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Quess Corp Q2 Performance: Robust Revenue Growth

ED & Group CEO Mr. Guruprasad Srinivasan stated with the results, We are delighted to report robust revenues of ₹4,748 cr, up by 11% YoY and a PAT of 71 cr, up by 79% YoY.

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ED & Group CEO Mr. Guruprasad Srinivasan

ED & Group CEO Mr. Guruprasad Srinivasan

Quess Corp, India’s leading business services provider announced its Q2 and H1 FY24 financial results today. 

Q2FY24 Highlights

  • Revenue at ₹4,748 cr up by 11% YoY and 3% QoQ

  • EBITDA at ₹164 cr up by 21% YoY and 6% QoQ 

  • PAT at ₹71 cr up by 79% YoY and 47% QoQ

H1FY24 Highlights

  • Revenue of ₹9,349 cr up by 13% YoY 

  • EBITDA at ₹317 cr up by 10% YoY

  • PAT at ₹119 cr up by 10% YoY 

  • Net cash at ₹138 crores, increased by ₹56 cr from March’23, H1’24 OCF to EBITDA at 62%

Particulars (in ₹ Cr.)

Quarter Ended

Half Yearly

Q2 FY24

Q2 FY23

YoY

Q1 FY24

QoQ

H1 FY24

H1 FY23

YoY

Headcount

547k

504k

9%

526k

4%

547k

504k

9%

Total Revenue

4,748

4,273

11%

4,600

3%

9,349

8,253

13%

Reported EBITDA

164

135

21%

154

6%

317

288

10%

Reported EBITDA%

3.4%

3.2%

29bps

3.35%

10bps

3.40%

3.49%

(9)bps

Profit before Tax

79

50

60%

62

28%

141

129

10%

PBT Margin

1.67%

1.16%

51bps

1.35%

32bps

1.51%

1.56%

(5)bps

PAT

71

40

79%

48

47%

    119

108

10%

PAT Margin

1.49%

0.93%

57bps

1.05%

45bps

1.27%

1.30%

(3)bps

Diluted EPS – Rs

4.85

2.84

71%

3.21

50%

8.07

7.30

11%

Commenting on the results, ED & Group CEO Mr. Guruprasad Srinivasan said, ““We are delighted to report robust revenues of ₹4,748 cr, up by 11% YoY and a PAT of 71 cr, up by 79% YoY. 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. 

Our higher margin platforms, GTS and OAM have delivered a consistent increase in profitability along with improvement in margins over the last few quarters. Our wholly owned subsidiary AllSec has surpassed a market cap of 1,000+ cr with a CAGR of 23% from our initial investment in 2019. WFM platform continues to deliver steady growth despite global headwinds from IT sector. In product-led business, our investment in people, technology, and marketing activities continues. We remain bullish about future growth prospects and our consolidation efforts have started to yield positive results to help us realize non-linear profit growth from our all-weather business model.”

Particulars (in ₹ Cr.)

Quarter Ended

Half Yearly

Q2FY24

Q2FY23

YoY

Q1FY24

QoQ

H1FY24

H1FY23

YoY

Workforce Management

Revenue

3,315

2,943

13%

3,221

3%

6,536

5,701

15%

Reported EBITDA

87

79

10%

83

5%

170

173

(2)%

Reported EBITDA %

2.63%

2.69%

(6)bps

2.58%

5bps

2.61%

3.04%

(43)bps

Global Technology Services

Revenue

584

529

11%

563

4%

1,148

1,036

11%

Reported EBITDA

104

85

23%

100

4%

204

167 

22%

Reported EBITDA %

17.82%

16.0%

184bps

17.78%

4bps

17.80%

16.13%

167bps

Operating Asset Management

Revenue

705

651

8%

690

2%

1,395

1,248

12%

Reported EBITDA

35

28

26%

31

14%

66

58

13%

Reported EBITDA %

4.98%

4.27%

71bps

4.47%

52bps

4.73%

4.67%

6bps

Product Led Business

Revenue

143

150

(5)%

126

13%

270

268

1%

Reported EBITDA

(20)

(24)

nm

(26)

nm

(46)

(48)

nm

Reported EBITDA %

(14.10)%

(15.94)%

nm

(20.26)%

nm

(16.99)%

(17.90)%

nm

Q2FY24 Platform highlights

  • Global Technology Solutions:

  • Allsec Exployee Experience Management (EXM) hasstrengthened its position as a market leader by processing 3.8 mn pay slips, achieving 3% QoQ growth; new International EXM sales crossed 50% of total new sales in H1

  • Allsec Customer Experience Management (CXM) continues with 18% YoY growth, driven by 21 % YoY Q2 growth in North America 

  • Non-Voice BPM business grew by a 34% YoY and 6% QoQ; Collection business up by 35% YoY and 5% QoQ

  • Operating Asset Management:

  • Food business continues its growth trajectory with Education and Industrial sectors through new logos, gross margin increased by 33% YoY and 10% QoQ

  • IFM business added 22 new customer contracts in Q2

  • Telecom: Strong performance in Q2 backed by 5G deployments across all operators in India and further penetration in 4G deployments and new IoT projects 

  • Workforce Management:

  • Total headcount for the vertical reached 430k, an increase of 14% YoY and 6% QoQ

  • Growth sectors including Manufacturing, BFSI and Retail have added 24k headcount in H1

  • 83 new customer contracts added during the quarter 

  • Product Led Business: 

  • Robust sales growth seen in Foundit: 35% YoY and 20% QoQ

Quess Corp Revenue Growth