Will be back to pre-Covid levels by January-March quarter: Quess Corp

Fairfax-backed Quess Corp expects revenue and profit to be back to pre-Covid levels by the January-March quarter, on the back of a rebound in education and food businesses.

The firm's September quarter (Q2) net profit declined 25 per cent to Rs 49.9 crore. It said its Q2 performance lagged in certain metrics owing to a shutdown of training and skill development business and impact on food business that caters to educational institutions and IT companies. “If the operating profit is calculated after normalising these two factors, we have done better than last year,” Suraj Moraje, group chief executive, said. “Recovery in the food business is a bonus while educational institutions are expected to start by November 15. So, we will be partially back in Q3 and fully back (to pre-Covid-19 levels) by Q4.”

Headcount fell for the third-straight quarter to 3,25,000, down 3 per cent on a sequential basis. The firm expects to arrest the fall in the ongoing quarter. 

The firm said clients were experimenting with task-based compensation and hiring workers for a shorter period like only for a day, season or audit. 

“Even traditional companies like banks are trying this model around merchandising and fee-based activations. Companies are experimenting with a more open mind as the new labour laws formally recognise the gig platform. This is one change that will come into the mainstream,” Moraje said.