Quess Corp Ltd announced its quarterly results on Tuesday, showing a 14 per cent quarter-on-quarter (q-o-q) increase in PAT. The company’s revenue rose by 2 per cent, surpassing ₹5,000 crore and reaching ₹5,003 crore. Quarterly EBITDA was ₹184 crore, up 19 per cent year-on-year (y-o-y) but down 6 per cent q-o-q. However, the q-o-q decline in EBITDA is not seen as a major concern, as it follows the company’s historical trends, said Guruprasad Srinivasan, ED & Group CEO.

The increase in revenue is primarily driven by growth in the general staffing business, general technology solutions (GTS) and outsourcing & managed services (OAM). Notably, the general staffing sector experienced a headcount increase of 27,000. While the majority of revenue is generated from the workforce business, GTS and OAM play a crucial role in enhancing margins and EBITDA.

Hiring boost

The company increased its headcount by 14 per cent now bringing the total number of employees to more than 597,000 from the previous year.

Commenting on the hiring boost, Guruprasad said, “In Q1FY24, we experienced a significant decline in IT hiring, with layoffs surpassing new hires. However, this year, we are seeing a positive shift, with IT hiring mandates increasing by 36 per cent from Q4 to Q1. We have risen from about 1,100 IT mandates to approximately 1,500, marking a substantial improvement.”

“Looking ahead, we anticipate further growth in IT hiring due to positive results from IT services companies, which should provide strong momentum for Q2 and Q3,” he told businessline.

The EPS has also grown by 116 per cent on a y-o-y basis and 10 per cent on a q-o-q basis to ₹6.9 per share. The company’s shares closed at ₹720.85 a piece, up 0.85 per cent, against the previous close.

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