29 July 2020 Quess Corp (QUESS)s 1QFY21 results were largely in line with estimates. Adjusted for businesses that remained completely closed (e.g. Excellus) and one-off COVID-19-related costs, underlying revenue, EBITDA, and recovery trends were reasonably resilient. Good cost rationalization, net debt reduction (by INR1b), healthy cash conversion (OCF/Ind-AS adjusted EBITDA = 152%), and the simplification of Terriers holding structure are key micro- level positives. Recent unemployment data (e.g. CMIE) and hiring outlook surveys hint at quick and strong recovery in the job market. However, the back and forth on lockdowns across cities would mean some amount of uncertainty in the job market. Operationally, our earnings estimate over FY2122E remains largely unchanged. Over the medium term, we expect QUESS to be the biggest beneficiary of the recently announced labor law reforms Quess Corp reported revenue/EBIT/PAT growth of 1%/-23%/-62% YoY (v/s est. Sequentially, overall headcount declined ~13% and general staffing headcount ~15%, in line with our expectations.