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 Q1FY24compared 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.”