Quess records revenue growth of 4% and EBITDA growth of 8%  (on QoQ basis)

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Quess
Quess records revenue growth of 4% and EBITDA growth of 8%  (on QoQ basis)

Financial Highlights 

➢  Q3 FY23 revenue up 4% QoQ driven by General Staffing (up 6%), Quess Singapore (up 8%) IFMS (up 6%) and Conneqt (up 5%)

➢  EBITDA  for Q3 FY23 is up 8% QoQ to ₹145cr from ₹135cr. EBITDA margin has improved by 10bps with reductions in SG&A

➢  QoQ PAT up by 116% from ₹40cr to ₹86cr

➢  EPS up 110% on a QOQ and 6% on a YOY basis

➢  On YOY basis EBITDA for Q3 has dropped by 19% from ₹179cr to ₹145cr primarily due to an additional spend of ₹30cr in Q3 FY23 in Monster/foundit.  

➢  GTS achieves its highest ever EBITDA 

➢  Simpliance: Completed the divestment with an investment gain of ₹53.5cr  ➢ Paid an interim dividend of ₹8/share for FY23

The key consolidated financial parameters are: 

Particulars ( in ₹ cr)Q3FY23Q3FY22Q2FY23YoYQoQ
Revenue from operations4,4663,6854,27321%4%
Reported EBITDA 145179135-19%8%
Reported EBITDA Margin3.26%4.87%3.16%-161 bps10 bps
Profit before tax (before exceptional item)5411550-53%8%
PBT Margin (after exceptional item)2.40%3.09%1.16%-69bps124bps
Profit after tax868940-3%116%
PAT margin 1.92%2.40%0.93%-48bps99bps

Q3FY23 Business highlights

➢  Workforce Management:

  Total headcount crossed 379k, an increase of 25% YoY, with an addition of 109 new logos

  General Staffing Revenues are up 24% YoY and up by 6% QoQ  

  IT staffing: Operating efficiencies and SG&A cost reduction (200 bps QoQ) led to 8% QoQ improvement in EBITDA  

  Quess Singapore continues to witness strong demand with Revenue and EBITDA up by 8%  and 16%, QoQ respectively 

➢  Global Technology Solutions: 

  Platform posted its highest Revenue of ₹ 561cr, a growth of 20% YoY and 6% QoQ

  Associate Headcount for platform crossed 50k milestone

  Non-CLM BPO: Vertical grew by 29% YoY, led by 37% YoY growth in the Collections business

➢  Operating Asset Management:

  Integrated Facility Management: Revenue is up 23% YoY, Food business Revenue grew by 47% YoY

  Security Services: Revenue is up by 13% YoY and 5% QoQ, headcount crosses 22K  

➢  Product Led Business: 

  Monster: Now rebranded as ‘Foundit’ to reflect our vision of transforming from Job Board to a complete Talent Platform

  Monster sales crossed a ₹40cr milestone

  Sales and Revenue up by 40% and 23% YoY respectively

Candidate traffic and engagement continues to be strong with 6-month active candidate base almost touching 18 million for the first time 

Commenting on the results, ED & Group CEO Mr. Guruprasad Srinivasan said, “We are pleased to report revenues of ₹ 4,466cr with a QoQ growth of 4%. Our EBITDA grew by 8% QoQ with sales growth, operating efficiencies and SG&A cost reductions being its key drivers. GTS posted its highest ever EBITDA of ₹ 90cr in a challenging environment, once again substantiating the strength of all-weather business model. We are making good progress with our internal plans of cost reduction and the overall growth of our profitability.”