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Earnings Call Transcript

Quess Corp Earnings Call Transcript: Key Takeaways

Quess Corp delivered a beat on revenue and PAT, though margins were slightly suppressed by one-time labor code implementation and annual merit cycles. Management remains focused on high-margin GCC roles and international expansion.

Highlights
Revenue growth15% YoY revenue growth, including one-time labor code impact.
MarginsEBITDA margin at 2.02%, temporary contraction due to wage resets.
Order book86 new contracts in general staffing; 36 in professional staffing.
Demand visibilityStrong visibility for festive season across consumer and manufacturing verticals.
Management confidenceConfident, highlighting broad-based growth and scale leadership in staffing.

Growth

Revenue grew 15% YoY and 7% QoQ, aided by a ₹176 Cr one-time labor code impact. Net profit surged 61% YoY.

Outlook

Aims for ₹30 Cr quarterly EBITDA in professional staffing. Targeting 20-25% revenue from high-margin businesses by FY30.

Risks

BFSI segment faces regulatory headwinds; dependence on high-margin professional staffing to offset low-margin general staffing volatility.

Last quarter's promises, checked

Delivered

  • Targeting 2% EBITDA margin baseline → delivered 2.2% (= BEAT)
  • Targeting double-digit margin in Professional Staffing → delivered 12.7% (= BEAT)
  • Maintain zero gross debt → delivered zero gross debt (= BEAT)

Partly delivered

  • Targeting 6% international EBITDA margins → delivered 6.2% (= BEAT)
  • Targeting 70-76% Collect & Pay mix → delivered 76% (= BEAT)

Missed

  • Historical average 45k-50k net headcount adds → delivered 26,000 (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: QUESS. Summary written with AI assistance from the document.

Read the document ↗

Quess Corp Ltd: key numbers

Share price
₹352.25
Market cap
₹5,262 Cr
Revenue (annual)
₹15,305 Cr
Net profit (annual)
₹221.6 Cr
P/E (TTM)
19.1×Sector 23.6×
Promoter holding
56.81%-0.01% QoQ
FII holding
10.26%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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