Quess Corp rose 1.18% to Rs 554.60 after consolidated net profit tanked 39.1% to Rs 45.58 crore on 4.8% fall in net sales to Rs 2,807.89 crore in Q3 December 2020 over Q3 December 2019.
Consolidated profit before tax (PBT) rose marginally by 0.2% to Rs 80.08 crore in Q3 December 2020 as against Rs 79.95 crore in Q3 December 2019. Current tax expense for the quarter dropped 25.5% to Rs 16.64 crore as against Rs 22.35 crore in Q3 December 2019. The Q3 result was declared after market hours yesterday, 27 January 2021.
Consolidated EBITDA tumbled 16% to Rs 151 crore in Q3 December 2020 over Rs 179 crore in Q3 December 2019. EBITDA margin stood at 5.37% in Q3 FY21 as against 6.08% in Q3 FY20.
Rapid gross debt reduction continued to Rs 521 crore in Q3 FY21 from Rs 1,147 crore in Q4 FY20, registering a reduction of Rs 103 crore in the quarter. The company achieved a net cash position of Rs 26 crore from a net debt position of Rs 45 crore in Q2 FY21 and Rs 355 crore in Q4 FY20.
Commenting on the Q3 results, Suraj Moraje, CEO & ED of Quess Corp, said: "I am delighted that Quess Corp is again on the growth path, even while our focus on cash generation and debt repayment has brought our company to a net cash position in the last quarter. I am gratified that our employees have reaffirmed our status as a Great Place to Work, a testament to our vibrant and purpose led culture. Our eyes remain firmly set on our north star of achieving and sustaining a 20% ROE."
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The board has approved the subscription of 49% stake in Taskmo, (legal entity name - Stellarslog Technovation), a gig economy start-up for a cash consideration of Rs 10 crore, to be invested in multiple tranches. Taskmo is a B2B managed marketplace that serves as an on-demand task fulfillment platform for enterprises seeking to outsource task-based operations to a distributed network of gig workers. It uses an app and web based proprietary algorithm to train, match and deploy gig workers.
The board has also considered and approved purchase of 3.76% stake of Vedang Cellular Services, a subsidiary of the company from its erstwhile promoter as per the promoter's put option in the shareholder's agreement dated 25 October 2017 for a consideration upto Rs 70 lakh. Consequently, the company will hold 92.47% stake in Vedang Cellular Services upon completion of the transfer of shares.
Quess Corp is India's leading business services provider. It offers a host of services to help organizations manage their non-core activities in the areas of workforce management, operating asset management, and global technology solutions across industries and geographies.
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