Quess Corp Q1 profits up 34% to Rs 33 crore, to raise funds for M&As

This was on the back of increased sourcing of security services, facilities management from clients

Integrated service provider Quess Corp said first quarter profits grew 34 per cent to Rs 33 crore, while revenue grew 20 per cent to Rs 1,188 crore on the back of increased sourcing of security services and facilities management from clients, who are shifting their dependence from the informal workforce to organised players.

Quess, which has investments from Canadian Billionaire Prem Watsa, saw profits of Rs 25 crore on revenue of Rs 991 crore in the same period last year.

The Bengaluru-based Quess has increased its workforce by 57 per cent over the corresponding quarter to 195,000. Margins stood at 5.3 per cent.

"In terms of people, we are clearly emerging among the top three or four private sector employers. We are seeing growth, both from existing customers as well as new logos, where we are seeing movement from unorganised sector," said Ajit Isaac, chief managing director and chief executive officer of Quess Corp.

Quess’ Board and Shareholders have approved fund raise by divesting up to 10 per cent of shareholding through institutional placement program (IPP). The funds will be predominantly used for strategic mergers & acquisitions, apart from funding organic growth. 

It is awaiting regulatory approvals for the acquisition of speciality facility management business of Manipal Integrated Services and a 25 per cent stake in Terrier Security Services.