17th May 2018
Quess Corp, India’s leading integrated business services provider announced today its financial results for
the fourth quarter (Q4’18) and full year (12M FY’18) ended 31st March 2018. The key consolidated financials
for the FY18 are:
Particulars (in ₹ cr) | FY’18 | FY’17 | YoY (%)
Revenue 6,167 4,315 43%
EBITDA 354 238 49%
EBITDA Margin 5.75% 5.51% 23 bps
PAT 310 1221 54%
PAT Margin 5.02% 2.82% 220 bps
Diluted EPS (in ₹) 21.8 9.6 128%
FY’18 – Highlights
Employee headcount as on March 31, 2018 was ~261,700 compared to ~159,200 employees in the
corresponding quarter of last year, registering a growth of 64%.
Revenue grew 43% YoY to ₹6,167 cr and EBITDA grew 49% YoY to ₹354 cr.
Margin improved from 5.51% to 5.75%.
PAT grew 154% YoY at ₹310 cr from ₹122 cr. The PAT for FY’18 includes the impact of accounting
adjustments under Ind AS such as Amortization of Customer Related Intangible Assets of ~₹ 30 cr and
Non controlling interest Put Option of ~₹ 9 cr (included in the Finance costs). PAT Margin increased to
5.02% as against 2.82% in FY’17, registering an expansion of 220 bps YoY.
Diluted EPS was higher by 128% YoY at ₹21.8.
Cash flow from operations is at ₹109 cr in FY18.
Strategic Update:
Operations:
Our General Staffing business has added ~43,000 associates last year, making us the largest
staffing service provider in the country with a headcount of ~157,000 as on March 31, 2018.
Conneqt Business Solutions won a large deal with a total contract value of ~ ₹200 cr (for a five
year period) with a client in the financial services space.
Terrier signed up as a security partner to manage large sporting events such ISL and IPL. Terrier
Electronic Security Services (TESS) executed one of the largest integrated security solutions
across 1098 branches for a Gold loan NBFC.
QInfra has secured the order to implement the Intelligent Transit Management System (ITMS)
for one of the largest bus fleet operators in a leading metro city in India.
Quess appointed Mr. Pinaki Kar as the President of Technology Solutions, Mr. Abhijeet
Mukherjee as the President of Internet Business, Mr. Neeraj Tandon as Deputy CEO of Conneqt
and Mr. Ravi Tennety as the CEO of the Excelus business.
Acquisitions:
On November 30, 2017, National Company Law Tribunal (NCLT) approved the scheme of
merger of the facilities management business of Manipal Integrated Services into Quess Corp
with effect from December 01, 2016. This strategic acquisition helped Quess become a leading
integrated facility management provider in the country.
During the year, Quess completed the acquisition of 51% stake in Conneqt Business Solutions
Limited (formerly known as Tata Business Support Services) which marked Quess’ entry into
the promising area of Customer Lifecycle Management.
Quess completed the acquisition of 70% stake in Vedang Cellular Services Private Limited
with effect from November 10, 2017. This marked our entry into active infrastructure management
in the Telecom space with strong annuity business potential.
Quess entered into the high growth area of online career and recruitment space through the
acquisition of Monster India and its business in South East Asia and the Middle East with
effect from February 8, 2018.
The financial results of FY’18 are not reflective of the acquisitions of QDigi Services (Care
Business of HCL Services) which gave us a strategic entry into the mobile and consumer
durable break-fix and repairs market across India and Greenpiece Landscapes, a leading endto-end
design and landscaping services firm. The financial consolidation of these acquisitions
will commence in full form in FY19.
The Board in its meeting today, approved further acquisition of
o 36% equity in Comtel Solutions Pte. Ltd., Singapore with an investment upto SGD 22
Million through Quess Holdings
o 49% equity in Comtelpro Pte. Limited, Singapore with an investment upto SGD 0.5
Million
Segment Wise Performance
Particulars (in ₹ cr) | FY’18 | FY’17 | YoY (%)
People Services
Revenue 2,878 2,345 23%
EBIT 136 109 25%
EBIT Margin 4.73% 4.64%
Technology Solutions
Revenue 1,868 1,183 58%
EBIT 118 82 44%
EBIT Margin 6.32% 6.93%
Integrated Facility Management
Revenue 1,027 562 83%
EBIT 67 31 120%
EBIT Margin 6.54% 5.43%
Industrials
Revenue 370 224 65%
EBIT 15 17 -12%
EBIT Margin 4.04% 7.62%
Internet Business
Revenue 23
EBIT (4)
EBIT Margin (15.47%)
Commenting on the financial results, Chairman & MD Mr. Ajit Isaac said that, “We are pleased with
another year of solid growth in FY’18. Within a span of 10 years from inception, we have achieved an
annualized Revenue in excess of Billion (US$) on the basis of our last quarter Revenue run rate. This is a
testament to the proven execution capability of our strong leadership team. During the year, we closed a
number of acquisitions and investments across segments from active telecom infrastructure management to
customer lifecycle management. He further added, “We have also became one of the largest private sector
employers in the country with an employee strength of over 261,700. This is a very fulfilling achievement for
us as we continue to create more jobs for our youths while staying focused on long-term institution building
and creating value for all our stakeholders.”
About Quess Corp
Quess Corp Limited (BSE: 539978, NSE: QUESS), is India’s leading business services provider. At Quess,
we excel in helping large and emerging companies manage their non-core activities by leveraging our
integrated service offerings across industries and geographies which provides significant operational
efficiencies to our clients. Quess has a team of over ~261,700 employees across India, North America, South
America, South East Asia and the Middle East across segments such as Industrials, Facility Management,
People Services, Technology Solutions and Internet Business. Quess serves over 1,700+ clients worldwide.
Established in 2007, Quess is headquartered in Bengaluru, India and has a market cap of over USD 2.3 Bn
as on March 31, 2018.
For further details on Quess Corp Ltd., please visit: http://www.quesscorp.com.
For more information, please contact:
Media Contact:
Vinay Rao
Head – Marketing & Communications
vinay.rao@quesscorp.com
+91 80 61056018
