Chennai, NFAPost: Business services provider Quess Corp Limited has posted net loss of Rs 629.91 crore for the quarter ended March 31, 2020, compared to net profit of Rs 75.50 crore in the correponing quarter of the last fiscal.
The company’s shares fell 1.19% to Rs 199.60 on Thursday afternoon, after the company posted consolidated loss for the last quarter.
For the financial year March 31, 2020, the company posted net loss of Rs 431.87 crore against net profit of Rs 256.54 crore in the last fiscal.
Quess Corp’s revenues in the last quarter grew 30% YoY (organic growth of 27%) and 2% QoQ (all organic) driven by its performance in general staffing (up 67%). The revenues for the fourth quarter stood at Rs 2,994.58 crore.
For the financial year ended March 31, 2020, its revenues stood at Rs 10,991 crore. The company’s headcount grew by 21% to around 3.84 lakh in FY20. The Bengaluru-headquartered company said Suraj Moraje has taken charge as Group CEO & Executive Director on April 1, 2020.
Quess Corp ED & CEO Suraj Moraje said, “Quess delivered a strong year, with 29% revenue growth and 42% EBITDA growth. Our focus on OCF generation (including DSO reduction from 69 days in FY19 to 62 days in FY20) saw us grow OCF by 34% on a normalised basis.”
He added, “We are especially pleased by the growth delivered by our General Staffing and Allsec businesses.We have taken resolute steps to further develop our business and to face headwinds that the global COVID-19 crisis seeded in Q4. We are confident that these actions will continue to boost our OCF growth and ROE in the medium term, while ensuring the institution emerges stronger and even more resilient from this tragic period for humankind.”
Established in 2007, Quess has a team of over 3,84,132 employees across India, North America, South America, South East Asia and the Middle East across platforms such as Workforce Management, Operating Asset Management and Technology Services. Quess serves over 2,600 clients worldwide.
Its board approved the merger of 4 wholly owned subsidiaries with Quess – Goldenstar, Greenpiece, MFX India and Trimax Smart Infra. The company informed that in the Ahmedabad Smart City Project, out of the total project cost of Rs 230 crore, Rs 97.5 crore was collected till the fourth quarter of FY20.
The company’s IT Services business delivered a strong quarter in NA and India. Its HRO business grew topline 7% YoY in India and internationally, processing highest volume in Q4. It is focused on further strengthening technology platform. The company’s CLM/BPM business acquired 6 clients in the last quarter and its revenue and EBITDA were lowered due to lockdown impact.
During the quarter and year ended March 31, 2020, the company after exploring various options decided to terminate the joint arrangement with Quess East Bengal FC Private Limited, an associate of the company after considering its long term economic viability, consequently the company reassessed the recoverable value of the loans given to and investments made in this associate and recognised an impairment of Rs 24.28 crore, disclosed as an exceptional item in the results.
The company said due to outbreak of COVID-19 pandemic globally is causing a slowdown of economic activity. “Measures have been taken to contain the spread of the virus, including travel bans, quarantines, social distancing, and closures of non-essential services have triggered disruptions to our businesses and resulted in uncertainties pertaining to future operations,” it said.
