4th August 2023 Mumbai-Quess Corp, India’s leading business services provider announced its Q1FY24 financial results today.
Q1FY24 Highlights
Ø Revenue of ₹4,600 cr up 16% YoY and 4% QoQ
Ø EBITDA at ₹154 cr with GTS crossing milestone Quarterly EBITDA of ₹ 100 cr
Ø PAT at ₹48 cr
Ø Net cash position has improved to ₹49 cr in Q1FY24 compared to Q1 FY23
| Particulars (in ₹ Crores) | Q1 FY24 | Q1 FY23 | YoY | Q4 FY23 | QoQ |
| Headcount | 525k | 470k | 12% | 511k | 3% |
| Total Revenue | 4,600 | 3,979 | 16% | 4,440 | 4% |
| Reported EBITDA | 154 | 153 | 0% | 152 | 1% |
| Reported EBITDA% | 3.4% | 3.9% | (51) bps | 3.4% | (8) bps |
| Profit before Tax | 62 | 79 | (22) % | 48 | 29% |
| PBT Margin | 1.4% | 2.0% | (64) bps | 1.1% | 26bps |
| PAT | 48 | 68 | (29) % | 30 | 60% |
| PAT Margin | 1.1% | 1.7% | (66) bps | 0.7% | 37bps |
| Diluted EPS – Rs | 3.21 | 4.48 | (28) % | 2.22 | 45% |
Segmental Results are as follows:
| Particulars ( in ₹ cr) | Quarter Ended | ||||
| Q1FY24 | Q1FY23 | YoY | Q4FY23 | QoQ | |
| Workforce Management | |||||
| Revenue | 3,221 | 2,758 | 17% | 3,062 | 5% |
| Reported EBITDA | 83 | 94 | (12)% | 86 | (3) % |
| Reported EBITDA % | 2.58% | 3.42% | (23)bps | 2.81% | (83)bps |
| Global Technology Services | |||||
| Revenue | 563 | 507 | 11% | 571 | (1)% |
| Reported EBITDA | 100 | 83 | 21% | 95 | 5% |
| Reported EBITDA % | 17.78% | 16.28% | 110bps | 16.68% | 151bps |
| Operating Asset Management | |||||
| Revenue | 690 | 597 | 16% | 684 | 1% |
| Reported EBITDA | 31 | 30 | 1% | 30 | 3% |
| Reported EBITDA % | 4.47% | 5.10% | 9bps | 4.39% | (63)bps |
| Product Led Business | |||||
| Revenue | 126 | 117 | 8% | 123 | 3% |
| Reported EBITDA | (26) | (24) | (7)% | (20) | (27)% |
| Reported EBITDA % | (20.26)% | (20.42)% | (382)bps | (16.43)% | 16bps |
Q1FY24 Platform highlights
Ø Workforce Management :
- Total headcount for the vertical crossed 404k, an increase of 15% YoY and 5% QoQ
- Growth sectors include manufacturing, telecom and BFSI
- PAPM (Per Associate Per Month) gross margin remain stable in the range of ₹ 670-700
Ø Global Technology Solutions:
- Achieved quarterly EBITDA of ₹100cr with 21% growth YoY
- Allsec CLM: Revenue up 27% YoY driven by 29% increase in revenues from international CLM business
- Non-Voice BPO: Achieved revenue growth of 31% YOY, driven by 33% growth in collection business
- Platform based services: Pay slips processed per quarter up 12% YoY
Ø Operating Asset Management:
- Revenue up 16% YoY, growth from Healthcare, Telecom and Industrials
- Revenue realization per employee up by 10% YoY
- Food business gross margin increased by 35% YoY
- Telecom: Revenue up 46%YoY; EBIDTA up 57% YoY
Ø Product Led Business:
- Foundit: Candidate engagement metrics have shown significant improvement in the last quarter with job postings up 56% QoQ and New registrations up 42% QoQ
Commenting on the results, ED & Group CEO Mr. Guruprasad Srinivasan said, “We are pleased to report revenues of ₹4,600 cr, up 16% YoY backed by 15k+ headcount totaling up to an overall headcount of 525k. 35% of the associates who joined us in Q1 entered the formal workforce for the first time. We acquired 183 new customers, setting us up for growth over the next few quarters.
GTS achieved its highest ever EBIDTA of ₹100 cr with 11% revenue growth on account of non-voice BPO and HRO services. In the WFM business, growth was driven by BFSI, Telecom and Manufacturing sectors. OAM platform delivered 16% revenue growth on the back of healthcare, manufacturing and public utility sectors. In Product led business our investment continues in people, technology, and marketing activities with significant improvement in candidate engagement metrics for Found it.
Overall, despite macroeconomic headwinds, there has been quarterly improvement in Revenue and Operating profit confirming our all-weather business model.”