Quess Corp spurts after Q3 PAT soars 94% YoY to Rs 89 cr

Quess Corp advanced 2.69% to Rs 679 after the company's consolidated net profit soared 94.22% to Rs 88.51 crore on a 31.23% increase in revenue from operations to Rs 3,684.98 crore in Q3 December 2021 over Q3 December 2020.

Revenues grew on being driven by General Staffing (up 34%), IT Staffing (up 52%) and IFM (up 30%). Sequentially, net debt increased to Rs 108 crore in Q3 FY22 as against Rs 68 crore in Q2 FY22. Consolidated profit before tax (PBT) jumped 42.31% to Rs 113.95 crore in Q3 FY22 from Rs 80.07 crore in Q3 FY21.

Consolidated reported EBITDA grew 19% to Rs 179 crore in Q3 FY22 as against Rs 151 crore in Q3 FY21. Reported EBITDA margin improved to 4.87% in Q3 December 2021 from 5.37% in Q3 December 2020. Profit margin stood at 2.40% in Q3 December 2021 from 1.62% in Q3 December 2020.

Meanwhile, Quess Corp signed a share subscription agreement and amended shareholders' agreement with Heptagon Technologies and Vijayramkumar Veeraraghavan, Vignesh Rangasamy and Rajesh Sankarappan (promoters) to which the company has agreed to make an additional investment in Heptagon Technologies through subscription of 6,342 equity shares for a consideration of Rs 15,768 per equity share aggregating to Rs 10,00,00,656.

Quess Corp and Heptagon Technologies had entered into a loan agreement on 5 September 2018 for an amount of Rs 3,00,00,000. Quess Corp exercised the Lender's Conversion Right (as per the loan agreement) and has issued the requisite notice to Heptagon Technologies. Accordingly, Heptagon Technologies shall issue 1,902 equity shares at a price of Rs 15,768 per equity share to the company in lieu of the loan amount.

On the closing date (as defined under the Share Subscription Agreement), upon the issue and allotment by Heptagon Technologies of the aforementioned equity shares, i.e. cumulatively 8,244 equity shares to the company, it shall hold 60.67% stake in Heptagon Technologies.

Commenting on the Q3 results, Guruprasad Srinivasan, the executive director (ED) and group chief executive officer (CEO) of Quess Corp, 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," Mr Srinivasan added.

Quess Corp appointed Guruprasad Srinivasan as the ED and group CEO with immediate effect. Suraj Moraje, the incumbent managing director (MD) and group CEO stepped down on 10 February 2022.

Quess Corp is India's leading business services provider. It provides a host of technology enabled staffing and managed outsourcing services across processes such as sales & marketing, customer care, after sales service, back office operations, manufacturing, facilities and security management, HR & F&A operations, IT & mobility services etc.

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