Quess records revenue growth of 4% and EBITDA growth of 8% (on QoQ basis)
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) | Q3FY23 | Q3FY22 | Q2FY23 | YoY | QoQ |
Revenue from operations | 4,466 | 3,685 | 4,273 | 21% | 4% |
Reported EBITDA | 145 | 179 | 135 | -19% | 8% |
Reported EBITDA Margin | 3.26% | 4.87% | 3.16% | -161 bps | 10 bps |
Profit before tax (before exceptional item) | 54 | 115 | 50 | -53% | 8% |
PBT Margin (after exceptional item) | 2.40% | 3.09% | 1.16% | -69bps | 124bps |
Profit after tax | 86 | 89 | 40 | -3% | 116% |
PAT margin | 1.92% | 2.40% | 0.93% | -48bps | 99bps |
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.”
