Quess Corp Reports 14% Revenue Growth in Q3FY25, Workforce Expansion Continues
Quess Corp, a leading business services provider, announced a robust 14% year-on-year (YoY) increase in revenue for the quarter ending December 2024 (Q3FY25), reaching ₹5,519 crore. The company also recorded a 7% sequential growth, driven by strong hiring in the retail, telecom, and GCC (Global Capability Centers) sectors.
Financial Performance Overview
- Revenue: ₹5,519 crore, up 14% YoY and 7% sequentially.
- EBITDA: ₹197 crore, reflecting a 6% YoY and 1% sequential rise.
- Profit After Tax (PAT): ₹85 crore, marking a 34% YoY increase but a 9% sequential decline.
- Interim Dividend: ₹4 per share approved by the board.
According to Guruprasad Srinivasan, Executive Director and Group CEO, Quess Corp has consistently delivered double-digit revenue growth while reducing gross debt to ₹224 crore.
Strong Hiring Trends Boost Workforce Management
Quess Corp’s workforce management segment surpassed 500,000 employees, contributing significantly to revenue growth. This was fueled by increased hiring in retail and telecom, along with a surge in demand from GCCs.
The workforce management division posted an 18% YoY revenue growth, securing 124 new contracts worth over ₹150 crore, aided by the festive season.
Global Technology Solutions Gains Momentum
The company’s Global Technology Solutions (GTS) segment continued its positive trajectory, supported by growing contributions from international markets. Notable highlights include:
- EXM (Employee Experience Management): Processed 4.4 million payslips in the past quarter, marking a 2% sequential increase.
- Alldigi’s International Business: Expanded from 57% in the previous quarter to 64% in Q3FY25.
Operating Asset Management Shows Steady Growth
The operating asset management segment registered a 15% YoY revenue growth, primarily driven by:
- 30% growth in industrial operations & maintenance (O&M) and telecom.
- The strategic acquisition of Archer Integrated Services, enhancing its footprint in the industrial F&B sector.
Challenges in Product-Led Business
While most segments showed strong performance, the company’s product-led business faced a 28% sequential revenue decline due to a slowdown in hiring and headwinds in the IT/ITeS sector. In response, Quess Corp is focusing on job quality and organic job postings to drive sustainable growth.
Upcoming Developments: Three-Way Demerger
Quess Corp confirmed that its three-way demerger remains on track, with approval pending from the National Company Law Tribunal (NCLT). The move is expected to enhance operational efficiency and create better value for stakeholders.
Conclusion
With a strong financial performance and an expanding workforce, Quess Corp continues to strengthen its position in the business services sector. The company’s diversified growth strategy, emphasis on workforce expansion, and increasing global presence position it well for sustained future growth.
Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise d
0 comments:
Post a Comment