Conference Call with Quess Corp Management and Analysts on Q1FY24 Performance and Outlook. Listen to the full earnings transcript.
BPO/KPO company Quess Corp announced Q1FY24 results: Revenue of Rs 4,600 crore up 16% YoY and 4% QoQ EBITDA at Rs 154 crore with GTS crossing milestone quarterly EBITDA of Rs 100 crore PAT at Rs 48 crore Net cash position has improved to Rs 49 crore in Q1FY24 compared to Q1 FY23 Headcount grows by 12% YoY to 525k Commenting on the results, ED & Group CEO Guruprasad Srinivasan, said, “We are pleased to report revenues of Rs 4,600 crore, up 16% YoY backed by 15k+ headcount totalling up to an overall headcount of 525k. 35% of the associates who joined us in Q1 entered the formal workforce for the first time. We acquired 183 new customers, setting us up for growth over the next few quarters. GTS achieved its highest-ever EBIDTA of Rs 100 crore with 11% revenue growth on account of non-voice BPO and HRO services. In the WFM business, growth was driven by BFSI, Telecom, and Manufacturing sectors. OAM platform delivered 16% revenue growth on the back of healthcare, manufacturing, and public utility sectors. In Product led business our investment continues in people, technology, and marketing activities with significant improvement in candidate engagement metrics for Foundit. Overall, despite macroeconomic headwinds, there has been quarterly improvement in Revenue and Operating profit confirming our all-weather business model.” Result PDF
BPO/KPO firm Quess Corp announced FY23 results: Headcount net-addition of 74k (17% YoY growth) in FY23; Second consecutive year of 70k+ HC addition Revenue of Rs 17,158 crore up 25% YoY, driven by Work Force Management (WFM) up 25%, Operating Asset Management (OAM) up 24%, Global Tech Solutions (GTS) up 23% and Product Led Business (PLB) up 59% EBITDA at Rs 586 crore down 6% YoY; excluding PLB, EBITDA increased by 7% to Rs 681 crore PAT of Rs 223 crore down 11% YoY; excluding PLB, PAT increased by 28% to Rs 334 crore OCF / Operating EBITDA conversion at 71%; excluding PLB, OCF / Operating EBITDA conversion at 67% Net cash position has improved to Rs 82 crore in FY23 against Rs 16 crore in FY22 Commenting on the results, ED & Group CEO Mr. Guruprasad Srinivasan said, “We are pleased to report revenues of Rs 17,158 crore, up 25% YoY, backed by a 70k+ headcount increase for the second consecutive year. Along with a 25% growth in our business, the consolidated gross debt has reduced by Rs 57 crore to Rs 531 crore. We have reduced our DSO by 5 days YoY to 57 days and this has resulted in total collections of Rs 294 crore, which is 71% of our operating EBITDA. Our other significant achievements include closing the year at 511k headcount, up 17% YoY and receiving the ‘Great Place to Work’ certification for the 4th consecutive year. Also, our GTS business has delivered its highest ever EBITDA of Rs 353 crore, growing by 11% YoY. We have closed the year on a strong note and are well-positioned to take advantage of the many organizational initiatives launched over the past 12 months. We believe the tailwind from India’s economic growth and the investments that Quess has made in its service lines gives us the opportunity to continue our steady growth in the next financial year.” Result PDF
BPO / KPO firm Quess Corp announced Q3FY23 results: Q3FY23: Q3FY23 revenue is up 4% QoQ is driven by General Staffing (up 6%), Quess Singapore (up 8%) IFMS (up 6%), and Conneqt (up 5%) EBITDA for Q3FY23 is up 8% QoQ to Rs 145 crore from Rs 135 crore; EBITDA margin has improved by 10bps with reductions in SG&A; QoQ PAT is up by 116% from Rs 40 crore to Rs 86 crore EPS is up 110% on a QoQ and 6% on a YoY basis On a YoY basis, EBITDA for Q3 has dropped by 19% from Rs 179 crore to Rs 145 crore, primarily due to an additional spend of Rs 30 crore in Q3FY23 in Monster/found it. GTS achieves its highest-ever EBITDA Simpliance: Completed the divestment with an investment gain of Rs 53.5 crore Paid an interim dividend of Rs 8/share for FY23 Commenting on the results, ED & Group CEO Guruprasad Srinivasan said, “We are pleased to report revenues of Rs 4,466 crore with a QoQ growth of 4%. Our EBITDA grew by 8% QoQ with sales growth, operating efficiencies, and SG&A; cost reductions being its key drivers. GTS posted its highest-ever EBITDA of Rs 90 crore in a challenging environment, once again substantiating the strength of the all-weather business model. We are making good progress with our internal plans of cost reduction and the overall growth of our profitability.” Result PDF
BPO/KPO company Quess Corp announced Q2FY23 results: Q2FY23 revenue is up by 32% YoY, driven by General Staffing (up 36%), Comtel (up 48%) and ConneQt (up 24%) EBITDA from operations for Q2FY23 is up 20% YoY to Rs 135 crore EBITDA margin has declined due to: The slowdown in IT Staffing and Selection business Investments in Staffing business in the US YoY PAT is down marginally by 4% Q2FY23 OCF / Operating EBITDA conversion at 72% ED & Group CEO Guruprasad Srinivasan said, “We are happy to announce that we crossed the 500k headcount milestone driven by the highest ever headcount addition of 33.7k in the quarter. All our large businesses have continued to demonstrate high growth, with our consolidated revenues going up by 32% YoY and 7% on a QoQ basis. However, sluggish hiring in IT sector has impacted our higher margin businesses of IT staffing and selection. We have taken initial steps towards building our staffing presence in USA. While this investment may have some margin impact in the short term, we strongly believe that this investment will open up new growth avenues and improve margin profile of the business. Buoyed by record headcount addition, we are now focused on improving our margins.” Result PDF
BPO/KPO firm Quess Corp announced Q1FY23 Result : Quess Corp Q1 PAT up 52% YoY, highest headcount addition of 32.6k recorded in the quarter Q1 FY23 revenue up by 33% YoY driven by General Staffing (up 34%), QITS (up 33%), and ConneQt (up 33%) EBITDA from operations for Q1 FY23 is up 4% YoY to Rs 153 cr. EBITDA margin has declined due to: Increased cash burn in Product Led Business Increase in SG&A; / Revenue from 5.2% to 5.6% due to higher salary cost, annual increments and Increased spend on technology IFM EBITDA margin declined by ~220 bps YoY, due to contract re-negotiation with a major customer YoY PAT is up by 52% Q1 FY23 OCF / Operating EBITDA conversion is at 56% Commenting on the results, ED & Group CEO Mr. Guruprasad Srinivasan said, “We are delighted to report our highest ever headcount addition of 32.6k in a quarter along with a PAT growth of 52% YoY, reaffirming our execution capability. All our large businesses have continued to demonstrate exceptional growth, driving our consolidated revenues up by 33% YoY and 5% QoQ. As we get into the festive season, usually the largest hiring season in India, we continue to invest in technology and have strengthened our business teams to take advantage of this opportunity. We are confident these investments will help gain market share and take our ROE to 20%." Result PDF