Quess Corp’s net profit for the quarter ending in September saw a 79 per cent year-on-year growth at Rs 71 crore, primarily due to the strong performance of its higher-margin platforms, global trade services (GTS) and open application model (OAM), which have consistently boosted profitability.
It had posted a net profit of Rs 40 crore in the same quarter of the previous year. On a sequential basis, the profit improved by 47 per cent.
The company saw an 11 per cent YoY increase in revenue for the quarter at Rs 4,748 crore, as compared to Rs 4,273 crore a year ago. On a quarter-on-quarter basis, the revenue improved by 3 per cent. Its reported EBITDA grew by 21 per cent YoY to Rs 164 crore, against Rs 135 crore during Q2 FY23.
“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,” said Guruprasad Srinivasan, ED and Group CEO.
Its wholly owned subsidiary AllSec surpassed a market cap of Rs 1,000 crore with a CAGR of 23 per cent from its initial investment in 2019.
Further, the workforce management (WFM) platform continues to deliver steady growth from the IT sector, despite global headwinds. In product-led business, the company’s 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 realise non-linear profit growth from our all-weather business model,”Srinivasan added.
WFM saw headcount reach 430,000, an increase of 14 per cent YoY and 6 per cent QoQ. This quarter, the growth sectors included manufacturing, BFSI, and retail, which added 24,000 headcount. During the first half of the year, 83 new customer contracts were added.