Quess Corp Q2 Results: Profit Surges Nearly 50% On Deferred Tax Credit
Quess Corp.’s Q2 net profit rose 47.4% sequentially to Rs 71 crore on the back of revenue that increased 3.2% to Rs 4,748.3 crore.
Quess Corp. Ltd.’s earnings jumped nearly 50% in the July-September quarter on account of a deferred tax credit, while revenue met analysts' estimates.
Revenue of the Bengaluru-based staffing firm rose 3.2% over the previous three months to Rs 4,748.3 crore in the quarter ended September, according to an exchange filing on Monday. That compares with the Rs 4,856.5-crore consensus estimate of analysts tracked by Bloomberg.
Quess Corp Q2 Results: Key Highlights (QoQ)
Revenue up 3.2% at Rs 4,748.3 crore (Estimate: Rs 4,856.5 crore).
EBIT up 10.1% at Rs 93.9 crore vs Rs 85.3 crore.
EBIT margin at 1.97% vs 1.85%.
Net profit up 47.4% at Rs 71 crore (Estimate: Rs 54 crore).
The profit for the period includes a deferred tax credit of Rs 12.92 crore.
“This growth is due to focused efforts over the last few quarters in developing greater automation in our platforms, building operational efficiencies, and focusing on high margin businesses,” Guruprasad Srinivasan, chief executive officer at Quess Corp., said in a statement.
“We remain bullish about future growth prospects, and our consolidated efforts have started to yield positive results to help us realise non-linear profit growth from our all-weather business model.”
Segment-Wise Business
Revenue of workforce management increased 3% QoQ to Rs 3,315 crore.
Revenue of global technology services rose 4% QoQ to Rs 584 crore.
Revenue of operating asset management grew 2% QoQ to Rs 705 crore.
Revenue of product-led business rose 13% QoQ to Rs 143 crore.
In the workforce management vertical, the biggest revenue generator, the total headcount reached 4,30,000—a 6% increase over the previous three months—led by manufacturing, financial services and retail sectors.
On the product side, Foundit—formerly known as Monster.com—grew 20% sequentially.
Inorganic Growth
Quess Corp. has approved the purchase of 4.5% stake in Vedang Cellular Services from erstwhile promoter Ashish Kapoor, for a total consideration of Rs 6.05 crore. Its stake now stands increased to 96.97%.
The company has also approved acquisition of an additional 46.09% stake in unit Stellarslog Technovation for Rs 6.8 crore, increasing its overall stake to 100%.
On Monday, shares of Quess Corp. rose 1.02% to Rs 427.20 apiece on the BSE, even as the benchmark Sensex ended the day 0.92% higher at 64,958.69 points. The quarterly results were declared after market hours.