January, 28th, 2021 Bengaluru: Quess Corp, India’s leading business services provider announced its financial results for the third quarterended31stDecember 2020 today.
Key highlights:
- Revenue and EBITDA grew 7% and 8% respectively QoQ
- PBT steady versus a year ago, conversion up at 53%vs 45% a year ago
- Transformed to a Net Cash position of ₹ 26crfrom a net debt position of ₹ 355cr in Q4’20
- OCF / EBITDA at 80% vs 51% in Q3’20.
Financial Highlights
- Revenue up 7% QoQ driven by General Staffing (up 9%) and Conneqt (up 12%).
- EBITDA grew 8% QoQ from ₹ 140cr to ₹ 151cr; down 16% YoY owing to lockdown-related impact of ₹ -29cr from Excelus and IFM food businesses.
- PBT conversion at 53% vs. 45% in Q3’20, resulting in PBT flat YoY at ₹ 80cr.
- PAT down 39% YoY, despite flat PBT, on account of higher ETR.
- Rapid gross debt reduction continued, from ₹ 1,147cr in Q4’20 to ₹ 521cr in Q3 ’21 (reduction of ₹ 103cr in the quarter).
- Company achieved a Net Cash position of ₹ 26cr from a Net Debt position of ₹ 45cr in Q2’21 and ₹ 355cr in Q4’20.
- OCF / EBITDA at 80% vs. 51% in Q3’20.
Other highlights
- General Staffing business is India’s first to be featured in top 50 of SIA’s prestigiousLargest Global Staffing Firms 2020 list
- Quess enters digital gig economy through investment in task-based services business Taskmo
- Quess re-affirmed as Great Place to Work with bettered and above-industry average score
Commenting on the results, CEO & ED Mr. Suraj Moraje said, “I am delighted that Quess Corp is again on the growth path, even while our focus on cash generation and debt repayment has brought our company to a net cash position in the last quarter.I am gratifiedthat our employees have reaffirmed our status as a Great Place to Work, a testament to our vibrant and purpose led culture. Our eyes remain firmly set on our north star of achieving and sustaining a 20% ROE”
