Any current/future capex/capital investment/strategic investment?

Quess Corp is investing in verticalization across sectors to strengthen leadership and sales, particularly around the demerger process (Page 17). Investments include hiring additional recruiters and building capabilities for specialized verticals such as manufacturing, consumer retail, and IT staffing (Page 17, 12). The company is also investing in sourcing engines and internal processes to improve recruitment speed and quality (Page 14, 8). Specific investments are being made to strengthen platforms like Foundit, with enhancements such as Foundit 2.0 and back-office capabilities gearing up fo

Future growth expectations in sales/revenue/volumes?

Overall revenue growth of 9% year-on-year and 4% quarter-on-quarter reported in Q2, showing steady performance. Workforce Management (WFM) headcount grew by 13% year-on-year, with 15,000 associates added in Q2; ongoing verticalization and investments expected to drive future growth. Manufacturing staffing has strong growth potential, with plans to increase associates from 70,000 to over 200,000 in coming years. IT staffing growing with a focus on GCC clients, contributing about 68-74% of new mandates, with niche segments showing higher margins. Global Technology Solutions showing robust growth

Future growth expectations in earnings/operating earnings/profits/EPS?

Quess Corp achieved a 16% year-on-year EBITDA growth in Q2 FY25, with a 23 bps margin expansion, reflecting operational efficiency and reduced cash burn in the platform business. The Workforce Management (WFM) segment aims for a medium-term EBITDA margin target of 2.6-2.65%, progressing toward a long-term goal of 3%. Foundit platform expects to break even by Q4 FY25 with reducing quarterly cash burn; revenue growth was 11% YoY. Global Technology Solutions (GTS) is growing at high single digits with a stable EBITDA margin (~17.5%) and a strong order book. Operating Asset Management (OAM) shows

Current/ Expected Orderbook/ Pending Orders?

At the end of Q2, the Workforce Management (WFM) platform has an open mandate (order book) of about 22,000, largely from manufacturing, telecom, and BFSI segments. The IT staffing open mandate and open book is about 1,500, with monthly onboards at around 500, making the open book nearly three times the monthly onboards. Global Technology Solutions (GTS) platform secured an order book of about INR 117 crores in Q2, with Annual Contract Value (ACV) adding 53 new customers. The Operating Asset Management (OAM) platform added 48 new customers resulting in ACV of INR 44 crores in Q2. Foundi

Any current/future new fundraising through debt or equity?

As of H1 FY25, Quess Corp has a gross debt of INR 253 crores, having repaid INR 117 crores during the half year. The company holds a net cash position of INR 334 crores, showing an improvement of 142% year-on-year. There is no mention in the document of any current or planned new fundraising through debt or equity. The management emphasizes continued focus on optimizing capital structure and debt reduction. They seem confident in their current financial standing, with strong operating cash flow at 86% conversion to EBITDA. No explicit guidance or announcement about future fundraising activitie

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Quess Corp LtdQ3 FY24Commercial Services & Supplies

Quess Corp Ltd Q3 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹251P/E: 13.1Market Cap: ₹3.0K CrSector: Commercial Services & Supplies

Management growth scorecard

Revenue

Category 4

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 4

→Overall revenue growth of 9% year-on-year and 4% quarter-on-quarter reported in Q2, showing steady performance.
→Workforce Management (WFM) headcount grew by 13% year-on-year, with 15,000 associates added in Q2; ongoing verticalization and investments expected to drive future growth.
→Manufacturing staffing has strong growth potential, with plans to increase associates from 70,000 to over 200,000 in coming years.
→IT staffing growing with a focus on GCC clients, contributing about 68-74% of new mandates, with niche segments showing higher margins.
→Global Technology Solutions showing robust growth (7% YoY), driven by customer lifecycle management and voice services.
→Operating Asset Management growing at 9% YoY with new customer additions and expansion in telecom infrastructure and F&B segments.
→Product-led business (foundit) growing at 11% YoY, with expectations to break-even by Q4 after reducing cash burn.
→Anticipated pickup in demand from manufacturing mandates in Q3 and steady growth in GTS and OAM segments expected through Q3 and Q4.

Margin guidance

Category 3

→Quess Corp achieved a 16% year-on-year EBITDA growth in Q2 FY25, with a 23 bps margin expansion, reflecting operational efficiency and reduced cash burn in the platform business.
→The Workforce Management (WFM) segment aims for a medium-term EBITDA margin target of 2.6-2.65%, progressing toward a long-term goal of 3%.
→Foundit platform expects to break even by Q4 FY25 with reducing quarterly cash burn; revenue growth was 11% YoY.
→Global Technology Solutions (GTS) is growing at high single digits with a stable EBITDA margin (~17.5%) and a strong order book.
→Operating Asset Management (OAM) shows healthy 9% YoY revenue growth with plans to improve margins through investments.
→Overall, management is confident of sustained earnings growth driven by verticalization strategies, international recovery, and operational efficiencies, projecting improved profitability and EPS progression.
→Net cash position and debt reduction further support financial stability to back growth initiatives.

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Fundraise plans

→As of H1 FY25, Quess Corp has a gross debt of INR 253 crores, having repaid INR 117 crores during the half year.
→The company holds a net cash position of INR 334 crores, showing an improvement of 142% year-on-year.
→There is no mention in the document of any current or planned new fundraising through debt or equity.
→The management emphasizes continued focus on optimizing capital structure and debt reduction.
→They seem confident in their current financial standing, with strong operating cash flow at 86% conversion to EBITDA.
→No explicit guidance or announcement about future fundraising activities was made during the call.

Order book

Yes

→At the end of Q2, the Workforce Management (WFM) platform has an open mandate (order book) of about 22,000, largely from manufacturing, telecom, and BFSI segments.
→The IT staffing open mandate and open book is about 1,500, with monthly onboards at around 500, making the open book nearly three times the monthly onboards.
→Global Technology Solutions (GTS) platform secured an order book of about INR 117 crores in Q2, with Annual Contract Value (ACV) adding 53 new customers.
→The Operating Asset Management (OAM) platform added 48 new customers resulting in ACV of INR 44 crores in Q2.
→Foundit platform is seeing a growing order book with positive feedback on Foundit 2.0 and increasing job postings and active users, signaling good growth prospects.
→Overall order books appear healthy, supporting positive near-term growth expectations across platforms.

Capex plans

Yes

→Quess Corp is investing in verticalization across sectors to strengthen leadership and sales, particularly around the demerger process (Page 17).
→Investments include hiring additional recruiters and building capabilities for specialized verticals such as manufacturing, consumer retail, and IT staffing (Page 17, 12).
→The company is also investing in sourcing engines and internal processes to improve recruitment speed and quality (Page 14, 8).
→Specific investments are being made to strengthen platforms like Foundit, with enhancements such as Foundit 2.0 and back-office capabilities gearing up for launch (Page 12).
→Quess is building towers focused on vertical growth by segment, which entails investments in infrastructure and resources (Page 8).
→Overall, investments focus on long-term strategic growth through sector-specific verticalization, technology enhancements, and improving sales/customer retention ahead of and post-demerger (Pages 7,17).

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