Quess Corp, India’s leading business services provider, announced its Q2 FY23 financial results today.
- Q2 FY23 revenue is up by 32% YoY, driven by General Staffing (up 36%), Comtel (up 48%) andconneQt (up 24%)
- EBITDA from operations for Q2 FY23 is up by 20% YoY to ₹135cr
- EBITDA margin has declined due to the following:
Slowdown in IT Staffing and Selection business Investments in Staffing business in the US
- YoY PAT is down marginally by 4%
- Q2 FY23 OCF / Operating EBITDA conversion at 72%
The key consolidated financial parameters are:
Particulars ( in ₹ cr) Q2FY23 Q2FY22 Q1FY23 YoY QoQ
Revenue from operations
4,273 3,228 3,979 32% 7%
Reported EBITDA 135 112 153 20% -12%
Reported EBITDA Margin 3.16% 3.48% 3.85% -32 bps -70 bps
Profit before tax 50 51 79 -3% -37%
PBT Margin 1.16% 1.59% 1.99% -43bps -83bps
Profit after tax 40 41 68 -4% -41%
PAT margin 0.93% 1.28% 1.70% -35 bps -77 bps
Q2 FY23 Business highlights
- Workforce Management:
- Total headcount for the vertical crossed 376k, an increase of 28% YoY, with an addition
- of 115 new logos.
- The General Staffing headcount crossed 330k, with BFSI and Retail being the key drivers.
- Revenues are up 36% YoY and 8% QoQ
- IT Staffing revenues were flat QoQ due to a slowdown in IT hiring. This led to an EBITDA drop
- of 55% QoQ and 40% YoY
- Global Technology Solutions:
- CLM revenues are up 23% YoY, driven by 17 new logos added during Q2 FY 23
- Continued focus on customer acquisition has resulted in 31 new logos during Q1 FY23
- Non-Voice BPO: Collection business revenue is up by 23% on a YoY basis
- Platform-based services: HRO platform payslips processed per quarter is up by 14% YoY, with 41 new logos.
- Operating Asset Management:
- IFM: Revenue is up 33% YoY, and EBITDA margin has stabilized on a QoQ basis.
- Terrier Security: YoY revenue is up by 28% on the back of strong headcount addition. Sales
- momentum remains strong, with 21 new logos added in the quarter.
- Product Led Business:
- Monster: Highest ever new user acquisition with 1.8 million registrations in Q2, 6-month the active user base grew to 17.3 million; traffic grew by 25% to 44.2 Million C-SAT & NPS continues to be positive, 90% & 20 respectively
- Qjobs: 5.2 million+ candidates and 1.4 million+ active job openings in Q2’23 ,More than 670k monthly recruiter-candidate interactions facilitated
- WorQ: 275K + Monthly Active Users & 100K + Daily Active Users (DAU)
- DASH: Expanded user base to 420K with 180K + Monthly Active Users Commenting on the results, ED & Group CEO Mr. Guruprasad Srinivasan said, “We are happy to announce that we have crossed the 500k headcount milestone driven by the highest ever headcount addition of 33.7k in the quarter. All our large businesses have continued to demonstrate high growth, with
- our consolidated revenues going up by 32% YoY and 7% on a QoQ basis. However, sluggish hiring in the IT
- sector has impacted our higher-margin IT staffing and selection businesses. We have taken the initial
- steps toward building our staffing presence in the USA. While this investment may have some margin impact
- in the short term, we strongly believe that this investment will open up new growth avenues and improve
- the margin profile of the business. Buoyed by record headcount addition, we are now focused on improving our