Quess Corp Q1 Results Review - Inline Quarter, One-Offs Boost Net Profit: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Quess Corp Ltd. delivered an 8.8% YoY growth in revenue, in line with our estimate. The headcount addition was strong at ~30000 net. The Ebitda margin at 3.3% (-30 bp QoQ) was in line with our estimate too. This was due to a margin contraction in global technology solutions (-122 bp QoQ) and operating asset management (-64 bp QoQ) businesses.Adjusted profit after tax increased 117% YoY to Rs 1,038 million, above our estimate of Rs 851 million, largely due to lower depreciation and ETR (5.8% versus 10% estimated).Management indicated good demand, especially in its workforce management business; manufacturing and banking, financial services, and insurance had a good quarter too.IT staffing saw a positive trend after a few quarters of decline. Also, the mandate level has gone up to 1,500 in Q1 from 1,100, which indicates an improving traction. We believe H2 will be better for IT staffing than H1.While growth in WFM and OAM was tepid due to seasonality, Quess Corp hired additional 30000 individuals in Q1, which provides good visibility for near-term growth. We estimate a revenue compound annual growth rate of 12% over FY24-26..Click on the attachment to read the full report:.Brokers Have No Reason To Complain Against SEBI’s New F&O Curbs.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Quess Corp Q1 Results Review - Inline Quarter, One-Offs Boost Net Profit: Motilal Oswal

The brokerage reiterates its Neutral rating on the stock due to full valuations, taxation concerns, and limited margin expansion.

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Quess Corp Q1 Results Review - Inline Quarter, One-Offs Boost Net Profit: Motilal Oswal

The brokerage reiterates its Neutral rating on the stock due to full valuations, taxation concerns, and limited margin expansion.

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