their more base and we model interventions aspect what

corresponding the Vince, look, What basis, on revenues. you'll see percentage in kind you if a is of you'll reduction a see, that outcome-based

engagement had from essentially, So to we we what type moved a large is of customer another. an one that did model

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

disconnect. You now may