Quess Corp slides after Q2 PAT decline 16% QoQ to Rs 94 cr

Quess Corp slipped 3.21% to Rs 673.40 after the company's consolidated net profit fell 16.16% to Rs 93.62 crore in Q2 FY25 as compared with Rs 111.67 crore posted in Q1 FY25.

However, Revenue from operations increased 3.52% QoQ to Rs 5179.36 crore in Q2 FY25.

On year on Year (YoY) basis, the companys consolidated net profit and revenue jumped 31.97% and 9.08% respectively in Q2 FY25.

Profit before tax stood at Rs 102.12 crore in Q2 FY25, registering a growth of 28.83% from Rs 79.27 crore recorded in Q2 FY24.

During the quarter, EBITDA was at Rs 196 crore in Q2 FY25, registering the growth of 16.67% YoY. EBITDA margin improved to 3.8% in Q2 FY25 as against 3.5% in Q2 FY24.

The companys headcount stood at 6,09,214, up 11% YoY and 2% QoQ in Q2 FY25.

Revenue from workforce management surged by 13% year-on-year (YoY) to Rs 3,747 crore in Q2 FY25, up from Rs 3,315 crore in Q2 FY24. The company added 128 new contracts with an annual contract value (ACV) of Rs 101 crore during this period, along with 74 new contracts in General Staffing.

In Q2 FY25, revenue from global technology services rose by 7% YoY to Rs 625 crore. This growth was supported by the acquisition of 53 new contracts, which have an annual contract value (ACV) of approximately Rs 117 crore, primarily driven by the Banking, Financial Services, and Insurance (BFSI) and E-commerce sectors.

During the quarter, revenue from operating asset management increased by 9% YoY to Rs 768 crore. The company secured 48 new contracts with an annual contract value (ACV) of Rs 44 crore, primarily driven by growth in the Industrial, Healthcare, and IT/ITeS sectors. Quarter-on-quarter revenue growth was supported by a 5% increase in Integrated Facility Management Services (IFMS), a 17% rise in Telecom Infrastructure, and an 11% growth in Industrial Operations & Maintenance (O&M).

Guruprasad Srinivasan, enforcement directorate (ED) & Group CEO, said, We are pleased to report a solid quarter with quarterly revenue of Rs 5,179 crore and EBITDA margin uptick of 23 bps YoY, underpinned on broad-based performance across our platforms. During the quarter, Quess became a 6,00,000+ headcount strong organization. WFM delivered healthy topline growth with headcount additions in Retail and Logistics verticals, and increasing salience of GCCs supported IT staffing. Improving international contribution in GTS and growth in F&B and telecom business in OAM contributed to higher realizations.

Our committed approach of financial and operational prudence has resulted in increased business efficiencies. We have also been strategically investing to strengthen platform-wise capabilities to ensure they are optimally positioned for future opportunities. We are progressing on-track towards our proposed demerger and are confident of long-term value creation for our stakeholders.

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

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