Quess Corp Q1 PAT up 52% YoY, highest headcount addition of 32.6k recorded in the quarter

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Quess Corp, India’s leading business services provider announced its Q1 FY23 financial results today.

Financial Highlights         

§  Q1 FY23 revenue up by33% YoY driven by General Staffing (up 34%), QITS (up 33%), and ConneQt (up 33%)

§  EBITDA from operations for Q1 FY23 is up 4% YoY to ₹153 cr. EBITDA margin has declined due to:

o   Increased cash burn in Product Led Business

o   Increase in SG&A / Revenue from 5.2% to 5.6% due to higher salary cost, annual increments and Increased spend on technology

o   IFM EBITDA margin declined by ~220 bps YoY, due to contract re-negotiation with a major customer

§  YoY PAT is up by 52%

§  Q1 FY23 OCF / Operating EBITDA conversion is at 56%

The key consolidated financial parameters are:

Particulars ( in ₹ cr)Q1 FY23Q1 FY22Q4 FY22YoYQoQ
Revenue from operations3,9792,9873,79233%5%
Reported EBITDA1531471854%-17%
Reported EBITDA Margin3.85%4.92%4.87%-106bps-102bps
Profit before tax              79              80           104-1%-24%
PBT Margin1.99%2.69%2.73%-69bps-74bps
Profit after tax              68              45              7752%-12%
PAT margin1.70%1.49%2.02%21bps-32bps

Q1 FY23 Business highlights

·         Workforce Management:

§  Total headcount for the vertical crossed 350k, an increase of 31% YoY, with more than 100 new logos addition

§  General Staffing headcount crossed >300k. Revenue is up by 34% YoY and 6% QoQ

§  IT Staffing revenue is up 33% YoY

·         Global Technology Solutions:

§  CLM revenues up by 33% YoY. Non-voice CLM grew by 10%

§  Continued focus on customer acquisition with 31 new logos added during Q1 FY23

§  Non-CLM BPO: Collection business revenues up 35% YoY

§  Platform based services: Payslips processed per quarter up 18% YoY on the back of 18 new logos won

·         Operating Asset Management:

§  IFM: Revenues up by 25% YoY. 23 new logos added in the quarter.

§  Terrier Security: Revenue up 29% on YoY basis on the back of strong head count addition (up 27% YoY) and 15 new logos added in the quarter

·         Product Led Business:

§  Monster:  Active user base (6 months) grew 17% QoQ to 17.1 million; User Acquisition & Re-activation crossed 2 million in the quarter.

§  Highest ever C-SAT at 95% while NPS grew by 71% QoQ to 24.

§  Qjobs platform: Crossed 4.9 million+ candidates and 3 million+ active job openings in Q1’23

§  WorQ: 255K + Monthly Active Users & 100K + Daily Active Users (DAU)

§  DASH : Expanded user base to 420K with 150K + Monthly Active Users

Commenting on the results, ED & Group CEO Mr. Guruprasad Srinivasan said, “We are delighted to report our highest ever headcount addition of 32.6k in a quarter along with a PAT growth of 52% YoY, reaffirming our execution capability. All our large businesses have continued to demonstrate exceptional growth, driving our consolidated revenues up by 33% YoY and 5% QoQ. As we get into the festive season, usually the largest hiring season in India, we continue to invest in technology and have strengthened our business teams to take advantage of this opportunity. We are confident these investments will help gain market share and take our ROE to 20%.”

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