Quess Corp profit almost doubles to Rs89 crore in Q3FY22; Stock gains 2%

11 Feb 2022 , 11:10 AM

Quess Corp Limited reported 94% yoy higher profit at Rs89crore in Q3FY22 against Rs46 crore in Q3FY21 with operating leverage enabling the non-linear growth.

The company’s revenue in the December 31, 2021 quarter jumped 31% yoy to Rs3,685 crore from Rs2,808 crore in the same quarter of the previous year.  EBITDA from operations up 19% yoy to Rs179 crore. Q3FY22 OCF / Operating EBITDA conversion at 67%. 9MFY22 conversion is at 80%. Net debt increased to Rs108 crore in Q3FY22 against Rs68 crore in Q2FY22, in line with revenue.

The company stock was bullish on Friday, despite bearish markets on Friday. At around 11.12 am, Quess Corp Ltd was trading at Rs674 per share up by Rs12.8 or 1.94% from its previous closing of Rs661.20 per share on the BSE.

Business highlights
Workforce Management:

• General Staffing headcount crossed >270k. New customers accounted for ~50% incremental HC. Revenue up 34% YoY and 15% qoq IT Staffing domestic headcount up by 7% qoq. EBITDA up 53% YoY and 21% qoq.

Global Technology Solutions:

• CLM: Revenue up 26% yoy and 11% qoq. Non-voice CLM grew by 57% yoy. New logo addition continues to be high with 24 logos added during the quarter
• Non-CLM BPO: Collection business revenue up 13% yoy. F&A business revenue up 17% yoy
• Platform-based services (InsurTech in US and HRO in India): HRO platform payslips processed per quarter up 27% yoy
• US Insurtech revenues up 10% qoq on the back of strengthened GTM
• IT Services: Domestic IT Services up 70% YoY and 19% QoQ, largely driven by wins in Infrastructure Management Services business

Operating Asset Management:

• IFM: Revenue up 30% yoy, with 22 client wins in the quarter.
• Terrier Security: Revenue up 19% on qoq
• Industrial business: Revenue up 15% on qoq

Emerging Business:

• Monster.com raised Rs137.5 crore investments, led by Volrado Venture Partners; Meridian Investments and Quess Corp. # of Active jobs on the platform grew 122% yoy.
• Qjobs platform crossed 2 million+ candidates and 1 million+ active job openings at end of Q3FY22

ED & Group CEO Guruprasad Srinivasan said, “We are delighted to report our highest ever Revenue, EBIDTA & PBT. Q3 saw continued opening of economy, providing tailwinds to our business. We continue to build upon the growth achieved in previous quarters. While our WFM & GTS platforms continue to outperform, our focus on tech assets have been as resolute as ever. We have successfully raised investments in Monster.com validating the progress made in our digital assets.

Being one of the largest domestic private sector employers, we take great pride in being employer of choice for our employees. We have been re-affirmed as Great Place to Work for 3rd year in a row. We will continue to stay focused on growth, accelerate technology led delivery, operational efficiencies, and stay optimistic about the times to come as we continue to focus on our goal of hitting and sustaining 20% ROE”.