WNS Announces First Quarter Fiscal 2010 Earnings; Reaffirms Guidance for Fiscal 2010

Quarterly Revenue Increases 11%; Revenue Less Repair Payments Increases 20% Over the Corresponding Quarter in the Prior Fiscal Year

WNS (Holdings) Limited (WNS) (NYSE: WNS), a leading provider of global business process outsourcing (BPO) services, today announced results for the fiscal first quarter 2010 ended June 30, 2009 and reaffirmed its guidance on revenue less repair payments and adjusted net income (or net income attributable to WNS shareholders excluding amortization of intangible assets, share-based compensation, related fringe benefit taxes and loss attributable to noncontrolling interest) for fiscal 2010.

Revenue for the fiscal first quarter 2010 of $136.7 million represented an increase of 11.2% over the corresponding quarter in the prior fiscal year, while revenue less repair payments at $98.5 million increased 19.8% over the corresponding period in the prior fiscal year. The revenue less repair payments growth was largely the result of the acquisition of Aviva Global Services (AGS), which WNS acquired in July 2008.

“We had a strong quarter on all dimensions. We continued to see client additions and organic growth during this past quarter,” said Neeraj Bhargava, Group Chief Executive Officer. “As we expand our client base and increase the number of top-tier logos on our client roster, we are better positioning the company for long-term success in the BPO market.”

Net income attributable to WNS shareholders for the fiscal first quarter 2010 was $1.0 million compared to $3.3 million during the corresponding quarter in the prior fiscal year. The net income attributable to WNS shareholders in the current quarter was impacted by amortization charges from the acquisition of AGS and higher foreign exchange losses.

Adjusted net income was $12.6 million, an increase of 53% over the corresponding quarter in the prior year. The primary drivers of this increase were revenue growth from new and existing clients, tighter cost management, improved scale benefits and increased income from WNS’ acquisitions. This increase was partially offset by higher foreign exchange losses.

WNS recorded a basic income per ADS of $0.02 for fiscal first quarter 2010. Adjusted income per ADS (or net income attributable to WNS shareholders per ADS excluding amortization of intangible assets, share-based compensation, related fringe benefit taxes and loss attributable to noncontrolling interest) was $0.30 for the quarter.

“WNS continued to improve profitability in the first quarter. We have made great progress on our cost management initiatives and are running very efficiently from an operational perspective,” said Alok Misra, Group Chief Financial Officer. “We anticipate that FX losses will roll off during the year and that we will continue to realize cost synergies from our acquisitions, which should provide additional support for our bottom line.”