Quess Corp projects muted fourth quarter as consumption slows

Quess Corp projects muted fourth quarter as consumption slows
Bengaluru-based, business services provider Quess Corp expects a subdued performance in the fourth quarter, attributing this to weakening gross domestic product (GDP) trends over the past seven quarters, which are expected to influence consumption patterns.

Guruprasad Srinivasan, Group CEO at Quess Corp said, “The GDP is heading towards its low in last seven quarters, and it is going to impact on the consumption pattern. We have about 14,000 open mandates as we step into the last week of January. However, it’s wait and watch with regard to the overall growth.”

Quess Corp expects to close the 2024-25 fiscal year (FY25) with double-digit growth in both revenue and EBITDA.

In October-December 2024 quarter (Q3FY25), the company reported a revenue of ₹5,519 crore, margins at 3.6% and net profit of ₹80.4 crore. The company added around 50,000 employees to its total workforce between April and December.

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Srinivasan highlighted that Singapore faces its own challenges, though Quess Corp remains the largest IT staffing provider there. The company is witnessing strong growth in Malaysia and the Philippines, while the Middle East is performing well, with both IT and general staffing operations seeing positive momentum.

India remains the primary market, contributing 67% of open mandates. The growth of captive centers in the Global Captive Centers (GCCs) region also appears promising, driving increased demand.

Srinivasan is bullish about the IT market in the US as the evolving policies are likely to positively influence IT staffing opportunities in both India and the US.

The recruitment firm has obtained approval from both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) for its demerger plans.

Kamal Pal Hoda, Group CFO of Quess Corp, expects the demerger to progress as planned, with the final regulatory approval expected during the January-March 2025 quarter, to come through the second motion at the NCLT.

Hoda said the company is on track to have three separate listed entities by the April-June 2025 quarter (Q1FY26) of the next financial year. Quess will continue to handle staffing, while two new companies, Bluspring and Digitide, will operate within their respective sectors.

Quess Corp’s current market capitalisation is ₹9,153 crore. Its shares have gained 24% over the last year.

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