Quess Corp To Reconsider Merger With Allsec At Right Time, Says CFO
Given the volatility in the stock market, Quess Corp plans to revisit the merger with Allsec at an appropriate time in the future.
Quess Corp. Ltd. plans to reconsider its merger with Allsec Technologies Ltd. at "the right time" after calling off the deal due to volatility in share price, said the Group Chief Financial Officer Kamal Pal Hoda.
"With the volatility in the share market and the prices where they are right now, the boards of both companies thought, in the interest of shareholders. We'll re-look it at an appropriate time sometime in the future," Hoda told BQ Prime.
Allsec was acquired by the company back in 2019, and it continues to hold a 73% stake in the outsourcing solutions company, Hoda said. The boards of both companies agreed to the merger in June.
Quess, which offers recruitment services and management services, witnessed a slowdown in hiring in the IT and IT-enabled services industry towards the end of the second quarter that ended in September. This slowdown, according to the group CFO, continued into the third quarter.
The e-commerce segment also saw hiring scaled back in November after picking up during the festive season.
Hoda added that the company is bullish on banking, financial services, insurance, and the manufacturing sector. "The headcount addition continues to happen," he said.
Global technology services and product-led businesses are performing according to the company's growth plans, Hoda said.
Hoda said the company's cost structure should be able to manage the slowdown in hiring. Quess Corp.'s finance chief expects the hiring in IT and ITeS to come back in the middle of the fourth quarter ending March. "Once that is back, we have no reason to believe that we will not be able to deliver the results we have caught for us in the market."