The Persistence of Quess Corp Limited

“We are pleased to report revenues of ₹ 4,466 crores with a Quarter on Quarter growth of 4%. Our EBITDA grew by 8% QoQ with sales growth, operating efficiencies and SG&A cost reductions being its key drivers. GTS posted its highest ever EBITDA of ₹ 90 crores in a challenging environment, once again substantiating the strength of its all-weather business model. We are making good progress with our internal plans of cost reduction and the overall growth of our profitability.”

– Mr. Guruprasad Srinivasan, ED & Group CEO

Stock Data
Ticker	QUESS
Exchange	NSE
Industry	BPO

Price Performance
Last 5 Days	+1.62%
YTD	-13.9%
Last 12 Months	-45.87%

*As of 29.03.2023

Company Description:

Quess Corp is an Indian multinational company that provides workforce management solutions and technology services. Quess Corp has a global presence, with operations in several regions, including India, North America, South America, Asia-Pacific, and the Middle East. The company offers a range of services, including staffing, technology solutions, facilities management, and industrial asset management.

The staffing and recruitment industry in India is expected to grow at a Compound Annual Growth Rate (CAGR) of 11% between 2021 and 2026. The industry is driven by the growing demand for flexible workforce solutions and the increasing use of technology to streamline recruitment processes. Quess Corp is well-positioned to benefit from this growth, given its expertise in providing flexible staffing solutions and its strong technology capabilities.

Quess Corp operates through several business segments, including staffing, technology solutions, facilities management, and industrial asset management. The workforce management segment is the largest contributor to the company’s revenue, accounting for 68% of total revenue in Q3FY23. The technology solutions segment is the fastest-growing segment, with revenue growing at a Compound Annual Growth Rate (CAGR) of 36% between FY2016 and FY2020.

Key Strengths:

Quess Corp has several strengths that have contributed to its success in the workforce management solutions and technology services industry. Some of its key strengths are:

• Diversified business model: Quess Corp operates through several business segments, including staffing, technology solutions, facilities management, and industrial asset management. This diversified business model allows the company to weather economic downturns in specific industries and generate revenue from multiple sources. This is evident from the consistent and growing revenues of the firm in the recent quarters.

• Strong technology capabilities: Quess Corp has invested heavily in technology solutions to streamline recruitment processes and provide innovative workforce management solutions. The company’s technology capabilities include artificial intelligence, machine learning, automation, and analytics.

• Global presence: Quess Corp has a global presence, with operations in over 12 countries, including India, North America, South America, Asia-Pacific, and the Middle East. This global presence allows the company to serve clients across multiple geographies and industries.

• Strategic acquisitions and partnerships: Quess Corp has made several strategic acquisitions and partnerships to expand its business offerings and strengthen its position in the industry. For example, the acquisition of Tata Business Support Services and Monster.com has helped the company strengthen its staffing business, while the partnership with Microsoft has enabled it to develop cloud-based digital transformation solutions.

• Experienced management team: Quess Corp has an experienced management team with a track record of success in the industry. The team has a deep understanding of the industry and is committed to driving the company’s growth through innovation and strategic partnerships.

Key Opportunities:

Quess Corp has several opportunities for growth and expansion in the workforce management solutions and technology services industry. Some of the key opportunities for the company are:

• Growing demand for flexible workforce solutions: The demand for flexible workforce solutions is increasing globally, driven by the need for businesses to optimize costs and improve operational efficiency. Quess Corp is well-positioned to capitalize on this trend with its expertise in providing flexible staffing solutions.

• Digital transformation: The ongoing digital transformation of businesses across multiple industries is creating opportunities for Quess Corp to provide innovative technology solutions. The company’s strong technology capabilities and partnerships with leading technology companies such as Microsoft position it well to offer digital transformation solutions to clients.

• Expansion into new markets: Quess Corp has a global presence, but there are still several untapped markets where the company can expand its business. For example, the company can consider expanding into new geographies in Europe, Africa, and Southeast Asia to serve clients in these regions.

• Cross-selling opportunities: Quess Corp has a diversified business model, which creates cross-selling opportunities for the company. For example, the company can leverage its staffing business to offer facilities management and industrial asset management services to clients.

Key Risks:

Dependence on key clients: Quess Corp’s business is dependent on a few large clients, which contribute a significant portion of its revenue. The loss of a key client could have a material adverse effect on the company’s financial performance.