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) has strengthened 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