Quess Corp (QUESS) Q4 15/16 earnings summary

Executive summary

• FY16 delivered the strongest results in nine years, with consolidated revenue of Rs 3,443 crore, up 34% YoY despite the prior comparison covering 15 months; fully diluted EPS rose 20% to Rs 7.77.

• Revenue and profitability grew across all four business segments; the period included acquisitions and continued expansion in India and Southeast Asia.

Financial highlights

• Consolidated revenue from operations was Rs 3,435.01 crore; total income was Rs 3,443.44 crore, versus Rs 2,567.06 crore and Rs 2,574.80 crore, respectively, in the prior 15-month period.

• Consolidated EBITDA was Rs 172.17 crore, versus Rs 136.74 crore; net profit was Rs 89.72 crore, versus Rs 68.89 crore, in the prior 15-month period.

• Standalone revenue was Rs 2,918.18 crore, EBITDA Rs 165.22 crore, and net profit Rs 85.59 crore; fully diluted EPS was Rs 7.42.

Outlook and guidance

• Acquisitions in adjacent business-services areas were expected to support future growth and profitability; management emphasized bottom-line focus, margin expansion, and a healthy balance sheet.

• IPO net proceeds were planned for incremental working capital, debt repayment, acquisitions and strategic initiatives, and capital expenditure in IAM, IFM and GTS.

• FY17 CSR plans included education kits for 1,800 children, scholarships for 150 students, and school-enhancement support for 1,500 children across 10 schools.